Malaysia Among Top Asean Destinations For Eu Investors Survey

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Malaysia has emerged as one of the four most attractive Asean markets for European businesses, alongside Vietnam, Indonesia, and Thailand, according to the EU-Asean Business Sentiment Survey released today.
The 11th edition of the survey by the EU-Asean Business Council (EU-ABC) found Asean was seen as offering the best economic opportunities for European companies for the third straight year, ahead of India and China, despite global trade uncertainty.
Some 73 percent of respondents said Asean had become more important to their global revenues, while more than half plan to expand operations in the region.
Business confidence, however, is tempered by concerns over slow progress in Asean economic integration and limited engagement from European institutions.
The survey showed 71 percent of respondents expect to increase trade and investment in Asean over the next five years, down from 86 percent in 2024, while 58 percent said non-tariff barriers to trade are rising, up from 40 percent last year.
EU-ABC executive director Chris Humphrey said Asean continues to be viewed as the most promising region for growth, but European businesses are frustrated with the slow pace of regional integration.
“Non-tariff measures, regulatory inconsistencies, and persistent bottlenecks continue to add cost and complexity, limiting the full benefits of Asean’s market potential. Unless greater effort is made to address these barriers, the region risks falling short of its ambition to function as a truly single, integrated market,” he said.
He said European companies remain committed to expanding in the region, but fully capitalising on Asean’s growth requires faster progress on reducing barriers and deepening integration.
“At the same time, the EU must step up its engagement to stay competitive, with a region-to-region free trade agreement now seen as a strategic necessity.
“As global trade realignments continue, Asean must accelerate integration and Europe must prioritise engagement to secure its place in the region’s growth story,” he added.
- Bernama

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