Brussels (Brussels Morning Newspaper) – Malaysian Prime Minister Anwar Ibrahim and EU Commission President Ursula von der Leyen reopened negotiations for the Malaysia-EU Free Trade Agreement.
The development comes during Prime Minister Anwar’s working visit to Brussels, Belgium, from Jan 19 to 20, 2025. In a statement, the Prime Minister’s Office (PMO) stated the renewed engagement marks a momentous milestone in strengthening Malaysia’s economic ties with one of the world’s largest trading blocs.
“This milestone also reflects the enduring strength of the partnership between both parties and their shared commitment to fostering economic prosperity.”
it stated.
Anwar’s office stated that the Malaysia-EU Free Trade Agreement (MEUFTA) is expected to benefit multiple domains of Malaysia’s economy while supporting the global supply chain in critical sectors.
“Furthermore, the MEUFTA will catalyse significant investments from the EU in cutting-edge sectors such as green energy and advanced manufacturing, aligning with the industrial reform goals of the New Industrial Master Plan (NIMP) 2030,”
It stated.
“The government of Malaysia remains committed to pursuing a balanced and comprehensive agreement that delivers tangible benefits to all stakeholders while ensuring a ‘win-win situation’ for both Malaysia and the EU.
“The government will also continue to engage with industry leaders and relevant stakeholders to ensure that the MEUFTA reflects Malaysia’s national interests and economic aspirations,”
It noted.
Meanwhile, Ursula von der Leyen also welcomed the development in her statement. She said,
“Today, Europe and Malaysia are taking an important step forward together. On the occasion of Prime Minister Anwar bin Ibrahim’s visit to Europe, I’m pleased to announce the re-launch of negotiations for an EU-Malaysia Free Trade Agreement.”
Meanwhile, Ursula von der Leyen also welcomed the development in her statement. She said,
“Today, Europe and Malaysia are taking an important step forward together. On the occasion of Prime Minister Anwar bin Ibrahim’s visit to Europe, I’m pleased to announce the re-launch of negotiations for an EU-Malaysia Free Trade Agreement.
Reaching out, building partnerships and creating new opportunities for our people.
— Ursula von der Leyen (@vonderleyen) January 20, 2025
That's the path Europe and Malaysia are confirming today.⁰⁰I'm pleased to say that we're relaunching negotiations on a Free Trade Agreement ↓
Historical agreement between Malaysia and the EU
Malaysia and the European Union have had a string of cooperative endeavours that include trying to strengthen bilateral relations, especially on trade and investment. The Partnership and Cooperation Agreement was signed on 14 December 2022 when the Commemorative ASEAN-EU Summit was held in Brussels.
The PCA is an overall framework for further cooperation in sectors such as trade, investment, finance, energy, and political dialogue. It seeks to decrease technical barriers in trade, facilitate customs cooperation, and increase investments between the two parties. It is believed to be a step forward toward reopening talks for the Malaysia-European Union Free Trade Agreement (MEUFTA), which has been held in abeyance since 2012 following palm oil-related issues concerning the EU’s policy.
