Bilateral relations

Australia and Malaysia are longstanding partners and friends. In 2025 we will commemorate 70 years of Australia's diplomatic presence in Malaysia. Our relationship is based on mutual respect and our common interests, shared history and strong community links.

As mid-sized democracies and open trading nations in the Indo-Pacific region, we share a future in the region. We continue to support one another's aspirations for economic development, and shared interests in a region that is open, stable and prosperous.

In 2021, in recognition that we are a top 10 partner across most sectors, Australia and Malaysia elevated our bilateral relationship to a Comprehensive Strategic Partnership (CSP). The CSP is underpinned by three streams of cooperation: economic prosperity; society and technology; and defence and regional security. Under the CSP, Australia and Malaysia are expanding and modernising cooperation on trade and investment, education and cyber, as well as in new areas such as the digital economy and climate change.

There are deep connections between our peoples, including at the highest level of government. Our prime ministers have met on several occasions. Most recently, Australia's Prime Minister, the Hon Anthony Albanese MP, welcomed Malaysia's Prime Minister, YAB Dato' Seri Anwar bin Ibrahim to Melbourne in March 2024 for the 2nd Australia-Malaysia Annual Leaders’ Meeting. The leaders had earlier met in Jakarta in the margins of the East Asia Summit and the Asia-Pacific Economic Cooperation (APEC) Leaders' meeting in September 2023 and November 2023 respectively.

Leader level engagements are supported by regular ministerial visits and discussions which shape our robust and multifaceted cooperation. Australia's Deputy Prime Minister, the Hon Richard Marles MP visited Malaysia in August 2023 to convene the 3rd High Level Committee on Defence Cooperation with then Defence Minister Dato' Seri Mohamad Hasan. Australia's Foreign Minister, Senator the Honourable Penny Wong, visited Malaysia in February 2023 and June 2022.

In the other direction, Foreign Minister Senator the Hon Penny Wong hosted then Foreign Minister Senator Dato' Seri Diraja Dr Zambry Abdul Kadir in her hometown of Adelaide for the 5th Australia-Malaysia Annual Foreign Ministers' Meeting in May 2023. Former Malaysian ministers for Domestic Trade and Cost of Living and Deputy Law also recently visited Australia. Ministers regularly exchange views on emerging challenges via phone and in the margins of regional and multilateral meetings.

Trade and investment

Australia's economic and trade relationship with Malaysia is mature, comprehensive and complementary. In 2022-23, Malaysia was our second largest trading partner among ASEAN Member States and 8th largest partner overall. Australia is Malaysia's 10th largest trading partner. Total two-way trade in 2022 was valued at A$33.5 billion.

There are a number of established Australian retail brands in Malaysia including Aesop, Blackmores, Boost Juice, Cotton On, Harvey Norman, and King Living.

Both Malaysia and Australia want to see sustained regional economic growth, for our collective prosperity. To help unlock opportunities in two-way trade and investment, last year Australia launched Invested: Australia's Southeast Asia Economic Strategy to 2040 . The Strategy provides major opportunities for Australian business to diversify into Malaysian markets and to seize the vast economic opportunities our region presents. Australian Special Envoy to Southeast Asia Nicolas Moore's visited Malaysia in March and December 2023 to promote opportunities in key sectors outlined in the Strategy's Malaysia Action Plan including: agriculture and food; resources (including the energy transition); education and skills; and the digital economy.

Malaysia is home to some of Australia's major investments in Southeast Asia, including Cochlear, Lynas, NS BlueScope, Lendlease and, more recently, NextDC and AirTrunk. In the other direction, leading Malaysian businesses such as Gamuda, Gentari, OSK, Sime Darby, Petronas, as well as EPF and KWAP, are all significant investors in Australia.

Australia and Malaysia have prioritised cooperation on the digital economy to continue to modernise our economic relationship. We are strengthening our cooperation on cyber skills and security, promoting opportunities in TVET and digital skills, and encouraging two-way high-tech investments, such as the recently announced investment by Australia's NextDC in a Tier IV accredited data centre in Malaysia. Our Australia-Malaysia Tech Exchange agreement on digital collaboration commits both countries to enhancing digital cooperation, reducing barriers to digital trade, and promoting open digital trade rules.

We share a common interest in a free and open global trading system. 2023 marked the 10-year anniversary of the entry-into-force of the bilateral Malaysia-Australia Free Trade Agreement (MAFTA). Australia and Malaysia are parties to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and are working together to advance the Indo-Pacific Economic Framework (IPEF).

In March 2024, the Hon Prime Minister Albanese MP announced the appointment of Australian business leader Tony Lombardo as a business champion in line with Invested: Australia's Southeast Asia Economic Strategy to 2040, to facilitate greater commercial links between Australia and Malaysia.

Another practical application of Invested: Australia's Southeast Asia Economic Strategy to 2040was the visit of Senator the Hon Tim Ayres, Assistant Minister for Trade to Malaysia in April 2024, leading the first business mission as part of the Southeast Asia Business Exchange.

Malaysia trade/economic fact sheet [PDF].

Information on doing business in Malaysia

Education

Our relationship has long been grounded in education, with links stretching back to before Malaysia's independence in 1957. We estimate there are more than 300,000 Malaysian alumni of Australian education institutions.

Australian expertise in education and training is highly regarded in Malaysia. In 2022, Malaysia ranked 11th as a source country for international students overall, with over 15,000 full year enrolments. There is growing two-way interest in short courses, micro-credentials, fellowships and exchanges delivered in partnership with Malaysian and Australian institutions.

Four Australian universities have invested heavily in the development of Malaysia's higher education system with Monash, Swinburne, Curtin and Wollongong universities having campuses across Kuala Lumpur, Penang and Sarawak.

Malaysians formed the largest number of original Colombo Plan participants (4,000). Today, Malaysia is one of the most popular destinations for Australian undergraduate students to study and intern in Malaysia through the New Colombo Plan. We estimate around 7,000 Australians have studied in Malaysia in the past decade, including over 3,000 under the New Colombo Plan.

Agriculture and food security

Malaysia and Australia have a well-established and complementary agricultural trade partnership which benefits both countries. Australia is a reliable and major supplier to Malaysia of top quality agricultural and food products such as beef, wheat and diary products, supporting value-adding industries in Malaysia and benefiting global food security.

Australia and Malaysia work closely with respective bilateral agencies to advance existing policy dialogue on bilateral, regional and multilateral agri-trade interests, especially through the Malaysia-Australia Agricultural Cooperation Working Group (MAACWG) and MAFTA structures. Being a core element of our CSP, the biennial MAACWG (underpinned by the MOU on agricultural cooperation) and MAFTA SPS Working Group remain the key fora for strategic and operational bilateral agricultural dialogue. Malaysia and Australia continue to explore mutually beneficial opportunities to enhance regulatory practices, processes and systems in order to facilitate trade and food security through these structures.

Under the MAACWG, Malaysia and Australia seek to build and enhance networking and partnership on food security and food safety. Engagement with the private sector to explore market and investment opportunities in sectors such as food and agribusiness has also been a key area of focus under this body.

Defence and security

Our shared history in defence and security cooperation stretches back to World War II where Australian soldiers fought in defence of Malaya and the subsequent liberation of Sarawak, Sabah and Labuan. The contributions of World War II were followed by Australia's assistance in the Malayan Emergency (1950-1963) and in the Confrontation (1963-1966).

The defence relationship between Australia and Malaysia has continued to mature under the auspices of the Five Power Defence Arrangements (1971) and the Malaysia Australia Joint Defence Program (1992). In addition to numerous reciprocal secondments, courses and annual exercises, Malaysia hosts an ongoing Australian Defence Force presence at Royal Malaysian Air Force Base Butterworth. These long-standing links form the foundation of Australia and Malaysia's continuing deep defence cooperation.

Australia and Malaysia cooperate closely on security threats facing the region. There are close links between Australian and Malaysian police, security, counter-terrorism, civil maritime security, border and immigration agencies. Civil maritime security cooperation with the Malaysian Coast Guard focusses on border protection and countering people smuggling. Cooperation with the Royal Malaysian Customs Department focusses on border modernisation and countering the movement of prohibited, restricted and regulated goods.

2023 marked the 50th anniversary of the Australian Federal Police's liaison office in Malaysia. Malaysia was the first overseas post set up by the Australian Federal Police; a further testament to our close, historical ties. The current law enforcement relationship is targeting transnational and serious organised crime with a particular focus on narcotics smuggling, cybercrime, counter terrorism and people smuggling.

Innovation and science

Malaysia and Australia recognise the importance of innovation to create modern and dynamic economies. Malaysia is growing its supportive, flexible environment for emerging businesses and Australia has a world-class research system and outward-looking and creative businesses that are ready to collaborate internationally.

A current top priority is addressing irreversible climate change by decarbonising our economies - both governments have committed to net zero by 2050. We are sharing expertise on hydrogen, energy storage solutions, green shipping, carbon capture, utilisation and storage, and measurement, reporting and verification of emissions. Examples of practical cooperation include: a March 2023 visit to Australia by senior-level executives from some of Malaysia's top energy companies to explore opportunities to expand and deepen our cooperation on the green economy and the energy transition; Petronas Gentari's recent investment in Australia's renewable energy market; and a technical exchange on decarbonisation of Malaysia's maritime industry.

We continue to grow our health cooperation, including through collaboration between Malaysia's Ministry of Health and Ministry of Science, Innovation and Technology and Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) on vaccine R&D and genomic sequencing. There is also continued cooperation to address regional health challenges through the Australian Government's Partnerships for a Healthy Region initiative.

People connections

People links between Australia and Malaysia are the heart of our relationship, and we are committed to further strengthening these connections throughout society.

Australia and Malaysia are increasing parliamentary and institutional exchanges to share experiences and strengthen democracy and governance in our region. In February 2024 the Parliament of Victoria hosted a delegation from the Sabah State Legislative Assembly and in November 2023 Malaysia hosted a multi-party visit by a group of Australian Members of Parliament to discuss parliamentary process and democratic institutions. Australia's Ombudsman and eSafety Commissioner have also visited Malaysia recently.

We are strengthening cooperation on youth and sport, including through dialogue between sports agencies and coaches, and by participation in regional sports events at all levels. We are also exploring economic opportunities from increased youth and sports engagement – from work on the creative economy through to Australian investments in the sports industry in Malaysia.

Tourism has always played a strong role in our people connections. In 2023, over 175,000 Malaysian tourists travelled to Australia. Airlines are considering new routes to further support this industry.

Australia is home to more than 7.6 million migrants, including over 172,000 of Malaysian heritage. Australia is proud of the substantial and longstanding contributions of Malaysian diaspora in Australia, from Foreign Minister Wong to celebrity chefs Adam Liaw and Poh Ling Yeow.

2023 marked the 50th anniversary of the sister city relationship between George Town (Penang) and Adelaide (South Australia). To commemorate the milestone, HE the Hon Frances Adamson AC, Governor of South Australia visited Penang and Kuala Lumpur.