PETALING JAYA: Negotiations between Malaysia and the European Union (EU) Free Trade Agreement (MEUFTA) will likely be finalised by June next year, says International Trade and Industry Minister Datuk Seri Johari Abdul Ghani.
He said there are still “a few unresolved issues” requiring further discussion, but talks are ongoing.
The agreement is a proposed trade pact between Malaysia and the EU’s 27 member states, designed to make it easier for businesses on both sides to trade, invest and access each other’s markets.
Johari said this at a joint media conference with the EU on the sidelines of the third EU-Malaysia Business Day 2026 held here on Tuesday (Oct 13), focusing on Selangor state.
The EU was represented by Jozef Síkela, European Commissioner for International Partnerships and Rafael Daerr, Ambassador of the EU to Malaysia, along with more than 16 ambassadors from EU Member States.
Also in attendance was Selangor State exco for investment, trade and mobility Ng Sze Han.
Held at the Kuala Lumpur Convention Centre ahead of the Selangor International Business Summit (SIBS) 2026, the third edition of the annual forum drew around 700 business leaders, policymakers, investors and innovators, underlining its role as a premier platform for EU–Malaysia commercial dialogue.
“I believe it is only a matter of time before we make further progress. We also need to consider the positions of the other countries involved in the negotiations.
“At the end of the day, when we signed the FTA, the objective was to establish a market with free access for both sides,” said Johari.
He also said that Malaysia would focus on moving the economy towards higher-value activities.
“The message I have given to investors who come to meet me is straightforward. Going forward, Malaysia will not simply facilitate the recruitment of foreign workers to operate factories and run businesses.
“We will continue to allow foreign workers, but their employment must be focused on the so-called 3D jobs: dirty, dangerous and difficult work,” said Johari.
Sikela said that Malaysia and the EU share the same values, such as multilateralism, the international rule of law, and free trade contribute to global prosperity.
“Our goal is to empower, not impose. Our approach is to partner, not plunder. This is the foundation of our partnership with Malaysia and the wider region.
“These values can be advanced through reliable, like-minded partnerships with Malaysia and Asean countries,” said Sikela.
Earlier, in his speech, Sikela reaffirmed the EU’s commitment to strengthening economic ties with Malaysia, highlighting opportunities in semiconductors, renewable energy, digitalisation and infrastructure at EU-Malaysia Business Day 2026.
Sikela noted Malaysia’s significant role in the global semiconductor industry, accounting for around 13% of global assembly, testing and packaging, and over 7% of semiconductor trade.
He also highlighted cooperation in green ports, cross-border electricity systems and digital technologies, urging businesses to translate shared ambitions into concrete partnerships.
“The logic is simple: Malaysia gains investment, jobs, and infrastructure; Europe gains stronger supply chains, new markets, and opportunities for European companies.
“We are 27 different countries with our own cultures and languages who come together in the project of the European Union. Malaysia’s ability to connect different worlds is part of what makes this country such a natural partner for Europe,” said Sikela.
