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European Union – EEAS (European External Action Service) | Documents

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Please note that this list is not comprehensive and exhaustive.
All documents published on this website are for information purposes only. The official version of the Association Agreement – once signed - will be published in the Official Journal of the European Union. The texts do not confer any rights, nor do they create any legally binding obligations of public international law.

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Malaysia – Trade – European Commission

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Countries and regions

Malaysia

Malaysia

In September 2010 the EU Member States approved the launch of negotiations for a Free Trade Agreement with Malaysia. One month later, negotiations were launched in Brussels.

Malaysia is a member of ASEAN and a WTO member.

Trade picture

  • In 2011, Malaysia was the EU's 23rd largest trading partner in goods. Bilateral trade between the EU and Malaysia is dominated by industrial products. The EU mainly imports machinery and appliances and mainly exports electrical equipment and machinery (both ways industrial products account for more than 90% of trade). Other sectors of relevance in terms of EU imports from Malaysia are plastics and rubber and animal and vegetable fats and oils and in terms of exports, mechanical products.
  • EU imports from Malaysia have gradually increased since 2003, experiencing a significant decrease in 2008-2009 (16% fall). With the exception of fisheries, EU exports have also seen a growing trend since 2000, with an 18% decrease in 2008-2009 due to the economic downturn.
  • Although Malaysia has not been a major trading partner in services so far, opportunities have already been increasing due to its liberalisation policies and would even further advance with a Free Trade Agreement. In 2009 Foreign Direct Investment outflows to Malaysia were €1.1 billion.

EU-Malaysia "trade in goods" statistics

Trade in goods 2011-2013, € billions
Year EU imports EU exports Balance
2011 19.6 11.9 -7.7
2012 18.8 14.5 -4.2
2013 18.4 14.3 -4.1

EU-Malaysia "trade in services" statistics

Trade in services 2010-2012, € billions
Year EU imports EU exports Balance
2010 2.3 3.1 0.7
2011 2.5 3.4 0.8
2012 2.9 3.9 1.1

Foreign direct investment

Foreign direct investment 2012, € billions
Year Inward stocks Outward stocks Balance
2012 7.2 18.2 11.0

More statistics on Malaysia

EU and Malaysia

Free Trade Agreement negotiations with Malaysia

  • On 10 September 2010, EU Member States agreed that the Commission could start FTA negotiations with Malaysia. The EU-Malaysia FTA negotiations were officially launched in Brussels on 5 October 2010, in parallel with negotiations for a Partnership and Cooperation Agreement. Seven rounds of FTA negotiations have taken place so far.
  • Technical work is currently ongoing since no new negotiating round has been planned yet.

Malaysia is the EU's second trading partner inside ASEAN, behind Singapore.

In 2010 the Malaysian Government presented the New Economic Model and the 10th Malaysian Economic Plan to facilitate Malaysia's transition to become a high-income economy by the year 2020. This economic model advocates the need to enhance the role of the private sector and re-focus the Government's role in the economy as a facilitator and enabler.

Malaysia's policy of liberalisation with regard to its services sector, has led to increased opportunities for trade in services.

When a free trade agreement is concluded between the EU and Malaysia, the trade between the two parties is expected to increase even further.

Malaysia and ASEAN

The co-operation between the EU and Malaysia is ensured through the EU-ASEAN Dialogue which includes discussions on trade and investment issues at ministerial and senior economic official levels.

Malaysia is one of the 10 members of the Association of Southeast Asian Nations (ASEAN) and is the EU's second trading partner in ASEAN.

ASEAN as a whole represents the EU's third largest trading partner outside Europe (after the US and China). Negotiating better access for EU exporters to the dynamic ASEAN market is a priority for the EU.

More information on ASEAN

Trading with Malaysia

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European Union – EEAS (European External Action Service) | Political & Economic Relations

Political & Economic Relations

 
Malaysian Prime Minister Najib Razak with European Commission President Barroso at the ASEM8 Summit

Malaysia, an emerging economy of 29.3 million people, plays an important role in the EU's efforts to reach out to the entire world. With its cultural, ethnic and religious diversity, Malaysia mirrors European diversity and makes for a good partner on the global stage.

Cooperation in trade and economic issues have been the driving force for closer ties between the EU and Malaysia. The opening of the EU Delegation in 2003 also marked increased and closer cooperation between European and Malaysian federal and state authorities, civil society, and academia.

In October 2010, Malaysian Prime Minister Najib Razak and the EU leaders launched two major EU-Malaysia bilateral initiatives, namely the negotiations for the Free Trade Agreement (FTA)and for the Partnership and Cooperation Agreement (PCA). These two initiatives are respectively aimed at boosting bilateral trade and investment and at creating a new strategic dimension for the EU-Malaysia political dialogue and economic cooperation. Both negotiations are currently in progress.

The EU is also gradually establishing cooperation with Malaysia in areas falling under the Common Foreign and Security Policy (CFSP) such as maritime security, export control and Chemical, Biological, Radiological and Nuclear (CBRN) risk. Under the Migration EU Expertise II (MIEUX II) facility, European experts are providing training to Malaysian authorities to effectively manage migration through improved border management practices and procedures, and to curb irregular migration with regards to human rights principles.

To further foster relations, the EU and Malaysia set up a joint Inter-Parliamentary Union (IPU) caucus in November 2010. It has 42 members representing both the government and opposition coalitions. 

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European Union – EEAS (European External Action Service) | Contacts

Contacts


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Address:

Delegation of the European Union to Malaysia
Menara Tan & Tan, Suite 10.01,
207 Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia

Tel: +603 2723 7373
Fax: +603 2723 7337
Email: delegation-malaysia@eeas.europa.eu


Delegation Opening Hours:

Monday - Thursday 08:45 - 18:00
Friday 08:45 - 13:45
Closed on Weekends and Public Holidays


Human Rights Focal Point:

Mr Ivo Apostolov
Third Secretary, Political Section
Tel: +603 2723 7330
Email: ivo.apostolov@eeas.europa.eu

Press Enquiries:

Ms Kavita Sukanandan
Press and Information Officer
Tel: +603 2723 7343
Email: delegation-malaysia-press@eeas.europa.eu

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