According to the EU-ASEAN Business Sentiment Survey released today, Malaysia is one of the four ASEAN markets most favored by European companies, with the other three countries being Vietnam, Indonesia, and Thailand.
The 11th survey conducted by the EU-ASEAN Business Council (EU-ABC) found that despite uncertainties in global trade, ASEAN has for the third consecutive year been viewed by European businesses as the market with the greatest economic opportunities, ahead of India and China.
About 73% of respondents indicated that ASEAN's importance to their global revenue is increasing, and over half of the companies plan to expand their operations in the region.
However, business confidence is also affected by the slow progress in ASEAN economic integration and limited participation from European institutions.
The survey shows that 71% of respondents expect to increase trade and investment in ASEAN over the next five years, a figure lower than 86% in 2024; in addition, 58% of respondents believe that non-tariff trade barriers are increasing, up from 40% last year.
EU-ABC Executive Director Humphrey pointed out that ASEAN is still regarded as the region with the greatest growth potential, but European companies are frustrated by the slow progress in regional integration.
“Non-tariff measures, inconsistent regulations, and persistent bottlenecks are continuously increasing costs and complexity, limiting the full realization of ASEAN's market potential. Unless greater efforts are made to address these obstacles, the region may struggle to achieve the goal of becoming a truly integrated market.”
He noted that while European companies remain committed to expanding business in the region, fully seizing ASEAN's growth opportunities requires faster efforts to remove barriers and deepen the integration process.
“Meanwhile, the EU must strengthen cooperation with ASEAN to maintain competitiveness, and inter-regional free trade agreements are now seen as a strategic necessity.
“As global trade patterns continue to be reshaped, ASEAN must accelerate the integration process, while Europe must prioritize strengthened cooperation in order to secure its position in the region's growth story.”