Malaysian Prime Minister Anwar Ibrahim is expected in Brussels next week and will give a speech in Bruges on Jan 20.
BRUSSELS — The European Union and Malaysia are close to reopening trade negotiations, three EU diplomats and an EU official told POLITICO, with an announcement penciled in for a forthcoming visit to Brussels by Prime Minister Anwar Ibrahim.
It’s been a long time coming — the Malaysian government broke off talks in 2012.
Back then, Prime Minister Najib Razak led the Asian nation, before being convicted for corruption in the gargantuan 1MDB scandal — which involved funds flowing to the production of Leonardo DiCaprio movie “The Wolf of Wall Street.” Since 2018, no prime minister has served longer than two years and the dominant parties changed with every new coalition.
Kuala Lumpur called on Brussels to resume negotiations last year. Ibrahim is coming to Belgium next week, and reporters have been invited to cover a speech he will give in Bruges on Jan. 20. He’s also expected to meet with Commission officials and may also attend the World Economic Forum in Davos.
Announcing fresh talks would add another member of the Association of Southeast Asian Nations (ASEAN) to the EU’s free-trade wishlist — along with Indonesia, Thailand and the Philippines. In the region, the EU already has free-trade deals with Vietnam and Singapore.
Malaysia’s exports to the EU grew by 3.3 percent over the first 10 months of 2024, while imports rose by 9.5 percent. Palm oil plus related products, rubber and processed food are the country’s biggest export categories, according to the country’s National Trade Promotion Agency. China is a much larger trading partner than the EU, however, with the figure being more than double: €40 billion with Europe versus €85 billion with China.
Like neighboring Indonesia, Malaysia is worried about the implications of the EU’s planned Deforestation Regulation on trade with the bloc, especially on its palm oil and rubber exports.
Olof Gill, the Commission’s spokesperson for trade, said there were “no details to confirm for the moment.”
This story has been updated with confirmation of the Malaysian prime minister’s visit.
