EU Businesses Seek High-quality Malaysia-EU FTA To Boost Investment, Trade
KUALA LUMPUR, Aug 5 (Bernama) -- European business leaders are calling for a high-quality Malaysia-European Union (EU) free trade agreement (FTA) that delivers practical commercial outcomes while strengthening long-term investment and cooperation.
EU-Asean Business Council (EU-ABC) executive director Chris Humphrey said businesses are urging Malaysian policymakers to maintain momentum towards a targeted conclusion of the agreement in 2027.
He said European businesses see considerable opportunities to expand higher-value activities, particularly in areas linked to industrial transformation, digitalisation and energy transition.
“A high-quality FTA would ideally cover more than just tariff reductions - it should help reduce regulatory barriers, provide clearer rules, streamline customs procedures, and strengthen investment conditions.
“The result is a more transparent, predictable and investor-friendly trading environment,” he said in a statement issued in conjunction with a meeting between representatives of 30 European companies and Malaysia’s Investment, Trade and Industry Minister Johari Abdul Ghani and Economy Minister Akmal Nasrullah Mohd Nasir.
Humphrey said European businesses also expressed interest in supporting Malaysia’s national economic priorities through investment and public-private partnerships.
Areas discussed included advanced manufacturing, digital transformation and healthcare innovation under the New Industrial Master Plan 2030 and the 13th Malaysia Plan, as well as opportunities to mobilise long-term private capital for projects under the National Energy Transition Roadmap.
“On areas for reform, business leaders pointed to the need for greater policy certainty, enhanced digital trade facilitation, better investment aftercare, and stronger coordination between government agencies to support reinvestment and business expansion,” he said.
Additionally, they stressed the importance of growing Malaysia’s talent pipeline and skills upgrading to increase long-term competitiveness.
“Malaysia has a strong foundation as a regional hub with sustained European investment. The opportunity now is to translate its ambitions into investable projects, higher-value economic activity and measurable outcomes,” he said.
The EU is one of Malaysia’s five largest trading partners, with bilateral trade in goods reaching €48.9 billion in 2025. European investment stock in Malaysia was at €33.1 billion in 2024.
In the EU-ABC’s 2025 Business Sentiment Survey, 57 per cent of respondents from European companies indicated plans to expand their operations in Malaysia.
Meanwhile, European business leaders also met Bank Negara Malaysia Governor Abdul Rasheed Ghaffour to discuss financial-sector development and innovation, including digital payments, fintech regulation, sustainable finance and the responsible adoption of artificial intelligence.
The group is set to meet Malaysia’s Natural Resources Minister Arthur Joseph Kurup, Agriculture and Food Security Minister Mohamad Sabu, Deputy Finance Minister Liew Chin Tong, and Deputy Health Minister Hanifah Hajar Taib.
Meetings are also scheduled with senior officials from the energy, transport and digital ministries, the Malaysian Investment Development Authority, the Royal Malaysian Customs Department and the Delegation of the European Union to Malaysia.
“The discussions so far have reinforced the considerable scope for deeper Malaysia–EU trade and investment ties. The priority now is to sustain momentum on the FTA and translate Malaysia’s policy ambitions into practical opportunities for investment and cooperation,” added Humphrey.
-- BERNAMA
