Finland Eyes Deeper Trade Ties With Malaysia, Pushes For EU-Malaysia FTA

By Zufazlin Baharuddin

KUALA LUMPUR, May 21 (Bernama) -- Finland aims to deepen economic ties with Malaysia, focusing on the circular economy, smart and sustainable energy solutions, digitalisation, and semiconductors to boost trade and investment in the region.

Foreign Trade and Development Minister Ville Tavio said the country is keen to strengthen collaboration through both bilateral engagement and the long-awaited EU-Malaysia Free Trade Agreement (MEUFTA).

“We have good relations based on mutual respect and cooperation. Many of the sectors that Malaysia is growing in are also areas Finland has been working on. So, I know we have things to do together.

“We also want the EU-Malaysia free trade negotiations to move forward and be concluded. The current trade is not yet at a high level, so there is a lot of potential,” he told Bernama during his official visit to Malaysia which began today until May 23.

Tavio said around 40 Finnish companies currently operate in Malaysia including major names like Nokia Corporation and Kone, which supplied elevators for the Merdeka 118 skyscraper.

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He hoped more Finnish companies will be interested in the Malaysian market and, likewise, Malaysian companies will explore opportunities in Finland.

Besides, Tavio said Finland will be closely following the 46th ASEAN Summit under Malaysia’s chairmanship as Finnish companies are well positioned to support ASEAN’s green transition through their expertise in sustainable technologies.

“With the ASEAN chairmanship 2025 theme of ‘Inclusivity and Sustainability’, the focus is very timely and relevant.

“Our companies have many sustainable solutions. So, I think that is something we can really work with as clean technologies become more popular,” he said.

During the official visit, Tavio is leading a prominent business delegation comprising representatives from over 20 Finnish companies and organisations, with scheduled stops in both the capital and Penang.

He will engage with federal and state governments, local businesses and other key stakeholders, and attend a business seminar co-organised with the Malaysian Investment Development Authority (MIDA).

Meanwhile, Finland’s Ambassador to Malaysia Anne Vasara said the delegation will travel to Penang -- often referred to as the ‘Silicon Valley of Malaysia’ to explore its dynamic technology ecosystem and further strengthen ties with regional industry leaders. 

“The visit will include a business seminar and our companies will also engage in meetings with local firms, Penang authorities, and key stakeholders to explore ways to enhance cooperation,” she said.

The Finnish companies and organisations include those spanning key industries such as semiconductors, artificial intelligence, quantum and cloud computing, the Internet of Things, decarbonisation, green construction and waste management. 

-- BERNAMA