AfricaAsia NorthAsia South and SoutheastBangladeshBruneiBurma (Myanmar)CambodiaIndiaIndonesiaLaosMalaysiaMaldivesMyanmarNepalPakistanPhilippinesSingaporeSri LankaThailandTimor LesteViet NamAustraliaEuropeLatin AmericaMiddle EastNorth AmericaPacific
Find MFAT's information paper on a country or territory. (We don't have information papers on all countries.)
New Zealand has strong official, business and individual links with Malaysia, which is an influential member of the Association of South East Asian Nations (ASEAN). It is one of the Southeast Asian countries best known to New Zealanders. There is a history of close and friendly links, stemming originally from Commonwealth ties, the aid and education-related Colombo Plan and shared security concerns.
Two-way trade between New Zealand and Malaysia is significant, valued at around NZ$2.93 billion for the year to December 2008. Malaysia is New Zealand's second largest trade partner in ASEAN and our eighth largest export market globally (Statistics New Zealand provisional data for the year ending December 2008). The bulk of New Zealand exports to Malaysia are agriculture-related, with dairy products (mainly milk powder) accounting for close to 45 percent. Southbound trade has also grown rapidly. Malaysia now ranks as New Zealand’s 7th largest source of imports, with crude oil and electronic products (mainly televisions and computers) representing just under 40 percent of imports from Malaysia. Malaysia continues to enjoy the surplus of trade it first gained in 1998. Two-way investment is currently modest, although New Zealand service suppliers are increasingly tapping opportunities and establishing relationships with Malaysian partners. In addition to the recently signed Agreement establishing the ASEAN-NZ-Australia Free Trade Area (AANZFTA), New Zealand and Malaysia are also negotiating a bilateral Free Trade Agreement (FTA). Both these processes will provide a further basis for growth in goods and services trade and investment.
New Zealand and Malaysia are partners in the Five Power Defence Arrangement (FPDA). The FPDA builds on the defence links New Zealand established with Malaysia and Singapore during the Malayan emergency and “Confrontation” with Indonesia in the early/mid-1960s.
Malaysia and New Zealand share close education links. Many New Zealand universities have well-established contacts and formal agreements with Malaysian education providers. Malaysia has been one of New Zealand’s largest sources of overseas university students, with many thousands of Malaysians educated in New Zealand since 1950. In the 2008 calendar year there were 2,147 fee-paying students from Malaysia enrolled with NZ education providers, and around 160 at PhD level.
Official Name - Federation of Malaysia
Land Area - 329,758 sq km
Population - 27,730,000 (Sep 2008 estimate)
(51% Malay, 24% Chinese, 11%
indigenous, 7% Indian, 7% others)
Capital City - Kuala Lumpur (Putrajaya is the “administrative
centre”)
Religion - Islam (and also Buddhism, Daoism, Hinduism, Sikhism, Christianity)
Official Language - Malay or Malaysian (Bahasa Malaysia),
English, Mandarin, Cantonese, Hokkien, Tamil
Currency - Ringgit (RM)
Exchange Rate - NZ$1 = 2.10 (April 2009)
Political system - Federal constitutional monarchy
National government - Barisan Nasional (National Front) coalition
National legislature - Westminster system
Last election - March 2008
Next election due - At the latest by March 2013
Head of State - The 13th Yang di-Pertuan Agong of Malaysia, His Majesty the Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin
Head of Government - Prime Minister: Dato’ Sri Najib Tun Razak
Key Ministers:
Deputy PM: Tan Sri Muhyiddin Yassin
Foreign Minister: Datuk Anifah Aman
Finance Minister: Dato’ Sri Najib Tun Razak
Defence Minister: Dato' Seri Dr Ahmad Zahid bin Hamidi
Trade Minister: Dato’ Mustapa Mohamed
Key Opposition Figures:
Dato’ Seri Anwar Ibrahim (Leader of Parti Keadilan Rakyat and official opposition leader)
Lim Kit Siang (DAP leader)
Abdul Hadi Awang (PAS leader)
Main Political Parties:
Barisan Nasional ruling coalition
United Malays National Organisation (UMNO)
Malaysian Chinese Association (MCA)
Malaysian Indian Congress (MIC)
10 other minor partners.
Opposition: Parti Keadilan Rakyat (PKR),
Democratic Action Party (DAP),
Parti Islam SeMalaysia (PAS),
PKR, DAP and PAS have formed a loose coalition – the Pakatan Rakyat – since the March 2008 general elections
GDP - US$186.5 billion (2007)
GDP (PPP) - US$361.2 billion (2007)
GDP per capita - US$14,500 (2007, PPP estimates)
Real GDP growth - 2007: 6.3%, 2006: 5.8%, 2005: 5.3% - Exports (goods) fob - US$176.4 billion (2007)
Imports (goods) fob - US$139.1 billion (2007)
Main exports - Petroleum and liquefied natural gas; electronic
and electrical machinery; chemicals and
chemical products; palm oil
Current account - Surplus of US$28.9 billion (2007)
Gross external debt - US$53 billion (2007)
Inflation (consumer price) average - 2007: 2.4%, 2006: 3.1%, 2005: 3.3%
Unemployment (average) - 2007: 3.2%, 2006: 3.3%, 2005: 3.6%
NZ Goods Exports (FOB) NZ$948.9 million
NZ Top Five Goods Exported - Milk and cream: $415m,
Baking products: $74m,
Sheep and goat meat: $53m,
Butter: $44m,
Casein and casein derivatives: $32m
Main Services Exports -
[Source: NZTE] Education: NZ$80m (over 1,931 students in 2007),
Tourism: NZ$55m (nearly 20,000 visitors in 2007),
Consultancy services: NZ$40m
NZ Goods Imports (CIF) - NZ$1.97 billion
NZ Top Five Imports From Malaysia - Petroleum oils crude: $475m,
Heavy machinery: $297m,
Television Receivers: $173m,
Oilcake: $166m,
Computers: $124m
Source: Statistics NZ (December 2006) except where stated.
top of page
The earliest present-day inhabitants of Malaysia are the Orang Asli (“Original People”) on the Peninsula, and the Penan and Rungus of Sarawak and Sabah on the island of Borneo. Their ancestors probably arrived in Malaysia over 5000 years ago. About 2000 years ago, Malay settlers began moving into the region from the north. Until recently, Malays in the area shared a common culture but remained politically fragmented. The Peninsular Malays are part of the same family as the Malays of Sumatra, across the Malacca Strait. The closely-related national languages of Malaysia and Indonesia are both derived from the Malay dialect of the 17th/18th-century Sultanate of Johore, spoken on both sides of the Malacca Strait and used as a lingua franca by traders throughout the archipelago.
Regular trading contacts with India and China began around the first century BC and with it brought the Hindu and Buddhist religions. During this time Malaysia was mostly under the sway of either Sumatran or Javanese rulers. Islam came later with Indian and Arab traders in about the 14th century; Malays adopted Islam rapidly. Around this time the Malay kingdom of Melaka spanned both sides of the Malacca Strait. Most present-day Malay states can trace their origins to this sultanate, which is marked as the classical age of Malay culture.
The Portuguese, Dutch and Spanish arrived and exerted their influence on the region from the beginning of the 16th century. The British came in larger numbers towards the end of the 18th century; it was through their influence that the process of political integration began. In 1824 the Malay region was divided into British (Malay Peninsula) and Dutch (Indonesia) spheres of influence. On Borneo, the British had also gained the protectorates of Sarawak and Sabah from the ancient Sultanate of Brunei.
The invasion and occupation of Malaya, British Borneo and Singapore in late 1941 by Japan marked the turning-point of colonialism in the region. After the defeat of Japan in 1945 Britain resumed authority, but committed itself to preparing the way for Malaya’s independence. The first federal elections took place in 1953, and in 1957 the Federation of Malaya became independent. Malaysia took form in 1963 when Sarawak, Sabah and Singapore joined with the Federation of Malaya. (Singapore left the Federation in 1965.) A political alliance between the UMNO, MCA and MIC political parties won the first elections and ever since they have been key members in the ruling Barisan Nasional coalition.
