France and M’sia: Bolstering the economic bond

France and M’sia: Bolstering the economic bond

The Star Online - Business·2026-07-08 08:00

AS I begin my first visit to Malaysia today, I want to share a simple message: in an increasingly fragmented world, no nation can defend its sovereignty in isolation.

Our independence is strengthened through trusted partnerships. In an age of economic uncertainty and growing strategic competition, trust and cooperation are our strongest assets.

At a glance, France and Malaysia may seem far away from each other. Yet, nothing could be further from the truth.

France is also a nation of the Indo-Pacific. Nearly two million French citizens live in the region, and more than 90% of our exclusive economic zone (EEZ) lies here – the world’s second largest EEZ.

This region is not a distant horizon for France; it is part of our national reality, of our strategic interests and of our identity.

Our shared connection to the Indo-Pacific also means that we face many of the same challenges: growing strategic competition, economic coercion and mounting pressure on our technological and commercial sovereignty. At the same time, climate change and global health remind us that some challenges can only be addressed collectively.

France and Malaysia share important principles in the way we approach these challenges. Our two countries are deeply attached to multilateralism, to the United Nations charter, and to an open and fair trade.

We are fiercely attached to our independence, to our capacity of freely making choices that will be the most beneficial for our societies and for our people.

These common principles provide the foundation for a deeper strategic partnership. The rise of unilateralism and the weaponisation of trade are not fatalities.

As the current Group of Seven (G7) chair, France has made reducing global imbalances a priority.

At the Evian Summit last month, heads of state and government recalled that “resilient and reliable supply chains are essential for economic security” and stressed the importance of engaging with countries beyond the G7 framework, including emerging and developing economies.

Malaysia achieved last year a very successful Asean chairmanship that highlighted all the potential of regional coordination and integration to address today’s challenges.

During his keynote speech at the Shangri-La dialogue in May 2025, French President Emmanuel Macron called for a “coalition of independents” between Europe and Asia, through partnerships that strengthen industrial capabilities, diversify critical supply chains and increase our collective freedom to act.

This is the path that both the President and Prime Minister Datuk Seri Anwar Ibrahim have decided to chart during the latter’s historic visit to Paris in July 2025.

Economic relations between France and Malaysia are already experiencing strong momentum.

Trade expanded by more than 11% in 2025. Malaysia now accounts for 10% of total net French foreign direct investment flows, while more than 300 French companies contribute to Malaysian growth, innovation and employment, supporting 30,000 jobs.

From aerospace and semiconductors to automotive industries and advanced materials, our companies are building the industries of tomorrow together.

Building upon this exceptional foundation, we must now move to the next level across four strategic pillars to strengthen the economic independence of both our countries.

> Accelerating trade diversification

First, we must diversify our trade. In a world of growing uncertainty, diversification is one of our best safeguards.

This is why France actively supported the resumption of negotiations for an European Union-Malaysia free trade agreement, which saw its fourth round of talks conclude last month in Kuala Lumpur. This agreement will provide the stable, fair, and predictable framework that our businesses need in order to invest long term.

> Delivering on energy transition

Economic security is inseparable from energy security, a reality starkly underscored by the war in the Middle East and the closure of the Strait of Hormuz.

This was the choice made decades ago by France, whose electricity is 70% nuclear.

Beyond nuclear power, France is currently carrying out several projects related to energy transition in Malaysia, such as carbon capture and renewable energy. Several French projects have also been launched in support of the Asean Power Grid.

> Creating an innovation continuum: From lab to industry

Tomorrow’s prosperity is being decided today in critical fields like artificial intelligence, quantum computing, the digital economy, and space exploration.

We aim to build a direct bridge between research, startups and industrial ecosystems in both countries, ensuring that cutting-edge innovations are rapidly scaled up to create shared value.

> Making strategic minerals cooperation the core of sovereignty partnership

Finally, France and Malaysia share a strong partnership on strategic minerals, based notably on the implementation of the industrial partnership between the French company Carester and its Malaysian counterpart Malaco, signed in the presence of our Prime Ministers in July 2025.

As part of this project, France is ready to transfer technologies that will allow Malaysia to have its own industrial capacity to separate rare earths and to exploit its rare earth deposits under the best environmental conditions, be it in terms of radioactivity management or of groundwater protection.

My visit to Malaysia is about turning this shared vision into concrete projects. We have the opportunity to make the France-Malaysia relationship one of France’s leading strategic economic partnerships in the Indo-Pacific – built on trade, energy, innovation and industrial cooperation.

Together, we can demonstrate that sovereignty is stronger when built with trusted partners.

Nicolas Forissier is France’s Minister Delegate for Foreign Trade and Economic Attractiveness. The views expressed here are the writer’s own.

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