The relationship between Malaysia and the European Union has reached a historic moment as Prime Minister Datuk Seri Anwar and EU President Von der Leyen announced the restart of the Malaysia-EU Free Trade Agreement (MEUFTA) negotiations.
This good news was announced during Anwar's working visit to Brussels, Belgium from January 19 to 20, 2025.
The Prime Minister's Office released a statement today saying that this resumption of negotiations marks an important milestone in strengthening Malaysia's economic ties with one of the world's largest trading blocs. It also signifies Malaysia's commitment to establishing deeper economic connections with the EU.
“This milestone reflects the enduring strength of bilateral cooperation and a shared commitment to promoting economic prosperity.”
The statement noted that the MEUFTA is expected to bring substantial benefits to several Malaysian economic sectors, while also strengthening the global supply chain in key areas. It will help boost exports of electronic and electrical products, palm oil and its derivatives, as well as optical and scientific equipment to the EU market.
Moreover, the MEUFTA will encourage significant investment from the EU in cutting-edge fields such as green energy and advanced manufacturing, aligning with the industrial reform goals of the 2030 New Industrial Blueprint.
In 2023, the EU was Malaysia's 4th largest trading partner, with bilateral trade totaling RM206.79 billion. In the first 11 months of 2024, trade with the EU increased by 5.2% year-on-year, reaching RM200 billion. By the end of 2023, EU investments in Malaysia, through 1,323 projects, created over 153,000 jobs with a total value of RM227.9 billion.
“The restart of MEUFTA negotiations demonstrates our shared vision for economic cooperation and our mutual desire to unlock the potential of trade and investment partnerships.”
“The Malaysian government remains committed to reaching a balanced and comprehensive agreement, delivering tangible benefits to all stakeholders, while ensuring a win-win situation for both Malaysia and the EU.”