Malaysia should step up sustainability efforts to attract foreign investments

KUALA LUMPUR: As the world deals with the global climate crisis, it is crucial for Malaysia to enhance its sustainability initiatives to ensure a better future for the younger generation, said Swedish Ambassador to Malaysia, Dag Juhlin-Dannfelt.

At the same time, the country can also leverage its strategic location and competitive position to attract more trade and investments, he said.

“We tend to look at sustainability as a key competitive advantage for the future... so companies who do not manage to shift from the traditional production lines to sustainable versions would no longer be competitive in the next 10 years.

“Climate change is a thing right now, so this really puts quite a strong pressure on companies,” he told Bernama.

Juhlin-Dannfelt, who began his service on Dec 2, 2016, will be returning to Sweden’s Ministry of Foreign Affairs, but said he will continue to be “in love” with Malaysia – a country which he described as a nation rich with diversity, modernity and natural beauty.

The outgoing ambassador said many European companies maintain a positive view of Malaysia as an investment destination, adding that Sweden is really proud to be one of Malaysia’s trade partners.

In 2019, Sweden exported goods worth US$415 million (US$1=RM4.21) to Malaysia, including packaged medicaments, tractors and glass working machines, while Malaysia’s exports to Sweden amounted to US$322 million, comprising goods such as rubber apparel, stearic acid and palm oil.

During the interview, JuhlinDannfelt also expressed his excitement following the Malaysian government’s recent appointment of Sweden’s Ericsson unit, Ericsson (Malaysia) Sdn Bhd, to design and build the national 5G network at a total cost of RM11 billion.

“Currently, there are about 100 Swedish companies and Sweden-related commercial establishments in Malaysia, and I foresee more room for major investments in the country as the business climate has been very encouraging for both sides,” he said.

He also commended the Malaysian government for its commitment to strengthening its sustainable development goals (SDGs) initiatives.

Last month, Finance Minister Datuk Seri Tengku Zafrul Abdul

Aziz told the Joint Committee on Climate Change (JC3) Flagship Conference that the Malaysian government has ensured adequate financing for programmes and projects related to the SDGs in the upcoming Budget 2022 tabling.

He said the government has adopted a ‘whole of nation’ approach in addressing the impacts of climate change on financial stability and economic sustainability.

“The government is looking further at driving sustainability efforts – especially in introducing policies as well as both tax and non-tax incentives for the green economy – to push for more renewable energy investments,” the minister said.

While acknowledging that the disruptions brought by the Covid19 pandemic have hampered trade worldwide, Juhlin-Dannfelt believes that once the pandemic is over, things would go back to normal.

“We hope that the Malaysian government will ratify the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership so that the country can become an even more interesting destination for investments,” he said. — Bernama