Minister for Trade (Sir ): The UK and Malaysia have
today announced the launch of negotiations on a new digital trade
deal that will support growth and back British jobs.
Digital trade agreements (DTAs) can provide the benefits of
digital trade chapters in Free Trade Agreements while remaining
agile, flexible and fast to agree and implement. In this case the
UK and Malaysia already enjoy the free trade benefits of
membership of the CPTPP so this would add a new set of benefits.
Today's announcement marks the next step in making the UK a
global hub for services and digital trade. Digital trade can open
new markets for businesses by reducing the costs of delivering
goods and services, supporting jobs and productivity.
The UK is a world leader in digital trade and has a growing
trading relationship with Malaysia, worth £6.4 billion in 2025.In
2023, the UK exported £730 million digitally delivered services
to Malaysia.The OECD estimates that in 2022, exports to Malaysia
supported 31,100 UK jobs.
Its rapidly expanding digital economy makes Malaysia an
ambitious, likeminded partner, with opportunity to support UK
growth.
The DTA aims to make digital trade with Malaysia easier, cheaper
and more secure through crossborder data flows. Other potential
benefits include reducing paperwork and border friction through
digital systems, and guaranteeing strong protections for personal
data, intellectual property, online consumers and cybersecurity.
The deal could strengthen international digital and tech
cooperation by supporting responsible innovation in areas like AI
and data. It could also create new partnerships that boost
efficient supply chains, infrastructure and global
competitiveness.
