21/03/2011 (The Star Online) - Malaysia is an important partner for Germany. And that is not by chance: Malaysia and Germany share a long history. Being one of the first countries to establish diplomatic relations with Malaysia after the peninsula gained independence in 1957, we have built a successful relationship based on excellent business ties.

The some 350 German companies operating in Malaysia include all the big names. Yet our relationship extends to all spheres of life. Around 1,000 Malaysian students in Germany at any given time and about 30 university cooperation partnerships highlight our desire to pursue excellence in training, as do the elements of the German dual vocational training system in Malaysia. Cultural and political links are another basis for our joint story.

The challenge now is to take this story to the next level. I see three areas where we can and should move ahead trade, foreign policy and sustainable development.

First, let's have a look at bilateral trade. Last year, trade increased considerably, but we should not stop there: infrastructure projects, renewable energy and energy efficiency are some of the issues where Germany has proved to be a reliable partner in the past and will be even more so in the future. Moreover, we should take advantage of Malaysian-EU relations. At the end of last month, Malaysia and Europe held the first round of negotiations on a Partnership and Cooperation Agreement (PCA), followed at the beginning of this month by the second round of negotiations for an EU-Malaysia Free Trade Agreement. Both with the PCA providing the political framework show that Malaysia and Europe are ready to substantially enhance bilateral trade relations. Germany is the biggest economy in the EU and Malaysia's biggest trading partner in Europe. Therefore, a positive and fast outcome of the negotiations will aid bilateral trade considerably.

Secondly, in foreign policy, Malaysia and Germany have worked together successfully in the past and can do so even more in years to come. After all, Malaysia is a leading country in South-East Asia, in the OIC, in the D8 and in the G77. Therefore, a lot of countries look to Malaysia and follow the good example it sets. We are thus happy to see Malaysia engage in countries such as Afghanistan to improve the situation of its population. Malaysia is an important partner and together we can make a difference.

Finally, being a major palm oil and timber exporter as well as one of the countries with the greatest biodiversities in the world, Malaysia can be a leader in sustainable development. Germany is ready to support Malaysia in its efforts along that path. Germany has been backing the EU negotiations for a Forest Law Enforcement, Governance and Trade (FLEGT)-Voluntary Partnership Agreement with Malaysia on sustainable timber. As for palm oil, we strongly believe that there is a future for sustainably grown palm oil, based on the criteria of the Roundtable of Sustainable Palm Oil and in line with the latest evidence on greenhouse gas emissions.

These are three major fields where I see potential for further strengthening our relationship. But this potential is not limited to these three spheres. Another field of future Malaysian-German cooperation could be within the “Global Movement of Moderates”, as recently proposed by Prime Minister Datuk Seri Najib Tun Razak. Our two nations could jointly engage in projects aimed at stabilising and transforming countries and civil societies in the Middle East.

Both countries have distinct comparative advantages in that respect: Malaysia has close cultural, religious and economic bonds with the region, in particular with Egypt, and is held in high esteem there. Germany is a European neighbour with many ties to the Near and Middle East and has a track record of successfully supporting many transition processes, in the Balkans, Eastern Europe and other regions of the world. Together, we should be able to make a difference.