Malaysia-EU FTA To Open New Business Opportunities For Austrian, Malaysian Firms -- Envoy
By Siti Noor Afera Abu
KUALA LUMPUR, Feb 23 (Bernama) -- The Malaysia-European Union Free Trade Agreement (MEUFTA), which is expected to be finalised by 2026-2027, is set to create significant opportunities for Austrian and Malaysian companies to forge closer cooperation.
Austria’s Ambassador to Malaysia, Gerhard Eisl, said the third round of negotiations in Brussels had proceeded smoothly.
“Let us wait and see because the hard things come at the end. Naturally, both sides have their respective interests. I expect a win-win situation as both Malaysia and the EU are actively negotiating to conclude a comprehensive FTA by this year or 2027.
“That would be ideal for both sides, and that is what we are aiming for,” he told Bernama after appearing on BernamaTV’s programme, The Nation: Malaysia & Austria Bilateral Ties in Focus, today.
Eisl said that Malaysia and Austria share several similarities, as both countries are strategically located at the heart of Southeast Asia and Europe, respectively, which creates strong potential for deeper cooperation.
“Looking at this, what makes Malaysia an attractive destination for Austrian investors? First of all, it is the workforce, as Malaysia has an excellent workforce and is well educated.
“There is also huge support from the government. Our companies that are here in the semiconductor industry and hydropower, they are really happy, and they want to do more,” he said.
Eisl cited Penang and Kedah as examples, stating that their robust semiconductor ecosystems and the presence of strong industry players.
Currently, there are about 60 Austrian companies operating in Malaysia, with the majority of them in the high-value industries, including semiconductors, advanced technology, automobiles, and lifestyle consumer products.
Notable companies include AT&S, Doppelmayr, Andritz AG, SoftwareQ, KTM Motorcycles, Swarovski, Voith Hydro, and Global Hydro.
The ambassador also said that Austrian companies are keen to support Malaysia’s renewable energy (RE) ambitions under the National Energy Transition Roadmap (NETR) and Malaysia can learn from Austria’s long-standing experience in RE development.
He noted that Austria currently generates more than 90 per cent of its electricity from hydropower, largely due to its geography.
“Malaysia has a huge potential to expand its RE capacity, particularly as global efforts to address climate change and reduce carbon emissions accelerate,” said Eisl.
Malaysia and Austria established diplomatic relations in 1962.
In December 2025, the top exports of Malaysia to Austria were semiconductor devices (RM132 million), integrated circuits (RM71.4 million), and disc chemicals for electronics (RM18.9 million).
-- BERNAMA