FTA reviews, upgrades critical to boost Malaysia’s economic agenda

4 Feb 2026, 2:33 PM
FTA reviews, upgrades critical to boost Malaysia’s economic agenda

KUALA LUMPUR, Feb 4 — The review and upgrade of negotiations of free trade agreements (FTAs) are a critical strategy to ensure Malaysia’s trade framework remains relevant in driving the nation’s economic and socio-economic agenda.

The Investment, Trade and Industry Ministry (MITI), in a reply published on the Parliament website today, said the review is a standard mechanism provided for and carried out periodically every five years after an FTA comes into force.

According to MITI, Malaysia has implemented 17 FTAs to date.

Of these, four FTAs have had their upgrade negotiations concluded and have been signed, namely the ASEAN Trade in Goods Agreement (ATIGA) in October 2025, the ASEAN-China FTA in October 2025 (second review), the ASEAN-Australia-New Zealand FTA in August 2023, and the Malaysia-Türkiye FTA signed in September 2022.

Three FTAs are currently under review and undergoing upgrade negotiations, namely the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the ASEAN-India Trade in Goods Agreement, and the ASEAN-Korea FTA.

Five FTAs are at the planning or preliminary study stage for review, namely the Malaysia–Pakistan Comprehensive Economic Partnership Agreement, the Malaysia-Australia FTA, the Malaysia-New Zealand FTA, the Malaysia-India Comprehensive Economic Cooperation Agreement, and the Regional Comprehensive Economic Partnership (RCEP).

The ministry was responding to a question from Lim Guan Eng (Harapan-Bagan), who sought to know the list of FTAs that would be reviewed or reassessed and the extent to which these agreements may not benefit or disadvantage the country.

MITI said the move is important to ensure each FTA delivers tangible economic impact to Malaysia, especially in new areas and in line with current geo-economic developments.

“This includes strengthening the participation of local micro, small and medium enterprises (MSMEs) in global supply chains, addressing non-tariff barriers, and promoting the sustainability, inclusivity and digital economy agenda,” MITI added.

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