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- Malaysia
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- Negotiations and agreements
On 20 January 2025, the EU and Malaysia announced the resumption of negotiations for a comprehensive and modern free trade agreement (FTA).
Negotiations for an FTA between the EU and Malaysia were first launched in 2010, before being put on hold after seven rounds in 2012 at the request of Malaysia.
In 2023, both parties began a stocktaking exercise to determine their positions regarding a possible resumption of the negotiations, leading to their resumption in January 2025.
Malaysia has been a member of the WTO since the organisation's creation in 1995, and a member of the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) since 2022.
Trade picture
- In 2024, the EU was Malaysia's fourth-largest trading partner (accounting for 7.6% of Malaysia's total trade in goods), while Malaysia was the EU’s 22nd largest trading partner, accounting for 0.9% of the EU's total trade in goods. Malaysia was the EU's third-largest trading partner within the Association of Southeast Asian Nations (ASEAN). Total trade in goods between the EU and Malaysia accounted for €46.4 billion in 2024. EU goods imports from Malaysia stood at €28.6 billion, while EU goods exports reached €17.8 billion last year.
- Bilateral trade between the EU and Malaysia is dominated by industrial products, which account for over 90% of trade flows, and in particular by machinery and appliances, which accounted for 60% of all EU imports and over 49% of EU exports in 2024. Besides machinery and appliances, the EU mainly imports from Malaysia optical, photographic and medical instruments, animal and vegetable fats and oils, and plastics. Apart from machinery, the EU mainly exports chemicals, and transport equipment to Malaysia.
- Trade in services amounted to €10.6 billion in 2023 (with a surplus for the EU of €0.6 billion).
- In 2023, the stock of foreign direct investment in Malaysia amounted to €31.9 billion and the stock of Malaysia’s investment in the EU was €15.4 billion.
- Although Malaysia has not been a major trading partner for the EU in services so far, opportunities have already been increasing due to its liberalisation policies and would even further advance with an FTA.
The EU and Malaysia
For the time being, EU-Malaysia bilateral relations are based upon an ASEAN-EEC Cooperation Agreement signed in 1980. The EU and Malaysia signed a new Partnership and Cooperation Agreement in 2022, which will provide a new basis for holding regular political dialogues and sectoral cooperation once it has been ratified by all EU Member States and Malaysia.
EU-Malaysia trade negotiations
On January 2025, the EU and Malaysia announced the relaunch of negotiations for an ambitious, modern and balanced FTA. The first round of negotiations is set to start on 30 June 2025.
A Sustainability Impact Assessment (SIA) has been carried out in support of FTA negotiations between the two partners. The SIA seeks to assess how trade and trade-related provisions in a future FTA could potentially impact economic, social, human rights, and environmental elements in each trading partner and in other relevant countries.
Malaysia and ASEAN
Malaysia is one of the 10 members of the Association of South East Asian Nations (ASEAN), the third largest economy in the region in terms of GDP (12%) and the EU’s third largest trading partner in ASEAN. Malaysia holds the presidency of ASEAN in 2025.
The ASEAN region is a dynamic market with some 660 million consumers and ranks as the eighth-biggest economy in the world. The countries as a group are the EU's third-largest trading partner outside Europe, after the US and China.
Malaysia is part of the Regional Comprehensive Economic Partnership (RCEP).
Trading with Malaysia
- Importing into the EU from Malaysia
- EU trade defence measures on imports from Malaysia
- Exporting from the EU to Malaysia
- Trade relations are part of the EU's overall political and economic relations with Malaysia
- Malaysia is a member of the World Trade Organization
Latest news
A statement from European Commission President Ursula von der Leyen on the re-launch of negotiations for a free trade agreement between the EU and Malaysia.
In a ruling published today, the World Trade Organization (WTO) upheld the EU’s ability to take environmental and climate-based action under the Renewable Energy Directive (‘RED II’).
In a ruling published on 5 March 2024, the World Trade Organization (WTO) upheld the EU’s ability to take environmental and climate-based action under the Renewable Energy Directive (‘RED II’).