Investment Value: The deal values exhibited significant volatility but generally showed an upward trend over time. Beginning at A$242.3 million in 2014, the values fluctuated considerably each year, ultimately reaching A$2.532 billion in 2023. Although there were periods of decline, particularly in 2015 and 2017, the overall trajectory was upward, highlighted by a substantial increase in 2023. This peak was primarily driven by Tenaga Nasional Berhad's A$1.185 billion acquisition of Spark Renewables Pty Limited, along with Sime Darby Bhd’s A$635 million acquisition of Onsite Rental Group and A$500 million acquisition of Cavpower Group.
Number of Deals: Over the past decade, there were 64 completed inbound M&A transactions, with the number of deals showing notable fluctuations from year to year, ranging between 4 and 9 annually. No consistent upward or downward trend is visible throughout the 2014 to 2023 period. The peak years were 2016 and 2018, each with 9 deals, while the lowest number of transactions occurred in 2017, 2020, and 2021, with 4 deals each. In 2023, there were 5 deals, indicating a moderate level of investment activity.
Investment Rank: Australia and Malaysia share a mature, comprehensive, and complementary economic and trade relationship. In 2022-23, Malaysia ranked as Australia's second-largest trading partner within ASEAN and 8th overall, while Australia was Malaysia’s 10th largest trading partner. Total two-way trade between the two countries in 2022 amounted to A$33.4 billion.
★Figures TBC
In the Energy, Utilities and Resources sector (EUR) sector in Australia, there were 15 inbound investments from Malaysia in the Renewables and Coal sub-sector in the past decade. Some of the most significant transactions have been included below.
Tenaga Nasional Berhad
Gentari Sdn Bhd
AIC Corp Bhd acquired Eloise Copper Mine
Tamarind Resources Pte Ltd
Santos Limited and SapuraOMV Upstream Sdn Bhd
Saujana E&P Sdn Bhd
TeTamarind Galoc Pte Ltd
Tamarind Resources Pte Ltd
In the Industrials sector, there were 13 M&A deals with Malaysian investment in the past decade. Some of the most significant transactions have been included below.
Rental Group Pty Ltd
Sime Darby Bhd
Sime Darby Bhd
Gamuda Bhd
Hextar Global Berhad (HEXTAR)
In the Retail & Consumer sector in Australia, there were 13 M&A deals with Malaysian investment in the past decade. Some of the most significant transactions have been included below.
Limitless Technology Sdn Bhd acquired LVLY Pty Ltd
MKH Properties
Lotte DF Global Co., Ltd
In the Real Estate sector in Australia, there were 9 M&A deals with Malaysian investment in the past decade. Some of the most significant transactions have been included below.
Mulpha International Bhd
SP Setia
Basil Fund
UEM Sunrise Berhad (UEMS)
In the Financials sector in Australia, there were 6 M&A deals with Malaysian investment in the past decade. Some of the most significant transactions have been included below.
The Malaysian Employees Provident Fund Board
Press Metal Bintulu Sdn Bhd
ECM Libra Financial Group Bhd (ECMLFG)
In the Technology, Media, and Telecommunications (TMT) sector in Australia, there were 4 inbound investments from Malaysia in the past decade, and the most recent significant transactions were from the Technology sector.
PE firm Navis Capital Partners
Unlockd, a mobile advertising startup based in Melbourne
VS Industry Bhd (VSI)
Flexiroam Sdn Bhd
In the Healthcare sector in Australia, there were 4 M&A deals with Malaysian investment in the past decade. Some of the most significant transactions have been included below.
Navis Capital
Navis Capital
Leading & Junction Sdn Bhd
In 2022, Malaysia ranked as Australia's 8th largest trading partner, making up approximately $33.4 billion, or 2.8%, of Australia’s total bilateral trade. Key Australian exports to Malaysia included coal, natural gas, copper, and education-related travel services. On the import side, Australia primarily sourced crude and refined petroleum, computers, telecommunications equipment, and electronics from Malaysia.
The Malaysia-Australia Free Trade Agreement, implemented in 2013, eliminates tariffs on nearly all goods traded between the two countries. It promotes trade in services, facilitates investment, and enhances cooperation in areas like education, intellectual property, and technology. It also includes provisions for resolving trade disputes and simplifying business regulations.
