Riecken-Daerr: I see huge potential in German-Malaysian trade partnership. Both sides stand to win from an open and predictable trade framework. — German Embassy
GERMANY's national day, the German Unity Day on Oct 3, is a reminder of how unity and resilience can shape a nation’s path forward. Thirty-five years ago on Oct 3, 1990, the reunification of East Germany and West Germany was formally completed.
For Malaysia, it is also a moment to reflect on the growing ties with Europe’s largest economy – ties that stretch across trade, investment, education and culture.
These links have only deepened over the years, with German companies long established in Malaysia and new areas of collaboration emerging in technology, green energy and skills development.
Beyond economics, people-to-people exchanges – from language learning to cultural programmes – continue to broaden mutual understanding.
At the centre of these connections is Silke Riecken-Daerr, Germany’s Ambassador to Malaysia.
With a career spanning the North Atlantic Treaty Organisation (Nato), the European Union and the German Chancellery, she brings wide experience to her posting in Kuala Lumpur, where she is working to strengthen ties and encourage fresh areas of partnership.
In a written interview with Sunday Star, Riecken-Daerr shares her views on a wide range of issues, from Germany-Malaysia ties amid shifting geopolitical dynamics to the role of women in diplomacy.
> Germany is Malaysia’s largest trading partner in the EU, with machinery and electronics dominating the exchange. What emerging sectors – such as green tech, digitalisation, or vocational education – do you see as ripe for deeper collaboration in the next five years?
Approximately 800 German companies operate in Malaysia, employing roughly 65,000 Malaysians. Many of our companies have been here since the 1960s. It is little known that Germany is Malaysia’s second most important foreign investor and indeed, we are Malaysia’s largest trading partner among EU Member States.
Conversely, Malaysia is Germany’s second most important trading partner within Asean (after Vietnam), with a trade volume of almost €18bil (RM90bil) in 2024.
A key strength of Germany’s economy lies in its diverse structure of companies of all sizes across many sectors, known collectively as the "Mittelstand".
This includes suppliers and innovators in the automotive industry, healthcare, electronics, mechanical engineering, high-tech and digital technologies, renewable energy and green technologies, chemicals, logistics, micro-technologies such as semiconductors, and many others.
The German economy is present in Malaysia in its full breadth. Whatever the sector – be it manufacturing, services, or technology – you are likely to find a German company operating in Malaysia.
Malaysia, with its abundant natural resources, has vast potential in renewable energy, particularly solar power. Yet this potential remains largely untapped: solar accounts for only about 1% of Malaysia’s electricity generation.
German companies can assist to unlock this untapped potential: not only can they demonstrate how to use renewable energy efficiently, but also provide the know-how, advanced technologies, and industrial solutions to accelerate Malaysia’s green transition, shifting away from fossil fuels towards sustainable energy sources.
Progress in this field would position Malaysia as a regional leader in sustainable industrial production in South-East Asia, securing cleaner air and water, protecting the country’s extraordinary biodiversity, and ultimately improving the quality of life for all Malaysians.
> Malaysia’s SME ecosystem is growing, while Germany’s Mittelstand firms are renowned for innovation and resilience. What models of partnership or knowledge transfer could help Malaysian SMEs scale sustainably, especially in manufacturing and clean energy?
By forming strategic supplier partnerships, joint ventures, and implementing targeted vocational training, Malaysian firms can integrate into the German value chains and gain access to proven expertise in advanced manufacturing, digitalisation, and high-tech sectors such as semiconductors and healthcare.
A key instrument supporting this collaboration is the "Partnering in Business with Germany" programme, run by the German Federal Ministry for Economic Affairs and Energy that Malaysia joined recently.
The programme equips local entrepreneurs with practical skills for cross-border cooperation, reduces transaction risks, and prepares them to engage effectively with German companies. The idea is to build long-term entrepreneurial collaboration.
I see huge potential in German-Malaysian trade partnership. Both sides stand to win from an open and predictable trade framework, further helped by the speedy negotiation of a Free Trade Agreement between Malaysia and the EU by 2027.
Reducing tariffs and non-tariff barriers would enable Malaysian SMEs to access European markets more efficiently and integrate more fully into global supply chains. The growth effects would be felt immediately. We can jointly promote innovation-led growth, strengthen industrial competitiveness, and create sustainable, high-quality employment – while facilitating technology transfer and best practices across sectors.
