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Overview
UK food and drink are among the best in the world, renowned for their quality, provenance, and innovation. Malaysia is an important destination for UK food and drink exports, with demand for UK food and drink in Malaysia having grown by 38% since 2020.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will help our food and drink producers to capitalise on the growing demand for British food and drink in Malaysia, and benefit from new opportunities to sell to Malaysian consumers.
You will be able to take advantage of new opportunities, particularly lower tariffs and simplified customs procedures, where the agreement could make it easier and cheaper to trade.
Trade agreements with Malaysia
The UK has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the UK), which entered into force between the UK and Malaysia on 15 December 2024. This means the UK and Malaysia have a free trade agreement for the first time.
CPTPP entry into force and ratification
As of 24 December 2024, CPTPP is in force between the UK and:
- Australia
- Brunei
- Chile
- Japan
- Malaysia
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with said countries.
The following countries have not yet ratified the terms of the UK’s accession:
Canada and Mexico.
This means that the UK cannot yet access CPTPP provisions with those countries.
This guidance will be updated following each of the remaining countries’ ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
Reduced tariffs
Joining CPTPP means over 99% of current UK goods exports to CPTPP will be eligible for tariff-free trade, making it cheaper for UK businesses to export their goods to Malaysia. This tariff reduction includes key UK food and drink products such as whisky, chocolate, and cereals.
Although the UK has joined CPTPP after it was agreed by the original 11 members, the UK will ‘catch up’ on tariff staging, which means we are benefitting from the same reduced tariffs that all other CPTPP members do.
| Item | Current tariff | 2025 tariff | Final tariff (year) | Timeline |
|---|---|---|---|---|
| Whisky | 80% | RM29/litre | 0% (2034) | Tariffs gradually reduced to 0% by 2034. |
| Gin | 75% | RM27.50/litre | 0% (2034) | Tariffs gradually reduced to 0% by 2034. |
| Vodka | 269.82% | RM27.50/litre | 0% (2034) | Tariffs gradually reduced to 0% by 2034. |
| Pork | 15% | 0% | 0% (2024/25) | Tariffs reduced to 0% at EiF. |
| Chocolate | 15% | 0% | 0% (2024/25) | Tariffs reduced to zero at entry into force. |
Rules of Origin options
A product can only qualify for preferential tariffs under CPTPP if it meets the rules of origin requirement for that product outlined in the agreement. Rules of origin are used to determine where goods ‘originate’, meaning, not where they have been shipped from, but where they have been produced or manufactured.
Origin criteria
To qualify as ‘originating’ in the UK, a product must meet one of the following:
- it has been wholly obtained or produced entirely in the territory of one or more of the parties as established in Article 3.3 (wholly obtained or produced goods)
- it has been produced entirely in the territory of one or more of the parties, exclusively from originating materials
- it has been produced entirely in the territory of one or more of the parties using non-originating materials provided the good satisfies all applicable requirements of Annex 3-D (Product-Specific Rules of Origin)
Product specific rules
If a good is produced using non-CPTPP inputs, then the good can still qualify as CPTPP originating if it has been substantially transformed in a CPTPP member country. The rules defining how a product can be transformed are included in the product specific rules annex.
There are different ways for traders to meet the origin criteria, including change in tariff classification and regional value content.
Change in tariff classification
This is where a good is imported into the UK, changed significantly enough so that it then falls under a different tariff classification.
Example: Chocolate
Chocolates fall under the HS commodity code 1806. For example, ‘Chocolates (including pralines), whether or not filled’ are HS 1806.9019.00, and the product specific rule is that:
- a change to confectionery of subheading 1806.31 through 1806.90 containing more than 70 per cent cacao content by weight of the good from any other chapter; or
- non change in tariff classification required for confectionery of subheading 1806.31 through 1806.90 containing more than 70 per cent cacao content by weight of the good, provided there is a regional value content of not less than 50 per cent under the build-down method.
Regional Value Content (RVC)
CPTPP provides the following 4 calculation methodologies for determining if a good satisfies an RVC requirement.
Build-down method: based on the value of all non-originating materials used in production, relative to the value of the good.
Focused value method: based on the value of certain non-originating materials used in production, relative to the value of the good.
