European firms eye Sarawak expansion, but long-term certainty matters

EuroCham Malaysia's CEO, Kati Ferry, emphasized the importance of predictable regulations, skilled workers, and reliable energy supplies for European companies looking to expand into Sarawak. The chamber aims to strengthen its engagement with Sarawak, noting the state's progress in energy and green industrialisation. Ferry highlighted that European companies are keen on Malaysia but are becoming more strategic about their investments, prioritizing long-term partnerships of 10, 20, or even 30 years.

She stressed that regulatory stability and a strong supply chain are crucial for such investments. Malaysia's advantages, such as its established manufacturing base, semiconductor strengths, and economic ties, make it an attractive destination. The New Industrial Master Plan and ongoing EU-Malaysia Free Trade Agreement negotiations further signal positive signals to investors.

Sectors of interest include semiconductors, advanced manufacturing, digital technology, cybersecurity, healthcare, and medical devices. Ferry cautioned that attracting high-value investments requires more than tax incentives; it necessitates confidence that companies can build sophisticated systems long-term, which depends on having skilled engineers, software developers, and technical specialists, along with reliable energy supplies.

She also advocated for closer collaboration between industry, universities, and the government to equip graduates with the necessary skills for high-value industries. Ferry mentioned the Penang Skills Development Centre as a successful example of industry-academia-government cooperation, where European companies have funded training programs and workers have been reskilled and upskilled over the past three decades.