|EU-Malaysia Business Relations|
In terms of bilateral trade relations, Malaysia is the second most important trade partner of the EU in ASEAN.[i] In turn, the EU represents the third most important trade partner of Malaysia in terms of geographical areas, after Northeast- and Southeast Asia, respectively, and before North America. The total annual trade volume between both regions amounts to almost MYR 128 billion and has grown by 45% in absolute terms since 2003.[ii] Additionally, the EU is a highly relevant source of investment in Malaysia, having a considerable share in the annual amount of FDI in the country. Historically, the manufacturing sector attracts the biggest share of FDI, with a share between half and two thirds of the entire annual FDI pie[iii], while the Oil&Gas sector has been gaining attractiveness over the recent years and accounted for roughly 13% of FDI in 2012.[iv] Putting the pieces together, one can find about 2000 European companies operating in Malaysia, ranging from SMEs to MNOs of all sizes. Hence, the EU has emerged as a key strategic partner in Malaysiaâ€™s development ambitions.
[i] http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_122530.xls accessed on 22 April 2013
[ii]http://www.statistics.gov.my/portal/download_External/download.php?file=ExternalTrade/2012/DEC/04JADUAL_DEC2012.xls accessed on 22 April 2013
[iii]http://www.statistics.gov.my/portal/images/stories/files/LatestReleases/iippost/IIP_TABLE2011.xlsx accessed on 22 April 2013
[iv] Bank Negara Malaysia Annual Report 2012