Amid escalating global trade tensions triggered by US President Donald Trump’s new tariff threats, European Union (EU) officials on Thursday emphasised the importance of forging deeper economic ties with reliable partners such as Malaysia.
Speaking at the launch of the Lumut Maritime Industrial City (LuMIC) master plan — a collaboration between Perak State Development Corporation (PKNPk) and Port of Antwerp-Bruges International (PoABI) — EU and Belgian representatives reaffirmed their commitment to advancing Malaysia-EU trade relations through long-term strategic cooperation.
Ambassador of the EU to Malaysia Rafael Daerr said while the scope of Washington’s policy remains uncertain, much of the world needs to continue to uphold rules-based trade systems.
“There will always be a need for more of this [frameworks based on mutual benefit]. The EU and Malaysia — which is a very large market — both are trade-oriented. We have a mutual interest in working together, so I see ourselves as national partners," Daerr said.
Echoing this sentiment, Belgium’s ambassador to Malaysia Peter Van Acker noted that Malaysia’s trade exposure to the US remains relatively moderate — around 30% of total trade — but stressed that the country must continue to broaden its strategic economic partnerships.
“I think he [Prime Minister Anwar Ibrahim] has taken a balanced approach. He [Anwar] essentially said we should also look at other partnerships, specifically mentioning the EU. Therefore, the ongoing discussion about the free trade agreement between Malaysia and the EU is crucial. We are working on this to further stimulate trade between our two regions," he added.
The comments come amid an escalating trade war between two major economies. The latest development saw Trump’s announcement to pause a broader tariff escalation against its trading partners — a 90-day moratorium that excludes China, which now faces import duties of up to 125%. Imports from other countries will, for now, be subjected to a baseline 10% levy.
PoABI director Mario Lieves said such volatility in the global trade environment only strengthens the case for strategic, rules-based projects like LuMIC.
“For sure, there is going to be an impact [from this trade war]. We are moving from an era of 50 years of globalisation into one of deglobalisation,” Lieves said. “That is why initiatives like LuMIC are so important — they create trusted gateways between Asia and Europe. Malaysia and the EU need partners we can rely on.”
LuMIC is being positioned as a key node in EU’s Global Gateway strategy, which aims to bolster international connectivity through high-standard, sustainable infrastructure investments across emerging regions.
The industrial development in Perak that is expected to draw RM72 billion in investments is designed as a long-term, value-added maritime cluster and is part of the broader Perak Sejahtera 2030 growth agenda.
Source: The Edge Malaysia
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
