Economic engagement between Australia and Malaysia is accelerating under Australia’s Invested: Australia’s South-East Asia Economic Strategy to 2040, which identifies Malaysia as a priority market across agriculture and food, resources and energy transition, education and skills, and the digital economy. Bilateral trade reached almost A$35bil (RM99.89bil) in 2025, making Malaysia Australia’s ninth-largest two-way trading partner as both nations will celebrate 70 years of diplomatic relations next year.
Port Infrastructure and Decarbonization at the Port of Tanjung Pelepas
Malaysia’s most advanced terminal, the Port of Tanjung Pelepas (PTP) in Johor, is advancing multi-phase expansions and net-zero emissions targets. According to PTP Chief Executive Officer Mark Hardiman, the terminal is executing a masterplan that takes them into the next decade to handle higher TEUs after becoming the nation’s first container terminal to service over 14 million twenty-foot equivalent units (TEUs).
PTP signed a memorandum of understanding with the Port of Melbourne last year to share best practices on policies, decarbonisation and alternative fuel. Hardiman noted that total electrification will take more than 10 years, noting that they were the first to start electrifying rubber-tyred gantry cranes in 2012, leaving prime movers as the primary focus for current fleet upgrades. The port completed its first methanol bunkering operation at anchorage with Maersk in the fourth quarter of 2024, followed by its inaugural liquefied natural gas bunkering operation with Hapag-Lloyd in 2025.
Did you know?
The Port of Tanjung Pelepas is Malaysia’s first container terminal to service over 14 million TEUs, cementing its status as one of South-East Asia’s key transshipment hubs.
Agricultural Collaboration and Food Security at Jemaluang Dairy Valley
To support food security and Malaysia’s aim to become self-sufficient in terms of milk production, the Jemaluang Dairy Valley in Johor has imported 1,000 A2A2 Jersey Friesian cows from Australia. According to CEO Qasem AlHassan, the cows bred Down Under were selected for their ability to thrive in the climate here.
The 275-ha integrated dairy hub currently houses about 1,900 cows, including calves, with another 500 cows expected to arrive later this year in terms of expansion. AlHassan stated that the farm will aim to produce over three million litres of fresh milk in 2026, expanding to 14 million litres annually by 2027. A new plant currently under construction near the milking parlour is likely to begin operations in early 2027 with a 14-million-litre capacity, expandable to 30 million litres to produce fresh pasteurised milk and flavoured milks. The facility is owned by Kulim (M) Bhd (65%), a subsidiary of Johor Corp (JCorp), and A2 Fresh Holdings (35%), part of Rhone Ma Holdings.
Expanding Specialized Cancer Care and Precision Medicine in Penang
Australian oncology provider Icon Group is expanding its footprint in Malaysia as part of a regional network active in Singapore, Hong Kong, Mainland China, New Zealand, and the United Kingdom. According to Asean and Hong Kong CEO Serena Wee, the provider operates within Island Hospital in Penang and Prince Court Medical Centre in Kuala Lumpur, with plans for a third clinic announcement soon.
Wee emphasized that modern cancer treatment relies heavily on early diagnostics, genome testing, and precision medicine. The group is looking to bring relevant stakeholders like insurance companies, pharmaceutical groups and medical practitioners to the table to discuss how treatment plans and medication could go further in helping people in rural areas, mirroring preliminary conversations the organization started in Singapore and Indonesia.
Aviation Maintenance and Military Overhaul Hub in Butterworth
Australian aircraft maintenance, repair and overhaul company TAE Aerospace is looking at positioning Malaysia as a regional training and maintenance hub through its military engine overhaul facility located within the Butterworth Royal Malaysian Air Force (RMAF) base. According to Head of Malaysia Raymond Bissett, establishing local repair capabilities has saved the RMAF approximately US$9mil by eliminating the need to send jet engines elsewhere for repair, maintenance and testing.
The company has completed physical construction on a new service and repair centre near to its current base in Butterworth. While internal fitout has not begun yet and is expected to take six to 12 months, staff will be heading to Australia for training, supplemented by visiting Australian trainers to certify the staff.
Frequently Asked Questions
What is the total volume of bilateral trade between Australia and Malaysia?
According to official trade data, bilateral trade reached almost A$35bil (RM99.89bil) in 2025.
How much is Australian and Malaysian foreign direct investment?
Australian foreign direct investment in Malaysia has risen to A$4.7bil, while Malaysian FDI in Australia has expanded to A$14.4bil, reflecting a stock of total Australian investment in Malaysia of A$8.3mil and a stock of Malaysian investment in Australia of A$25.9bil.
What is the primary focus of the Jemaluang Dairy Valley?
According to CEO Qasem AlHassan, the 275-ha hub aims to support Malaysian food security by producing over three million litres of fresh milk in 2026, expanding to 14 million litres annually by 2027 using imported Australian A2A2 Jersey Friesian cows.
Where does TAE Aerospace operate its Malaysian military engine facility?
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