EU Commissioner for International Partnerships Jozef Síkela confirmed the EU recognises Malaysia’s push to move further up the semiconductor value chain, positioning the bloc’s Global Gateway investment initiative and the proposed Malaysia-EU Free Trade Agreement (MEUFTA) as the vehicles for deeper cooperation, with the fifth negotiation round held in Brussels in September and the sixth set for Malaysia, both sides aiming to conclude by end-2027. This matters directly for EU-linked manufacturers already here: bilateral trade grew 21% in the first eight months of this year, with Malaysian exports to Europe up over 28%, and close to 2,000 European companies already operate in Malaysia employing more than 160,000 people, a base MEUFTA would build on through reduced trade barriers and market access. Semiconductor firms, EU investors and manufacturers in Malaysia’s existing European business base may be affected, with MEUFTA’s conclusion and the next negotiation round both still pending.

 

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