EU Ambassador to Malaysia Rafael Daerr said on Monday that Malaysia is a key partner of the European Union and that the two sides are deepening ties through negotiations on the Malaysia–EU Free Trade Agreement. [1]
Daerr said Malaysia and the EU share broad common ground as democratic, trade-oriented economies that back international law and a rules-based multilateral system. [1] He said both face similar geopolitical and geo-economic pressures and should build resilience by diversifying supply chains and expanding sustainable trade partnerships. [1]
"Malaysia is a key partner of the European Union, with relations that are increasingly strengthened, driven by the ongoing negotiations of the Malaysia–EU Free Trade Agreement (MEUFTA)," Daerr said. [1] He added that, in the face of wider shocks, it is more important to strengthen resilience through diversified supply chains and sustainable, mutually beneficial trade ties. [1]
The ambassador said the EU is currently Malaysia’s fourth-largest trading partner and one of its largest cumulative investors. [1] He said EU investment in Malaysia has created more than 150,000 jobs over the past two decades. [1] Daerr also said Malaysia is the EU’s 20th-largest goods trading partner. [1]
He said the economic relationship has room to grow because the EU has around 16% of global economic output and nearly 450 million consumers. [1] He said Malaysia would rank sixth in population and 11th in economic size if it were an EU member state. [1] "Imagine for a moment that Malaysia were an EU member state: it would be the sixth largest in terms of population size and currently the 11th largest in terms of economic size," he said. [1]
Daerr made the remarks ahead of Europe Day celebrations on 2026-05-09, which he cited as the context for the interview. [1]