France Seeks To Expand Investments In Malaysia’s Aeronautics, Energy And Critical Minerals Sectors -- Envoy
By K. Naveen Prabu
KUALA LUMPUR, March 13 (Bernama) -- France is encouraging more of its companies to invest in Malaysia, particularly in sectors such as aeronautics, energy, and critical minerals, including rare earth elements (REE), according to French Ambassador to Malaysia, Marc Abensour.
He said Malaysia is increasingly seen as an attractive destination for French businesses seeking to expand their footprint in Southeast Asia.
“Last year, Malaysia was the country within ASEAN that received the most significant French investment. Overall, total French investment in Malaysia is around 4.7 billion euros (1 euro = RM4.51),” he told Bernama on the sidelines of Bernama TV’s The Nation: Diplomatic Dispatch programme titled “Malaysia and France Relations: Trade, Global Issues and Strategic Cooperation”.
Abensour said Malaysia’s appeal to French investors is driven by several factors, including political stability, economic growth, and the availability of an English-speaking and highly skilled workforce.
“You can see clearly that Malaysia is a destination which is seen as more and more attractive by an increasing number of French companies while developing their footprint here,” he said.
Regarding aeronautics, Abensour said there remains significant potential for Malaysia and France to expand cooperation in the sector.
“In space cooperation, we can do much more. Malaysia has a space agency, but for the time being, not all the necessary partnerships between the two countries have yet been established,” he said.
Abensour added that France believes contributing to the development of Malaysia’s defence industrial base can make a real difference, noting that some French defence companies are already involved not only in maintenance, repair and overhaul (MRO) activities but also in programmes such as shipbuilding.
“Technology has been transferred to Malaysia so that Malaysian companies can develop their own shipbuilding capabilities instead of having ships built overseas. This is something we intend to continue,” he said.
Notably, Malaysia and France recently entered the final phase of concluding a new agreement that will expand the scope of bilateral defence cooperation.
In the energy sector, Abensour said Malaysia and France already cooperate in the oil and gas industry, where France’s TotalEnergies SE has significant investments in Sabah, while both countries are also exploring collaboration in energy transition projects such as solar and hydropower.
He said Malaysia and France could also collaborate on researching and developing cleaner transport fuels, especially for aviation and shipping, as part of efforts to reduce carbon emissions.
“In France, for instance, there are already merchant ships using hydrogen and cruising technology that are advancing in this field. So there is a lot we can do together on energy transition,” he said.
On REE, Abensour recounted that Prime Minister Datuk Seri Anwar Ibrahim and former French prime minister François Bayrou witnessed the signing of a memorandum of understanding between local mining company Malaco Mining Sdn Bhd and French rare-earth specialist Carester during Anwar’s official visit to France.
“Through this agreement, what we want to achieve is to accompany Malaysia in moving up the value chain in terms of rare earth processing, particularly in the separation process of rare earths, while ensuring that Malaysia processes rare earths in full compliance with environmental, social and governance (ESG) standards,” he said.
Elaborating on the process, he explained that the separation would begin in Malaysia before the materials are sent to France for finalisation into heavy rare-earth oxides, which are then metallised and eventually turned into permanent magnets.
“That is what we are discussing at the moment, and we see this as an illustration of what we want to achieve in different strategic sectors, another way for us to develop what we call 'sovereignty partnerships' where we increase our mutual autonomy in strategic sectors,” he said.
Meanwhile, Abensour also said France will fully engage in the negotiations for the Malaysia-European Union Free Trade Agreement (MEUFTA).
“This is absolutely critical at a time when some countries sometimes use trade to exert influence and even pressure,” he said.
Talks on the MEUFTA were launched in 2010 but suspended in 2012, largely due to disagreements over issues such as palm oil and sustainability standards.
After more than a decade, Malaysia and the EU officially resumed negotiations last year during Anwar’s visit to Brussels.
The fourth round of MEUFTA negotiations will be hosted by Malaysia and held in June 2026, following the positive momentum from earlier rounds.
Meanwhile, Abensour praised Malaysia Airlines for introducing additional flights on the Kuala Lumpur–London Heathrow and Kuala Lumpur–Paris Charles de Gaulle routes from March 6 to 8 to assist travellers affected by the conflict in the Middle East.
“We have been facing difficulties with people stranded in West Asia and elsewhere, including here, and at one point, we had around 250 French citizens stranded in Malaysia.
“The situation is gradually returning to normal, partly thanks to the additional flights that have been arranged, including those by Malaysia Airlines,” he said.
-- BERNAMA