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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.
This guidance covers CPTPP Chapter 14: Electronic Commerce (please note that this link directs you to the New Zealand Foreign Affairs and Trade Ministry which is responsible for the CPTPP agreement text).
The shared commitments the UK and the other CPTPP countries have made include commitments on trade conducted through digital means. They are relevant to UK businesses across all sectors of the economy, such as:
- technology
- telecommunication goods and services
- professional services
- creative industries such as advertising
- services of notaries or equivalent professions and legal representation services
- manufacturing
Please note that commitments on digital trade and e-commerce in trade agreements with CPTPP countries do not apply to government procurement.
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.
The free flow of trusted data
The UK and other CPTPP countries have committed to allowing trusted data to flow freely between countries without unjustified restrictions. This is set out in Article 14.11 ‘Cross-Border Transfer of Information by Electronic Means'.
Data underpins everything from emails to electronic payments to shipments across borders. The deal will support UK businesses to provide modern services, ensuring that they can collect, process, and transfer data without facing unnecessary red tape.
These commitments provide a more certain and stable environment for businesses and do not interfere with the high level of protection afforded to personal data when it is transferred overseas. This is accompanied by a commitment that a framework must be in place for the protection of personal data in each CPTPP country, though these can be different regulations.
In the Article 14.13 ‘Location of Computing Facilities' CPTPP countries have committed to not imposing unjustified data localisation requirements (where data is required to be stored or processed in a specific territory as a condition for doing business in that territory).
The CPTPP countries have also committed to not imposing unjustified server localisation requirements (where a business is required to establish facilities in a specific territory).
This means you do not have to bear additional costs associated with storing or processing data overseas, nor do you have to set up new facilities in another country. These costs are particularly prohibitive for small and medium-sized enterprises (SMEs).
Please note that there might be exceptions to the information provided where you might still be restricted on where you move your data to, or you might be required to store your data in a specific location. You will still need to comply with UK and local regulations on data protection and data handling, which might be different across all CPTPP countries. You should consult domestic regulations on data protection and any local regulations on data localisation.
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.
Duty-free digital content
The UK and other CPTPP countries have committed to keeping electronic transmissions, including content transmitted electronically, free of customs duties.
This enables the free flow of digital content and guarantees lower costs for businesses as well as consumers.
Safer trading online for your business
Personal data protection
Knowing your data is safe is essential for you and your consumers to have confidence in trading digitally. Having guarantees that personal and business data is protected can foster trust between you and your consumers. The UK and other CPTPP countries are committed to having strong data protection frameworks in our respective countries.
CPTPP ensures that CPTPP countries are committed to each having a legal framework in place to protect personal data within their territories. CPTPP also requires countries to publish information about how businesses can meet their obligations across multiple markets, and on consumers personal data protection rights.
Please note that you need to comply with local data protection regulations when conducting business in another country.
Any transfers of personal data must satisfy the UK’s high data protection standards as set out in domestic legislation, including the Data Protection Act 2018 and UK General Data Protection Regulation (GDPR).
Protected source code
The UK and CPTPP countries have agreed that businesses will not be required to give access to, or transfer, source code as a condition of doing business in CPTPP markets. This reduces the risk of forced technology transfer and intellectual property theft, meaning UK software businesses can expand to CPTPP markets with greater confidence.
The text we have agreed covers mass-market software or products containing mass-market software and does not apply to software used for critical infrastructure. Any requirements relating to patent applications and granted patents, including orders made by a judicial authority in the context of a dispute, are also not affected by the text we have agreed.
Protection for products using cryptography
To note, the following information relates to ‘Information and Communication Technology (ICT) Products that Use Cryptography’ Section A which is found in Annex 8-B to CPTPP Chapter 8: Technical Barriers to Trade, rather than CPTPP Chapter 14: Electronic Commerce.
Encryption is critical to shielding citizens and companies from a variety of threats including fraud, hacking and corporate espionage. ICT products that use cryptography ensure that the information transmitted or stored is processed securely. This can be done by requiring user authentication and permitting access of the information only to authorised users.
Businesses selling ICT products will be able to enter the markets of CPTPP countries, confident that they will not be required to transfer or provide access to proprietary information related to cryptography, in order to comply with technical regulations or conformity assessment procedures.
They will also not have to partner or co-operate with another person or use a particular cryptographic algorithm to sell commercial ICT products in these countries.
Any requirements relating to the use of ICT products in government networks, financial institutions and markets are out of scope and are still permitted by CPTPP countries.
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: