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Malaysia is important to New Zealand for strategic, political and economic reasons. 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 Malaysia during the “Malayan Emergency” (1948-1960) and the “Confrontation” period in the 1960s. These early connections have been built on and enhanced. The relationship is wide-ranging, friendly and significant to both countries. It is characterised by regular high-level contacts, a range of official dialogues (both formal and informal), growing business links as demonstrated by the growth in two-way trade, and strengthening people-to-people contacts. The Government has identified Malaysia as a key country in South East Asia with which New Zealand wishes to strengthen bilateral and regional ties under the Seriously Asia strategy.
Malaysia is a significant trading partner for New Zealand. Good growth in Malaysia’s imports and complementarity of the bilateral trade are positives in the trade relationship. Bilateral trade figures understate the value of commercial relations with Malaysia because a proportion of New Zealand exports enter Malaysia via Singapore. More significantly, the trade figures do not account for non-merchandise earnings in key areas. These include tourism (24,000 tourists in 2003, worth an estimated NZ$54 million) and education (1,100 students in 2003, estimate NZ$37.5 million), which are important components of the economic relationship.
A bilateral trade agreement between New Zealand and Malaysia entered into force on 1 January 1998. It aims to facilitate and promote trade and foster economic cooperation, and encourages enterprises to explore scope for increased trade and investment. It established a Joint Trade Committee (JTC) to discuss measures for expansion of trade in goods, services and investment.
About 20 New Zealand companies have major investments in Malaysia. These cover a wide variety of sectors, including food/food technology, telecommunications, electronics, software, information technology, and building products. Malaysian businesses have invested in the hotel and property sectors, forestry and food processing in New Zealand, as well as in a major consultancy group. Business Councils are established in both New Zealand and Malaysia.
New Zealand’s defence relations with Malaysia go back to the substantial deployments of New Zealand forces during the Emergency and Confrontation periods. Current defence relations are based on a bilateral programme of cooperation and assistance begun in 1964. They are administered through the Malaysia-New Zealand Defence Coordination Group (MNZDCG, 1996) and common membership of the Five Power Defence Arrangement (FPDA, 1971). New Zealand units of all three services participate annually in FPDA exercises that also involve Malaysia, Singapore, Australia and the United Kingdom. Bilateral exercises, exchanges and training programmes also contribute to one of New Zealand’s most substantial defence relationships.
Close ties in education are a feature of the bilateral relationship. Many New Zealand universities have well-established contacts and formal agreements with Malaysian education providers. A Chair of Malay Studies was established at Victoria University in 1996. An estimated 13,000 Malaysians have been educated in New Zealand, originally through the Colombo Plan, and many now occupy senior positions in business, the professions and government. Malaysia remains an important source of overseas students.
A bilateral Education Memorandum of Understanding (1996) provides a means to encourage and facilitate the development of contacts and cooperation between New Zealand and Malaysian government agencies, educational institutions and organisations. The latest Joint Working Group (JWG) meeting was held in Kuala Lumpur in May 2004. Since 2001, the New Zealand Qualifications Authority (NZQA) has had a memorandum of understanding with the Malaysian National Accreditation Board (LAN), which broadly states that all New Zealand qualifications approved by NZQA and the New Zealand Vice-Chancellors’ Committee (NZVCC) are recognised by LAN and vice versa. In 2003 the Malaysian Ministry of Education offered New Zealand a fellowship for postgraduate study or research in Malaysia for up to 12 months. This offer was taken up in 2004 by a Massey University academic who undertook joint research with a counterpart at the University of Malaya. Visits both ways by respective Education Ministers, most recently that by New Zealand’s Minister of Education, Hon Trevor Mallard, to Malaysia in May 2004, have helped to sustain this important relationship.
Under the Budget 2004 international education initiative, New Zealand began offering postgraduate scholarships for research at New Zealand institutions. In the initial round, four of the 20 scholarships were awarded to Malaysian students to study for PhDs commencing in 2005.
A bilateral Science and Technology Cooperation Arrangement (1994) between the Ministry of Research, Science and Technology (MoRST) and the Malaysian Ministry of Science, Technology and the Environment (MOST) provides an overarching framework for science and technology linkages. Biotechnology, advanced materials and environmental technology have been identified as priority areas for collaboration.
The number of Malaysian visitors to New Zealand is growing each year. Since 1 November 1987 a reciprocal visa waiver agreement has been in place that allows Malaysian and New Zealand visitors to visit each other’s country for up to three months without having to seek a visa. A Working Holiday Arrangement (concluded in 1996) allows 100 young Malaysians and New Zealanders per year to work in each other’s country for up to six months. An “Open Skies” Air Services Agreement dates back to 1998. Malaysian Airlines provides daily services between New Zealand and Malaysia.
New Zealand and Malaysia are parties to the following bilateral agreements:
