KUALA LUMPUR: The European Union (EU) is positioning the Malaysia-EU Free Trade Agreement (FTA) as a central pillar in its broader strategy to deepen economic and geopolitical partnerships in Asean countries.
EU Ambassador to Malaysia Rafael Daerr said the FTA would enhance trade and investment flows between the two economies amid escalating global uncertainties and protectionist headwinds.
“It will also serve as a platform for building a resilient, future-oriented partnership grounded in shared values and a rules-based multilateralism.
“Trade is in the EU’s DNA. We are a group of countries that believe in openness, fair competition and working within a clear framework. Malaysia mirrors many of these principles,” he said in his keynote address at the “Powering Resilience: EU-Malaysia Partnership in Turbulent Times” forum at the Asia School of Business here today.
The event was held in conjunction with Europe Day, a day which celebrates peace and unity on the continent.
Daer noted that Malaysia, if it were an EU member state, would rank sixth in population size and 11th in terms of economic scale – a testament to its regional significance and complementarity with Europe’s economic ambitions.
The FTA negotiations, relaunched in January this year following a joint announcement by European Commission President Ursula von der Leyen and Prime Minister Datuk Seri Anwar Ibrahim, are expected to enter their first round soon.
“We expect the FTA to replicate the success we have seen in Vietnam, where trade surged following the agreement’s entry into force in 2020. It is a win-win that will encourage more foreign direct investments, especially in strategic sectors such as semiconductors,” said the ambassador.
Daerr highlighted that the EU remains Malaysia’s third-largest trading partner and its second-largest collective investor..
He added that recent European investments in high-tech and green sectors signal continued confidence in Malaysia’s economic direction.
Daerr said the FTA is part of a broader EU pivot toward trusted partnerships in Asia, spurred by global supply chain disruptions, Russia’s aggression in Ukraine, and rising geopolitical fragmentation. “The global rules-based order is under pressure. In this context, we want our partners to be as resilient, independent and economically strong as we aspire to be.”
Apart from trade, he said, the EU-Malaysia relationship will continue to grow through cooperation in education, research, green technology and maritime security.
Daerr highlighted Malaysia’s current Asean chairmanship as a timely convergence of regional leadership and bilateral momentum. Malaysia is also the next coordinator of Asean-EU dialogue relations.
“With the theme of ‘Inclusivity and Sustainability’, Malaysia’s chairmanship reflects Asean’s and the EU’s shared commitment to progress that benefits all,” he said.
Among the planned engagements are three Asean-EU ministerial meetings this year, including the Asean Regional Forum in July and an inaugural Ministerial Meeting on Environment and Climate in September. – Bernama
