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  jata  Malaysia's Free Trade Agreements


ASEAN - Hong Kong, China


  • The ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) negotiations commenced in July 2014 and were concluded in July 2017.

  • Due to HKC’s unique economic status, there is also a stand-alone ASEAN-Hong Kong, China Investment Agreement (AHKIA) in parallel with the main AHKFTA Agreement.

  • The main AHKFTA Agreement consists of 14 chapters covering the following elements:

    1. Establishment of the Free Trade Area, Objectives, General Definitions and Interpretations;

    2. Trade in Goods (TIG);

    3. Rules of Origin (ROO);

    4. Customs Procedures and Trade Facilitation (CPTF);

    5. Sanitary and Phytosanitary Measures (SPS);

    6. Standards, Trade Regulations and Conformity Assessment Procedures (STRACAP);

    7. Trade Remedies;

    8. Trade in Services (TIS);

    9. Economic and Technical Cooperation (ECOTECH);

    10. Intellectual Property Rights (IPR);

    11. General Provisions and Exceptions;

    12. Institutional Provisions;

    13. Consultations and Dispute Settlement; and

    14. Final Provisions.

  • In addition to AHKFTA and AHKIA, Malaysia, Brunei Darussalam, Singapore and HKC also signed a Side Agreement on the Definition of “Natural Person of a Party” under the AHKIA. The Side Agreement aims to maintain the current status whereby a natural person (Nationals and Permanent Residents – PRs) of Malaysia, Brunei Darussalam, Singapore and HKC will be accorded substantially the same treatment in the four countries, in respect to measures affecting investment.

  • The ASEAN Economic Ministers (except Myanmar and Viet Nam) and the Secretary for Commerce and Economic Development of HKC signed the AHKFTA and AHKIA on 12 November 2017 at the sidelines of the 31st ASEAN Summit in Manila, the Philippines. Viet Nam signed the Agreements on 26 February 2018 and Myanmar signed on 28 March 2018.


  • The AHKFTA has entered into force on 11 June 2019 for Hong Kong and five ASEAN Member States, namely Lao PDR, Myanmar, Singapore, Thailand and Viet Nam. Malaysia is currently expediting the ratification process and will implement the said agreement once the process is completed.


  • HKC was ASEAN’s 6th largest trading partner in 2017, with total merchandise trade of USD106.9 billion or 4.2% of ASEAN’s total trade, which recorded an increase of 14.6% as compared to 2016. Total Foreign Direct Investment (FDI) flows from HKC into ASEAN amounted to USD7.7 billion or 5.7% of total FDI into ASEAN in 2017.

  • For Malaysia, HKC was the 9th largest global trading partner in 2017 with total bilateral merchandise trade of USD14.4 billion, an increase of 22.7% from 2016. HKC is also Malaysia’s 3rd largest FDI source, after Singapore and Japan.

  • HKC has committed to eliminate the customs duties on all originating goods from ASEAN under the AHKFTA. Furthermore, HKC has offered many improvements on the commitments that they have made under the General Agreement on Trade in Services (GATS) at the World Trade Organization (WTO). HKC’s offer to ASEAN also includes several subsectors that exceeds their offers in other existing FTAs, such as veterinary services; services provided by midwives, nurses, physiotherapists and para medical personnel; education services; road transport services; and spa services.

  • Malaysia has already benefited from the AHKFTA negotiations since its launch in July 2014 through the various joint activities undertaken by MITI and SME Corp Malaysia together with HKC authorities. For instance, a large number of HKC officials and private sectors took part in the ASEAN SME Showcase and Conference 2015 held in May 2015 in Kuala Lumpur and the outreach programme on the Mainland and HKC Economic Partnership Agreement (CEPA) in Kuala Lumpur on 5 October 2016 as part of the Early Harvest of the AHKFTA. HKC also participated at the 20th SME Annual Showcase and Conference (SMIDEX) held on 15-17 November 2017 at the Malaysian International Trade and Exhibition Centre (MITEC), Kuala Lumpur.

  • The implementation of the AHKFTA and AHKIA is crucial in fostering greater economic integration and stimulate the development in ASEAN, as well as further strengthen ASEAN-HKC relations to a greater height. With the AHKFTA and AHKIA being in place, trade and investment flows between ASEAN and HKC will be greatly amplified and business opportunities will continue to flourish between the two regions.


For enquiries on policies and tariff lines, please contact following officers:

  1. Ms. Nor Hazirah Kan Hussin Kan
    ASEAN Economic Integration Division
    E-mail: hazirah@miti.gov.my

MIDA MATRADE MPC MIDF MAI MSI SIRIM Berhad MIMOS Berhad Exim Bank Department of Standards Malaysia (JSM) InvestKL My Gov