International Marketing Activities Between Malaysia and Australia

Running head: INTERNATIONAL MARKETING ACTIVITIES BETWEEN MALAYSIA
AND AUSTRALIA
INTERNATIONAL MARKETING ACTIVITIES BETWEEN MALAYSIA AND
AUSTRALIA
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Author Note

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INTERNATIONAL MARKETING ACTIVITIES BETWEEN MALAYSIA AND
AUSTRALIA
Introduction
In this essay, the discussion will be on the international marketing activities between
Malaysia (Home Country) and Australia (Host Country). The discussion will be the critical
analysis of the policies that facilitates as well as regulates the domestic and the foreign
companies trading activities and relations between the countries. The negotiation between the
countries came to an end on 30th of March, 2012, for a free trade agreement, namely
Malaysia-Australia Free Trade Agreement (MAFTA). The agreement came into action from
1st January, 2013. It is a complete and extensive agreement consisting 21 chapters which
includes trade in goods, services and investments as well as financial cooperation. The
agreement also includes creative property rights, e-commerce and competition policy. It also
marked one important milestone, achieving the already settled ASEAN-Australia-New
Zealand FTA (AANZFTA) (Maria, 2018).
Literature Review
Malaysia is a middle-income nation with a variation in the economy. The economy is
pretty unified into local and global value chains, so trade is important to growth and financial
development. Trade plays an important part in the country, with imports and exports of goods
and services similar to 130% of GDP approximately. In between the year 2013 and 2016,
there were some alteration in the structure of trade in goods (Rahman, 2014). The exports and
imports declined due to lower commodity prices. Long-term financial policy is set out in
Vision 2020, which includes the primary objective to achieve high-income country status by
2020, by increasing the speed of growth of labour productivity. The trade between the
relations include the areas of trade in goods, services, telecommunication services, e-
commerce, institutional provisions, final provisions, investments, and many more.

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INTERNATIONAL MARKETING ACTIVITIES BETWEEN MALAYSIA AND
AUSTRALIA
Critical Analysis
Tariffs and duty rates are continuously changing and getting revised. Australia beliefs
strongly in confirming and reconfirming these before selling products to Malaysia. There are
policies which facilitate as well as regulate trading between the two countries. Some of them
are discussed below:
Tariff
Malaysia approves the Harmonized Commodity Description and Coding System of
categorization or allocation of stuffs. Malaysia has been increasingly liberalizing its tariff
regime or establishment of taxes, but some of the products which are in clash with regional-
manufactures items are still now saved from all these new taxation systems. The mutual trade
relationship of Australia and Malaysia has achieved a meaningful foundation with the signing
of an inclusive free trade agreement (FTA). Constructed on the ASEAN Australia New
Zealand Free Trade Agreement (AANZFTA), this mutual FTA promises tax-free entry for
97.6 per cent of recent Australian goods that are exported to Malaysia (99 per cent by 2017),
while the trades from Malaysia will be benefited from duty-free entry into Australia.
Achievement of important and meaningful profits for services and finance has occurred
through admission to expanded foreign possession in major service sectors where Australia
has convinced the ability to perform (Food & Council, 2014).
Taxation
An Avoidance of Double Taxation agreement has been signed by Malaysia and
Australia. The total accumulated earning of the companies of both the countries and
individuals obtained from or transferred to Malaysia are accountable to tariff. Exclusions are
created to the income transferred to Malaysia by local companies (companies except which
are involved in banking, insurance, air and sea conveyance), foreign companies and