Kuala lumpur: France is stepping up its efforts to encourage more of its companies to invest in Malaysia, specifically targeting sectors such as aeronautics, energy, and critical minerals, including rare earth elements (REE), as stated by the French Ambassador to Malaysia, Marc Abensour.
According to BERNAMA News Agency, Ambassador Abensour highlighted that Malaysia is increasingly perceived as an attractive destination for French businesses aiming to expand their presence in Southeast Asia. He noted that last year, Malaysia received the most significant French investment within the ASEAN region, with total French investment amounting to approximately 4.7 billion euros.
Abensour attributed Malaysia's appeal to factors like political stability, economic growth, and the availability of an English-speaking and skilled workforce. He emphasized the substantial potential for expanded cooperation in the aeronautics sector, mentioning the need for more established partnerships between Malaysia's space agency and France.
In the defence sector, Abensour expressed France's interest in contributing to the development of Malaysia's defence industrial base, noting ongoing collaborations in maintenance, repair, and overhaul (MRO) activities and shipbuilding programs. He mentioned the transfer of technology to Malaysia, which allows local companies to develop shipbuilding capabilities domestically.
In the energy sector, France and Malaysia are already cooperating in the oil and gas industry, with significant investments from France's TotalEnergies SE in Sabah. The countries are also exploring collaborations in energy transition projects like solar and hydropower and the development of cleaner transport fuels.
Abensour further discussed the potential collaboration in the REE sector, referencing a memorandum of understanding signed between Malaco Mining Sdn Bhd and French rare-earth specialist Carester during an official visit by Malaysia's Prime Minister to France. This collaboration aims to enhance Malaysia's position in the rare earth processing value chain while adhering to environmental, social, and governance (ESG) standards.
Additionally, Abensour stated that France will actively participate in the negotiations for the Malaysia-European Union Free Trade Agreement (MEUFTA), emphasizing its importance in maintaining trade autonomy amidst global trade pressures.
The ambassador also commended Malaysia Airlines for increasing flights on key routes to assist travelers affected by the conflict in the Middle East, highlighting efforts to address challenges faced by French citizens stranded in Malaysia.