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Malaysia–European Union Free Trade Agreement

As a regional grouping, the European Union (EU) remains Malaysia's largest source of foreign direct investment with a total investment inflow of $US13.6 billion (A$14.02 billion) last year, mainly in manufacturing.

Negotiations for a Free Trade Agreement (FTA) between the EU and Malaysia were launched in 2010 and put on hold after seven rounds in 2012 at the request of Malaysia. A stocktaking exercise took place in 2016–17 to assess the prospect to resume negotiations. In the aftermath of the general elections in Malaysia in May 2018, the new government has yet to take a position on the possible resumption of negotiations.

The revival of negotiations was actively supported during the 2020–2024 period, when efforts to re-engage on the Malaysia–EU FTA were publicly encouraged by EU representatives, including then EU Ambassador to Malaysia, Michalis Rokas. Optimism regarding the resumption of talks was expressed through various platforms, emphasising the agreement’s relevance to strengthening trade relations and supporting sustainable development goals.

On Jan 20, 2025, during a working visit by Malaysian Prime Minister Anwar Ibrahim to Brussels, Malaysia and EU announced the resumption of negotiation on the free trade agreements.

References

References

  1. "Malaysia - Trade - European Commission". European Commission.
  2. (11 August 2024). "Decision to restart Malaysia-EU FTA talks imminent, says envoy".
  3. (9 May 2023). "Europe Day and the EU-Malaysia FTA".
  4. (11 March 2023). "EU-Malaysia ties discussed at UTAR talk".
  5. (20 January 2025). "Malaysia and EU resume free trade negotiations". The Business Times.
  6. "Statement by President von der Leyen on the re-launch of the negotiations for an EU-Malaysia Free Trade Agreement".
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