Build-up method: based on the value of originating materials used in production, relative to the value of the good.
Net cost method: based on the cost of all non-originating materials used in production, relative to the total cost of the good. Net cost only applies to certain automotive goods.
Article 3.9 includes additional details and definitions associated with the net cost method.
Product testing and labelling
The UK and Malaysia have both committed to ensuring product testing and labelling procedures are transparent, which will facilitate trade and minimise financial and administrative burdens for UK food and drink businesses.
UK conformity assessment bodies will be able to apply to be accredited by Malaysian authorities to test against Malaysian regulations in the UK. This will make it easier for UK food and drink businesses to have their goods assessed against Malaysian regulations prior to exporting, rather than having to send samples to Malaysia to be assessed there.
This could reduce the time and costs compared to having conformity assessments take place in in Malaysia, which could especially benefit SMEs for whom the costs of overseas testing can be prohibitively expensive.
The chapter includes seven sector-specific annexes, including wine & distilled spirits. This annex can help address common market access issues arising in these sectors.
CPTPP includes a dedicated annex to wine and spirits, which includes commitments on labelling.
Sanitary and Phytosanitary (SPS) measures
The SPS chapter contains commitments on greater transparency and information sharing on animal and plant health and food safety, that will help UK businesses better understand how to access their markets.
The requirement for CPTPP members to be transparent in how they undertake import checks, and for them to be carried out without undue delay, will help to ensure smoother and more timely trade. The chapter also establishes dialogue structures to resolve technical issues and provide routes to ease SPS related market access issues.
The agreement provides an opportunity for cooperation on SPS export certification including a commitment to work together to progress the use of electronic certification, which will help to reduce administrative processes for businesses.
You will also need a relevant health certificate for products that come under sanitary or phytosanitary rules (animals and products of animal origin, but also plants and vegetables). Search for relevant export health certificates for products of animal origin for Malaysia.
Investment
You can invest in Malaysia to help grow their businesses, for example by investing in bottling and distribution operations. Joining CPTPP means the UK will be gaining investment liberalisation commitments from Malaysia for the first time, limiting barriers to overseas investment.
Malaysia’s market access offer also represents a significant improvement on the status quo for UK investors and will help to build on the existing relationship between the UK and Malaysia.
Investors will now benefit from:
- investment protections that guarantee protection from discriminatory, unfair, or arbitrary treatment
- being more able to control their business operations and recruitment, rather than being required to partner with domestic businesses to gain access to the Malaysian market
Opportunities for digital trading
Electronic authentication and electronic signatures
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions, and the people behind them, are genuine. Strengthening the legal validity of electronic signatures provides greater confidence that transactions can be concluded through electronic means.
By using electronic signatures and/or electronic authentication, you can complete transactions in a matter of minutes regardless of where your counterpart is, reducing costs and simplifying processes.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
However, CPTPP countries might impose specific criteria regarding electronic signatures, including some circumstances where electronic signatures are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and CPTPP countries are committed to facilitating the flow of trade activities using electronic trade documents.
CPTPP countries have committed to making trade administration documents available in electronic form and to accept electronic versions of those documents. This refers to documents which are required in connection with the import or export of a good and must be presented to customs authorities.
Beyond CPTPP, the UK also enables commercial trade documents that use English law to be accepted in electronic form. This includes documents such as bills of lading, promissory notes, and bills of exchange. This was enabled by the Electronic Trade Document Act.
This complements the commitments made on paperless trading related to trade administration documents required by the UK government or other CPTPP countries as part of the import-export process. Find more information about the UK’s Electronic Trade Documents Act.
Different countries are at different stages of legislating for paperless trading and trade digitalisation. The United Nations Economic and Social Commission for Asia and the Pacific has created an interactive Model Law on Electronic Records (MLETR) tracker where you can view different countries’ progress.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. You may also be eligible for 1-2-1 support from a local International Trade Adviser. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access free training on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures
Check import duties and allows you to check the status of available tariff rate quotas
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our Malaysia market guide.
Prior to export, you must be aware of local regulations and import conditions in Malaysia that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chamber of Commerce in Malaysia
To see information on political, economic and security risks when trading with Malaysia, please see: