PM Luxon in Malaysia

The Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim has hosted Christopher Luxon on an official visit to Malaysia over the last few days. The visit marked enduring bilateral ties between NZ and Malaysia, and over 67 years of diplomatic relations.

On the agenda during the visit:

The Malaysia – New Zealand Strategic Partnership

 The leaders recognised the cooperation between the two countries under the four pillars (Prosperity, People, Planet, Peace and Security) of the Malaysia -New Zealand Strategic Partnership signed in 2023. The two leaders noted their mutual intent to continue to strengthen the relationship between Malaysia and New Zealand in ways that deliver real benefits and advance shared security and economic interests.

Defence and security cooperation

Both leaders noted Malaysia and New Zealand’s long-standing defence relationship, dating back to the Second World War. The Prime Ministers confirmed that the two countries will maintain regular bilateral defence cooperation. They welcomed the work by each country’s Ministry of Defence to update the 1996 bilateral Arrangements on Defence Cooperation as well as agreement to explore holding a Track 1.5 Defence Dialogue.

They also reaffirmed their commitment to regional cooperation under the Five Power Defence Arrangements (FPDA).

The Royal New Zealand Air Force’s new P-8A Poseidon aircraft will continue the long running practice of New Zealand maritime patrol aircraft deploying to Royal Malaysia Air Force Base Butterworth as part of the upcoming FPDA exercise, Bersama Lima.

The PM's valued ongoing close cooperation on countering terrorism, preventing violent extremism, and combatting transnational organised crime, including through capacity building and two-way exchanges of experts. They welcomed a new bilateral cooperation arrangement which will underpin this engagement. They directed officials to continue to explore opportunities for New Zealand and Malaysia to work together on strengthening social cohesion.

Trade and economic relations

The Prime Ministers noted the strong and highly complementary bilateral trading relationship, supported by the bilateral and regional trade architecture, and daily direct air links. Both countries had a shared commitment to upholding the international rules-based trading system.

They also directed officials to conduct a scoping exercise prior to the launching of a review of the Malaysia-New Zealand Free Trade Agreement (MNZFTA), to identify new areas and gaps which could be addressed under the review to enhance the bilateral economic relations. Trade Ministers will meet next year to co-chair a joint commission to progress recommendations for refreshing MNZFTA.

Both Leaders welcomed the upgrade of the ASEAN Australia New Zealand Free Trade Area (AANZFTA) and the successful implementation of the Regional Comprehensive Economic Partnership (RCEP). The two leaders acknowledged the strong collaboration between Malaysia and New Zealand through the Asia-Pacific Economic Cooperation (APEC) in advancing the Putrajaya Vision 2040, including through the implementation of the Aotearoa Plan of Action, aimed at fostering an open, dynamic, resilient and peaceful Asia-Pacific community by 2040.

New Zealand and Malaysia remain committed to supporting economic integration in the Asia-Pacific and beyond through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). New Zealand and Malaysia will work together on the General Review of the CPTPP with a view to update and enhance the Agreement.

They also reaffirmed that the CPTPP remains open to accession by economies that are ready to meet the high standards of the Agreement and have a demonstrated pattern of complying with trade commitments.

The leaders noted the substantial outcomes from the Indo-Pacific Economic Framework for Prosperity (IPEF), which has concluded agreements to bolster supply chain resiliency, accelerate the transition to a clean economy, and strengthen anti-corruption and tax measures.

They also committed to further eliminating unnecessary barriers to trade and working together to ensure that ensuring exporters can fully utilise the comprehensive suite of free trade agreements between the two countries, with a view to increasing the value of two-way trade by 50 percent by 2030.

 In this context, the Prime Ministers acknowledged ongoing work to conclude a bilateral Customs Mutual Recognition Arrangement which will allow trusted traders to enjoy expedited cross-border customs clearance in both countries. They noted strong potential to further expand Halal and other trade between Malaysia and New Zealand. They welcomed the pilot implementation of electronic certification for trade in both directions. They also tasked officials to continue interagency work to further increase market access for each other’s products, and to maintain compliance and reduce transaction costs for our exporters. Both leaders looked forward to having the relevant agencies on both sides work towards the conclusion of:
a.    the draft Export Plan for Fresh Fruit and Vegetables from Malaysia to New Zealand specifically for exportation of Malaysian Pineapples to New Zealand;
b.    a Dairy Implementing Arrangement, providing recognition of food safety system equivalence for dairy products;
c.    an upgraded Halal Implementing Arrangement; and
d.    an electronic certification Implementing Arrangement.

