EUROPEAN diplomats, business leaders and Malaysian officials gathered to mark the completion of the fourth round of Malaysia-European Union Free Trade Agreement (MEUFTA) negotiations.
At Eurocham Malaysia’s inaugural Eurochamps’ networking series in Kuala Lumpur, the common message was that the agreement would strengthen trade, investment and economic cooperation between both sides.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin described the proposed agreement as “a massive win-win” that would protect Malaysia’s interests while providing European businesses with a stable environment to expand.
“We want a deal that protects Malaysia’s interests but at the same time gives European businesses a clear, stable and highly profitable environment to grow here for the long run,” he said.
Sim cited Portuguese explorer Tome Pires, who wrote that “whoever is the lord of Melaka has his hand on the throat of Venice” as trade between Europe and Asia passed through the Malacca Sultanate.
“Five hundred years ago, our ancestors were not strangers. They were business partners.
“Today, we are not starting something new.
“We are just continuing a great story that started 500 years ago – a story of trust, quality and winning together.”
Sim said the negotiations, revived by Prime Minister Datuk Seri Anwar Ibrahim in 2025 after being suspended for more than a decade, had gained momentum.
He said Malaysia and the European Union (EU) were targeting to conclude negotiations by the end of 2027.
Sim said the agreement would support Malaysia’s move towards higher-value industries under the New Industrial Master Plan, creating opportunities for collaboration in semiconductors, green technology and digital economy.
EU ambassador to Malaysia Rafael Daerr said the proposed agreement had become more important amid uncertainty in the global economy, with both sides sharing a commitment to open, rules-based trade.
“The EU aims to negotiate an agreement that is ambitious, comprehensive and of course, mutually beneficial.
“This must be a win-win.”
Daerr described Malaysia as an increasingly important economic partner for the EU.
He said Malaysia had become one of the bloc’s key trading partners in Asean and offered significant potential for further growth in trade and investment.
Daerr said the fourth round of negotiations had made sufficient progress for both sides to exchange initial market offers covering goods, services, investment and government procurement.
He said this marked the beginning of the second-half of negotiations.
The fifth round of negotiations is scheduled to take place in Brussels from Sept 21 to 25.
Daerr also encouraged European businesses to continue sharing their experiences and priorities throughout the negotiations to help ensure the final agreement reflected industry needs and delivered practical benefits for companies operating in Malaysia.
Eurocham Malaysia chief executive officer Kati Ferry said, “The conclusion of the fourth round of negotiations brings us one step closer to a more open, connected and prosperous relationship between our two markets.”
A business panel featuring Konecranes Asia-Pacific vice-president Tarik Alkhalil, Ericsson Malaysia, Sri Lanka and Bangladesh head David Hagerbro and ManTruck & Bus Malaysia managing director Marc Appelt also discussed opportunities arising from closer Malaysia-EU trade ties.
Malaysia and the EU resumed MEUFTA negotiations in January 2025 after talks were suspended in 2012. Since then, four rounds had been completed, with the latest concluding in Kuala Lumpur on June 12.
Earlier rounds made progress in areas including trade in goods, services and investment.
