KUALA LUMPUR: Malaysia wants European investments to deliver technology transfer, develop highly skilled talent and create better-paying jobs as the country seeks to move up the global value chain amid intensifying economic competition between the US and China.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said Malaysia would place greater emphasis on the quality and long-term value of inbound investments as it moves into its next phase of economic development.
"We want investments that facilitate technology transfer, develop highly skilled talent, generate more opportunities for local businesses and create better-paying, high-skilled jobs for Malaysians.
"Ultimately, our objective is to move beyond simply participating in global value chains to capturing and creating greater value within them," he said in his keynote address at European Union (EU)-Malaysia Business Day 2026: Selangor in Focus here today.
Johari said the global political and economic landscape was undergoing a profound transformation, with countries increasingly prioritising the protection of domestic industries and strategic economic interests, often at the expense of global economic integration and the multilateral trading system.
He said heightened strategic competition between the US and China had become a defining feature of the new economic nationalism, particularly in the race for leadership in artificial intelligence (AI), critical minerals, advanced manufacturing and defence technologies.
The US has a gross domestic product (GDP) of approximately US$32 trillion, while China's economy is valued at about US$19 trillion, compared with Malaysia's roughly US$470 billion economy.
"These developments are compelling countries around the world, including Malaysia, to reassess their economic strategies," he said.
Johari said the US had pursued an increasingly aggressive and unilateral tariff regime affecting many of its major trading partners.
Meanwhile, the growing international presence of Chinese companies, backed by China's substantial manufacturing capacity and technological capabilities, was reshaping competitive dynamics across industries and markets.
"As a highly open economy deeply integrated into global supply chains, Malaysia would continue to engage constructively with all its economic partners.
"We strongly believe that dialogue and cooperation must always take precedence over unilateral action," he said.
Johari said there was considerable scope for Malaysia and the EU to deepen cooperation in diversifying trading relationships, strengthening supply chain resilience and unlocking opportunities in areas of mutual interest.
These include semiconductors, advanced manufacturing, renewable energy, and green and digital technologies.
He said Malaysia did not believe its economic future should be defined by a choice between East and West, as the country intended to maintain and strengthen relationships with partners prepared to innovate and grow on the basis of mutual respect and benefit.
The EU remained one of Malaysia's most important economic partners, with total bilateral trade amounting to RM228.1 billion in 2025.
Malaysia exported RM129.3 billion worth of goods to the bloc and imported RM98.9 billion, resulting in a trade surplus of approximately RM30.3 billion.
Johari said European companies had established a significant and longstanding presence in Malaysia, contributing to the development of its industrial base, introducing advanced technologies and creating employment opportunities for Malaysians.
In return, Malaysia offered European investors an established manufacturing ecosystem, a skilled workforce and a strategic base from which to access the broader Asean market.
As Malaysia sought to strengthen its technological capabilities and develop industries of greater economic complexity, he said the government was ready to work with European companies to identify new projects, facilitate investments and bring the right partners together.
Malaysia also wanted to help local companies expand into Europe and establish stronger commercial links.
"We must turn the goodwill and longstanding relationships we have built into concrete commercial opportunities, new investments and partnerships that deliver lasting economic value to both sides," he said.
Johari said the proposed Malaysia-EU Free Trade Agreement (MEUFTA), which both sides are negotiating, would be an important catalyst for the next phase of their economic relationship.
He said a comprehensive, balanced and mutually beneficial agreement would strengthen market access, facilitate trade and investment, and provide a stronger foundation for future economic cooperation.
He added that such an agreement would reinforce Malaysia's position as an attractive investment destination and an important gateway for European businesses seeking to expand their participation in the growing Asean economy.
© New Straits Times Press (M) Bhd