Between 1948 and 1960, Malaya resisted a communist insurgency with assistance from other Commonwealth countries (referred to as the “Emergency”). In the mid-1960s Malaysia faced “Confrontation”: armed attacks by Indonesian forces on the Peninsula and across the land frontiers of Sabah and Sarawak. These ceased after an agreement was signed in 1966. In the same year Philippines formally recognised Malaysia.
The Barisan Nasional (BN) coalition has been in government since independence. The United Malays National Organisation (UMNO) forms the backbone of the coalition. By convention, the President and Deputy President of UMNO are Prime Minister and Deputy Prime Minister respectively.
The most recent Malaysian general elections took place on 8 March 2008. The BN won a comfortable parliamentary majority. However, it suffered its worst electoral showing since independence; the BN saw its control of the federal parliament slashed from more than 90% of seats to 63%. Such an outcome was not predicted in advance, even by opposition parties, which reached a last-minute agreement not to contest against each other in individual constituencies.
The opposition's seats in the 222 member federal parliament increased from 20 to 82. More significantly, at the state level, the opposition won control of five of Malaysia's 13 states, including the two most industrialised and wealthiest states of Penang and Selangor, as well as the rural Malay "heartland states" of Kedah and Kelantan. The government has since won back control of Perak.
Robust debate on the future of Malaysian politics has followed. The balance of opinion has concluded (among other messages) that the results reflected the growing sophistication of the Malaysian electorate. The influence of alternative media has been noted. Many analysts believe these elections could initiate an eventual shift to a ‘two-party’ (or ‘two coalition’) system in Malaysia.
Prime Minister Najib was sworn in on 3 April 2009, after his predecessor, Abdullah Ahmad Badawi, stood down almost four years before the next general elections are due. Abdullah's resignation, announced in October 2008, followed significant pressure on the government to demonstrate it can respond positively to the electorate’s desire for an open, effective, responsive and accountable government that addresses the needs of all Malaysians.
Malaysia, a strong performer in the early and mid-1990s, was hit hard by the regional economic turmoil in 1997 and 1998. During the crisis its economy contracted by 7.4 percent while the Ringgit dropped by over 40 percent before being temporarily pegged to the US dollar. The economy recovered strongly, however, on the back of increased government spending and a robust export sector. Between 2001 and 2007 annual growth averaged 5.9 percent (2007: 6.3 percent). Private consumption and investment, particularly in the services sector, also emerged as key drivers of economic growth.
While holding up well until the last quarter of 2008, the global financial crisis has now started to impact on Malaysia's economy. Malaysia has a very trade-focussed economy, with the combined value of exports and imports totalling well over the total of GDP. As Malaysia's major exports are mainly consumer orientated manufactured goods or parts (especially electrical and electronic products), oil and commodities, the recession in several of its major markets has started to hit Malaysia hard. Malaysia’s exports were down in each of the last three months of 2008, with the overall year-on-year decline in the fourth quarter topping US$5.8 billion (or -7.5 percent). This trend has continued in early 2009, with exports down a further 28 percent (US$5.5 billion) year-on-year in January and 15.9 percent in February. Malaysia's central bank recently stated it expects exports to tumble by a quarter this year.
Economic activity in several other sectors of the economy also stagnated or declined in the last quarter of 2008. As a consequence, pressures on employment have begun to emerge, and unemployment is expected to climb. Given the twin effects of lower export earnings and declining household incomes, there is now broad agreement that Malaysia's economy will contract in 2009.
In response, the Government has announced two stimulus packages – the first in November 2008 and the second in March 2009 – intended to cushion the impact of the current global economic downturn. The second package is, to date, one of the largest responses (in GDP percentage terms) to the economic crisis by any country, totalling NZ$31 billion over two years. Key initiatives include new fiscal spending on various infrastructure projects, public and private sector job creation and training projects, and tax cuts and credits. Despite their size, the combined stimulus packages may still not be sufficient to prevent a recession this year.
The Government has also signalled its ongoing commitment to an open economy and improving Malaysia’s ‘competitiveness and attractiveness’ for foreign investors as part of its policy response.
