MITI: Extensive utilisation of FTAs generates FOB worth RM41.03b in 1Q

24 Apr 2024

Malaysia is making extensive use of the free trade agreements (FTAs) inked with external economies, with a free on board (FOB) value of RM41.03 billion achieved during the first quarter (1Q) of this year, said the Ministry of Investment, Trade and Industry (MITI).

Its minister, Tengku Datuk Seri Zafrul Abdul Aziz, said during the period under review, a total of 85,062 certificates of origin (COs) were issued.

“The COs issued in 1Q is higher than COs issued in the same period of last year, whereby FOB generated last year stood at RM64.38 billion and COs were 82,997,” he told a press conference after announcing MITI’s 1Q report card here today.

The COs allow exporters to enjoy preferential treatment through lower or zero import duties.

Tengku Zafrul highlighted that the top three FTAs benefiting Malaysian exporters are the ASEAN Trade in Goods Agreement, ASEAN-China Free Trade Area and ASEAN-Korea Free Trade Area.

Elaborating further on MITI’s initiatives to enhance trade in the 1Q 2024, the minister said MITI’s agency, the Malaysia External Trade Development Corporation (MATRADE), spearheaded missions to the Arab Health 2024 and Gulfood 2024.

MITI’s trade section, on the other hand, spearheaded the resumption of Malaysia-Republic of Korea FTA which posed benefits for Malaysian exporters.

“We see potential exports of RM291 million, which include 14 companies and 1,077 business enquiries at the four-day Arab Health 2024 healthcare trade show. We joined Gulfood 2024, which has a potential export of RM1.49 billion.

“There were nine memoranda of understanding signed between Malaysian companies and global companies.

“The resumption of the Malaysia-Korea FTA will potentially increase the two countries’ trade and investments in emerging sectors including supply chains, digital economy, bioeconomy, green hydrogen and industrial alleviation,” he added.

Source: Bernama