kuala lumpur: Economic ties between Sweden and Malaysia have flourished over the years, with Swedish foreign direct investment (FDI) in Malaysia soaring to US$1.43 billion (US$1=RM4.37) to date from US$113 million in 2014. Sweden’s Ambassador to Malaysia, Niklas Wiberg, is optimistic that this remarkable growth would only get better, as Malaysia’s importance as one of Sweden’s key partners in Southeast Asia was further pronounced particularly after the rebound in economic activity post-pandemic.
According to BERNAMA News Agency, Wiberg stated in an exclusive interview that Sweden’s economic ties in Malaysia are very diversified through robust trade, investment, and collaboration in various sectors. Wiberg, who presented his credentials to His Majesty Sultan Ibrahim, King of Malaysia, as the Ambassador of Sweden to Malaysia on Oct 21, 2024, took over his posting on Aug 15, 2024, succeeding Dr. Joachim Bergström. His previous posting was in Rome, Italy.
Wiberg noted that the trade relationship between the two
nations showcased a healthy balance in 2023, with Swedish exports to Malaysia reaching about US$388 million, while imports from Malaysia amounted to US$449 million. The diverse exchange involves Swedish exports primarily consisting of machinery and mechanical appliances, vehicle parts, equipment within vehicle sectors, and pharmaceutical products. In contrast, Swedish imports from Malaysia mainly include electrical machinery and equipment, rubber and related products, vegetable fats and oils, and chemical products.
The ambassador highlighted the semiconductor industry as a key area of growth for both countries, noting Sweden’s rising demand for Malaysian semiconductors and integrated circuits. He mentioned that this sector in Malaysia is particularly promising and has been strengthened in regions such as Penang, making it attractive for further investments.
Wiberg also emphasized the importance of diversifying trade partners to maintain and develop Sweden’s technology and manufacturing sectors while safegua
rding critical value chains. He noted that Malaysia managed to sustain its supply of crucial semiconductor components and automotive chips during COVID-19 disruptions, which was not the case for Europe’s semiconductor manufacturing capacity.
Currently, major Swedish companies operating in Malaysia, including IKEA, SIBS, Ericsson, and others, generate around 7,000 jobs in high-tech and capital-intensive sectors. These companies focus on innovation and science, playing a vital role in Malaysia’s industrial processes.
Wiberg expressed optimism about future bilateral trade relations, particularly with the impending resumption of negotiations on the stalled Free Trade Agreement (FTA) between the European Union (EU) and Malaysia. He emphasized that this is a crucial step for mutually beneficial negotiations on sustainability and other important issues.
With EU data showing bilateral trade totaled £44.7 billion (RM218.14 billion) in 2023, Wiberg believes future prospects for bilateral trade and investment are pro
mising as Malaysia and Sweden work toward enhancing collaboration and reinforcing their global economic positions.
