Malaysia | Trade

Ministries and Department Supervising Trade

In Malaysia, the trading sector is primanly regulated and supervised by.

a)Ministry of International Trade and Industry (MITI), which is primanly responsible for the regulation of the  manufactuning sector and issuance of the import and export licences: and  b)Ministry of Domestic Trade, Co-operatives and Consumerism, which is responsible in promoting the

opment of a viable, competitive and sustainable domestic economy, specifically within the distributive tradeEe. trn are assisted by various agencies, such as the Malaysian Investment Development Authority, Malaysia  nal Trade Development Corporation, Malaysia Productivity Corporation and SME Corporation MalaysiaB. Brief Introduction of Trade Laws and Regulations and Trade Management

Strategically located in the heart of the Southeast Asia, Malaysia offers Chinese investors a wide spectrummanufacturing and service-based operations, with multinational corporations from more than 40 countries invested

in over 5,000 companies in such sectors  MITI is the Ministry assigned with responsibility to plan, formulate and implement policies on industrialdevelopment, intemational trade and investment to encourage foreign ivestment in Malaysia. The trade policyof Malaysia is primanly in favour of free trade with appropriate control and protective measures for selectedndustries In recognition of the importance of the roles played by foreign investors in Malaysla's current andpossibly future economic growth and development, trade and trade-related policy have constantly been recognisedas ntegral parts of the broad development policy of Malaysia

ally. the signing of the 5 Years Co-Operation Programme, Renminbi Qualified Foreign Institutionalnvestor Programme and ASEAN-China Free Trade Agreement has enhanced China's and Malaysia's economic  and trade co-operation. Domestically, the 11th Malaysia Plan which is in line with the Chinese's Outbound

Strategy placed amongst others, great emphasis on trade facilitation. Pragmatic approaches were

ated by the local government throughout year 2016 to 2020 in developing the logistics industry andtaing trade by undertaking the following strategies

Strengthening institutional and regulatory framework.

Enhancing trade facilitation mechanism:

Buiding freight infrastructure efficiency and capacity

Deploying technology in the logistics chain

Strengthening capabilities of logistics service providers

Eective from 2 March 2012. the following new list of promoted activities and products which are eligible for

of pioneer status and investment tax allowance have been gazetted

General

Hgn technology companies:

Small scale companies

estment

In additon to the above, Malaysia strengthened its legal framework through the implementation of various new

ed laws such as the Strategic Trade Act 2010, Malaysian Quarantine and Inspection Services Act 2010MAOSA). Compettion Act and Price Control and Anti-Profiteering Act 2011. Amongst others, the Strategic Trade  Act 2010 was passed to control the export trans-shipment, transit and brokering of strategic items, as well asactvtes which may facilitate the design, development, production and delivery of weapons of mass destructionSrategic items refer to goods and technology prescribed in the ministerial order and published in the GovernmentGazete, including nuclear matenals, electronics, computers and military items

C Inspection and Quarantine of Import and Export of Commodities

The Malaysian Quarantine and Inspection Services Department (MAQIS)was established in 2011 under theRetry of Agroueture and Agro-Based Industry as a department to provide integrated services relating to quarantine

on and enforcement at all entry points(inclusive of seaports, airports, land entry points and mail and courier  tsh, agricutural produce, soil and microorganism (collectively, referred to as'commodlas7 ant, animal, carcass.  men), martine  stations, quarantine premises and certfication for the import and export of pla

importation and exportation of all such commodities are subject to the distinct set of related legislation.  con, quarantine and import or export procedures

Generally, no person shall import or export any such commodities without a permit. All such import or export

ts are issued by the relevant department and agencies having authority and control to such commodities, as

COMMODITIES  AGENCIES/DEPARTMENT

Federation of Agriculture Marketing Authority

Department of Veterinary Services

Fisheries Department Authority of Malaysia

Soil and Microorganism  Department of Agriculture

Food  Ministry of Health

Importation of such commodities with, believed to have or infested with pests, diseases or contaminants is an  offence punishable with a fine or imprisonment. D

D Customs Management

In Malaysia, the Royal Malaysian Customs Department (Customs)is the primary enforcement agencyministering importation, exportation, border control and trade facilitation  There are four categories of goods which are subject to vanous levels of restriction, as follows:

a))goods absolutely prohibited for importation, for security, health, religious and environmental reasons, suchas poisonous chemical, reproduction of any currency note or bank note currently been issued in

b)goods requiring licenses for importation, such as machinery, arm and ammunition, motor vehicle, liveanimals and me

c)goods subjected to temporary import restrictions to protect the local industries; and  on d)goods which may be imported upon fulfilment of specific criteria, such as animal products, plant productsSimilar to the other countries, Malaysia also imposes import duties  export duties and excise duties. Import  duties are levied on goods imported to Malaysia on an ad-valorem or specific basis at the prevailing rates ranging  from 0% to 60%. Such import duties shall be payable at the time the goods are cleared and released from the  Customs control. In general, higher rates are applicable to luxury goods, tobacco, alcohol and goods deemed to beare non-dutiable or subject to lower duty rates, Export duties are levied on specific goods exported out of Malaysia.  usually on our main commodities such as crude petroleum and palm oil. Excise duty is on the other hand levied at  the prevalling range from 15% to 105% on selected range of goods imported or manufactured in Malaysia, such as  liquors, cigarettes and motor vehicles  Subject to certain conditions, eligible companies within the promoted industries may apply for exemption from  import duty. On the other hand, there are preferential tariff rates imposed for specified goods in accordance with  our commitments arising from bilateral agreements  Malaysia has a number of free-trade zones such as Labuan, Langkawi Island, Tioman Island and the joint  development area located at the Malaysian-Thailand border established to facilitate the operations of export  oriented companies, wherein such companies are permitted to import specified goods free of duties and taxes.