(Adapted from: Delegation of the European Union to Malaysia. (2010). EU-Malaysia Trade and Investment. Kuala Lumpur: EU Publication. (p. 16).)

Strong economic relations with the EU in terms of investment and trade also extend onto the regional Southeast Asian level.

The EU is ASEAN’s second most important trading partner. Intraregional trade amounted to 147 billion Euro in 2010. Simultaneously, the EU is ASEAN’s number one export partner, accounting for 11.6% of ASEAN’s external trade and 11.8% of its exports. In turn, the EU provides 11.4% of ASEAN’s total imports. This makes it ASEAN’s third most important import partner. On a more general note, ASEAN as a whole contributes 5.2% of the entire EU external trade volume, which results in it being the EU’s 5^th most important trade partner.

Intraregional trade is growing strong and steady, between 2006 and 2010 it increased by 15% from 127 billion Euro to 147 billion Euro. However, the trade balance has been in a stable deficit for the EU, amounting to 20 billion Euro annually. Intraregional trade is concentrated in a few key sectors: EU exports to ASEAN primarily comprise of transport equipment and machinery (52.6%), manufactured goods (10.7%) and chemicals (10.5%). In turn, the EU is importing machinery and transport equipment (43.8%) from ASEAN, as well as various manufactured articles (18.4%).

Investment-wise, the EU is the largest source of FDI in ASEAN: 22% of FDI inflows into ASEAN originate in the EU. In 2009, the EU FDI stock in ASEAN totaled 173 billion Euro and has been growing immensely in recent years. The largest part of EU FDI stock is concentrated in Singapore, Malaysia, Thailand, Indonesia and the Philippines. In line with this trend, ASEAN investment into the EU is booming: FDI flows nearly doubled from 2006 to 2009. These figures underline the comprehensive economic collaboration between the EU and ASEAN.