Malaysia, Australia sign free trade agreement

Malaysia and Australia formed a comprehensive free trade agreement (FTA) that will open avenues for Australian goods and services into the Malaysian market. The agreement will further integrate the Australian economy with the fast-growing Asian region, benefiting Australian exporters, importers and
consumers.

Under the accord, Australia will be as well-positioned in the Malaysian market as Malaysia's closest trading partners in ASEAN, and in some cases better. For Malaysia, the accord allows the same tarifffree entry to Australia currently enjoyed by Singapore. The FTA will guarantee tarifffree entry for 97.6% of current goods exports from Australia once it enters into force. This will rise to 99% by 2017.

The owners of MAG IAS, LLC and MAG Europe GmbH (together the "MAG Group") have appointed Goldman Sachs to assist in evaluating strategic alternatives for MAG Group, including the potential sale of the group or parts thereof. According to MAG, the global automotive business
will remain together as one unit across Malaysian exporters, meanwhile, will enjoy duty-free entry to the Australian market. Australia has also agreed to provide a three-year package of up to 21 short
and long-term scholarships, fellowships, awards and exchanges to support Malaysia's economic reform efforts. This complements existing exchanges between Australia and  Malaysia on public sector and economic governance, including through the Endeavour Scholarships.

Malaysia is Australia's 10th largest trading partner, with two-way trade worth almost US$16 billion in the 2010-11 financial year. Australian exporters of automotive parts, iron, steel and dairy products will
benefit from improved market access under the agreement.

The FTA will also help diversify the trading relationship by opening Malaysia's services sector to Australian companies. Malaysia has committed to allowing majority Australian ownership of service
providers in a range of industries, including telecommunications, insurance, education, tourism,
research and development, accountancy and mining-related services.