Malaysia Targets MEUFTA Signing By End-June 2027
KUALA LUMPUR, Oct 13 (Bernama) -- Malaysia aims to sign the Malaysia-European Union (EU) Free Trade Agreement (MEUFTA) by the end of June 2027, said Investment, Trade and Industry Minister Johari Abdul Ghani.
He said that nearly 80 per cent of negotiations have been completed.
“It is still a work in progress. At the end of the day, when we sign the agreement, there will be a free access market between Malaysia and the EU.
“The more open markets that we are able to access, the better (it will be) for us,” he told in a press conference at the ‘EU-Malaysia Business Day 2026: Selangor in Focus’ here Tuesday.
He said the United States (US), China and the EU collectively account for nearly 70 per cent of the global economy, making them important markets for Malaysia as an open economy.
“The US economy is worth US$32 trillion, China's US$19.2 trillion and the EU's about US$21 trillion; altogether, they account for almost 70 per cent of the global economy
“Being an open economy, we want to trade as much as we can with all other countries in the world,” he said.
Meanwhile, he explained that unresolved issues with the EU included those relating to palm oil and the automotive sector, which are still under discussion.
“I think it is just a matter of time before we finalise this. I think they also have to go back to the 27 member countries. So these are the discussions that we have,” he added.
Once finalised, the MEUFTA would mark Malaysia’s 18th free trade agreement (FTA).
“The EU is a very important market for Malaysia and ASEAN. Malaysia’s total trade with the EU last year was approximately US$50 billion; our exports are about US$30 billion, and imports from the EU are around US$24 billion,” he said.
Johari said compliance with the European Union Deforestation Regulation (EUDR) is not a red line for Malaysia, adding that major palm oil producers, which account for about 60 per cent of the country’s crude palm oil output, are already complying with the requirements.
“No, it's not a red line. In fact, our big companies in Malaysia, including United Plantations Bhd, SD Guthrie Bhd, Kuala Lumpur Kepong Bhd (KLK), and IOI Corporation Bhd (IOI) are already in compliance (with the EUDR).
“They account for about 60 per cent of the 20 million tonnes of crude palm oil (CPO) we produce in the country,” he said.
He was responding to a question on whether EUDR compliance was a red line for Malaysia in its FTA negotiations with the EU.
Johari said that Malaysian palm oil producers had already taken steps to comply with the EUDR, including requirements on deforestation, traceability and forced labour.
“All compliance requirements are done; now we are waiting for the EU (to validate) so that more of its 27 members will be able to accept our products more easily, as not every country will be able to do that inspection,” he said.
Meanwhile, EU Commissioner for International Partnerships, Jozef Sikela commended Malaysia’s efforts to comply with the regulation, adding that the delay in the regulation taking effect was not caused by Malaysia’s failure to comply with its requirements.
“Basically, the reason for the postponement is on our side, not on the Malaysian side.
“There is a huge pressure coming from other partner countries which are not complying, and of course this also affects other commodities, for example, coffee in Africa,” he said.
-- BERNAMA
