Malaysia, EU Resume Negotiations For Landmark Free Trade Deal
D.Arul Rajoo
BRUSSELS, Jan 20 (Bernama) -- In a historic moment for Malaysia-EU relations, Prime Minister Datuk Seri Anwar Ibrahim and European Commission (EC) President Ursula von der Leyen have announced the resumption of negotiations for the Malaysia-EU Free Trade Agreement (MEUFTA).
The announcement was made in conjunction with Anwar’s working visit to Brussels, Belgium, from Jan 19 to 20, 2025.
In a statement today, the Prime Minister’s Office (PMO) said the renewed engagement marks a significant milestone in strengthening Malaysia’s economic ties with one of the world’s largest trading blocs and underscores the country’s commitment to fostering deeper economic ties with the European Union (EU), a major trade and investment partner for Malaysia.
“This milestone also reflects the enduring strength of the partnership between both parties and their shared commitment to fostering economic prosperity,” it said.
The PMO said the MEUFTA is expected to unlock immense benefits across multiple sectors of Malaysia’s economy while strengthening the global supply chain in critical sectors.
It pointed out that the trade agreement is poised to bolster exports from sectors such as electrical and electronic products, palm oil and its derivatives, as well as optical and scientific equipment to the EU market, among others.
“Furthermore, the MEUFTA will catalyse significant investments from the EU in cutting-edge sectors such as green energy and advanced manufacturing, aligning with the industrial reform goals of the New Industrial Master Plan (NIMP) 2030,” it said.
In 2023, the EU was Malaysia’s fourth largest trading partner, with trade reaching RM206.79 billion.
For the period of January to November 2024, trade with the EU grew by 5.2 per cent to RM200 billion compared to the same period in 2023. As of 2023, EU investments in Malaysia have generated over 153,000 jobs through 1,323 projects valued at RM227.9 billion.
The PMO said that the resumption of MEUFTA negotiations is a testament to our shared vision of economic collaboration and our mutual aspiration to unlock the potential of trade and investment partnerships.
“The government of Malaysia remains committed to pursuing a balanced and comprehensive agreement that delivers tangible benefits to all stakeholders while ensuring a ‘win-win situation’ for both Malaysia and the EU.
“The government will also continue to engage with industry leaders and relevant stakeholders to ensure that the MEUFTA reflects Malaysia’s national interests and economic aspirations,” it added.
-- BERNAMA
