AS coordinator of the Asean sub-group at the recent Asia-Europe Meeting (Asem) Summit in Milan, Italy, the prime minister, by all accounts, left a good impression with leaders asking for four-eyed meetings with him, as well as invitations to visit extended by Germany, Slovenia and Hungary. Malaysia, then, in the eyes of other governments that perceive Europe-Asia relations as one of trade and investment with a view to growth, is doing well. On the part of Malaysia and Asean, there is, too, the concern with sustainable development. Given that Malaysia will be the chair of Asean next year, this summit showcases how Putrajaya will represent more than just Malaysia's interests at international fora. The PM's success in Milan is evidence of his ability to put forward a regional front despite Malaysia, though substantive in its international contribution, being a small country. However, as part of Asean, it is a region of economic growth to be reckoned with, as producer and market. Since 2010, Malaysia has been negotiating with the European Union for a Free Trade Agreement (Malaysia-EU FTA). Slated to be finalised by 2012, it has come to an impasse because of several stumbling blocks important to the country's independence. Nevertheless, while stalled, the PM is adamant that negotiations will resume, as free trade with the EU means the elimination of obstacles, and penetration of the market will depend on Malaysia's ingenuity alone. However, matters that might impinge on domestic issues are too important to ignore. For example, Europe wants to decide on Malaysia's procurement method, which could affect the priority that the government gives to Bumiputera companies. Other issues of concern are intellectual property rights, sustainable development, environment and labour. Malaysia, according to the PM, is fine with the traditional areas, but matters exceeding trade and tantamount to domestic interference must be ironed out before any agreement between the EU and Malaysia can be inked. The same values inform relations between Asean and the EU. As the Asean chair, Malaysia will seek to foster good trading and investment relations between the world's two most important regional economic blocs. Asean itself enters into a new regime of free trade on Jan 1, with the chair giving emphasis to creating an Asean identity. Indeed, as that becomes a reality, interests will tend to merge. A shared worldview can only strengthen the resilience of Asean as it deals with others almost as a single entity. If Malaysia-EU relations strengthen so too will cooperation. Speaking as a bloc will enhance the bargaining position of small nations like Malaysia. Therefore, smoothening intra-Asean relations will be a priority next year. Meanwhile, the Malaysia-EU FTA negotiations are moving into a realistic time frame of flexibility, which gives Malaysia the breathing space to put the Asean house in order and ready for Malaysia-EU FTA.

By nst.com.my

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