November 1995
Tariffs will be reduced, and in some cases abolished, on over 1500 items.
Welcoming the package, Senator McMullan said it was yet another sign of the growing momentum toward trade and investment liberalisation in the Asia-Pacific region.
"The reductions are included in Malaysia's recently-tabled 1996 Budget, Senator McMullan said.
"Malaysian Deputy Prime Minister and Finance Minister, Anwar Ibrahim, announced proposed reductions or abolitions of import duties - and, in some cases, sales tax - on a broad range of items including raw materials, components and equipment for the manufacturing sector, and equipment and inputs for food production.
"This liberalisation package builds on Malaysia's 1995 Budget which had reductions in tariffs on over 2600 items.
"On the eve of the APEC Summit in Osaka, it is a very encouraging further sign of Malaysia's ongoing commitment to unilateral trade liberalisation.
"The Malaysian Government is to be commended for recognising the important role that such tariff reductions can play, both in improving the efficiency and dynamism of domestic industry and as a step toward implementing Malaysia's multilateral and regional obligations.
"Such action assists what we are doing in the World Trade Organisation, in APEC, and through cooperation between the ASEAN Free Trade Area and the Closer Economic Relationship (CER) of Australia and New Zealand.
Senator McMullan said that many Australian exporters, especially those involved with gold, coal, iron and steel, pharmaceuticals, chemicals and paper products stand to benefit from the liberalisation package.
"The continued trend toward liberalisation within an economy which has shown remarkable growth over the past decade will make Malaysia more attractive to Australian business interests.
"One Australian company already identified as a potential beneficiary is chemical company, Nufarm, which is confident it can now capture a large share of a $2 million market," Senator McMullan said.
Malaysia is currently ranked 11th on a global basis as a destination for Australian exports, and sixth as a destination for Australian investment.
Further information: John Flannery, (06) 277 7420