December 26, 2009

KUALA LUMPUR, Nov 26 (Bernama) — Malaysia considers Germany an important market and the latter’s economic recovery in the third quarter of this year augurs well for Malaysia in terms of trade.

Malaysian Ambassador to Germany Datuk Zakaria Sulong said Germany was Malaysia’s biggest trading partner and biggest source of investment in Europe.

Globally, Germany is Malaysia’s ninth biggest trading partner and second biggest investor after Japan, he told Bernama in Berlin recently.

“Germany is the biggest economy in Europe. Compared to traditional partner United Kingdom, its growth is more consistent. Its further recovery in the third quarter is a good sign for Malaysia in terms of trade,” he said.

It was reported that Germany’s Gross Domestic Product (GDP) grew, on a quarter-to-quarter basis, by 0.4 per cent in the second quarter and a further 0.7 per cent in the third quarter of 2009.

Meanwhile, bilateral trade between Malaysia and Germany both in the first nine months of 2009 stood at RM23.47 billion against RM28.35 billion registered in the same period of 2008, with exports accounting for RM10.32 billion and imports at RM13.15 billion.

In 2008, total trade stood at RM37.83 billion with electrical & electronic products, rubber products, optical & scientific equipment making up the major export products from Malaysia.

Zakaria said both countries continued to enjoy a strong relationship, having celebrated the 50th anniversary of diplomatic ties in 2008.

He said Germany was among the 25 countries which started diplomatic ties with Malaysia as the latter gained independence in 1957.

In terms of investment, he said the largest German investment in Malaysia was received in 2008 from Q-Cell, to build a new photovoltaic solar-cell factory with investments of over one billion euro 2008. (1 euro = RM4.91).

In 2008, German investments in Malaysia totalled RM4.43 billion as against RM3.7 billion in 2007.

Zakaria pointed out that the largest Malaysian investment in Germany today was the RM600 million Tropical Islands Resort theme park by Tanjong PLC which opened its doors to the public in late 2004.

Of recent, KNM Groupm through its subsidiary had acquired Germany’s Borsig Bbtev for RM1.669 billion in 2008.

Borsig is a leading process heat exchanger in Europe with a strong market and technological leadership in the field of waste heat recovery systems and quenched coolers.

In terms of tourism, Zakaria said the number of tourists from Germany to Malaysia saw a huge jump to 111,000 in 2008 from 78,500 arrivals a year ago.

Germany too is an important destination for education with over 700 Malaysian students studying there, mostly government or MARA-sponsored, in the fields of science and techno-auto engineering.

“We have signed between three to four MOUs with the universities here to develop relationship in education,” said Zakaria, who admitted that the mastery of the German language posed problems.

(Source: Bernama)