In terms of bilateral trade relations, Malaysia is the second most important trade partner of the EU in ASEAN; while the EU represents the second most important trade partner of Malaysia.[1] The total annual trade volume between both regions amounts to RM 112 billion and has grown by 40% since 2005.[2] Additionally, the EU is a major source of investment into Malaysia. 40% of the inward-bound Malaysian FDI derives from the EU.[3] This makes the EU the largest single provider of FDI into the nation. Last but not least, Malaysia is also an important market for EU companies: It is the second biggest trading partner in ASEAN and there are roughly 2000 European MNCs present in this country.[4] Owing to this special status, the EU has emerged a key strategic partner in Malaysia’s development ambitions.[5]

[1]Strange, R., Slater, J. and Molteni, C. (2000). The European Union and ASEAN: Trade and Investment Issues. London: Palgrave MacMillan.

[2]European-Malaysian Chamber of Commerce and Industry. (2010). EU-Malaysia Trade and Investment. Kuala Lumpur: EUMCCI. (p. 16).

[3]Strange, R., Slater, J. and Molteni, C. (2000).The European Union and ASEAN: Trade and Investment Issues. London: Palgrave MacMillan.

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

[5] Adapted from: Gruetzmacher, P. (2011). An Assessment of Malaysia’s Political Management of Trade and Investment by European  Multinational Companies. Kuala Lumpur: University Malaya.