The European Union (EU) is an economic and political union of currently 27 member states.[1] Established in 1957, it is one of the largest successful efforts at regionalism, and the most advanced regionally integrated economic and political union in the world. With a population of 501 million (2010) and a combined GDP of 18.400 trillion US$, the EU is the most established global economic powerhouse.

Southeast Asia is considered one of the most dynamic economic regions in the world. Malaysia is one of the most vibrant economies in the region and among the most open economies in the world: Exports and imports form two-thirds of Malaysia’s GDP, making it one of the most trade-dependent countries in Southeast Asia.[2] Additionally, Malaysia is acclaimed for its spectacular rates of industrialization and development during the 1980s as well as its steady growth levels amidst sociopolitical stability.

While economic cooperation between both regions has been strong since decades, EU cooperation with Malaysia has not been noteworthy until very recently, partly because Malaysia has not actively sought EU cooperation. With the opening of an EU Delegation to Malaysia in 2003, federal and state authorities, civil society, academia and local and EU business community, have shown much greater interest in EC cooperation, which has increased markedly. Beyond this, economic linkages have intensified immensely in the last decade.

The ongoing cooperation is focusing on two areas: trade and investment facilitation, and higher education. So far, cooperation has been successful in areas of strategic importance and mutual interest, with a particular focus on economic relations, scientific and technology cooperation, as well as education, addressing in particular the human capital and technological requirements of development. Some cooperation activities are also conducted, successfully, in the area of human rights, especially gender equality and protection of the vulnerable. Under the Development Cooperation Instrument (DCI), an indicative amount of €17 million has been earmarked for Malaysia for the period 2007-13. These resources may be supplemented by projects and programmes financed under regional programmes for Asian countries and under various thematic programmes.

[1]Unknown. (2009, May 2nd). How Far will the EU Expand?. Towards Unity. Retrieved August 22, 2009, from http://www.towardsunity.org/eu-article-02.phtml

[2] Mohammed Ariff. (2007). Economic Openness, Volatility and Resilience: Malaysian perspectives. Kuala Lumpur: Malaysian Institute of Economic Research. (p. 23).