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Malaysia

Malaysia

In September 2010 the EU Member States approved the launch of negotiations for a Free Trade Agreement with Malaysia.

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 2010-2012, € billions
Year EU imports EU exports Balance
2010 14.7 9.7 -5.0
2011 20.8 11.2 -9.6
2012 20.3 14.5 -5.7

EU-Malaysia "trade in services" statistics

Trade in services 2009-2011, € billions
Year EU imports EU exports Balance
2009 1.9 2.6 0.8
2010 2.3 2.9 0.6
2011 2.5 3.1 0.6

Foreign direct investment

Foreign direct investment 2010, € billions
Year Inward stocks Outward stocks Balance
2010 3.8 14.0 10.2

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 enjoys trade preferences with the EU under the current Generalised Scheme of Preferences.

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