Kuala Lumpur, Malaysia, November 21, 2025 — Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, today released insights from a new survey examining trade trends between Asia Pacific (APAC) and Europe, covering 13 markets across the region including Malaysia.
Out of the 30 Malaysian SMEs polled, 87% of them indicated experiencing higher trade volumes with European markets, driven by increased demand for products/services (69%), favourable trade policies (50%) and a focus on new markets in Europe (46%) — a clear indication that Europe remains a critical market offering significant growth opportunities for Malaysian businesses.
European demand is fast becoming a key growth pillar for Malaysian SMEs. Fifty-three percent now have at least a quarter of their customer base in Europe, while 97% plan to start or expand trade with Europe in the next one to two years. Ninety percent are reporting an improved outlook over the past year — 16% above the regional APAC average.
The findings reaffirm Malaysia’s rising influence in Asia–Europe trade,” said Woon Tien Long, managing director, FedEx Malaysia. “At FedEx, our focus is to enable Malaysian businesses to stay competitive through digital innovation, simplified customs solutions, and a robust logistics network. As new regulations and trade corridors continue to evolve across Europe, we’re turning complexity into practical, seamless solutions, helping Malaysian exporters stay agile and connected to global opportunities.”
While optimism is high, 76% of Malaysian SMEs report being affected by global logistics disruptions and shifting regulations. The main barriers to entering European markets include lack of demand, lack of market intelligence, and import taxes and tariffs, while top challenges for businesses already in Europe are import taxes/tariffs and logistics costs.
Key European Markets for Malaysian SMEs
The United Kingdom (UK), France, Germany, and Italy emerge as the top markets for Malaysian SMEs. Half of Malaysian SMEs entered Europe through the UK, reflecting historical trade ties, while 93% currently export to the UK, 73% to France, and 57% to Germany and Italy. These markets are expected to continue leading growth over the next one to two years. Across the wider Asia Pacific region, the United Kingdom leads as the primary gateway to Europe (31%), followed by Germany and France (18% each).
For 60% of Malaysian SMEs, sustainability considerations play a key role in logistics and supply chain choices when conducting business with European partners, signaling a shift toward greener and more responsible trade practices.
Enabling Smoother Trade
Aligned with majority of APAC markets, Malaysian SMEs see cost efficiency as the top factor for boosting trade with Europe, with half rating it critical.
The key areas where Malaysia SMEs seek support to expand trade with Europe are:
- 53% accessing cost-effective logistics solutions
- 40% leveraging digital tools for supply chain management
- 37% receiving regulatory guidance
Meeting Asia-Europe Demand with Capacity, Reliability and Intelligence
To better support surging trade growth, FedEx added five weekly flights connecting Asia to Europe this month. Additionally, FedEx enhanced connectivity between Vietnam to Europe reducing shipment time by one day. FedEx now operates 26 weekly flights connecting APAC shipments to Europe, delivering express shipments to major European destinations in as little as 48 hours[1].
The company’s integrated air-and-road network is one of the fastest in Europe, enabling quick deliveries across the region. Anchored by key logistics hubs in Paris, France and Liege, Belgium, the network supports over 550 pick-up and delivery stations across 45 countries and territories and facilitates the sorting of more than two million packages every day.
FedEx also offers a broad portfolio of smart digital solutions and specialized trade expertise to simplify cross-border commerce. Customers can streamline customs declarations by uploading Electronic Trade Documents digitally to help ensure timely delivery while the FedEx Import Tool allows users to track clearance status, receive real-time notifications, and download required documents on demand.The FedEx Go-To Europe Hub is an always-on resource with multimedia resources, trade guidelines, and local market insights, equipping APAC businesses shipping to Europe with the knowledge and tools they need to confidently expand and compete across borders.
[1] Availability of services and transit time may vary depending on origin and destination postal code