Stephen Parry (Tasmania, Liberal Party) Share this | Link to this | Hansard source

On behalf of the Chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I present a report on Australia’s relationship with Malaysia. I seek leave to move a motion in relation to the report.

Leave granted.

I move:

That the Senate take note of the report.

I seek leave to incorporate a tabling statement in Hansard.

Leave granted.

The speech read as follows—

On behalf of the Foreign Affairs Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I wish to table the Committee’s report: Australia’s relationship with Malaysia.

It is fitting, Mr President, 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 aim includes 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 Agreement 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. Not only does it provide useful mutual understanding at the military level, but also at the cultural level.

This defence relationship is overwhelmingly positive and provides substantial benefits for Australia. 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.

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 amounting to  $11.35 billion in 2005–06. Malaysia has become Australia’s second-largest trading partner in ASEAN and ninth largest trading partner over all.

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 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 such 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 country 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 numbers of Malaysian passport holders being denied entry, and the growth in the proportion of Malaysian visitors breaching their visa conditions.

The Committee has recommended that the Department of Immigration and Citizenship review the reasons for these increases and provide strategies to the Minister for addressing the problem.

Australia and Malaysia share a strong history of educational links, dating back to the 1950s and the Colombo Plan. Australia is the largest overseas provider of education services to Malaysia, and Malaysia rates as Australia’s fifth largest source for offshore student enrolments in 2005.

Education is clearly both a vital platform for the broader bilateral relationship and economically beneficial for Australia. It is estimated that there are some 250 000 Malaysians who are alumni of Australian educational institutes, who have helped develop strong ties between Australia and Malaysia across society, business and politics.

It is important that universities, business and government continue to encourage Australian students to study in Malaysia, and provide financial or professional support in doing so. Malaysia is a strategically important country for Australia and it is important that interest in and understanding of Malaysian cultures and religions be fostered amongst Australians.

The Committee considers that Australia has a very productive R&D relationship with Malaysia. There is potential for increased Australian involvement as Malaysia increases R&D spending as a proportion of gross domestic product to 1.5 per cent in 2010.

Australia’s relationship with Malaysia will continue to evolve. Doubtless there will be challenges, but the Committee is confident the good will exists to overcome them.

In closing, Mr President, I would like to thank all those who provided submissions and gave evidence at the public hearings. Finally, I thank my colleagues on the Foreign Affairs Sub-Committee, and the secretariat.

Mr President, I commend the report to the Senate.

Question agreed to.