KUALA LUMPUR: Top Swedish firms that have been investing in Malaysia’s industrial development since the nation achieved its independence are lending their expertise to the country’s green economy transition by focusing on the sustainability agenda.
The collaboration aligns with both nations’ commitment to environmental protection, forming the core for enhanced mutual trade and investment linkages, said Sweden’s ambassador to Malaysia, Niklas Wiberg.
He noted that Malaysia’s policy shift towards a green economy is expected to attract more foreign investors, especially Swedish firms with expertise in renewable energy (RE) and circular economy practices.
He highlighted significant contributions by Swedish firms in Malaysia towards RE and innovative solutions, saying that sectors such as green energy and telecommunications offer further opportunities for Swedish investment in sustainable practices.
“Swedish companies drive the grid transition here in Malaysia through RE and energy innovations, and promoting circular economy practices in a very clear way,” Wiberg told Bernama in an exclusive interview following his posting about two months ago. He officially began his tenure as Sweden’s ambassador to Malaysia on Aug 15.
Wiberg said leading Swedish companies, such as Atlas Copco (energy solutions), Alfa Laval (water and waste treatment), SKF (automotive and industrial engineering) and Sandvik (multinational engineering) have incorporated sustainable practices in their Malaysian operations, with a focus on RE and innovative energy solutions.
Automotive giants Volvo and Scania, which have been operating in Malaysia since 1967, are also focusing on green mobility, producing electric and hybrid vehicles and promoting biofuels.
“Similarly, retail giant IKEA integrates sustainability into its operations, offering energy-efficient products including their renowned furniture using RE,” he said.
Swedish telecommunications leader Ericsson, too, is making strides, partnering with Digital Nasional Bhd (DNB) to develop Malaysia’s 5G network while prioritising energy efficiency in the telecommunications sector.
“DNB and Ericsson’s collaboration in rolling out one of the world’s best 5G networks in record time is incredibly impressive. I think a lot of governments are looking at the Malaysian model with great interest,” Wiberg said.
Turning to electric vehicles (EV), he said that in Sweden and the countries where he has served, the tipping point for increasing EV usage was having strong supporting infrastructure in place.
This includes vehicle-charging facilities at workplaces and at homes, making it possible for consumers “to go electric if they wish to do so”, Wiberg said, adding that Sweden provides subsidies for electric cars, trucks and buses.
To support Malaysia’s green goals, the Swedish Embassy and Business Sweden introduced the “Pioneer the Possible” platform in 2023, showcasing Swedish innovation in sustainable practices.
“Through this platform, we have continued to make significant progress by building partnerships with our partners here in Malaysia, focusing on sustainable innovation and resource efficiency,” Wiberg said.
Wiberg said his mission as Sweden’s envoy to Malaysia is to strengthen these partnerships and explore new opportunities for joint initiatives in line with the common sustainability goals and efforts for a greener future in Malaysia as well as for the wider region.
He noted that Malaysia has ambitious plans when it comes to digital and green transition, as evidenced by the National Energy Transition Roadmap, the New Industrial Master Plan 2030 and the Malaysia Digital Economy Blueprint.
He said Malaysia has not only clinched free trade agreements with regional economies but also expanded trade and investment with countries outside the region.
There are government incentives to invest in Malaysia, particularly in the technology and green energy sectors. An even stronger demand for sustainable products goes a long way towards making Malaysia an appealing destination for Swedish firms,” said Wiberg.
As such, he said, Sweden hopes to build further on the sustainability agenda and provide the competency that Malaysia is keen to acquire, based on the areas identified in the government’s national development plans.
Commenting on competition between China and the European Union (EU) in the EV Industry, Wiberg said, “China is also making great electric cars, but it’s essential to foster initiatives for a truly competitive market.”
He stressed the need for fair practices that encourage innovation while promoting sustainability.
Along with the United States and Canada, the EU has imposed countervailing duties on imports of battery electric vehicles from China after its investigation concluded that the EV value chain in China benefits from unfair subsidisation.
“Sweden always supports a competitive market that is fair to producers and consumers,” Wiberg said.
He highlighted that the automotive sector is going through a pivotal transformation, adding that Swedish automakers are rapidly advancing towards full electrification, with ambitious plans to produce nearly 100% EV by 2030.
