House debates

Monday, 26 March 2007

Committees

Foreign Affairs, Defence and Trade Committee; Report

1:12 pm

Photo of David JullDavid Jull (Fadden, Liberal Party) Share this | | Hansard source

On behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I present the committee’s report entitled Australia’s relationship with Malaysia.

Ordered that the report be made a parliamentary paper.

by leave—It is fitting that, in the year which marks 50 years since Malaysia achieved independence, the committee has reviewed Australia’s relationship with our near neighbour. A theme pervading this report is that Australia’s relationship with Malaysia is changing from one of support in the early years to the present collaboration of important trading nations.

Australia-Malaysia relations received a significant boost when, in April 2005, the Malaysian Prime Minister, Dato’ Seri Abdullah Badawi, visited Australia. In the same year, another important step was the creation of the Australia-Malaysia Institute. The institute’s aims include increasing knowledge and promoting understanding between the people and institutions of Australia and Malaysia and enhancing people-to-people links. Australia’s defence relationship with Malaysia is underpinned by the Five Power Defence Arrangements and the continuing presence of Australian Defence Force personnel at Malaysia’s Butterworth airbase. The stationing of ADF personnel at the base is of significant value to the Australia-Malaysia relationship. It provides useful mutual understanding at not only the military level but also the cultural level. This defence relationship is overwhelmingly positive and provides substantial benefits for Australia.

Malaysia’s strong military professionalism and capacity ensure that it is able to respond effectively to military and humanitarian tasks and to cooperate with the ADF to address security challenges. An example of this was in 2004 when RMAF Butterworth operated as a forward logistics hub for ADF operations in Aceh. The ADF’s facilities at the base, together with locally deployed civilians and deployed units, enabled Australia to rapidly respond to the 2004 tsunami.

Australia and Malaysia enjoy a significant trading relationship, with total two-way trade having amounted to $11.35 billion in 2005-06. Malaysia has become Australia’s second-largest trading partner in the ASEAN and ninth-largest trading partner overall. Trade between Australia and Malaysia is complementary. Australia exports to Malaysia natural resources, dairy products and sugar, whereas Australia imports from Malaysia crude petroleum, furniture and electronic products. Malaysia, however, enjoys a significant balance of trade in its favour and especially in the merchandise sector.

A growing niche market for Australian primary producers is halal-certified products. As a major primary produce exporter, Australia has an interest in promoting an efficient halal market. To this end the committee has made two recommendations, directed to the Department of Agriculture, Fisheries and Forestry, aimed at facilitating the process of halal certification and export of halal produce to Muslim countries. The first recommendation is that the department promote in international fora the adoption of a transparent and efficient international halal standard. The second recommendation is that the department, in consultation with interested parties, provide options to the minister for developing a single halal certifying body within Australia.

The committee has identified and discussed several challenges facing trade and investment with Malaysia. These include competition for the investment dollar from China, intellectual property protection and the counterfeiting of goods, Malaysia’s foreign equity rules, and the accreditation of educational courses and qualifications. The committee is aware that these issues form part of the current free trade agreement negotiations. From the evidence provided, the committee believes that both Australia and Malaysia are approaching these negotiations in good faith, with real progress being achieved.

A further issue raised with the committee was the need for Malaysian authorities to test Australian wine imports. The committee is disappointed that wine already tested by accredited laboratories in Australia needs to be retested in Malaysia, thereby significantly increasing landed costs. The committee supports efforts by Australian officials to address the issue through the FTA negotiations.

Malaysia is the seventh most important source for visitors to Australia. A recent innovation for these visitors has been the introduction of an electronic travel authority, which can be obtained over the internet. Of concern to the committee, however, is an increase in the number of Malaysian passport holders being denied entry and the growth and proportion of Malaysian visitors breaching their visa conditions. The committee recommends that the Department of Immigration and Citizenship review the reasons for these increases and provide strategies to the minister for addressing the problem.

I would like to thank all those who provided submissions and gave evidence to the public hearing. I thank my colleagues on the Foreign Affairs Subcommittee and give a special thankyou to the members of the secretariat for this report.

1:17 pm

Photo of Graham EdwardsGraham Edwards (Cowan, Australian Labor Party, Shadow Parliamentary Secretary (Defence and Veterans' Affairs)) Share this | | Hansard source

I endorse the remarks of the previous speaker, and particularly those about the staff. This committee has been an excellent committee to serve on under the chairmanship of Mr Jull. The committee has done some good work and brought forward a good report. I will comment quickly on some of the matters in the report. The committee considers that the level of interaction between Australia and Malaysia underpins the sound relationship between the two countries. Further links will no doubt be generated as the two countries move towards the establishment of an FTA.

One of the areas I was particularly interested in, having transited through Butterworth in 1970 when I served with the Australian forces, is the continuing strength of the defence relationship. The committee commented:

Evidence given at this inquiry has indicated that the bilateral defence relationship is overwhelmingly positive and provides substantial benefits for Australia. There is a strong foundation for this relationship to develop further.

It also said:

Malaysia’s strong military professionalism and capacity ensures it is able to respond effectively to military and humanitarian tasks and cooperate with the ADF to address security challenges. The benefits flowing from the close defence relationship were demonstrated in East Timor, with Malaysia willing and able to operate with the ADF under Australian command.

It is incredibly important that Australia continues to work on good relationships with all of our neighbours. The benefits of that were demonstrated by the very close way in which the ADF and the Malaysians worked together to bring relief to those affected by the tsunami. We have also worked very closely together in East Timor.

The only negative thing I would say is in respect of tourism. The committee noted that both Australia and Malaysia are working hard to improve tourism links. The committee commented:

The Committee considers that Tourism Australia’s recent “Where the Bloody Hell are You” campaign is not appropriate for all cultures. The Committee expects Tourism Australia to mount any tourism promotion in Asian countries in an appropriate manner. The content and presentation of the Malaysian Visitors Guide to Australia shows that Tourism Australia is sensitive to the culture of its target audience.

It is important that we run programs that promote Australia as a destination of good choice—safe, with plenty of the wonders of the world to see—but it is important that, when we run these programs, we are culturally sensitive. It is not always possible to pull together one slogan or one ad that is appropriate for all parts of the world, and it is entirely evident that that promotion was not culturally sensitive to Malaysia.

The other area that I think Australia and Malaysia have benefited from is education exchange. The committee report says this:

Education is clearly both a vital platform for the broader bilateral relationship and economically beneficial for Australia. It is important that the education dimension continues to be maintained and reinvigorated.

Many of Malaysia’s leaders in industry, commerce and politics have studied in Australia, and I think that augurs well for a continuing future based on mutual respect, one which hopefully will have beneficial leads for both countries. I commend the report to the House.

Photo of Ian CausleyIan Causley (Page, Deputy-Speaker) Share this | | Hansard source

Does the member for Fadden wish to move a motion in connection with the report to enable it to be debated on a future occasion?

I move:

That the House take note of the report.

In accordance with standing order 39, the debate is adjourned. The resumption of the debate will be made an order of the day for a later hour this day.