|Malaysia's Free Trade Agreements||
The EU is a significant market for Malaysia as it provides a viable access to penetrate into the strategic market of Euro zone. The EU is also an important source of foreign direct investment and transfer of knowledge and technology.
The EU was Malaysia’s third largest trading partner in 2016 after China and Singapore. In 2016, trade with the EU increased by 0.4% to reach RM149.1 billion.
Malaysia’s exports to the EU grew 1.2% to RM79.8 billion. The EU accounted for a higher share of Malaysia’s total exports at 12.1% in 2016 compared with 10.1% in 2015. Germany, the Netherlands, the United Kingdom, France and Italy remained Malaysia’s top 5 export destinations in the region.
The main driver for the increase in exports to the EU was E&E products, primarily parts and accessories for office machines as well as, computers and data processing equipment. Exports of E&E products to the EU increased by 10.4% or RM3.73 billion.
Other exports that registered increases to the EU were rubber gloves, machinery, appliances and parts (pumps, compressors, fans, centrifuges and parts), transport equipment (aircraft parts), optical and scientific equipment (instruments and appliances used in medical, surgical, dental or veterinary sciences), manufactures of metal, petroleum products, apparel and clothing accessories as well as, iron and steel products.
EU is one of Malaysia’s major sources of foreign investment. At present, there are more than 1,000 European companies that have invested in the manufacturing sector in Malaysia. Major names include Infineon Tech, Osram, Siemens, B. Braun and BASF and Phillips.
To date, EU companies have implemented 1,512 manufacturing projects worth RM70.56 billion mainly in E&E, chemicals and chemical products, petroleum and petrochemical products, basic metal products and machinery and equipment.
In addition, many prominent MNCs and large corporations from the EU have chosen Malaysia to establish their regional and global operations. These include renowned MNCs such as BASF, Eppendorf, Siemens, Arvato and Nordenia.
Ministry of International Trade and Industry
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