Kuala Lumpur (VNA) – Malaysia and the European Union (EU) have made significant progress towards a bilateral free trade agreement after concluding negotiations on five chapters of the pact, expected to be signed in 2027.
Malaysian Investment, Trade and Industry Deputy Minister Sim Tze Tzin said the fourth round of negotiations, held in Kuala Lumpur from June 8-12, saw the conclusion of three chapters, namely Customs and Trade Facilitation, Trade Remedies and Good Regulatory Practices. The next round of negotiations will be held on September 21-25 in Brussels, Belgium.
Earlier in his speech, Sim said the Malaysia–EU Free Trade Agreement (MEUFTA) would be a 'game-changer that integrates Malaysia more closely with the world's largest single market while unlocking new opportunities in high-technology services, green energy and digital trade'.
He said the agreement would also strengthen industrial linkages and supply chains between Malaysia and Italy, creating new opportunities for businesses from both economies.
On bilateral trade with Italy, Sim said two-way trade increased by 14.2% year-on-year (y-o-y) to about 17 billion MYR (3.2 billion USD) in 2025, making Italy Malaysia's fifth-largest trading partner in Europe.
To date, over 80 Italian manufacturing projects worth 442 million USD have been implemented in Malaysia across sectors, including food processing, chemicals, machinery and equipment, as well as aerospace.
Sim said Italian companies continue to view Malaysia as a preferred investment destination because of its comprehensive industrial ecosystem and established supply chain, which enable manufacturers to localise production for the Southeast Asian market./.