Malaysia’s overarching economic objective is to achieve developed country status by the year 2020. To realise this goal, however, the economy will need to grow by over 7 percent per annum. The further development of the services sector, already on a strong growth trajectory and accounting for over half of economic activity in Malaysia, has been identified as a key pillar in realising this ambition and moving the economy up the value chain. Sectors such as Islamic finance, ICT, tourism, education and training, biotechnology, multimedia and professional services have been singled out as areas of focus in Malaysia's strategic plans (e.g. the Ninth Malaysian Plan and Third Industrial Master Plan).
In addition to services, the Government’s economic blueprints focus on addressing income distribution, developing the agriculture sector and improving social services, while also retaining a focus on affirmative action policies for native Malays.
Malaysia attaches high priority to the security and stability of South East Asia and in particular to its relations with its ASEAN partners. To this end Malaysia has played an active and supportive role in ASEAN.
Under former Prime Minister, Tun Dr Mahathir, who led Malaysia from 1981-2003, Malaysia looked increasingly outward beyond South East Asia to its relations with Islamic states and also with the Non-Aligned Movement (NAM). Malaysia held the Chair of the NAM until September 2006 and the Organisation of the Islamic Conference (OIC) until early 2008. Malaysia takes part in the G15, a group of developing countries interested in promoting greater South-South economic cooperation (it hosted the inaugural G15 meeting in 1990). It is also active in United Nations processes (Malaysia was a member of the Security Council in 1999 -2000) and the Commonwealth. Foreign Minister Rais Yatim is currently Chair of the Commonwealth Ministerial Action Group.
Malaysia was Chair of the ASEAN Standing Committee in 2005/06. In this capacity it hosted the 2005 ASEAN Summits in Kuala Lumpur in December 2005 and the first East Asia Summit (EAS), bringing together the leaders of ASEAN, Australia, China, India, Japan, New Zealand and South Korea. The EAS is the first significant addition to the framework of institutional architecture in the region since the establishment of ASEAN+3 in 1997, and one of only two forums (APEC being the other) where Heads of Government from the broader Asia region and Australasia can meet on a regular basis. Heads of Government will meet at the fourth EAS summit in Pattaya, Thailand in April 2009.
Malaysia has ratified five of the twenty-five UN civil, political, economic and social rights conventions, including two of the six core human rights treaties. They are: the convention on the rights of the child (with reservations); the convention on the elimination of all forms of discrimination against women (also with reservations); the convention on the prevention and punishment of the crime of genocide; the convention on the nationality of married women (with reservations) and; the international convention against apartheid in sports.
In 1999 the Malaysian Government established the Malaysia Human Rights Commission (Suhakam). Its area of work covers improving public awareness of human rights issues, providing advice to government, making recommendations on treaties and dealing with complaints.
Malaysia is important to New Zealand for strategic, political and economic reasons. It is one of the Southeast Asian countries best known to New Zealanders. There is a history of close and friendly links, stemming originally from Commonwealth ties, the Colombo Plan and shared security concerns. New Zealand deployed troops in the country during the “Malayan Emergency” (1948-1960), and during the “Confrontation” period in the 1960s. These early connections have been built on and enhanced. The relationship is friendly, has many aspects, and is significant to New Zealand. Later in 2009 Malaysia will assume the ASEAN dialogue coordinator role for New Zealand.
Malaysia is New Zealand’s seventh largest trading partner (by value) and eighth largest export market. Both countries face a similar challenge to move economic activity up the value chain. To this end, New Zealand firms are seeking to develop higher value added services partnerships in education and training, sustainable agricultural technology, biotechnology research, specialised ICT applications, creative content industries, and sustainable tourism growth.
Bilateral trade with Malaysia reached NZ$2.93 billion for the year ending December 2008. New Zealand’s merchandise exports to Malaysia were NZ$949 million (previous 12 months: $651.3m). Over the same period New Zealand’s merchandise imports from Malaysia were NZ$1.99 billion (previous 12 months: $1.13 billion).
Milk and cream (NZ$415 million) remained New Zealand’s largest export to Malaysia in the year to June 2008. Other key exports included baking products ($74m), butter ($44m), and sheep and goat meat ($53m).
Petroleum products continue to represent a significant share (about one quarter) of imports from Malaysia. In the December 2008 year, crude oil totalled NZ$475 million, palm oil products were NZ$166 million, television receivers ($173m) and computers ($124m).