> With shifting global supply chains and EU-Asean dynamics evolving, how is Germany recalibrating its economic diplomacy in South-East Asia – and where does Malaysia fit into that strategic map?
The certainties of the past decades – stable geopolitics, open markets, and reliable global supply chains – can no longer be taken for granted.
The illegitimate Russian war against Ukraine causing appalling suffering, the terrible war in Gaza and humanitarian nightmare, multiple other conflicts, intensifying great-power rivalries, and escalating climate threats are prompting countries to rethink economic strategies and diplomatic alliances. Reliable partnerships founded on trust, overlapping interests and long-term vision are the name of the game. The profound and unsettling changes also bring new opportunities.
Germany and Malaysia share many interests and we are well-positioned to thrive together in this evolving environment as our strengths are highly complementary.
Germany brings expertise in industrial automation, engineering, green technology and vocational training, while Malaysia holds the strategic trump cards of its geographic location, its highly skilled labour-force and developed infrastructure and aims to move up the technological value chain, diversify its economy, and become a regional hub for high-value industries.
A recent high-profile example is Infineon’s €5bil investment in a semiconductor plant in Kulim. Malaysia is Germany’s second-largest semiconductor import partner after Taiwan, and hence a key link in global supply chains. Other strategic investments include Bosch’s new chip centre and Volkswagen’s plans to make Malaysia an export hub for its brand in South-East Asia.
What these investments share is a long-term commitment: they aim to conduct business sustainably, improve the local business environment, and educate and train Malaysian talent. In doing so, German investments generate mutual benefits, fostering skills, innovation, and industrial competitiveness for both countries.
Investments follow trade. To maintain Malaysia’s advantageous position in Asean, it is crucial to conclude negotiations for a Free Trade Agreement (FTA) with the EU in a timely manner, conscious of the fact that neighbouring countries have already advanced or concluded negotiations.
During the recent visit of the Trade Commissioner of the European Union, Maroš Šefčovič, both sides were highly motivated to conclude negotiations in 2027. The benefits of FTAs are obvious: Vietnam’s trade volume with the EU has grown by around 40% since the conclusion of the FTA in 2020.
> Germany’s dual vocational training system is often cited as a benchmark. Are there plans to expand bilateral cooperation in technical education or workforce development, particularly in high-value industries?
German companies provide well-paid and skilled jobs and offer world-renowned technical and vocational education and training (TVET) programmes to Malaysians.
Industry needs highly competent workers. TVET is a classic win-win situation. Malaysia currently faces a significant shortage of skilled labour, which hampers its efforts to attract foreign investment, including from German companies.
The skills gap is most acute in manufacturing and engineering, where demand is particularly high. For example, Malaysia’s semiconductor industry faces a shortfall of up to 60,000 engineers.
At present, German firms are the primary providers of TVET programmes in Malaysia. And we hope that more Malaysian companies will soon implement similar vocational training initiatives, as this would elevate the skill level and number of local workforce and strengthen Malaysia’s industrial competitiveness. We therefore welcome the Malaysian Prime Minister’s initiative to make the dual training approach mandatory for Government-Linked Companies.
TVET programmes in Malaysia based on the German model often encompass German language tuition facilitating further training in Germany. Language skills are a key stepping stone for our bilateral cooperation across the board connecting people. We are proud that almost 10,000 students in 77 secondary schools in Malaysia chose to learn German. Some 1,700 Malaysians pursue studies in Germany.
Training is also a leitmotiv in our bilateral military cooperation: We have intensified the training cooperation of our two Armed Forces since 2022. For example, we regularly exchange instructors and students between the Malaysian UN Peacekeeping Centre in Port Dickson and Germany.
As part of Germany’s Military Training Assistance Programme, service members of the Malaysian Armed Forces take part in various courses in Germany ranging from submarine training to logistics, and aviation medicine. In May this year, the German Air Force has proudly started the simulator training of Royal Malaysian Air Force A400M transport pilots in Germany.
> You bring a rich diplomatic background to your posting in Malaysia. What aspects of your experience do you find most resonant in shaping Germany’s engagement here – and how do you approach building trust and dialogue across cultures?
