[MALAYSIA] Malaysia is intensifying efforts to strengthen its diplomatic and economic relationships with Italy and the European Union (EU), aiming to bolster trade, investment, and strategic collaborations across various sectors.
Deputy Minister of Investment, Trade and Industry, Liew Chin Tong, emphasized Malaysia's commitment to enhancing ties with Italy and the EU during recent engagements. These initiatives align with Malaysia's broader strategy to diversify its international partnerships and integrate more deeply into the global economy.
Strengthening Bilateral Relations with Italy
In January 2025, Italy's Deputy Minister of Foreign Affairs, Maria Tripodi, visited Malaysia to discuss expanding bilateral cooperation. Discussions focused on sectors such as trade, investment, defense, energy, tourism, and higher education. The two nations also reviewed regional and international issues, including Malaysia's ASEAN Chairmanship in 2025 and Italy's G7 Presidency in 2024. Italy reaffirmed its support for Malaysia's ASEAN leadership during this visit.
Trade between Malaysia and Italy has been on the rise. In 2023, Italy was Malaysia's fifth-largest trading partner among EU countries, with total trade valued at RM14.32 billion (USD3.15 billion). From January to November 2024, Malaysia's total trade with Italy saw a 2.1% increase, reaching RM13.44 billion (USD2.92 billion) compared to RM13.16 billion (USD2.90 billion) for the same period in 2023. Additionally, 137 projects with Italian participation have been approved, totaling RM3.53 billion (USD967.9 million) in investments and potentially creating 11,496 jobs.
In December 2023, Malaysia and Italy announced plans to collaborate in the space industry. The Italian Space Agency (ASI) and the Malaysian Space Agency (MYSA) are working on a formal agreement to develop technologies and share experiences in space science, technology, and applications. This partnership aims to contribute to Malaysia's goal of becoming a major player in the space sector by 2030.
Enhancing EU-Malaysia Relations
The EU is Malaysia's fourth-largest trading partner, with bilateral trade valued at €50.3 billion (RM254 billion) in 2022. The EU imports €35.6 billion (RM182 billion) from Malaysia and exports €14.7 billion (RM72 billion) to Malaysia. Beyond trade, the EU supports various cooperation projects in Malaysia, focusing on areas such as higher education, human rights, and sustainable economic development.
A significant initiative under the EU's Global Gateway strategy is the development of the Port of Lumut Maritime Industrial City (LuMIC). This project aims to transform the port into a multi-purpose and container port, creating a green industrial and logistics complex specializing in hydrogen production, renewable energy, and sustainable industries. With an expected investment of €15 billion (RM75 billion) and the creation of 55,000 jobs over 25 to 30 years, LuMIC is poised to be a major economic driver in the Perak region.
Strategic Objectives and Future Outlook
Deputy Minister Liew highlighted that strengthening ties with Italy and the EU is integral to Malaysia's broader foreign policy and economic objectives. By diversifying its international partnerships, Malaysia aims to enhance its competitiveness, attract high-quality investments, and foster innovation across key sectors. The collaborations with Italy in space technology and with the EU in sustainable infrastructure exemplify Malaysia's commitment to advancing in high-tech and green industries.
As Malaysia continues to deepen its engagements with Italy and the EU, the focus remains on creating mutually beneficial partnerships that contribute to long-term economic growth and regional stability. These efforts reflect Malaysia's proactive approach in navigating the complexities of global geopolitics and economic dynamics.
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