Digital Trade Agreement Negotiations: Malaysia

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 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, like-minded partner, with opportunity to support UK growth.

The DTA aims to make digital trade with Malaysia easier, cheaper and more secure through cross-border 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 cyber-security.

The deal could strengthen international digital and tech co-operation 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.

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