KUALA LUMPUR: Malaysia is a key partner to the European Union (EU), with relations on an upward trajectory, driven by ongoing negotiations on the Malaysia-EU Free Trade Agreement (MEUFTA), said the EU Ambassador to Malaysia, Rafael Daerr.
According to him, the EU and Malaysia are like-minded in many ways, including as vibrant democracies and trade-oriented market economies that strongly rely on and support international law and a rules-based multilateral framework.
“Given broader geopolitical and geoeconomic developments and the resulting shocks, it is ever more important to strengthen resilience, in particular by diversifying supply chains and strengthening those trade partnerships that are both sustainable and mutually beneficial,” he told Bernama in an interview held in conjunction with the upcoming Europe Day celebrations on May 9.
Daerr said the EU, as the world’s largest single market representing roughly 16 per cent of the world economy, with nearly 450 million consumers and high purchasing power, is now Malaysia’s fourth-largest trading partner and, cumulatively and historically, one of the biggest investors in the country.
He added that the EU has created over 150,000 jobs in Malaysia in the last two decades alone.
“Our economies are strongly interconnected and, judging by statistics and the positive trade balance, the potential for increase is comparatively higher with the EU than with other countries or regions in the world, alongside the similarly underdeveloped intra-Asean trade,” he said, noting that Malaysia is currently EU’s 20th-biggest goods trading partner.
Drawing similarities between Malaysia and EU member states in terms of population and economic size, the ambassador highlighted the importance of working together on the world stage.
“Just imagine for a moment that Malaysia were to become an EU Member State: it would be the sixth-biggest in terms of population size and currently the 11th-biggest when it comes to the size of its economy.
“This being said, for such middle-sized countries, when it comes to facing common challenges on the global stage, there is no viable alternative but to cooperate and join forces to defend our interests,” he said, noting that Malaysia is a very important voice in many fora, including Asean and the Organisation of Islamic Cooperation (OIC).
Daerr said, on a personal note, that he considers it rewarding and an honour to represent the EU in a country like Malaysia, as it is a bilateral partnership that matters and has significant potential for further development.
Asked about the MEUFTA, Daerr said both sides are committed to reaching an ambitious and comprehensive agreement, and that good progress has been made.
“We have had three rounds of negotiations in the past 10 months. The fourth round is scheduled to take place from June 8 to 12 in Kuala Lumpur, with the EU team travelling here,” he said, adding that the goal is to conclude negotiations before the 50th anniversary of Asean-EU relations in the final quarter of 2027.
“Our intention is to increase overall trade and investment. Seeing the strong political ambition on both sides at the highest level and the dedication of the negotiating teams on both sides, I am very optimistic that we will reach an agreement that will provide substantial benefits for both sides,” Daerr said.
In view of the Europe Day reception in Malaysia, to be held on May 11, the ambassador highlighted it as an opportunity to reaffirm and celebrate the importance of cooperation and reliable, predictable partnerships.
He said the reception will bring together EU member states and partners from government and other institutions, civil society, as well as the international and business community, to thank them for their contributions to strengthening the EU-Malaysia partnership.
Daerr said that Europe Day is a joint celebration by all 27 EU member states, of which 17 have embassies in Malaysia, while 10 have envoys accredited to Malaysia from other countries.
“As ‘Team Europe’, we are thrilled to work in and with Malaysia, especially given that the relationship has significant potential to be further amplified in many areas, starting with trade and mutual investment, including in key areas such as semiconductors, green and other future technologies, but also beyond the economic sphere,” he said.