KUALA LUMPUR (WAM)
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Zafrul Aziz, Minister of Investment, Trade and Industry for Malaysia, have confirmed the conclusion of negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) between the two nations that seeks to eliminate or lower tariffs, reduce barriers to trade, promote private-sector collaboration and establish new pathways for investment.
It builds on deepening economic ties between two nations, which in 2023 saw bilateral non-oil trade exceed $4.9 billion. In the first half of 2024, non-oil trade reached $2.5 billion, a 7 percent increase compared to the same period in 2023.
Malaysia currently ranks as the UAE’s 12th-largest Asian trading partner, and fifth among ASEAN countries, while the UAE is Malaysia’s second-largest trade partner in the Arab world, accounting for 32 percent of Malaysia’s trade with Arab nations.
The UAE is also the destination for 40 percent Malaysia’s merchandise exports to the Arab world.
Al Zeyoudi stressed that continued progress made by the UAE in concluding Comprehensive Economic Partnership Agreements with promising economies worldwide reflects the forward-looking vision of the nation’s wise leadership and its directives to build strategic partnerships that increase trade and investment flows and stimulate sustainable economic growth.
He added that the latest milestone reflects productive relations that have developed between the UAE and Malaysia – and Southeast Asia as a whole. “Malaysia is a long-standing and trusted trade partner that, like the UAE, is seeking to enhance its economic prospects through increased trade and targeted investment.
As the fourth-largest economy in the Southeast Asia region, and with economic growth in 2024 set to outstrip forecasts, Malaysia offers substantial opportunity for our exporters, industrialists and business leaders, especially in high-growth sectors such as energy, logistics, manufacturing and financial services.”
Zafrul Aziz stated, "As Malaysia's first, historic Free Trade Agreement with a GCC nation, I am confident the CEPA will enhance trade, boost investments, and deepen the Malaysia-UAE economic ties. We view the UAE as a strategic hub for Malaysian exporters to access markets in the Middle East, North Africa and certain parts of Europe, particularly as Malaysian exports such as electrical and electronics, machineries, jewellery, prepared foodstuff, tropical fruits, palm oil, cocoa and rubber would immediately enjoy zero import duties when this Agreement comes into force.
“The CEPA is also a strategic lever for UAE-based companies to optimise Malaysia as a gateway into the ASEAN market, which in turn, will provide tremendous opportunities for our businesses – particularly the SMEs – through integration into regional supply chains, capacity-building and knowledge sharing via the UAE investors. MITI looks forward to working closely with Dr. Thani bin Ahmed Al Zeyoudi to ensure the swift ratification an implementation of the CEPA,” continued Zafrul Aziz.
The UAE’s CEPA programme aims to increase the country’s non-oil foreign trade to AED4 trillion by expanding relations with strategically important markets around the world.
It has seen the UAE strengthen ties with the ASEAN bloc, with Comprehensive Economic Partnership Agreements with Indonesia and Cambodia now in operation, each helping to accelerate bilateral trade.