These figures understate the value of our commercial relations with Malaysia, as a proportion of New Zealand exports enter Malaysia via Singapore. More significantly, they do not recognise the significant activities of New Zealand services suppliers in Malaysia. NZTE sources noted Malaysian tourists to New Zealand in 2007 numbered nearly 20,000 which is worth around $55 million to the New Zealand economy. The Ministry of Education estimates that Malaysian tertiary students studying in New Zealand add about $80 million to our economy. New Zealand consultants are also active in providing services in the engineering, biotechnology, software and ICT, management and education/training sectors.
Investment is another aspect of the New Zealand/Malaysian economic relationship. About 20 New Zealand companies have significant investments in Malaysia covering a wide variety of sectors, including food/food technology, ICT and telecommunications, electronics, software, information technology, and building products. Malaysian businesses have invested in the hotel and property sectors, forestry, fisheries, and food processing in New Zealand as well as in a major consultancy group. Business Councils are established in New Zealand and Malaysia.
The trading relationship is underpinned by cooperation at the official level. The Agreement establishing the ASEAN-NZ-Australia Free Trade Area (AANZFTA) signed in February 2009, will facilitate bilateral trade and investment and will focus further attention on areas of potential commercial opportunity. Bilateral Free Trade Agreement negotiations, launched in March 2005, were substantively concluded on 30 May 2008. The FTA will provide for improved market access and greater certainty for New Zealand goods and services exporters and investors, and reaffirms Malaysia and New Zealand's commitment to trade liberalisation. Following legal and technical verification of the texts and the associated schedules and the completion of New Zealand and Malaysia's domestic approval processes, the FTA can be signed. Upon signature, full details of the FTA will be made publicly available.
New Zealand’s defence relationship with Malaysia goes back to initial, very substantial, deployments during the “Emergency” and “Confrontation” in the 1950s and 1960s. Today its foundations are in common membership of the Five-Power Defence Arrangements – FPDA (1971) – and the bilateral programme of co-operation and assistance begun in 1964. The latter is administered through the Malaysia-New Zealand Defence Co-ordination Group (MNZDCG), which was formed and held its first meeting in 1996.
New Zealand units of all three services participate annually in FPDA exercises (involving New Zealand, Malaysia, Singapore, Australia and the United Kingdom). In addition to FPDA activities there are bilateral exercises, exchanges and training programmes contributing to one of New Zealand’s most substantial defence relationships.
Our two countries’ defence forces also work well together in multinational peace-keeping operations, most recently in Timor-Leste and in Lebanon. A Malaysian Defence Adviser was accredited to New Zealand and arrived at the High Commission in Wellington in 2008.
Malaysia and New Zealand share close education links, with many New Zealand universities having well established contacts and formal agreements with Malaysian education providers. The New Zealand private sector also has education links with Malaysia and then Prime Minister Clark, together with Malaysian Minister of Education Dato’ Seri Hishammuddin, visited one successful project initiated by a New Zealand education consortium in Perak in 2007. Malaysia is an important source of overseas students. Malaysian students contribute an estimated NZ$80 million to the New Zealand economy. In the 2008 calendar year there were a total of 2,147 fee-paying students from Malaysia enrolled with NZ education providers and about 160 at PhD level.
Many thousands of Malaysians have been educated in New Zealand, originally through the Colombo Plan, and many now occupy senior positions in business, the professions and government administration. A Chair of Malay Studies was established at Victoria University in 1996. A bilateral Education Memorandum of Understanding (1996) provides a means for policy cooperation between our education authorities. NZQA has, since 2001, had an MOU with the Malaysian National Accreditation Board (LAN). The Ministry of Education has a regional Education Counsellor based in the New Zealand High Commission in Kuala Lumpur. In 2008 there were a total of 162 Malaysian PhD students enrolled in New Zealand universities, up from 90 in 2006. These students have domestic status, so are additional to the fee-paying figures stated above.
The bilateral Science and Technology Cooperation Arrangement (1994) allows for cooperation between our scientists and research institutes. Dr Anis Rahman (AgResearch) has been appointed by MORST as a coordinator for the Malaysia relationship. Policy dialogue between MORST and MoSTE also takes place under the auspices of the Arrangement.
