Australia bets bigger on Malaysia’s growth story
Australia and Malaysia will celebrate 70 years of diplomatic relations next year, with economic ties growing stronger across trade, investment, education, and defence, according to The Star.
Source: The Star · July 26, 2026 at 11:58 PM · AI-assisted report
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MALAYSIA, 27 JULY 2026 —
Australia and Malaysia will celebrate 70 years of diplomatic relations next year, with economic ties growing stronger across trade, investment, education, and defence, according to The Star.
Bilateral trade reached almost A$35 billion (RM99.89 billion) in 2025, with Australian foreign direct investment in Malaysia rising to A$4.7 billion, and Malaysian investment in Australia expanding to A$14.4 billion, The Star reported.
The Port of Tanjung Pelepas, Malaysia's most advanced terminal, signed a memorandum of understanding with the Port of Melbourne last year to share best practices on decarbonisation and alternative fuel, said CEO Mark Hardiman.
The port is focusing on expansion, which should take it up to 2028, and has been accelerating net-zero emissions by 2050 through electrification and green bunkering, Hardiman told StarBiz.
Australian companies are increasingly investing in Malaysia, with a 275-ha integrated dairy hub becoming the country's largest A2A2 dairy farm after importing 1,000 cows from Australia, said CEO Qasem AlHassan.
The farm aims to produce over three million litres of fresh milk in 2026, expanding to 14 million litres annually by 2027, AlHassan said.
Australian oncology provider Asean and Hong Kong CEO Serena Wee said the company has been partnering with medical affiliates to provide accessible cancer care, with plans to bring stakeholders together to discuss treatment plans and medication for rural areas.
The group has a strong presence globally, with 56 cancer centres, and has been focusing on Malaysia since 2022, Wee told StarBiz.
Australian aircraft maintenance company TAE Aerospace will position Malaysia as a regional training and maintenance hub, with plans to expand near its current base in Butterworth, said head of Malaysia Raymond Bissett.
The group has already completed physical construction and will begin internal fitout in six to 12 months, with staff undergoing training in Australia, Bissett told StarBiz.
Australia's "Invested: Australia's South-East Asia Economic Strategy to 2040" identifies Malaysia as a priority market in agriculture, resources, education, and the digital economy, The Star reported.
Malaysia is Australia's ninth-largest two-way trading partner, with the stock of total Australian investment in Malaysia reaching A$8.3 million, and the stock of Malaysian investment in Australia reaching A$25.9 billion in 2025, according to The Star.
The growing economic engagement between Australia and Malaysia is expected to continue, with both countries celebrating 70 years of diplomatic relations next year, The Star said.
The expansion of Australian companies in Malaysia, such as the Port of Tanjung Pelepas and the integrated dairy hub, is a testament to the growing confidence among businesses in both markets, The Star reported.
As Australia and Malaysia continue to strengthen their economic ties, the potential for growth and investment in the region is significant, with opportunities in trade, education, and defence, among others, The Star said.
Related: Malaysia
Malaysia Impact
The increased investment by Australia is expected to have a positive impact on Malaysia's economy and may attract more foreign investment to the country.