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New potential investments worth RM45.4b from Germany, says Tengku Zafrul

New potential investments worth RM45.4b from Germany, says Tengku Zafrul

12 Mar 2024

New investment interests arising from the roundtable and one-on-one meetings with Prime Minister Datuk Seri Anwar Ibrahim here today are worth a potential RM45.4 billion.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the potential investments encompassed new as well as expansion and diversification projects.

“The potential investments are from various industries such as semiconductor, aerospace, medical devices, chemicals and services,” he told Malaysian journalists after the roundtable and one-on-one meetings with Anwar.

A total of 38 captains of industry and businesses from German cities like Stuttgart, Munich, Berlin, and Frankfurt, as well as from Belgium and France, joined the meetings.

Anwar also had one-on-one meetings with officials from X-Fab, Melexis, Infineon Technologies AG, Schott AG, and Airbus.

The Prime Minister, who arrived here on Sunday, took the opportunity to assure German businesses that Malaysia remains one of the best and preferred locations for investors with business-friendly approaches.

The companies from the world’s biggest economies that came to see the premier are involved in sectors like energy, medical devices, semiconductors, electronics, machinery, automotive, and aerospace.

Tengku Zafrul said through the engagements with the companies, there are strong indications that German companies are positive and remain committed to Malaysia as their investment destination.

X-Fab, Melexis, and Schott to commence operations soon

According to the minister, X-Fab, Melexis, and Schott gave updates that their projects, with approved investments amounting to RM4.45 billion, are currently under construction and are expected to commence operations within this year.

During the one-on-one meeting with the prime minister, the chief operating officer of Infineon, Rutger Wijburg, said the company was on track to build the world’s largest 200-millimetre SiC (silicon carbide) power fab in Kulim. “Infineon and Malaysia building the world’s biggest SiC factory. Together, Malaysia and Infineon are fighting climate change,” he said.

Infineon, which has been operating in Malaysia since 1973, announced last year that over the next five years, the company will additionally invest up to five billion euros in Kulim during a second construction phase for its Module Three plan. The investment will lead to an annual SiC revenue potential of about seven billion euros by the end of the decade, together with the planned 200-millimetre SiC conversion in Villach and Kulim.

Among those who attended today’s meetings with Anwar were Siemens AG group chief executive officer (CEO) Roland Busch, B. Braun GmbH CEO Anna Braun, and Melexis CEO Marc Biron. Also present were Airbus Asia Pacific president Anand Stanley and Volkswagen Group Malaysia managing director Susanne Lehmann.

Representatives from the German Chamber of Commerce, the Malaysia-German Chamber of Commerce, and the German Association for Small and Medium-sized Enterprises (BVMW) were also there.

Also present during the meeting were Foreign Minister Datuk Seri Mohamad Hasan, Malaysian Investment Development Authority (MIDA) CEO Datuk Wira Arham Abdul Rahman, and Malaysia External Trade Development Corporation (MATRADE) CEO Datuk Mohd Mustafa Abdul Aziz.

There are over 700 German companies based in Malaysia, with 65,000 jobs created.

Germany has been Malaysia’s largest trading partner among European Union member countries since 2000, while Malaysia is the largest trading partner for Germany among Asean member states.

In 2023, Malaysia’s total trade with Germany increased by 5.9 per cent to RM63.45 billion (US$13.90 billion) from RM59.87 billion (US$13.62 billion) in 2022. 

Source: Bernama