Australia bets bigger on Malaysia’s growth story 

PETALING JAYA: Economic ties between Australia and Malaysia have grown from strength to strength across trade and investment, education, technology, defence, food security, energy transition and the digital economy, among others.

Next year, both nations will celebrate 70 years of diplomatic relations.

In 2021, the relationship was elevated to a Comprehensive Strategic Partnership.

Today, economic engagement has accelerated under Australia’s “Invested: Australia’s South-East Asia Economic Strategy to 2040”, which identifies Malaysia as a priority market in agriculture and food, resources and energy transition, education and skills, and the digital economy.

Currently, Malaysia is Australia’s ninth-largest two-way trading partner, with bilateral trade reaching almost A$35bil (RM99.89bil) in 2025.

Australian foreign direct investment (FDI) in Malaysia has risen to A$4.7bil, while Malaysian FDI in Australia has expanded to A$14.4bil, reflecting growing confidence among businesses in both markets.

In 2025, the stock of total Australian investment in Malaysia was A$8.3mil, while the stock of Malaysian investment in Australia reached A$25.9bil.

A recent media tour of Penang and Johor highlighted Australian-linked companies operating in Malaysia, underscoring the growing depth of bilateral investment and business collaboration.

Port of Tanjung Pelepas (Johor)

Malaysia’s most advanced terminal, the Port of Tanjung Pelepas (PTP), is also one of South-East Asia’s key transshipment hubs.

It signed a memorandum of understanding (MoU) with the Port of Melbourne last year, which will see both ports sharing best practices on policies, decarbonisation and alternative fuel, among others.

After becoming the nation’s first container terminal to service over 14 million twenty-foot equivalent units (TEUs), things are not slowing down for the group.

Chief executive officer (CEO) Mark Hardiman told StarBiz the group is focusing on the expansion, which should take them up to 2028.

“Expansion is being done in phases, because our masterplan actually takes us into the next decade.

“This will mean more vessels coming in and we can achieve higher TEUs,” he said.

Hardiman added that they have been accelerating net-zero emissions by 2050 in various ways.

One of them includes the electrification process for prime movers.

“Total electrification will take more than 10 years, as the assets are kept for that amount of time.

“We were the first to start electrifying rubber-tyred gantry cranes in 2012 and right now, all that’s left are the prime movers,” he said.

Green bunkering is also set to play an increasingly important role in PTP’s long-term growth strategy, as the global shipping industry transitions towards alternative marine fuels.

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.

Jemaluang Dairy Valley (Johor)

The 275-ha integrated dairy hub became Malaysia’s largest A2A2 dairy farm when it imported 1,000 A2A2 Jersey Friesian cows from Australia.

This has highlighted the role of Australian livestock expertise in supporting food security issues and Malaysia’s aim to become self-sufficient in terms of milk production.

CEO Qasem AlHassan said the cows bred Down Under are suitable because of their ability to thrive in the climate here.

“Our farm currently houses about 1,900 cows, including calves, and we are expecting another 500 cows to arrive later this year in terms of our expansion,” he said.

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 is currently under construction a little further from the milking parlour and 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 farm is owned by Kulim (M) Bhd (65%), a subsidiary of Johor Corp (JCorp), and A2 Fresh Holdings (35%), part of Rhone Ma Holdings.

Icon Group (Penang)

The Australian oncology provider that started off in Brisbane entered the region about 15 years ago with a mission to provide cancer care that is accessible.

Asean and Hong Kong CEO Serena Wee said these days, cancer treatment is not one size fits all, and they’ve been fortunate to partner with various medical affiliates from diagnostics, all the way down to the specific treatment.

“Diagnosis from the start is very important, this allows doctors to come up with the best treatment plans for the patient.

“Today, with the advancement of technology like genome testing and precision medicine, there are so many different treatments available,” she said.

She told StarBiz it is also a goal for them 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.

“I want to start these conversations here in Malaysia, it is very important.

“It’s not something that was naturally done.

“We’ve started doing this in Singapore and some in Indonesia. It is very preliminary, but it needs to start all over,” she said.

The group has a strong presence globally – it has 56 cancer centres and is active in Mainland China, Hong Kong, Malaysia, New Zealand, Singapore and, most recently, the United Kingdom.

Wee said Malaysia has been a focus market since 2022.

In Penang, the group operates within Island Hospital, while in Kuala Lumpur, the clinic is located inside Prince Court Medical Centre.

“There are currently plans for further expansion with a third clinic, which we will announce very soon,” Wee added.

TAE Aerospace

Australian aircraft maintenance, repair and overhaul company TAE Aerospace will look at positioning Malaysia as a regional training and maintenance hub.

The group currently operates its military engine overhaul facility within the Butterworth Royal Malaysian Air Force (RMAF) and is expected to serve the RMAF.

Head of Malaysia Raymond Bissett said a part of the group’s strategy is being close to customers in order to improve turnaround time.

“Previously, the engines of the jets would need to go elsewhere for repair, maintenance and testing.

“Right now, we can do it here, and this has saved the RMAF approximately US$9mil,” he told StarBiz.

The group is currently planning its expansion near to the current base in Butterworth, which will serve as a service and repair centre.

Bissett added that the physical construction has already been completed, but the internal fitout has not begun yet.

“We’re looking at six to 12 months, but in the meantime, staff will be heading to Australia for training.

“There will be about two to three batches of training. Aviation is very strict on certification, so we will have an Australian trainer come here to certify the staff.”