German industry upbeat about Malaysia as a business centre

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FRANKFURT: The German industry is upbeat about Malaysia with the perception in trade and industry circles about its business-friendly environment.

This perception is further reinforced particularly in the backdrop of the newly-created Asean Economic Community (AEC).

German corporate executives and trade experts said “almost all the key German corporate players worth naming” were present in Malaysia, with some of them even strengthening and expanding their presence in the country, with a view to tapping the huge potential of the new 620 million consumer strong economic community.

Jan J. Schmidt-Krayer, Chief Executive of Schmidt + Clemens (S+L) Group, which has invested 14 million euros in setting up a new output facility in the industrial park Bandar Sri Sendayan, near Serembhan.

S+L is a leading international producer of high-alloy steel components for the petrochemical industry.

In an interview with Bernama, Schmidt-Krayer described Malaysia as a “good place to do business”, citing the “ease of doing business in Malaysia with advantages such as lower energy costs, a simplified tax system and easily available building permits”.

In Malaysia the company has about 100 employees.

Schmidt-Krayer was upbeat about the AEC which, he said, was moving along the same lines as the European Union.

S + C also used its Malaysian facility for supplying to other regions and countries, he said.

“We serve not only the other member countries of the ASEAN region but also outside it,” he said.

Another German company, Frankfurt-based X-FAB, was also upbeat about Malaysia where it recently earmarked substantial funds for further expansion of its existing foundry operations in Kuching, Sarawak.

Its plant, X-FAB Sarawak Sdn Bhd, has experienced growing demand for its core technologies – the 0.18 um and 0.35 um process platforms.

X-FAB, which concentrates on automotive, industrial and medical applications, has moulded its Sarawak operations from a manufacturing facility for commodity-type products into a high-value added business for products with a long-life cycle.

Datuk Seri Tarmizi Sulaiman, Chairman of the board of X-FAB Silicon Foundries SE, said Sarawak, as a major stakeholder, was satisfied with the recent development of both the X-FAB Group and, more specifically, the profitable growth of X-FAB Sarawak. — Bernama