EU-Malaysia FTA could be sealed by late 2027: EU-ABC's Chris Humphrey [WATCH]

Negotiations for the EU-Malaysia Free Trade Agreement (FTA) could be finalized within the next 12 months, according to Chris Humphrey, the executive director of the EU-Asean Business Council (EU-ABC). Speaking to Business Times, Humphrey expressed confidence that both sides would reach an agreement before the EU-Asean 50th anniversary commemorative summit in November next year.

Four rounds of negotiations have already taken place, with a fifth scheduled for Brussels next month and a sixth expected before year-end. The fifth round will likely cover key areas such as tariff schedules, technical barriers to trade, sanitary and phytosanitary measures, government procurement, and trade and sustainability provisions.

Humphrey emphasized that the remaining challenges lie towards the end of the negotiation process and will require concessions from both sides. For European businesses, reducing tariffs to zero and removing quotas on automotive imports are top priorities. Malaysia has also made progress in sustainability, particularly in the palm oil sector, and should ensure the FTA provides sufficient certainty for businesses.

The country could learn from the EU's trade agreement with Indonesia and consider replicating or improving on its provisions. The EU-Malaysia FTA negotiations began in 2010 but were halted in 2012 after seven rounds. They resumed in 2025 following a stocktaking and scoping exercise, with the formal relaunch in January of that year.