KUALA LUMPUR: The New Zealand - Malaysia Free Trade Agreement (FTA) signed in October 2009, is set to come into full force in January next year.
Malaysia is currently New Zealand's seventh most important export destination with milk powder, malt extract, butter and dairy spreads and sheep meat making up over 50 per cent of the export.
Malaysia is also New Zealand's seventh largest source of imports, comprising largely crude petroleum oil and electronic products.
“Malaysia’s large and growing population of more than 28 million people presents ample opportunities for additional trade, investment and other economic linkages," said New Zealand High Commissioner to Malaysia Dr John Subritzky.
Subritzky was speaking during the launch of New Zealand dairy manufacturer Fonterra's Global Business Services (GBS) Centre launch, earlier today.
"From 2009 alone, we have invested some US$3 billion in trade into the Malaysian economy and we foresee this increasing on the back of the full FTA, which will see 99 per cent of the tariff becoming zero-rated.
"In addition, Malaysia holds a strong influence within the Asean group of nations and its role as a business hub is fast gaining momentum. It is our hope that more New Zealand businesses will take advantage of the duty savings and many 'first mover' advantages in key area accorded through the agreement and good ties."
The FTA, signed in 2009 will liberalise and facilitate trade in goods, services and investment between the new nations.
It contains measures to improve business flows and promote cooperation in a broad range of economic areas of mutual interest and is supported by agreements on trade and the environment and trade and labour matters.
Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed alongside Fonterra's global chief executive officer Theo Spierings had officially launched the GBS Asia centre earlier.