I had the pleasure of working on a wide range of assignments, including with postings in various multilateral settings such as the EU and Nato. I am also grateful for insights gained during stints at the German Chancellery in Berlin and our Embassy in Tehran. Working on security and economic policy shaped my vision of the world.
Amid global supply chain shifts and geopolitical tensions, Germany aims to deepen cooperation with Malaysia and other partners to ensure we can safeguard our security, our economic competitiveness and our freedom and resilience. I imagine that this largely corresponds what Malaysia is also striving for. And I believe that our two countries can complement each other in meaningful ways to navigate uncertainty and seize new opportunities.
Jointly with my team at the embassy and the broader 'Team Germany' in Malaysia – which includes esteemed institutions such as the German-Malaysian Chamber of Commerce, Goethe-Institut, German Academic Exchange Service (DAAD), German School Kuala Lumpur, Konrad Adenauer Foundation, Friedrich Naumann Foundation, Malaysian-German Society Penang, German-Speaking Society Kuala Lumpur, and others – I am delighted to collaborate with our Malaysian partners to strengthen our bilateral ties.
Having worked and lived in many culturally diverse settings, I also believe in the power of people-to-people contacts. True relationships and friendships are nurtured when people come together to work, to study, to do business together. We are eager to create more opportunities for interaction, whether through increasing the number of German language learners, Malaysian students in Germany and German students in Malaysia or cultural events.
> Germany has made strides in gender representation, but challenges remain globally. What institutional shifts or cultural changes do you believe are still needed to make diplomacy more inclusive and equitable?
I was delighted to meet so many amazingly talented and motivated female ambassadors and female Malaysian leaders upon my arrival in Kuala Lumpur. It’s a great community. But when engaging with fellow ambassadors, gender is usually not an issue when meeting on a professional level. Previous generations of female diplomats have done a great job of making it increasingly "normal" to consider women just as men, including for high-ranking positions. I am proud to contribute to this progress as the first female German Ambassador to Malaysia.
Germany has indeed made significant strides in advancing gender equality within the public service over recent years. Yet, there is still more to be done, including in my own Foreign Service. To date, 44.3% of leadership positions in the ministry are filled with women and the journey needs to continue.
While legal targets and the encouragement of women to approach leadership challenges with the same confidence as their male counterparts are important. But the structural changes required to achieve true gender equality run much deeper.
Every society will need to define its own goal. In Germany, we are interested in getting society to acknowledge that men are equally capable of managing family responsibilities, caregiving for the elderly, and sharing the responsibilities of household management.
Furthermore, both fathers and mothers should have the equal opportunity to shape and nurture the next generation, to mold the future of our societies. By advancing in this direction, we can also create more opportunities for gender equality in the workplace.
That is why we have made progress with the "parental leave" policy, which allows both parents to take up to three years of unpaid leave with job protection. For the first 12 months, parents receive "parental allowance" as a substitute for their salary, and if both parents share the leave, the total duration can be extended to 14 months.
Incentives like these are a positive approach towards both parents taking responsibility for their children and us approaching a world of equal chances: in career and parenthood. My parents practiced this and my husband and I are doing the same thing.
> In your experience, how do women in diplomacy contribute uniquely to peace-building, consensus-building, or soft power engagement – and how might these strengths shape Germany’s presence in Malaysia?
Many societies continue to raise children with gender-specific expectations which can lead to the development of distinct behaviours and qualities in girls and boys. Typically, girls are socialised to be engaging, collaborative, and consensus-seeking – traits that can be powerful tools in diplomacy. But this skillset is not exclusively male or female – and diplomats, male or female, need to work in many different situations and master the entire toolbox of diplomacy.
Incorporating female perspectives may lead to better outcomes in our work. In peace processes, it is well-established that agreements are more durable when women are meaningfully involved; such agreements tend to be more inclusive, comprehensive, and focused on long-term outcomes. As a result, the likelihood of these processes yielding strong and sustainable solutions is significantly higher.
As for my personal approach, I firmly believe that success lies in working as a cohesive team where we support one another. In Malaysia, I am fortunate to be part of a dynamic and mixed embassy team, as well as a great network of effective German institutions. I look forward to my tenure as Ambassador, working alongside Team Germany in our beautiful and diverse host country Malaysia.
