Germany Seeks Deeper Economic Collaboration With Malaysia
GEORGE TOWN, Nov 19 (Bernama) -- Germany is seeking to deepen economic collaboration with Malaysia, particularly in the semiconductor sector, amidst the increasingly challenging global economic environment and rising geopolitical tensions.
Germany's Federal Ministry for Economic Affairs and Energy Parliamentary state secretary, Stefan Rouenhoff, said Malaysia continues to be an attractive destination for German companies, with more than 700 German firms currently operating in the country.
He said a German business delegation, which arrived yesterday, visited Infineon’s facilities in Kulim, Kedah and Penang today, where discussions focused on Germany’s long-standing investments in Malaysia and new opportunities for cooperation.
"Germany is currently Malaysia’s second-largest foreign investor after the United States (US), recording investments worth €6.9 bilion (RM33.2 billion)," he said during a media engagement session in Bayan Lepas here, today.
Earlier, he met with Penang Deputy Chief Minister II, Jagdeep Singh Deo, as well as senior executives from German companies in the semiconductor and other technology industries and representatives of Malaysian government-linked business agencies.
Rouenhoff said the strong investment figures demonstrate Germany’s confidence in Malaysia as a hub for industrial growth and as a platform for broader economic and political cooperation.
He said during engagements with German and Malaysian semiconductor industry players, the delegation highlighted the need for greater diversification, more resilient supply chains and deeper collaboration amid global volatility.
The discussions also touched on the possibility of establishing a Germany-Malaysia memorandum of understanding (MoU) to formalise commitments toward closer government-to-government and business-to-business cooperation.
"While the semiconductor sector has been the focal point of current engagements, Germany sees potential for expanding partnerships into other industrial segments.
"The delegation noted that German companies are eager to invest abroad, while also welcoming increased Malaysian investments into Germany," he added.
Rouenhoff pointed out that Germany is also exploring support for semiconductor-related investments in Europe through frameworks such as Important Projects of Common European Interest (IPCEI), which provides financial incentives for technology and manufacturing expansion.
He added that one of the proposals discussed was the potential introduction of a German Accelerator programme in Malaysia.
-- BERNAMA
