EU calls Malaysia key partner as free trade talks advance and deepen ties

EUROPEAN Union (EU) Ambassador to Malaysia Rafael Daerr said Malaysia and EU nations share broad common ground as democratic, trade-oriented economies that strongly support international law and a rules-based multilateral system.

“Malaysia is a key partner of the European Union, with relations that are increasingly strengthened, driven by the ongoing negotiations of the Malaysia–EU Free Trade Agreement (MEUFTA),” he said in an interview with Bernama ahead of Europe Day celebrations on May 9.

He said both the EU and Malaysia face similar geopolitical and geo-economic pressures, making it more important to strengthen resilience through diversified supply chains and sustainable, mutually beneficial trade partnerships.

“In view of broader geopolitical and geo-economic developments and the consequences of shocks, it is more important to strengthen resilience, particularly by diversifying supply chains and strengthening sustainable and mutually beneficial trade partnerships,” he said.

Daerr noted that the EU remains the world’s largest single market, accounting for around 16 per cent of global economic output, with nearly 450 million consumers and significant purchasing power.

He said the EU is currently Malaysia’s fourth-largest trading partner and one of its largest cumulative investors, having created more than 150,000 jobs over the past two decades.

“Our economies are closely intertwined and based on statistics and a positive trade balance, the potential for further growth is higher compared with other regions or countries, alongside less developed intra-ASEAN trade,” he said, adding that Malaysia is the EU’s 20th largest goods trading partner.

Drawing parallels between Malaysia and EU member states, he said cooperation is essential for mid-sized economies facing global challenges.

“Imagine for a moment that Malaysia were an EU member state: it would be the sixth largest in terms of population size and currently the 11th largest in terms of economic size.

“…for countries of such a medium size, when facing shared challenges on the global stage, there is no viable alternative other than working together and joining forces to defend our interests,” he said, adding that Malaysia plays an important role in forums such as ASEAN and the Organisation of Islamic Cooperation.

Daerr also said it was a privilege to represent the EU in Malaysia, describing the relationship as one with strong potential for further development.

On the Malaysia–EU Free Trade Agreement, he said both sides remain committed to achieving an ambitious and comprehensive deal, with steady progress in negotiations.

“We have conducted three rounds of negotiations over the past 10 months. The fourth round is scheduled to take place from 8 to 12 June in Kuala Lumpur, with the EU team travelling here,” he said.

He added that the aim is to conclude the agreement ahead of the 50th anniversary of ASEAN–EU relations in late 2027.

“Our intention is to increase overall trade and investment. Given the strong political ambition on both sides at the highest level and the dedication of the negotiating teams, I am very optimistic that we will reach an agreement that will bring significant benefits to both sides,” he said.

Ahead of Europe Day celebrations in Malaysia on May 11, Daerr said the event serves as an opportunity to reaffirm the importance of trust, predictability and cooperation between partners.

He said the celebration will bring together EU member states, Malaysian government representatives, civil society, businesses and international partners.

“Europe Day is a joint celebration by all 27 EU member states, 17 of which have embassies in Malaysia, while 10 are accredited to Malaysia from other locations.

“As ‘Team Europe’, we are very excited to work together in and with Malaysia, especially as the relationship has significant potential to be further strengthened in many areas, starting with trade and investment, including key sectors such as semiconductors, green technology and other future technologies, and even beyond the economic sphere,” he said. - May 3, 2026