Business

We’re not going anywhere, say German companies

While MCO is challenging, most businesses are here for the long haul, explains Malaysian-German Chamber of Commerce and Industry

Updated 5 years ago · Published on 24 Jan 2021 2:57PM

We’re not going anywhere, say German companies
The B. Braun plant in Penang. B. Braun has made a total investment of more than RM4.4 billion in Malaysia. – B. Braun pic, January 24, 2021

KUALA LUMPUR – Foreign companies here say they remain committed to the country as they value and appreciate the long-term partnership with the Malaysian government and look forward to many more years of success.

On the re-implementation of the movement control order (MCO) and the emergency proclamation to contain the increasing number of Covid-19 cases, many companies said the development has not affected their confidence in the country.

Malaysian-German Chamber of Commerce and Industry chief executive officer Daniel Bernbeck said German investors in Malaysia tend to continue with their pre-existing investment plans as most of these investments are in high technology and have a long planning phase that started two to three years back. 

He said the arrangement cannot be suddenly stopped, reversed or changed, and this applies to many big players and multinational companies.

“At the moment, most companies will not make new plans for investment in Malaysia before the MCO or the immediate effects of the pandemic have ended.

“They will most likely wait until the clouds have disappeared.”

He said the implementation of MCO is, however, challenging for some members, particularly small and medium enterprises (SMEs).

“Though the MCO 2.0 was predicted, it took some time for the new standard operating procedures to be ready.

“And, we had to wait for the government’s announcement on which companies would be allowed to operate as well as get the rules and regulations translated into English,” he said.

Bernbeck said where the state of emergency is concerned, the main issue is related to the legal protection of assets and property for private companies.

"Securing their investment is very important for SMEs as they provide high employment by their sheer numbers," he added.

Meanwhile, German-based medical technology company B. Braun, with its ethos of protecting and improving people's health, said it would support all efforts by the government to safeguard the health of Malaysians.

"We understand that the recently declared MCO 2.0 and state of emergency are moves by the government to contain and reduce the escalating number of Covid-19 cases in the country," the company said.

Established in Penang in 1972, B. Braun Medical Industries is a pioneer foreign investor that has evolved into a nexus for the medical device industry in Malaysia.

Just last year, the company expanded its portfolio of testing capabilities for healthcare solutions related to intravenous access, surgical technologies, intravenous systems, central venous puncture and pain control in Penang.

To date, B. Braun has made a total investment of more than RM4.4 billion here, with its production facilities occupying 193,285 sq m, including an acquisition of 45,360 sq m in 2016.

"These investments signify the planned stability and longevity of the company in Malaysia." – Bernama, January 24, 2021

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