Malaysia has completed all its domestic processes on the reduction and elimination of tariffs on a total of 201 high-technology ICT products in line with the Information Technology Agreement (ITA2) concluded at the 10th World Trade Organisation Ministerial Conference (MC10) on 17 December 2015. The new rules came into effect on July 1, 2016.

The 201 high‐technology ICT products include new generation multi‐component integrated circuits (MCOs), touch screens, GPS navigation equipment, portable interactive electronic education devices, video game consoles, and medical equipment, such as magnetic resonance imaging products and ultra‐sonic scanning apparatus.

Malaysia’s commitment for the 201 products covers 410 affected tariff lines (9 digit). Of the 410 lines, 351 lines (86%) are already at zero duty (nil import duty). The remaining 59 tariff lines have current applied duties ranging from 5% to 30% which will be progressively removed.

A total of 24 WTO members, including Malaysia, participated in ITA2. Other members include major IT producing counties and regions such as China, the United States, the European Union, Japan, South Korea and Singapore and Thailand from ASEAN. All 24 Members have agreed and are committed towards eliminating the WTO bound rates for 201 products, based on the agreed staging periods namely, immediate elimination, 3-year staging, 5-year staging and 7-year staging.

Malaysia's Involvement in the earlier ITA1 had helped the country's ICT industry increase exports nearly three-fold from USD21.7 billion in 1996 to USD60.5 billion in 2010, averaging 8% annual growth. Malaysia was ranked 8th out of 30 leading exporters and 9th out of 30 leading importers of ICT products in 2010. With this further liberalisation under ITA2, Malaysia's ICT industry will have easier access to a wider market globally for its products.

The ITA Expansion commitments will provide market opportunities for more than 600 local producers to boost their exports to participating countries. Malaysian producers of ICT products will also benefit from the lowering of production costs in terms of the import of cheaper parts and components, thereby improving the competitiveness of Malaysia’s exports.

Further information on the list of tariff lines of the affected products where the reduction of applied duties taken place in year 2016 can be obtained via the following URL:

Ministry of International Trade and Industry 
July 2016