KUCHING: Sarawak is emerging as a potential expansion destination for European companies in the energy, data centre and semiconductor sectors, as businesses look beyond Peninsular Malaysia for long-term investment opportunities.
EuroCham Malaysia’s Chief Executive Officer, Kati Ferry said the chamber is keen to strengthen its engagement with Sarawak, citing the state’s progressive approach to energy development and green industrialisation.
She said Sarawak’s development direction aligned with the European Union’s longstanding emphasis on sustainability, making the state an attractive prospect for European investors.
“We would love to engage more with Sarawak because we see they are very progressive, not only as an energy hub but also in green industrialisation,” she was quoted as saying in a Free Malaysia Today (FMT) report.
Ferry said European companies are particularly interested in markets where green technology and sustainable industrial practices were being developed.
“Wherever green technology or green industrialisation is implemented, that’s where you will see European companies,” she said.
However, she stressed that investment decisions were not determined solely by initial establishment and operating costs, but also by the long-term cost and sustainability of running a business.
“It’s not only the cost of business, but it’s the cost of owning the business. So whatever investment the companies are doing now, it has to translate into a very long-term partnership,” she said.
Ferry said European companies remained interested in Malaysia but are becoming more strategic in assessing where and how they invested.
She identified three important considerations for investors: the availability of skilled workers, predictable regulations, and a strong supply chain supported by a well-developed industrial ecosystem.
“Whenever a European company invests in a foreign market, they invest for the long term: 10, 20, 30 years.
“So, they want to make sure that the regulations are predictable, and things don’t change in the middle of their investment,” she said.
She added that Malaysia’s established manufacturing base, strengths in semiconductors and electronics, and economic ties with various markets continued to support its investment appeal.
The country’s neutral approach to regional and global markets is also helping to attract foreign investors.
Ferry said industrial policies such as the New Industrial Master Plan and ongoing negotiations for the European Union-Malaysia Free Trade Agreement are sending positive signals to the business community.
Among the sectors attracting European interest are semiconductors, advanced manufacturing, digital technology, cybersecurity, healthcare and medical devices.
