Brussels:Malaysia's ambition to advance in the semiconductor value chain has gained support from the European Union (EU), as the EU's Global Gateway investment initiative and the proposed Malaysia-EU Free Trade Agreement (MEUFTA) offer opportunities for enhanced economic cooperation.
According to BERNAMA News Agency, European Commissioner for International Partnerships Jozef Síkela emphasized Malaysia's status as a key semiconductor hub. He highlighted the potential for a partnership that allows Malaysia to retain more economic value domestically while helping Europe diversify and strengthen its supply chains.
Síkela outlined that this partnership, supported by the EU's Global Gateway, aims to strengthen economic links through investment and cooperation. He noted the importance of diversification in today's fragmented world, suggesting that reliable partners provide economies with greater choices and resilience.
The MEUFTA negotiations were also underlined by Síkela as crucial for removing trade barriers and facilitating investment, which would enhance Malaysian businesses' access to the European market. The fifth round of negotiations occurred from September 21 to 25 in Brussels, with the next round planned in Malaysia. The aim is to finalize negotiations by the end of 2027.
Trade between Malaysia and the EU increased by 21% in the first eight months of this year, with notable growth in exports on both sides. Nearly 2,000 European companies in Malaysia currently employ over 160,000 people.
Regarding EU-ASEAN cooperation, Síkela stated that the EU focuses on energy, digital connectivity, transport, sustainable value chains, research, and skills. He pointed out Malaysia's strategic advantages in ASEAN, including excellent infrastructure and a skilled workforce.
Síkela also stressed the importance of interconnected electricity systems within ASEAN, emphasizing that such systems enhance energy security by allowing electricity sharing between countries. This perspective was shaped by his experience as the Czech minister responsible for energy during Europe's energy challenges in 2022.
The EU has provisionally allocated 60 million euros in grants for energy cooperation with ASEAN under its regional Asia-Pacific programme, complementing bilateral support and investments from European development banks.