Malaysia, Netherlands Seek Stronger Partnership Amid Growing Geopolitical Divide

KUALA LUMPUR, June 7 (Bernama) -- Malaysia and the Netherlands are strengthening cooperation in trade, semiconductors, and water management to mitigate risks arising from growing geopolitical divisions between major powers, Netherlands Ambassador to Malaysia Jacques Werner said.

He said both countries do not want to become victims of the widening geopolitical divide between major powers such as the United States (US) and China, adding that middle powers should forge stronger partnerships to safeguard their economic and strategic interests.

He said the resumption of negotiations on the Malaysia-European Union Free Trade Agreement (MEUFTA), now in its fourth round, was particularly significant in the current global environment.

"As we speak, a delegation from Brussels is flying into Kuala Lumpur to start the fourth round of negotiations between the EU and Malaysia on the FTA, and I think we're coming closer quickly now towards finalising these negotiations.

"With an FTA, we can do much more trade with each other while de-risking from these other two major powers. So that's what we are doing. We are doing the things that need to be done right now," he said on Bernama TV's The Nation programme.

Werner said the semiconductor industry has emerged as a key pillar of bilateral relations, with growing collaboration aimed at strengthening resilience and helping both countries move up the global value chain.

"This economy is worldwide growing rapidly and the two of us, we are going to be part of that growth and together we are going to climb the value chain and make each other better and more resilient for the future," he said.

He said closer links between Brainport Eindhoven in the Netherlands and Malaysia's industrial hubs in Penang and Selangor help to connect the semiconductor ecosystems of the two countries. 

The cooperation, he said, goes beyond supply chains and investment and extends to talent development initiatives aimed at addressing the global shortage of skilled workers in the semiconductor industry. The industry, universities, and training institutions of both countries are forging stronger alliances to ensure a steady pipeline of skilled talent for the sector.

Beyond semiconductors, Werner highlighted water management and flood mitigation as another promising areas of cooperation, following the signing of a memorandum of understanding (MoU) between the Netherlands and the Ministry of Energy Transition and Water Transformation (PETRA) on April 7.

He said the MoU would facilitate collaboration between Dutch and Malaysian experts to develop long-term water management and flood mitigation solutions.

"We must get together and find nature-based solutions and engineering solutions where needed and maybe look at a more holistic view at water, rivers, seas, estuaries, deltas and maybe repurpose some of the land use in some of the areas to make the best of a difficult situation," he added.

According to Observatory Economic Complexity (OEC) data, Dutch exports to Malaysia stood at approximately US$170 million in January 2026, while imports from Malaysia reached about US$465 million, resulting in a trade deficit of roughly US$295 million.

-- BERNAMA