Austrian Firms Looking To Expand Hydropower Cooperation In Malaysia

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Jan 24 (Bernama) -- Austrian companies are keen to expand cooperation in hydropower development with Malaysia, offering advanced technology and expertise to support Putrajaya’s ambitious renewable energy (RE) goals and to meet rising electricity demand from sectors such as data centres.

Austrian Ambassador to Malaysia, Gerhard Eisl said these companies were also keen to set up offices in Malaysia, noting that a major Malaysian and Austrian automotive group are cooperating in developing electric vehicles (EV), a move that will take bilateral linkages to a significantly higher level.

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Elaborating on hydropower, Eisl said Austria is an expert in water-based RE, as the country -- which has a population of 8.97 million -- generates much of its electricity from hydropower drawn from mountain rivers and the Danube, Europe’s second-largest river.

The country is a leader in the production and exports of hydropower technology and expertise, and has a highly developed social market economy focused on sustainable development and innovation.

“Several Austrian companies are already operating in Malaysia, and it’s a win-win situation for both of us. With our RE technology and your cooperation, we can achieve a lot, and we can expand our cooperation with Malaysia in this regard,” he told Bernama in a recent interview.

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Asked about bilateral business relations, Eisl described the Malaysia-Austria ties as ‘excellent’, not only in terms of foreign policy but also in trade and investment, highlighting that more than 50 Austrian companies are operating in the country.

The majority of them are involved in high-value industries such as semiconductors, advanced technology, automobiles and lifestyle consumer products.

The companies include AT&S, manufacturer of high-end integrated circuits for the semiconductor industry; ropeway specialist Doppelmayr; technology group Andritz AG; SoftwareQ; KTM Motorcycles; and glass producer Swarovski.

He said many Austrian investors, particularly in the electrical and electronics (E&E) sector, are performing well and are keen to expand their operations.

“Many of them are in Selangor, Kuala Lumpur and Penang. We have great investors there, such as Doppelmayr -- which is building the cable car on Penang Hill, as well as Swarovski, AT&S and Infineon,” he said.

Eisl added that an Austrian company is expected to open an office in Kuala Lumpur by the end of March and that more are set to follow.

“We are supporting our companies that want to invest or expand further in Malaysia. Culturally, we are also deepening cooperation among universities through a network called Asia-Uninet, which involves nine Malaysian universities and 20 Austrian universities.

“We aim to strengthen our collaboration further. It is important for like-minded partners and friends, such as Malaysia and Austria -- both neutral countries with open economies -- to work more closely together,” he said.

As for the EV sector, Eisl said a major Malaysian automotive group and an Austrian automotive group are already working together in the EV sector.

“EV is a huge and rapidly expanding market in Europe, Austria and Malaysia, and I am convinced that more collaboration will follow, as we all know EV is the future,” he said.

Malaysia and Austria established diplomatic relations on Aug 6, 1962. Since then, both nations have seen significant progress across all areas of cooperation, including frequent high-level exchanges.

According to media reports, Austrian exports to Malaysia reached 737 million euros (RM3.5 billion) in 2024, while Austrian direct investment hit a record 2.2 billion euros (RM10.5 billion), making Malaysia Austria’s top trade destination in ASEAN.

-- BERNAMA