German Investors Upbeat About Malaysia's Potential With Imminent AEC

By Manik Mehta FRANKFURT, Nov 24 (Bernama) -- German investors are upbeat about Malaysia's potential following widespread confidence in its business-friendly environment and reinforced by the newly formalised ASEAN Community and year-end formation of the ASEAN Economic Community (AEC). Voicing this sentiment, German corporate executives and trade experts, familiar with Malaysia and Southeast Asia, pointed out that "almost all key German corporate players worth naming" are present in Malaysia. In fact, some of them are strengthening their presence in Malaysia, with a view to tapping the huge potential of the AEC's single market of 620 million people. Schmidt + Clemens (S+L) Group Chief Executive Officer Jan J. Schmidt-Krayer said Malaysia is a good place to do business, citing lower energy costs, a simplified tax system and easily available building permits among the reasons. Commending the AEC for moving along the same line as the European Union, he told Bernama that, "The AEC is a good idea, particularly in context of international trade and the elimination of import tariffs. "We are importing raw materials duty free. Our customer base is the petrochemical industry, including Petronas.” Headquartered in Lindlar in the state of North Rhine Westphalia, S+L, which has already invested €14 million (€1 = RM4.572) for the setting up of a new production facility in the Bandar Sri Sendayan Industrial Park, is a leading international producer of high-alloy steel components for the petrochemical industry. Employing about 1,000 people worldwide and garnering a turnover of over €300 million, the German company has commenced production at the Bandar Sri Sendayan site near Seremban for exports to other regions and countries. -- BERNAMA