NETHERLANDS SEES HUGE POTENTIAL IN MALAYSIA
Dutch business delegation keen to explore agrotech, renewable energy, water and waste management
THE Netherlands Minister for Foreign Trade and Development Cooperation Sigrid Kaag will lead a business delegation to Malaysia today and tomorrow to strengthen and expand trade and investment opportunities between both countries.
In an email interview with NST Business, Kaag highlighted some potential growth areas, including high technology, innovation and sports.
Question: The Netherlands is among the largest foreign investors in Malaysia and an important trading partner. What are the objectives of your visit to Malaysia and how do you envisage bilateral trade and investment between the two countries moving forward? Answer: The Netherlands and Malaysia have a long-standing trade and investment relationship based on friendship and reciprocity.
With a home market of 31 million people, open economy, forthcoming attitude to foreign investors, well-developed infrastructure and strategic location in the heart of Asean, Malaysia is an attractive country for doing business and a perfect gateway to Asean for Dutch companies.
The Netherlands is equally interesting for Malaysia as the gateway to Europe and the European Union (EU).
Many Malaysian companies have already set up regional offices in the Netherlands. They have discovered that the Netherlands is an attractive investment destination because of its geographic position in the economic heart of Europe, excellent connections to the European hinterland — with the Port of Rotterdam and Airport Schiphol — and international-oriented and English-speaking population.
With this visit, we aim to broaden and deepen the alreadystrong economic ties between our countries and search for new opportunities to do business.
The Netherlands has much to offer in the field of innovation and sustainable solutions and is eager to cooperate with Malaysia in areas like renewable energy, water and waste management, agrotechnology, higher education, and smart and green urban living.
The focus of the trade mission that I am bringing to Malaysia is on circular economy and sustainable urban development. The diversity of the business delegation that is coming along with me shows how broad our relations are. Many companies that will join me are technology-driven and ready to cooperate with Malaysian counterparts, hoping to build long-term relationships.
Q: Could you elaborate on some of the major Dutch investments in Malaysia and the future plans by these companies? What are the key sectors Dutch businesses would like to focus on?
A: Malaysia is the second largest trade and investment partner of the Netherlands within the Asean region. The Netherlands is — after Singapore and Japan — the third largest investor in Malaysia, with a total foreign direct investment (FDI) stock of RM48.2 billion (almost €10 billion), or 8.8 per cent of total FDI.
More than 200 Dutch companies have already found their way to Malaysia, including important investors such as Shell, Philips, Dutch Lady, Vopak, Unilever, Besi and KMWE. Many of them are in the high-tech segment, and we see potential for more business cooperation in this area.
We also see much potential for cooperation in the field of green innovation. For example, on renewable energy through biomass, solid waste, urban mobility and sustainable building.
Creating liveable and healthy environment in our increasingly urbanised countries is going to be a challenge for all of us.
The Netherlands is a denselypopulated country and we have gained a lot of experience in the area of sustainable urban development. We stand ready to share our expertise with Malaysia.
Finally, we see a lot of potential and expect Dutch-Malaysian businesses to develop in areas such as agro food, flowers and water sectors, with a focus on sanitation, flood prevention, the maritime and logistics sectors.
Q: The Netherlands is also a major palm oil importer of Malaysian palm oil in Europe. Recently, the European parliament passed a resolution that only sustainably produced palm oil can enter the EU market after 2020. Malaysia has objected to this measure, saying the claims made were untrue and discriminatory. What is the Netherlands’ position on the issue and will you have discussions on it during your visit to Malaysia?
A: The Netherlands and Malaysia have been working very closely on promoting a sustainable palm oil sector, which is of great importance to both our countries. We are looking at the sustainable development goals as the general framework for collaboration on palm oil.
I will certainly take the opportunity to discuss the topic during my visit. On Friday, I will have a meeting with Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.
I am looking forward to a constructive discussion. Since it is my first official visit to Malaysia, I am also here to listen and learn more.
Q: We understand that your delegation to Malaysia will also include a sports element.
Could you elaborate on this? A: As the father of the modern Olympic movement Pierre de Coubertin already knew — Sport has the power to bring people together. It builds friendships across borders and unites nations and people from different backgrounds and cultures.
On Friday evening, the Olympic Winter Games will start in PyeongChang and I look forward to seeing the Dutch ice speedskaters and our other athletes in action. But in the afternoon of that same day, we want to bring young people together in Malaysia through football.
As the best and most famous Dutch football player ever Johan Cruijff used to say: “If you have the possibility to do something for someone else, you should.”
That is why he started the Cruyff Foundation... To enable children and youth from different backgrounds and cultures to practise sport and interact with each other. Sport promotes inclusiveness. Learning and playing together cuts through cultural and socio-economic dividing lines like nothing else.
On Friday, together with the National Football Development Programme, we will organise a professional football clinic at the Bukit Jalil Stadium. At the event, the power of football will be used to highlight the rights of all children, including refugees, to education and sports.
The clinic will be led by John Cruyff Football, with Dutch former pro and Ajax Amsterdam youth trainer Wim Jonk, and will be based on the unique vision and philosophy of Cruijff on how the game should be played.
I am proud to announce that the Johan Cruyff Foundation will sign an agreement this week with its local partner Yayasan Hasanah to build more Cruyff Courts in Malaysia, so more children in Malaysia will have the opportunity to play, learn and grow together.