M’sia and EU exploring investment, market access and business opportunities
PETALING JAYA: Negotiations between Malaysia and the European Union (EU) on a free trade agreement will likely be finalised by June next year, says Datuk Seri Johari Abdul Ghani.
The Investment, Trade, and Industry Minister said there are still “a few unresolved issues” requiring further discussion, but added that talks are ongoing.
The Malaysia-EU Free Trade Agreement (MEUFTA) is a proposed trade pact between Malaysia and the EU’s 27 member states, designed to streamline trade, investment, and market access for businesses on both sides.
“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 sign the FTA, the objective is to establish a market with free access for both sides,” Johari told a joint media conference on the sidelines of yesterday’s EU-Mala-ysia Business Day 2026 event.
The EU was represented by Jozef Sikela, European Commis-sioner for International Partner-ships, and Rafael Daerr, Ambas-sador of the EU to Malaysia, along with more than 16 ambassadors from EU member states.
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.
Johari said some of the issues being discussed concerned palm oil and the automotive sector.
He also stressed that Malaysia will focus on moving the economy towards higher-value activities.
Johari said Malaysia will continue to allow foreign workers, but their employment must be focused on the so-called 3D – dirty, dangerous, and difficult – jobs.
“Our approach will be increasingly focused on moving the economy towards higher-value activities, rather than relying on foreign labour to sustain conventional factory operations.”
Sikela said Malaysia and the EU share common values – such as multilateralism, the international rule of law, and free trade – that 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,” he said.
“These values can be advanced through reliable, like-minded partnerships with Malaysia and Asean countries.”
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.
He 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.
“Malaysia’s ability to connect different worlds is part of what makes this country such a natural partner for Europe,” said Sikela.
