EU-MALAYSIA FTA TALKS COULD BE ‘GAME CHANGER’ FOR BILATERAL TIES, SAYS FINNISH AMBASSADOR

KUALA LUMPUR, Jan 20 (Bernama) -- The relaunch of Free Trade Agreement (FTA) negotiations between the European Union (EU) and Malaysia is poised to be a "game changer" for bilateral relations, potentially unlocking vast synergies in high-tech and sustainable growth, said Finland’s Ambassador to Malaysia Anne Vasara.

She said the resumption of negotiations early last year would not only facilitate new trade opportunities but also deepen the understanding of how both regions can complement each other in an open international trading system.

"This is something which I believe could be really a game-changer for EU-Malaysia relations at large."

She said the process was not only about opening up new trade opportunities but also about enabling both sides to learn more about each other and identify synergies and complementarities, during an interview on Bernama TV’s The Nation programme on Tuesday.

She highlighted that while the two nations are geographically distant, they share significant potential for collaboration, particularly where Finnish expertise in high-tech, ICT, connectivity, and cybersecurity meets Malaysia's decades-long strength in semiconductor production and its burgeoning data centre ecosystem.

The ambassador noted that Finnish companies increasingly view Malaysia as a strategic entry point to the wider region.

"Finnish companies are perceiving Malaysia as a gateway to Southeast Asia. We are seeing a growing number of them establishing manufacturing facilities, regional headquarters, or other types of activities here," she said.

This interest is set to be reinforced next week as the ambassador receives a delegation from Finland, which will hold seminars titled "Doing Business with Finland" in Kuala Lumpur (Jan 27) and Johor (Jan 29).

These seminars are designed to foster direct business connections and practical collaboration opportunities, and will focus on energy transition, digitalisation and education, according to the embassy’s Facebook post.

Regarding the Johor-Singapore Special Economic Zone (JS-SEZ), she confirmed growing interest from Finnish investors, citing the attractive incentives and the zone's proximity to Singapore.

She said a number of Finnish companies already have manufacturing operations there, adding that during a business delegation visit to Johor last year, it became clear that the incentives on offer were highly attractive.

Touching on sustainable development, Vasara identified the circular economy as a key area for future cooperation.

With Finland being a global forerunner in this sector, having established the world’s first national roadmap for a circular economy 10 years ago, it sees opportunities to apply these principles to Malaysia’s industries.

She pointed to the potential of utilising residues from the forestry and oil palm industries to create new value-added products.

"You can see waste as waste, but you can see waste as a resource," she said, advocating for the creation of industrial ecosystems where one company's residue becomes another's raw material.

On the global front, addressing the recent tariff threats and geopolitical moves by the United States (US) administration, Vasara emphasised the need for negotiated solutions based on international law.

While affirming that the EU and Finland wish to uphold Transatlantic cooperation, she stressed that a trade war would not benefit any party and expressed hope that ongoing discussions would lead to a resolution respecting international principles.

"We really need to come to negotiated solutions which are based on international law and international principles... trade war, a Transatlantic trade war will not benefit anyone," she said.

-- BERNAMA