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PM: Germany visit achieved both bilateral and investment objectives

PM: Germany visit achieved both bilateral and investment objectives

16 Mar 2024

Prime Minister Datuk Seri Anwar Ibrahim said his six-day visit to Germany has achieved its objective of not only strengthening the solid ties between the two countries, but also boosted trade and investment opportunities for Malaysia.

He said what was key were his lengthy discussions with German Chancellor Olaf Scholz, Vice Chancellor Robert Habeck and President Frank-Walter Steinmeier, which had touched on cooperation in investment, tourism, education as well as diplomatic issues including Gaza and Ukraine.

On investments, Anwar said Malaysia has secured new potential investment commitments totaling RM45.4 billion following meetings with 38 major companies.

The main investments, he said, would come from seven European companies which are based in Germany.

“Projects under X-Fab, Melexis and Schott Glass, which were approved in 2023 with a total investment value of RM4.45 billion, are expected to generate some 1,000 job opportunities,” he told the Malaysian media at the end of his six-day official visit to Germany today.

He said Infineon Technologies AG, Germany’s largest semiconductor manufacturer, has agreed to invest 5 billion euros in Malaysia while X-Fab will begin investing significantly in Sarawak.

He also noted that over the past week, reports from the Financial Times and New York Times has placed Malaysia as a major regional hub for the development of the semiconductor industry.

He said the visit to Germany also successfully secured an additional RM1.4 billion in potential sales of Malaysia’s export of products and services to Germany in the aerospace sector over the next 5 years to Airbus.

“Airbus, which already has a presence in Malaysia, has agreed to increase their investment in the country, with a focus on Negri Sembilan and Subang, Selangor,” he said.

The prime minister said he also met with top executives of Dutch semiconductor company Nexperia BV, including its chief executive officer Xuezheng Zhang.

Nexperia, he said, has expressed an readiness to make Malaysia their main investment destination.

Anwar said what made Malaysia an enticing investment destination for these companies were political stability and clear policies.

“Our green policies, including energy transition and renewable energy, our research in hydrogen and solar, these are among the factors which drew their attention to come and invest in Malaysia,” he said.

The prime minister said Malaysia’s participation in the SME Future Day in Berlin was also an eye-opener for German SMEs as the level of coverage accorded to the event in Malaysia was significant.

Anwar had delivered a keynote address at the event.

During his visit, the prime minister held a roundtable meeting with German captains of industry as well as private meetings with senior management of selected companies.

They included representatives from Schott AG; Siemens AG; B. Braun; X-Fab Silicon Foundries, Melexis, Volkswagen; Oldenburger Interior; PCC SE; Oryx Stainless; Fresenius; DELO Industries Klebstoffe; Airbus Asia Pacific as well as Airbus Malaysia; Infineon Technology, DHL; Bayer AG and others.

Germany has been Malaysia’s largest trading partner among European Union members since 2000, while Malaysia is Germany’s biggest trading partner in Asean.

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

Meanwhile, on world issues, Anwar said while Malaysia and Germany may share different viewpoints on the situation in Gaza, both nevertheless agree that a peaceful and humanitarian solution are imperative.

Anwar said he has extended invitations to Schulz and Habeck to visit Malaysia this year.

Source: NST