Malaysian businesses to benefit from EU-FTA, says envoy

Malaysian businesses will benefit from the Malaysia-European Union (EU) Free Trade Agreement (FTA) which is expected to be finalised by year-end, says Spain's Ambassador to Malaysia, Carlos Dominguez.

Currently, only a handful of Malaysian firms have businesses in Spain, he said.

"The companies are involved in sectors such as ceramics, construction and petrochemicals," he told reporters on the sidelines of the forum themed, 'How to Expand Your Small- and Medium-sized Enterprise Business to Europe' here today.

Second International Trade and Industries Minister, Datuk Seri Ong Ka Chuan, had said recently the FTA negotiations were expected to be finalised after Malaysia resumed the talks with the EU in late 2016.

Dominguez said the event aimed to create awareness among Malaysian businesses and encourage them to tap the various sectors in Spain, such as agriculture, fishery, engineering and services.

He said currently, Spain imposed a relatively competitive corporate tax of 25 per cent on foreign companies.

"Now it still easy for them to tap the EU countries despite the FTA talks still ongoing, as the region is an open market for businesses," he said.

Dominguez said to-date, there were about 50 Spanish firms registered under Malaysian Spanish Chamber of Commerce and Industry, up from 23 a few years ago.

"We hope the number of Malaysian businesses in Spain will rise also," he said.

Last year, the bilateral trade between Malaysia and Spain stood at EUR1.5 billion (EUR1 = RM4.78) from EUR1.6 billion in 2015. -- Bernama