The Arrangement also provides commercial benefits. The visit of the Hon Maurice Williamson, then Minister of Research, Science and Technology, to Malaysia in 1997 with a delegation of scientists, resulted in the development of joint ventures and projects between New Zealand Crown Research Institutes (CRIs), universities, private sector and Malaysian entities. Since 2000, Malaysian scientists have conducted Antarctic research at Scott Base, in cooperation with New Zealand. Momentum was injected into biofuel and biotechnology opportunities during the Prime Minister’s visit to Malaysia in 2007.
New Zealand and Malaysia also maintain close cooperation in science and technology through the APEC process. The 2004 APEC Science and Technology meeting was held in Christchurch. A number of Malaysian officials, scientists and private sector businesses attended the meeting. Last August Malaysia, as chair of ASEAN, hosted the first ASEAN Science, Technology and Innovation Ministerial summit. New Zealand was represented by a senior official from MORST at this meeting.
19,350 Malaysians visited New Zealand in the year to February 2009 This contributes an estimated NZ$55 million to the New Zealand economy.
A Working Holiday Arrangement (concluded in 1996 to allow 100 places in each direction) was recently expanded to allow for up to 1100 young Malaysians each year to live and work in New Zealand for up to six months. An “Open Skies” Air Services Agreement dates back to 1998. Malaysian Airlines provides five non-stop return services each week between Auckland and Kuala Lumpur.
New Zealand and Malaysia are party to the following bilateral agreements:
High-level visits from and to Malaysia, have cemented the bilateral relationship between New Zealand and Malaysia. Most recently, former Prime Minister Rt Hon Helen Clark visited Malaysia in July 2007. Previous high level visits include the visit to Malaysia by Rt Hon Jenny Shipley (then Prime Minister) in November 1998 for the APEC Leaders’ Meeting. Other visits of then Ministers to Malaysia include: the Minister for Trade Negotiations Hon Jim Sutton who visited Malaysia in June 2003 and the Minister for Defence Hon Mark Burton, who attended a Five Power Defence Arrangement Ministerial meeting in Malaysia also in June 2003. Then Conservation Minister Hon Chris Carter visited Malaysia in February 2004, for the UN COP7 Biodiversity meeting and then Education Minister Hon Trevor Mallard visited Malaysia in May 2004. The former Speaker of the House, Rt Hon Jonathan Hunt, visited Malaysia in early 2004 and again for the Sarawak New Zealand Alumni Conference in July 2004. The previous Governor General, Dame Silvia Cartwright, undertook a State Visit to Malaysia in September 2004. Former Prime Minister Rt Hon Helen Clark and then Foreign Minister Hon Winston Peters visited Malaysia in December 2005 to take part in the inaugural East Asia Summit (EAS). Minister Peters visited again in July 2006 for the ASEAN PMC and ARF meetings. Former Trade Minister Hon Phil Goff visited Malaysia in August 2006 for the ASEAN-CER Economic Ministers meetings. The then Minister of Forestry Hon Jim Anderton visiting Kuala Lumpur in June 2008 to discuss forestry issues with his counterpart, Datuk Peter Chin, Minister of Plantation Industries and Commodities.
From Malaysia, His Excellency Raja Dr Nazrin Shah, Crown Prince of the State of Perak, visited New Zealand to deliver Victoria University’s annual Halim Saad lecture in October 2008. Former Prime Minister Dato’ Seri Abdullah Ahmad Badawi visited New Zealand in March/April 2005, accompanied by the Minister of International Trade and Industry Dato’ Seri Rafidah Aziz, the Minister of Foreign Affairs Datuk Seri Syed Hamid Albar, the Minister of Agriculture and Agro-Based Industry Tan Sri Muhyiddin and the Minister of Plantation and Industry Datuk Peter Chin Fah Kui. Following this high level visit, a delegation was led by the Minister of Plantation and Industry looking at forestry initiatives in New Zealand. Agriculture Minister Muhyiddin visited New Zealand in April 2007, and Rural and Regional Development Minister Syamsuddin in November 2007. The former Prime Minister, Dr Mahathir, visited New Zealand in 1996.
The Safe Travel website provides a travel advisory for travellers to Malaysia [external link].
