Malaysia, EU resume FTA negotiations

Brussels (VNA) – President of the European Commission (EC) Ursula von der Leyen and Malaysian Prime Minister Anwar Ibrahim on January 20 announced the resumption of an ambitious, modern, and balanced EU – Malaysia free trade agreement (FTA).

The EU is currently Malaysia’s fourth largest trading partner, with trade in goods worth 45 billion EUR (46.7 billion USD) in 2023 and trade in services worth 11 billion EUR in 2022.

Deeper trade ties with Malaysia – a major economy in Southeast Asia would boost the EU’s competitiveness and economic security through new business opportunities and stronger supply chains, unlocking new export possibilities and improving access to sources of raw materials.

The agreement aims 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.

“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,” the EC President said.

The resumption of the FTA talks marked a bold step in the bilateral trade relations. The pact will not only bolster economic growth and generate more jobs but also enhance global supply chain, ensuring economic security for both sides./.

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