Malaysia-New Zealand trade set to rise by 50% in next five years, says Zahid

The Star

11 hours ago

AUCKLAND: Trade between Malaysia and New Zealand is expected to increase by 50% in the next five years, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister said forging closer bi-lateral and trade ties with New Zealand is more crucial now in light of the changing global landscape.
"Our shared target, to increase Malaysia-New Zealand trade by 50% by 2030 is not only achievable but necessary in a world where regional resilience matters more than ever," he said during the Asean–New Zealand Business Council Engagement session here on Monday (July 14).
He noted that trade agreements such as the
Malaysia–New Zealand Free Trade Agreement (MNZFTA) and Asean, Australia, New Zealand Free Trade Area (AANZFTA) served as a catalyst for boosting trade between the two nations.
"In 2024, bilateral trade between Malaysia and New Zealand reached RM10.72bil (US$2.34bil),
making Malaysia New Zealand's second-largest trade partner within Asean.
"These numbers aren't just statistics, they reflect confidence, connectivity and commitment between our economies," he said.
He added that the MNZFTA had also enabled 99.8% of New Zealand exports to enter Malaysia duty-free.
He said that AANZFTA had also driven up exports to Asean by nearly 60% since 2010.
"The AANZFTA is working well and should continue to be strengthened.
"Malaysia has also doubled its usage of AANZFTA benefits, increasing from RM5.8bil in 2016 to RM12.9bil in 2023," he added.
With the recent upgrade to AANZFTA and the momentum created through the Regional Comprehensive Economic Partnership (RCEP), Ahmad Zahid said that both nations are better positioned to build a fair, modern and sustainable trade architecture.
AANZFTA is a trade agreement between Asean member states, Australia and New Zealand, which came into force in 2010.
The upgrade of AANZFTA came into force on April 21 this year to further reduce export barriers while boosting trade in the region.
Ahmad Zahid said that Malaysia is looking at three key areas to deepen trade collaboration between the two nations.
These areas, he added, were sustainability, digital transformation, and food security.
"New Zealand, with 87% of its electricity sourced from renewables, is a leader in green transition.
"This aligns closely with Malaysia's commitment to achieving net-zero emissions by 2050.
"There is vast space for cooperation in clean energy, carbon markets, and low-carbon technology," he said.
On Malaysia's side, Ahmad Zahid said the nation's MyDigital agenda complements New Zealand's strengths in information and communications technology (ICT), offering opportunities for joint ventures in AI, smart cities, cybersecurity, and digital trade governance.
"The agri-food sector also offers enormous potential.
"As Asean's middle class grows and consumption patterns shift, New Zealand's reputation for quality, traceability, and innovation fits well with Malaysia's strengths in halal certification and regional logistics," he added.
Ahmad Zahid, who is also Rural and Regional Development Minister, noted that it was crucial that the economic partnership between Malaysia and New Zealand continue to be grounded in human connection.
"Thousands of Malaysian students have studied in New Zealand and tourism between our nations continues to thrive.
"These exchanges are not just heartwarming, they are the glue that holds economic ties together, builds trust and creates long-term understanding," he added.
On economic growth between New Zealand and Asean, Ahmad Zahid said it must include the micro, medium and small enterprises (MSMEs) to ensure they are not left behind.
To achieve this, he said it must entail improving
access to trade finance, digital tools, and capacity building between Asean member states and New Zealand.