KUALA LUMPUR: Malaysia will explore the possibility of having a bilateral free trade agreement with the United Kingdom said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
The UK may no longer be part of the currently negotiated Malaysia-EU FTA but Malaysia will explore the possibility of having a separate bilateral FTA with the country.
Brexit, he said, will have minimal impact on Foreign Direct Investment (FDI), as they are normally long-term in nature and exchange rate volatility is usually priced into the FDI-related contracts.
" We believe that the UK will continue to be key player through its investments in Malaysia's services sector especially in banking and education, amongst others,"he said in a statement.
The decades of close cooperation between Malaysia and the UK transcend beyond economic partnership.
"They form a strong foundation for our future growth and Brexit will not affect our close ties. We will continue to build upon this momentum and forge ahead."
In 2015, the UK was Malaysia's 3rd largest trading partner in the European Union (EU) and our 4th largest source of investment.
As at 2015, a total of 433 manufacturing projects with UK participation have been implemented and valued at RM6.8 billion in terms of investment.