People-to-people connections

The leaders expressed their commitment to further strengthening education links, enhancing two-way student mobility, institutional partnerships and collaboration, and academic exchanges. They welcomed the decision to broaden the scope of the Chair of Malaysian Studies at Victoria University of Wellington to facilitate a wide range of academic exchanges at all levels.  Both leaders also welcomed the finalisation of refreshed Education Cooperation Arrangements on education and higher education between the two countries.

The Prime Ministers also underscored the value of Track II exchanges between their countries, including the long-running partnership between the Asia New Zealand Foundation and the Institute of Strategic & International Studies Malaysia. The annual ASEAN-Australia-New Zealand (AANZ) Dialogue plays a key role as one of the strategic-focused Track 1.5 and Track 2 mechanisms for ASEAN and these dialogue partners. With the continued participation of influential policymakers, practitioners, academics, journalists and other thought leaders, they are committed to their goal of encouraging dialogue and promoting understanding.

Prime Ministers agreed that youth exchanges are vital to build mutual cultural understanding and friendship and noted the wide range of existing exchanges. These included the successful bilateral Working Holiday Scheme, the Asia New Zealand Foundation’s business and cultural internship programmes, the Manaaki New Zealand and Malaysia Government Scholarship schemes, the New Zealand’s High Commission’s indigenous internship and youth study tours to Malaysia. Both Prime Ministers expressed an intent to explore avenues to further enlarge youth exchanges between Malaysia and New Zealand.

Climate change and disaster management

 The Prime Ministers recalled and affirmed support for the outcomes of the UNFCCC COP28 calling for Parties to align Nationally Determined Contributions with the goal of limiting global warming to 1.5 degrees, in line with the goals of the Paris Agreement. They acknowledged each country’s respective commitment and aspiration to achieving net zero targets and noted the potential to explore further collaboration in areas such as sustainable finance, carbon markets, and agriculture.

The Leaders noted the importance of working with partners to successfully respond to climate change and transition to a low carbon economy. Malaysia and New Zealand are both committed to the implementation of the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Agreement, including through the IPEF Cooperative Work Programmes, and, through the Asia-Pacific Carbon Markets Roundtable offers opportunities, to sharing experiences in carbon markets developments including in relation to voluntary markets, emissions trading schemes, and Article 6 of the Paris Agreement.

The Prime Ministers acknowledged that collaboration in climate smart agriculture plays a crucial role in supporting the sustainability of food security without increasing agricultural greenhouse gases emissions. Both Leaders welcomed and looked forward to the potential collaboration between agricultural research institutes under New Zealand’s Ministry for Primary Industries and Malaysia’s Ministry of Agriculture and Food Security. This collaboration could include capacity building; exchange of knowledge and best practices; and information sharing.

The two Prime Ministers further noted the cooperation on capacity building and training on disaster management between the two countries, including at ASEAN level. They acknowledged that climate change was increasing the need for robust disaster management practices in both countries. The leaders announced expanded cooperation between the National Emergency Management Agency of New Zealand and the National Disaster Management Agency of Malaysia (NADMA), in disaster management.     

Regional and global developments

Prime Minister Anwar and Prime Minister Luxon also exchanged views on regional and global developments, including the role of Malaysia within ASEAN as it takes on the role of ASEAN Chair in 2025.

The Leaders reaffirmed their shared aspiration and common interest to promote and maintain a peaceful, prosperous and rules-based Indo-Pacific region, underpinned by ASEAN-led mechanisms. They agreed to strengthen ASEAN-New Zealand cooperation consistent with the objectives and principles set out in the ASEAN Outlook on the Indo-Pacific, including enhancing ASEAN Centrality, inclusiveness, openness, transparency, and respect for international law.

Both Prime Ministers reaffirmed their commitment to enhancing the ASEAN-New Zealand relationship and looked forward to the 50th anniversary of ASEAN-New Zealand dialogue relations during Malaysia’s ASEAN Chairmanship in 2025.

To mark the anniversary, New Zealand has indicated a desire to co-chair an ASEAN-New Zealand Commemorative Summit in Kuala Lumpur.  

 The Leaders also expressed serious concern about developments in the South China Sea , Myanmar, and in Gaza. The Prime Ministers urged all parties to exercise maximum restraint and de-escalate tensions. They also discussed the latest developments in Ukraine, and reaffirmed the international community’s call on Russia to abide by its international obligations and withdraw all of its military forces and equipment from the internationally recognised territory of Ukraine.

• Asia Media Centre