Malaysia targets EU trade agreement signing by end of June 2027
Negotiations are nearly 80% complete, but palm oil and automotive issues remain under discussion, according to Johari Abdul Ghani.
Malaysia is aiming to sign a free trade agreement with the European Union (EU) by the end of June 2027, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said. He put progress in the negotiations at nearly 80%.
Speaking at a press conference during EU-Malaysia Business Day 2026: Selangor in Focus, Johari said palm oil and automotive matters remained unresolved. He also noted that the EU would need to consult its 27 member countries. The Malaysia-European Union Free Trade Agreement (MEUFTA), if finalised, would become Malaysia’s 18th free trade agreement.
Johari said Malaysia did not regard compliance with the European Union Deforestation Regulation (EUDR) as a red line in the negotiations. He named United Plantations Bhd, SD Guthrie Bhd, Kuala Lumpur Kepong Bhd and IOI Corporation Bhd as producers already meeting the requirements.
Those producers represent about 60% of Malaysia’s crude palm oil output of 20 million tonnes, he said. Malaysian producers had addressed requirements covering deforestation, traceability and forced labour, Johari added, but were awaiting EU validation to facilitate acceptance of their products across more member countries.
EU commissioner for international partnerships Jozef Sikela praised Malaysia’s compliance efforts and said the postponement of the regulation’s implementation was attributable to the EU side, rather than Malaysian shortcomings. He cited pressure from other partner countries that were not complying, noting that the issue also affected commodities such as coffee in Africa.
