Brussels, 20 January 2025
EU Commission President Ursula von der Leyen and Prime Minister of Malaysia Anwar bin Ibrahim have announced the relaunch of negotiations for an ambitious, modern and balanced EU-Malaysia free trade agreement (FTA).
The EU is Malaysia’s 4th largest trade partner, with trade in goods worth €45 billion in 2023, and trade in services worth €11 billion in 2022. Deeper trade ties with Malaysia – a major economy in South-East Asia – would boost EU competitiveness and economic security through new business opportunities and stronger supply chains, unlocking new export possibilities and improving access to sources of raw materials.
A statement by President von der Leyen is available online.
The agreement will aim to build the EU-Malaysia partnership on robust commitments on labour rights and climate and environmental protection, while furthering the EU’s strategic engagement with the rapidly growing Indo-Pacific region.
The EU and Malaysia are committed to advancing swiftly in the FTA talks and aim to hold a first substantive round of negotiations in the coming months. The EU text proposals will be published after the first negotiating round, in line with the EU’s transparency policy. A Sustainability Impact Assessment has also been carried out in support of the negotiations, analysing the possible economic, environmental, human rights and social impacts of the agreement.
Following his meeting with Malaysian Minister for Investment, Trade and Industry Tengku Zafrul Aziz on Sunday, Commissioner for Trade and Economic Security Maroš Šefčovičsaid:
“I warmly welcome the relaunch of our negotiations with Malaysia, marking the beginning of an important upgrade to our trade relationship with this vibrant economy in south-east Asia. These negotiations come at a crucial moment. In today’s shifting geopolitical landscape, it is essential to build new partnerships, foster collaboration, and explore fresh opportunities. Through these talks, we are doing just that. A modern and dynamic free trade agreement will bring mutual benefits, opening doors to new business opportunities and enhancing the resilience of our supply chains. We look forward to a productive first round of negotiations in the coming months.”
Source – EU Commission
Statement by President von der Leyen on the re-launch of the negotiations for an EU-Malaysia Free Trade Agreement
Brussels, 19 January 2025
Today, Europe and Malaysia are taking an important step forward together. On the occasion of the visit of Prime Minister Anwar bin Ibrahim to Europe, I’m pleased to announce the re-launch of negotiations for an EU-Malaysia Free Trade Agreement.
This excellent news comes at a critical time. Geopolitical tensions are escalating, and the risk of instability is growing. While some turn inwards towards isolation and fragmentation, Europe and Malaysia are choosing a different path: reaching out, building partnerships, and creating new opportunities for our people.
Europe and Malaysia share a commitment to a rules-based international order, economic openness, sustainable development, and regional stability. Europe remains dedicated to advancing a free and open Indo-Pacific, where both sides share significant interests and responsibilities.
As our third-largest trading partner in ASEAN and the current chair, Malaysia plays a central role in shaping the bloc’s direction. Today’s announcement reaffirms Europe’s commitment to strengthening ties with both Malaysia and ASEAN as a whole.
A free trade agreement between Europe and Malaysia would take our trade relationship to the next level. With trade between us already worth €45 billion annually, we will unlock even greater benefits for businesses and consumers, especially for industrial products. Free and fair trade means better choices and prices. It also means less risk, as integrating and diversifying supply chains strengthens our economic security.
Like all Europe’s free trade agreements, this is about more than economic exchanges. We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection. Once concluded, this agreement will provide a platform of dialogue on issues the EU cares deeply about, including respect for human rights. We are showing that sustainability and free trade can and must go hand in hand.
Now that we have restarted these negotiations, I have full confidence in our teams to deliver an agreement we can all be proud of. Let’s get to work.
Source – EU Commission
Joint statement by Commissioner Šefčovič and Minister Aziz
Brussels, 20 January 2025
Following the announcement by European Commission President Ursula von der Leyen and Prime Minister of Malaysia YAB Dato’ Seri Anwar bin Ibrahim, we welcome the relaunch of negotiations for an EU-Malaysia Free Trade Agreement, marking the beginning of an important upgrade to our trade relationship and the integration of our two economies.
These negotiations come at a crucial moment. In today’s shifting geopolitical landscape, it is essential to build new partnerships, foster collaboration, and explore fresh opportunities. Through these talks, we are doing just that.
A modern and dynamic free trade agreement will bring mutual benefits, opening doors to new business opportunities and enhancing the resilience of our supply chains.
We feel encouraged by our discussion in Brussels earlier (on 19 January) and look forward to a productive first round of negotiations in the coming months.
– Tengku Zafrul Tengku Abdul Aziz, Malaysian Minister of Investment, Trade and Industry, and Maroš Šefčovič, European Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency
Source – EU Commission