KUALA LUMPUR: The European Union is hopeful of boosting bilateral trade relations between its members and Malaysia, according to its ambassador to Malaysia Luc Vandebon. Local businesses in Malaysia told Bikyamasr.com that they believe the EU can help push the country's economy forward by opening its borders to Malaysian products and increase overall acceptance of their practices. “We believe that Malaysia has shown itself ready and able to be a leader and a partner with Europe and this has all of us business owners excited,” Mark Lee, a restaurant owner in Kuala Lumpur, told Bikyamasr.com. “It can only do good we all believe,” he added. The EU also expects to increase its foreign direct investments (FDI) to Malaysia next year, following a forecast of 0.4 percent growth in Europe's gross domestic product (GDP) next year. Vandebon said the EU is expecting its economy to slowly recover next year, and translate into more bilateral business transactions between Europe and Malaysia. He also said the possible conclusion of the Malaysia-EU Free Trade Agreement (MEUFTA) next year will also provide the catalyst to spurring more business activities between Malaysia and EU. “The MUEFTA will definitely benefit both sides," he said. Last year, the total import and export of trade and services between Malaysia and EU was €32.9 billion (RM131 billion). “This figure has been consistent in the past five years," he said. Of the amount, €14.9 billion was in exports to Malaysia from Europe while Europe-bound deals accounted for €18 billion. To date, Malaysia has received a total €14 billion in FDI from 27 EU member states. Vandebon said that as long as Malaysia continues to create a business-friendly environment, European companies will keep investing here. On the current economic recession in Europe, Vandebon said the economy may be very bad but Europe has seen worse and had came out of it stronger. “We admit that it is very bad this year but it is not a catastrophe and we are not the only one as the United States and China are also facing uncertainty," he said. “We've had tougher crisis in the past so we are absolutely confident that we will overcome this and business will pick up again," he said in a press conference at G Hotel during the EU-Penang Day event. He said it was also forecast that the EU will record a 1.6 percent GDP growth in 2014.
