KUALA LUMPUR, Oct 13 — Selangor has attracted RM22.1 billion in approved investments from 16 European Union countries between 2021 and 2025, involving 308 projects that created 12,653 jobs, reflecting growing economic ties between the state and the European Union.
State executive councillor for investment, trade and mobility Ng Sze Han said the Netherlands accounted for the largest share of investments at RM16.8 billion across 60 projects, which generated 4,754 jobs.
He said Germany followed with RM2.3 billion in investments across 79 projects, the most among European countries, creating 2,688 jobs. Ireland ranked third with RM987 million in investments, whereas Switzerland recorded RM629 million across 36 projects, creating 1,200 jobs.
Ng said the figures reflect strong partnerships between Selangor and EU businesses, with the state positioning itself as a destination for companies seeking to expand their presence in Southeast Asia.
“According to the EU-ASEAN Business Council’s latest Business Sentiment Survey, 49 per cent of respondents plan to expand their operations or investments in Malaysia over the next five years, reflecting the strong commitment of European businesses to ASEAN.
“I think European businesses are already acting on this commitment. The European Union is not a new partner for Selangor; it is an established and trusted one,” he said in his opening remarks at the EU-Malaysia Business Data 2026: Selangor in Focus forum at Kuala Lumpur Convention Centre here today.
The forum was organised by state investment arm Invest Selangor Bhd, in conjunction with Selangor International Business Summit (SIBS), which will be held from tomorrow to Saturday.
Ng said the state’s investment momentum continued into the first half of 2026, as it recorded RM70 billion in approved investments across 835 projects, the highest among all states and nearly one-third of Malaysia’s total of RM218.5 billion.
“We are confident of crossing the RM80 billion mark in the months ahead,” he said.
He said Selangor is also aligning its investment priorities with the federal government’s push to advance the semiconductor, AI, new energy, digital and other high-value sectors under Budget 2027.
“The state has committed RM50 million to a new investment fund in partnership with Khazanah (Nasional Bhd) and the Penang government to grow our semiconductor ecosystem.
“For European technology companies, this is a clear signal that federal and state governments are moving in the same direction.
He added that Malaysia-EU Free Trade Agreement (MEUFTA) talks, which resumed last year, are expected to strengthen the foundations for greater trade and investment, with both sides working towards a conclusion in 2027.
Opportunity in semiconductor field
According to the European Commission, bilateral trade in goods reached €48.9 billion in 2025, making Malaysia the EU’s third-largest trading partner in ASEAN.
Meanwhile, European Commissioner for International Partnerships Jozef Síkela said Malaysia’s semiconductor industry offered significant opportunities for both sides to generate higher-value economic activity, develop skills, and create better-paying jobs.
“Chips are now one of the foundations of the modern economy… and Malaysia is on its way to becoming a global semiconductor superpower,” he said in his speech at the event.
According to Síkela, Malaysia accounts for about 13 per cent of global semiconductor assembly, testing and packaging activities, as well as more than 7 per cent of the global semiconductor trade.
He said the challenge is to translate the industry’s growth into tangible benefits for Malaysians through more advanced technology, skilled employment, and greater domestic value.
The commissioner cited European support for Dutch semiconductor company NXP’s almost €1 billion investment in Petaling Jaya through the EU’s Global Gateway initiative and the European Investment Bank.
“Today, we are taking another important step in financing this project. The investment will expand advanced semiconductor manufacturing, more than double production capacity at the site, and create new high-value opportunities for Malaysian workers.
“This is what our partnership can achieve. Malaysia brings talent, industrial strength and ambition,” he said.
Síkela also said the partnership could extend beyond semiconductors to sectors including digital infrastructure, cloud computing, AI, renewable energy, green hydrogen, biofuels, and critical raw materials.
He added that Europe’s experience in integrating electricity markets could also support Malaysia’s role in developing the ASEAN Power Grid (APG), which aims to connect electricity systems across regional borders, strengthen energy security, and facilitate greater renewable energy integration.
He added that the EU-Malaysia partnership should benefit businesses and communities on both sides, particularly through investment that strengthens local industries and creates sustainable employment.
“In a world of growing geopolitical and economic tensions, partnerships like this matter more than ever,” he said.
Síkela also urged Malaysian and European businesses, financial institutions and governments to use the forum to develop concrete projects and deepen cooperation.
