22/04/2011 (Business Times) - Malaysia can expand its trading areas with the European Union with the help of its Economic Transformation Programme (ETP).

Almost two-thirds of Malaysian exports to EU and half of imports from the EU consist of electrical and electronic (E&E) products and machinery, appliances and parts.

"We can do much more to diversify this trade pattern and explore emerging sectors, which have high potential for higher growth," said Federation of Malaysian Manufacturers president Tan Sri Datuk Mustafa Mansur.

He was speaking at the one-day EU-Malaysia Trade and Investment Forum 2011 here yesterday.

Trade with Europe accounts for 11.5 per cent of Malaysia's overall trade volume.

Mustafa identified several industrial cooperation initiatives and opportunities under the ETP which could be of interest to European businesses.

They include improving water and sewerage systems, rejuvenating existing oil fields, improving upstream palm oil productivity, building sustainable energy platform, revitalising the E&E sector as well as strengthening global marketing efforts for processed food.

A total of RM1.3 trillion in additional investment is required from the private sector to fund the entry point projects and business opportunities under the ETP.