KUALA LUMPUR: Malaysia and the Netherlands have enjoyed strong economic ties over the years, with both countries being maritime nations with trade-oriented economies.
As of 2021, statistics show that the total trade volume in goods and services between Malaysia and the Netherlands amounted to RM41.8 billion.
This makes the Netherlands Malaysia's second-largest trading partner in the European Union (EU). Historically, with solid investment ties, the Netherlands is one of the country's top five foreign investors.
In conjunction with the Netherlands King's Day, ambassador of the Netherlands to Malaysia Jacques Werner said that despite the challenges faced by both countries, there is potential for further cooperation, especially in economic partnership, water management and circular economy.
He told the New Straits Times that Malaysia has historically has also invested around RM40 billion in the Netherlands, which accounted for 6.5 per cent of Malaysia's total direct investment abroad.
Werner also added that Malaysia is the most important source of palm oil to the Netherlands, where almost one-third of the palm oil in the Netherlands is derived from Malaysia.
He mentioned that some of Malaysia's palm oil refineries are in the Netherlands, namely, Sime Darby and IOI Corporation.
"We have a strong relationship relating to palm oil, which is a positive feature within the bilateral relationship between the Netherlands and Malaysia.
"The Netherlands also works with the Malaysian Palm Oil Board to assist smallholders to boost their productivity and sustainability," he said.
Apart from palm oil, other export groups between Malaysia and the Netherlands are electronic and telecommunication equipment and chemical products.
According to Werner, Malaysia and the Netherlands are important in the semiconductor value chain.
He pointed out that several Dutch companies are looking to expand internationally, particularly in Southeast Asia.
"We are looking at an increase of interest from these companies in Malaysia. In addition to their facilities in China, some companies are doing this in the so-called China Plus One (C+1) strategy.
"I know that companies that are already here, especially the semiconductor companies like Besi APac Sdn Bhd, NXP Malaysia Sdn Bhd, and others, are spreading a positive message about doing business in Malaysia," he said.
He added that Dutch semiconductor companies have a long history here, such as NXP, which started in the 1960s and established a large plant close to Kuala Lumpur.
Malaysia is on the path to becoming an export destination for higher value-added products, and semiconductor is one of the prime examples of that development. This also leads to interest from Dutch companies of different sectors," Werner added.
Werner said that Dutch companies are quite deliberate when it comes to investing and setting up abroad, as they are in it for the long haul to become part of the ecosystem and integrate into society.
Malaysia offers a good ecosystem for producing high-technology products with great infrastructure and many English speakers.
"On top of that, Malaysians can travel visa-free to the EU, which is handy when we need to train engineers in the Netherlands.
"Many companies also have exchange programs for their Malaysians employees of Dutch companies for training, and that helps in integrating the employees and building on the company culture," he said.