KUALA LUMPUR: The European Union (EU) business community is hopeful that the new government under Pakatan Harapan will hasten the relaunch of free trade agreement (FTA) negotiations soon.
Ambassador and head of EU delegations to Malaysia Maria Castillo Fernandez said the EU-Malaysia FTA will be a key pillar in the bigger framework of EU-Asean FTA.
“As the EU already formed FTAs with Vietnam and Singapore, and discussion is ongoing for Indonesia and the Philippines, Malaysia is one important but missing link currently that we urgently want to connect.
“Representing the EU, I cannot emphasise more the importance of regional economic and political integration as a key factor in geberating economic growth, social inclusiveness, fostering democratic values and ensuring political stability.
“This is why the EU has strongly supported Asean for over 30 years. We want to see the new Malaysia as an active member in Asean’s engagement with EU at all levels,” she told reporters at the EU-Malaysia Trade and Investment Forum 2018.
EU-Malaysia Chamber of Commerce and Industry (EUMCCI) chairperson Tan Sri Dr Rebecca Fatima Sta Maria said the chamber was confident of the continuity of efforts of reviving the EU-Malaysia FTA negotiations by the new government.
“I think the more pertinent question that the government needs to think is what if Malaysia is not part of the FTA? And I believe that the government will have more clarity on how to approach this initiative, based on works that have been done by its Asean counterparts, namely, Singapore, Vietnam, the Philippines and Indonesia,” she said.
In his speech, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said Malaysia’s total trade with the EU had increased 25.1 per cent year-on-year to RM16.15 billion in April. This accounted for 10.4 per cent of the country’s total trade.
Malaysia’s exports to the region totalled RM8.93 billion, higher by 19.5 per cent mainly due to increased exports of manufacturers of metal as well as electrical and electronic (E&E) products.
Imports grew 32.8 per cent to RM7.22 billion.
Azmin said among the top 10 EU markets, exports to nine countries had registered growth namely Italy (180.3 per cent), Spain (176.9 per cent), the Czech Republic (49.7 per cent), Hungary (45.8 per cent), Germany (19.2 per cent), France (10.6 per cent), the Netherlands (5.1 per cent), Poland (3.6 per cent) and Belgium (3.1 per cent).
Meanwhile, the pivotal element of the forum is the launch of the EUMCCI Trade Issues and Recommendations 2018 position paper.
The publication represents the summary of the work conducted by the EUMCCI’s industry sector committees outlining the most pressing issues, as well as recommendations on how to improve the business environment with public and private stakeholders.
kw: European Union, free trade agreement, EU-Malaysia FTA, trade, investment, EUMCCI, Pakatan Harapan