KEY POINTS SOUTH AUSTRALIA-MALAYSIA RELATIONS " Malaysia is  a major trading partner for South Australia . In  the 2006-07, two-way merchandise trade between South Australia and Malaysia was valued at  $728 million . This was 35% higher than two-way trade the previous year . " Malaysia is South Australia's 6th  biggest export market . Exports, which are valued at over $566 million, are dominated by refined copper ($394 mil) . Other key exports  to  Malaysia  include  grains  ($44  mil), steel scrap ($28 mil), lead ($17 mil), silver ($11  mil) and wine ($10 mil) . " South Australia's enjoyed a large trade surplus with Malaysia in 2006- 07, worth $400 million . " South Australia enjoys a very close  relationship with Malaysia, which has   been   developed  through   diplomatic, cultural   and   commercial linkages . " South Australia and Malaysia have a long history  of cultural  linkages . The City of Adelaide and the City of Georgetown, Penang have a long- standing sister city relationship . " The Australia Malaysia Business Council Inc (AMBC) actively promotes bilateral trade relations  between Malaysia and South Australia.  AMBC organises trade delegations to Malaysia on an annual basis . " Australia and Malaysia are currently negotiating a free trade agreement (FTA) .   The Government of South Australia provides in principle support to the potential FTA, but not at any cost. The benefits of such an FTA through  enhanced  market access  must  be shown  to outweigh  any negative effects . " According to the 2006 Census, 1,219 South Australian residents claim Malaysian ancestry . " In   2006-07 there  were  17,705 visitors  from  Malaysia,  who travelled from South Australia or to South Australia during the period  . " In 2007,  there  were  2,112  Malaysian  students  studying in South Australia,  making  Malaysia  South Australia's  third   largest  source  of international students . DISCUSSION Merchandise Trade Malaysia is  a major trading  partner for South Australia .   In  the 2006-07, two- way merchandise trade between South Australia and Malaysia was valued at