By Rosemarie Khoo Mohd Sani and Mikhail Raj Abdullah
KUALA LUMPUR, July 8 (Bernama) -- Malaysia stands to gain immensely from Prime Minister Datuk Seri Anwar Ibrahim’s official visits to Italy, France and Brazil, not only in attracting potential investments, but also in expanding export markets as protectionist tendencies from American tariffs threaten to shutter global trade.
As an export-oriented nation, it is incumbent on Malaysia to penetrate new markets and expand traditional ones to enhance business opportunities, embrace new technologies and generate new job opportunities from foreign investments.
This has become increasingly critical due to America’s sweeping and shocking tariffs, which have shattered the global trading order, leaving many countries earnestly searching for new markets for their exports.
For western countries and developed nations in Asia, Malaysia and the ASEAN market offer lucrative opportunities for increased trade and investments and an expanded marketplace.
This was not lost on Anwar. As Malaysia holds the ASEAN Chair this year, the Prime Minister has been actively focusing on expanding and exploring new markets for the country, creating greater opportunities for local businesses and the broader Southeast Asian economy.
Against a backdrop of impending challenges from higher tariffs and increased protectionist tendencies, Anwar’s relentless effort to sell Malaysia as an investment destination during his visits to Italy, France and Brazil is highly justified.
It is worth noting that both Italy and France are key members of the European Union (EU), providing Malaysia with a gateway to the 27-member single market — a lucrative opportunity for its exports.
The timing could not have come at a better time, as Malaysia and the EU are on the verge of restarting negotiations on the stalled Malaysia-EU Free Trade Agreement (MEUFTA) soon.
Although FTA talks had been on hold for more than a decade, it was Anwar who, during his visit to Germany last year, initiated the decision to resume negotiations, recognising their potential benefits.
With Washington imposing a costly 25 per cent tariff on Malaysian exports to the United States (US), it is only right for Putrajaya to look into expanding its export markets elsewhere.
The possibilities for increased market access for domestic exports through a successful MEUFTA and attracting European investments here are certainly enormous.
During Anwar’s meeting with Italy’s Prime Minister Giorgio Meloni in Rome, the parties discussed greater cooperation in trade, investment, defence, sustainable energy and advanced technologies, including semiconductors, electric vehicles and artificial intelligence.
In addition to securing potential investments worth RM8 billion from Italy, the Prime Minister had also personally invited leading Italian companies such as Leonardo, Fincantieri, and ENI to invest in Malaysia.
He also welcomed Italian companies’ participation in Malaysia’s Special Economic Zones, as well as the implementation of industry training programmes, focusing on the sharing of expertise and technology transfer.
His visit to France was no less important as his meeting with French President Emmanuel Macron yielded positive results, with agreements on minerals and aircraft purchase as well as potential investments of RM4 billion.
During the meeting, he impressed upon Macron that Malaysia continues to be a top destination for high-tech industries such as electrical and electronics (E&E).
The Prime Minister’s attendance at the 17th BRICS Summit in Rio de Janeiro this week was all the more significant, as it offered Malaysia the opportunity to tap into new markets among a group of like-minded countries, including major economic powers, with a strong emphasis on trade and investment.
His visit to Brazil was pertinent as he met with Francisco Gomes Neto, president and chief executive officer (CEO) of Brazilian aircraft manufacturer Embraer, where he underscored Malaysia’s commitment to strengthening its aviation industry’s ecosystem.
Anwar also highlighted the nation’s readiness to assist foreign investors with its investor-friendly policies, the development of local talent, and high-impact technology collaboration.
This aligns with the aspiration of making Malaysia a leading aerospace hub in ASEAN, with a highly skilled workforce and a strong, competitive industrial ecosystem.
An important outcome on the sidelines of the BRICS summit was Malaysia’s endeavour to undertake a comprehensive review of potential membership in the Shanghai-based New Development Bank (NDB), formerly known as the BRICS Development Bank.
As a multilateral development bank established by developing countries, the NDB offers a competitive financing alternative, in line with Malaysia's aspiration to diversify infrastructure development sources and accelerate the transition to a green economy.
Commenting on Anwar’s recently concluded working visits, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US tariffs have prompted various jurisdictions to rethink their international trade strategy.
Many are now more open to exploring new trading partners, creating more opportunities for Malaysia and the rest of the countries to be more integrated.
He noted that the MEUFTA could open up more opportunities for Malaysian palm oil to penetrate the lucrative EU market.
BRICS also offers the possibility of greater market access for Malaysia’s industries as well as international trade and investments, while encouraging small and medium enterprises (SMEs) -- considered the backbone of Malaysia’s manufacturing sector-- to scale up to penetrate these markets.
To this end, “more resources would need to be directed towards capacity building -- especially for micro SMEs -- for them to be export-ready enterprises,” Mohd Azfanizam told Bernama.
He lauded Anwar’s trade and investment missions abroad, given the current global challenges.
“The unity government’s approach is to have more engagements, as well as more bilateral and diplomatic ties with the rest of the world, which is the right thing to do,” he said.
To this end, he emphasised the need for Malaysia to have a more conducive trade and investment ecosystem.
“This is what the government is doing, and hopefully the benefits will accrue in the middle to long-term,” he said.
Malaysia’s business delegation to Italy, France and Brazil included officials from Petronas, Khazanah Nasional, Tenaga Nasional, Maybank, FGV, YTL Power, Sunway and Yinson Production.
Meanwhile, SPI Asset Management managing partner Stephen Innes said Anwar’s presence at the BRICS Summit and his series of bilateral meetings underscore a deliberate effort to elevate Malaysia’s standing within the Global South.
Strengthening ties with leaders from India, South Africa, and Vietnam — along with senior executives such as Embraer’s CEO, the World Trade Organisation’s director-general, and the president of the New Development Bank — sends a strong signal that Malaysia is pursuing diversified partnerships to unlock new opportunities in trade, technology, and investment.
“These engagements could pave the way for deeper supply chain integration, particularly in advanced manufacturing, aerospace and digital trade,” said Innes.
Both economists agreed that Malaysia can expect more foreign trade and investment missions, as the Prime Minister and the leaders he met recognise that it is no longer business as usual.
The message Anwar conveyed is clear: countries must explore and forge partnerships among themselves to increase and strengthen trade and investment linkages, build business alliances, and secure mutually beneficial gains amid growing protectionist pressures.
-- BERNAMA
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