KUALA LUMPUR, FRIDAY 26 JULY, 2024 – EUROCHAM Malaysia welcomes a profound collaboration with Malaysia Digital Economy Corporation Sdn Bhd (MDEC), a partnership that is formalised through the Memorandum of Understanding (MoU), aimed at bolstering collaboration and cooperation within the digital economy sector. The MoU exchange ceremony hosted at Menara IQ marks a significant step towards fostering mutually beneficial relationships between the Malaysian digital ecosystem and the European business community.
MDEC is dedicated to developing, coordinating, and promoting Malaysia’s digital economy, ICT industry, and the extensive use of ICT in the country. EUROCHAM Malaysia offers one of the largest platforms with a network of 1,500 companies through all 10 European chambers nationwide for European companies to explore the Malaysian market, bringing businesses and government stakeholders together to create beneficial opportunities and legal frameworks in trade and investment.
The MoU Exchange Ceremony was graced by the presence of distinguished guests, including the Minister of Digital, YB Gobind Singh Deo, and H.E. Michalis Rokas, the Ambassador and Head of the EU Delegation to Malaysia who witnessed the exchange ceremony. The event was also attended by other ambassadors, C-suite executives, and key stakeholders.
The objectives and goals of the MoU are centred on several key areas of collaboration. Firstly, the MoU aims to strengthen ties between the Malaysian digital ecosystem and EUROCHAM Malaysia’s network.
By doing so, both EUROCHAM Malaysia and MDEC seek to create a more cohesive and integrated digital landscape that benefits businesses, stakeholders, and end users from both sides. Additionally, the MoU focuses on facilitating connections for Malaysian tech companies that aim to expand into Europe as well as European tech companies investing in the Malaysian market.
EUROCHAM Malaysia and MDEC will act as key facilitators in this process through cooperative trade enhancing trade and investment opportunities. This mutual support and initiative are expected to create a dynamic and thriving tech industry in both regions providing them with the necessary support and resources to succeed.
“The digital economy knows no borders, and its growth thrives on strong partnerships. The MOU marks a significant step forward. The Ministry of Digital is fully committed to fostering such collaborations, as we believe it will further accelerate economic growth, create high-skilled jobs, and position both Malaysia and EU at the forefront of the global digital economy,” said YB Gobind Singh Deo, Malaysia's Minister of Digital.
Ts. Mahadhir Aziz, CEO of MDEC, highlighted the significance of the MoU, stating, “This partnership with EUROCHAM Malaysia is a pivotal milestone in our ongoing mission to propel the growth of Malaysia’s digital economy. By strengthening our bilateral collaboration, we can more effectively position Malaysia as a premier investment destination and fortify our digital ecosystem. This initiative aims to encourage more European tech companies to invest in Malaysia and support local companies in their expansion into Europe.”
The MoU also aims to provide pathways for public and private ecosystem builders to generate pipelines of innovative tech companies. This will ensure a steady flow of new and innovative companies entering the market, driving growth and development in the digital economy.
Mr. Steven Rouche, CEO of EUROCHAM Malaysia, expressed his enthusiasm about the partnership, saying, “This MoU with MDEC will significantly benefit the EU business community and increase EU investment in Malaysia. By liaising with relevant European stakeholders, EU Bilateral and Associate Chambers in Malaysia, and related partners, we aim to facilitate business introductions for Malaysian companies looking to enter the European market. We are targeting European investors, corporates, SMEs, start-ups, and scale-ups interested in forging business partnerships, thereby creating a dynamic and interconnected business environment.”
Malaysia’s digital economy has shown remarkable growth in recent years and intends to increase it to 25.5% by 2025. In terms of foreign investment, the European countries made a substantial inflow of investments, totalling more than RM 3.97 billion from 2023 to the first quarter of 2024; distributed across 27 different companies, generating more than 2,700 jobs. Additionally, MDEC's Digital Exports Programme has propelled local tech companies to significant international success, including Europe. In 2023, participants of MDEC’s GAIN programme achieved over RM122 million (EURO 24.5 million) in digital exports to the European market.
As the aim of this collaboration is to strengthen ties between Malaysia’s digital ecosystems and EUROCHAM Malaysia’s network, it is very encouraging to see that Malaysia’s world-class 5G network – rolled out by Digital Nasional Berhad in partnership with Ericsson – is already in place ahead of schedule and has laid the digital infrastructure that is necessary for its success.
Finally, the MoU will offer relevant platforms, workshops, dialogues, networking sessions, and knowledge exchange between the two organisations. These initiatives will foster a collaborative environment where ideas can be shared, and best practices can be implemented, benefiting all involved stakeholders. Following the formal signing, a networking session provided an opportunity for attendees to engage, discuss, and forge new connections.
HSBC Bank Malaysia Berhad graciously sponsored the venue for this landmark event, providing a fitting setting for the signing of this important agreement.
