00:00Three, two, one, launch!
00:10Today I was particularly pleased to highlight a very important step we are taking together.
00:18European Investment Bank financing for the NXP's major expansion of the semiconductor operations here in Malaysia.
00:29NXP plans to invest around 950 million euros, so 1.1 billion US dollars in the project with the European
00:41Investment Bank providing financing of up to 429 million euros.
00:48The project is a part of Global Gateway, the European Union's strategy for sustainable investment and strong strategic partnerships around
00:59the world.
01:00And I think it captures very well what Global Gateway is about.
01:07It combines advanced manufacturing, local value creation and concrete benefits for both Malaysia and Europe.
01:18Semiconductors are at the heart of modern economy. There are 100 pieces of it just in this phone.
01:27They are essential for artificial intelligence, clean technologies, cars, digital infrastructure and almost every industry that will shape our economies
01:38in the years ahead.
01:40And Malaysia is on its way to becoming a real global semiconductor superpower.
01:48Europe is proud to be a part of this journey.
01:52For me, the NXP investment is not only about expanding production capacity, it's about creating skilled jobs, developing advanced capabilities,
02:03strengthening Malaysia's industrial ecosystem and helping the country capture more value from one of the world's most important strategic industries.
02:16By investing together with Malaysia, we strengthen and diversify our semiconductor ecosystems on which both our economies increasingly depend.
02:33So this is a real win-win partnership.
02:36And semi-conductors are not only one part of a much broader relationship.
02:43The EU is already Malaysia's four largest trading partner and our economic ties continue to deepen.
02:53Another important step, four negotiation rounds have already taken place and an ambition agreement can create further opportunities for trade
03:04and investments on both sides.
03:05The today's semiconductor investment is just a demonstration of the potential for EU investment in Malaysia.
03:14It is what the Global Gateway is about.
03:17And it is about basically turning the potential in the concrete steps into concrete investments.
03:22It is about bringing together governments, financial institutions and private companies.
03:28But above all, it is about making sure that investments deliver tangible benefits, better jobs and greater opportunities in Malaysia
03:41and stronger, more resilient economic partnerships for Europe.
03:47Well, basically, I would say almost 80% are already done.
03:51I mean, both parties agree.
03:52Only the 20% that something to do with EU and something to do with us.
03:56I think that can be reconciled, but still work in progress until we should be able to resolve.
04:02But at the end of the day, when we signed the FTA, the idea is there will be a free
04:08access market between both, you know, country, ours and EU with us.
04:14And why we need that access?
04:16Because now, you know, economy has worked in a different way, like as compared to before.
04:23You know, so the more that we have very open markets that we are able to access, I think it's
04:31just a matter of time that we will finalise this.
04:33And mind you, I think they also have to go back to the 27 members countries.
04:37So, these are the discussion that we have.
04:40No indication that any tariff will be imposed on service quality in Malaysia by the US for now.
04:46Dr. Sri, you mentioned a lot about geopolitical tension.
04:49Are you confident that Malaysia can navigate this with the EU because we have already seen some hurdles, for example,
04:57a defense deal that doesn't go through?
05:00Well, I think when you talk about economy, you don't basically look at only one sector.
05:08So, in our country, we have about 27, 28 industries.
05:13So, let's do something that is doable for us.
05:16Because we are not known as an exporter of defense equipment.
05:21So, on that score, I think if any issue that we have in any one country, that doesn't, not necessary
05:28to stop us to do other economy activities.
05:30So, that's the reason why the wider, the more market that we are able to penetrate, the better.
05:35While we are talking about this FTA, our big companies in Malaysia, right, the one that I think about six,
05:44seven of them, they are producing almost more than 60% of what we export.
05:49They are already in compliance, you know, the like of, you know, United Plantation, SAMW, KLK, you know, IOI.
06:02These are all the big companies that produce, you know, huge palm oil.
06:07Out of 20 million metric tons of CPO that we produce in this country, I would say 60% come
06:14from them.
06:15So, my point is, while we are waiting for EUDR to finalize, they are already embarked on that in order
06:23to comply with EU.
06:23That's why they still can export to EU, because they are very thorough with, you know, no more deforestation, you
06:30know, and then they comply with traceability, and then labor, they ensure that there is no more false labor happening
06:38in our state.
06:39And all that is done.
06:40So, now we are waiting for EU so that more members of the 27 countries will be able to accept
06:45our product.
06:45much easier, because not every country will be able to do that inspection.
06:52But once we sign with EU, then we know that our obligation is with EU.
06:56So, once you endorse it, that's it.
06:58So, that's the strategy that we adopt.
07:01And I have to congratulate Malaysia for the leadership in this area.
07:04So, it's really true that Malaysia delivered a huge food in order to comply,
07:09and basically the reason of the postponement on our side for the validity is not on the Malaysian side.
07:17It was a huge pressure coming from other partner countries, which are not complying now.
07:23And, of course, this affects also other commodities like, for example, coffee in Africa.
07:28And so, but, you know, really big success and bigger food on the Malaysian side.
07:40.
07:40.
07:40.
07:40.