In 2021, Malaysia and Australia elevated their relations to a Comprehensive Strategic Partnership (CSP) to enhance cooperation in trade, investment, defense, education, and technology. The CSP strengthens bilateral ties by fostering economic collaboration, security alliances, and people-to-people exchanges, supporting mutual growth and regional stability.
The Australia-Malaysia Institutional Strengthening Program enhances collaboration between the two countries by building institutional capacities in areas like governance, education, and sustainability. It focuses on knowledge exchange, joint research, and capacity-building initiatives to address shared challenges and promote sustainable development.
Malaysia and Australia maintain a robust agricultural trade partnership, working together through bilateral channels such as the Malaysia-Australia Agricultural Cooperation Working Group (MAACWG) and the Malaysia-Australia Free Trade Agreement (MAFTA) to enhance agricultural trade policies.
MAACWG focuses on strengthening collaborations in food security and safety, while actively involving the private sector in exploring market and investment opportunities within the food and agribusiness sectors.
These platforms are crucial for strategic discussions and identifying ways to improve regulatory frameworks, trade facilitation, and food security.
Australia and Malaysia are advancing digital economy cooperation to modernise their economic ties. They are strengthening collaboration in cyber skills, security, TVET, and digital skills while fostering high-tech investments.
The Australia-Malaysia Tech Exchange MoU on digital collaboration also commits both nations to deepen digital cooperation, lower barriers to digital trade, and advocate for open digital trade rules.
Malaysia-based Aerodyne Group, backed by a team of over 400 drone experts and a track record of managing more than 300,000 assets across 110,000 flights, acquired Australian UAV company Sensorem to broaden its industrial presence.
With both Australia and Malaysia committed to net zero by 2050, a key focus is combating climate change. They are sharing expertise in hydrogen, energy storage, green shipping, carbon capture, and emissions measurement and reporting.
Gentari, a clean energy division of Petronas, aims to operate up to 8 GW of renewable energy in Australia by 2030. They plan to expand into Western Australia, focusing on battery systems, solar power, green hydrogen, and EV charging.
Additionally, Malaysia could invest further in Australia's solar manufacturing, battery storage, and clean hydrogen sectors due to Australia's leading R&D, growing solar demand, and opportunities in the battery value chain.
Australia and Malaysia share a robust defense partnership, highlighted by Australia's presence at Malaysia’s Butterworth Air Base and participation in the Five Power Defence Arrangements (FPDA). Notable collaborations include the Malaysia-Australia Joint Defense Program (MAJDP) and the RMAF Butterworth Infrastructure Project.
Both countries continue to explore opportunities for enhanced engagement between their defense education institutions and are making efforts to expand activities in civil maritime security. They have also expressed readiness to review and update the Memorandum of Agreement between the Australian Border Force and the Malaysian Maritime Enforcement Agency.
Malaysia and Australia have entered into several MOUs in recent years to enhance their bilateral relationships.
Australia and Malaysia have signed Memoranda of Understanding (MoUs) on Cyber Security and Critical Technology cooperation, aimed at strengthening collaboration in addressing cyber threats and promoting partnerships in emerging technologies vital to national security and economic growth.
The Australia-Malaysia Higher Education MoU promotes collaboration between universities in both countries through student exchanges, joint research, and academic partnerships. It aims to strengthen ties in education and enhance opportunities for mutual growth. This MoU fosters knowledge sharing and cooperation in higher education.
Australia and Malaysia have signed a new MoU on Youth and Sports, aimed at fostering the development of young athletes through shared training, expertise, technology, and programs. This agreement spans various sports levels, from elite and professional to community-based initiatives.
The Australia-Malaysia Business Council Queensland and Sarawak Australia Business Chamber signed an MoU to boost trade and investment between Sarawak and Queensland. The partnership aims to expand business ties, with trade currently at A$1.37 billion annually.
The Sarawak Business Federation (SBF) and the Australia Malaysia Business Chamber of Western Australia (AMBCWA) signed an MoU to explore opportunities in Sarawak and Western Australia, promoting trade, investment, and fostering commercial and industrial ties between their members and stakeholders.
An MoU on digital collaboration was signed which will continue to drive digital transformation and reaffirmed continuing collaboration, including in multilateral & regional forums, to reduce barriers to digital trade and promote consistent and open digital trade.
