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WHAT ARE Free Trade Agreements (FTA)

Free Trade Agreements (FTAs) exist to reduce trade barriers (such as import quotas and tariffs) and increase trade of goods and services between member countries of the agreement. An FTA designates a trade bloc (a group of countries engaged in international trade together) as a free-trade area, as per the terms and conditions of the particular FTA.


  • Trade in goods: Exporters will enjoy cost savings from the elimination or reduction of customs duties and from trade-facilitation customs procedures and removal of cumbersome regulations.

  • Service providers: Improved market access for Malaysian commercial and professional services.

  • Consumers, manufacturers, importers and producers benefit from better value and higher quality of goods and services with a wider range of choices.

  • Easier market entry for businesses with more predictable terms of investment in FTA member countries

Malaysia’s Participation in FTAs

  • To gain better market access by addressing tariffs and non-tariff measures

  • To facilitate and promote the nation’s trade, investment and economic development

  • To enhance the competitiveness of Malaysian exporters

  • To build capacity in specific focus areas through technical cooperation and collaboration with FTA member countries

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FTAs signed with other countries