The Malaysia-Japan Free Trade Agreement (FTA) is a crucial milestone for both countries. Signed on July 23, 2020, it came into effect on January 1, 2021. As a professional, I would like to shed light on this landmark agreement and its impact.
The Malaysia-Japan FTA focuses on the liberalization of trade in goods, services, and investment. While Japan is the world`s third-largest economy, Malaysia is a major trading partner in Southeast Asia. This agreement is expected to enhance bilateral trade, create jobs, and bring economic benefits to both countries.
Under the FTA, tariffs will be reduced or eliminated on many products, including automobiles, auto parts, and electronics. This will make Japanese products more competitive in the Malaysian market, while Malaysian palm oil and rubber will become more affordable for Japanese consumers.
The FTA also covers intellectual property rights and provides a framework for cooperation in areas such as e-commerce, competition policy, and government procurement. This will provide a level of predictability and stability to businesses operating in both countries.
Moreover, the agreement aims to promote sustainable development and environmental protection. Both countries have committed to strengthen their cooperation in areas such as climate change, biodiversity conservation, and sustainable management of natural resources.
The Malaysia-Japan FTA is expected to have a positive impact on both economies. According to a joint statement by the two countries, the FTA is expected to increase Malaysia`s GDP by 1.2% and create 8,000 new jobs. It is also expected to increase Japanese exports to Malaysia by 4.5% and Malaysian exports to Japan by 11%.
In conclusion, the Malaysia-Japan Free Trade Agreement is a significant development in bilateral trade relations between the two countries. It is expected to enhance economic cooperation, create jobs, and bring benefits to businesses and consumers in both countries. As a professional, I believe that this agreement will help to increase the online visibility of Malaysian and Japanese businesses in each other`s markets, leading to increased trade and mutual benefits.