GERMAN SMIS SEEKING TECHNOLOGICAL PARTNERS IN MALAYSIA

From Alan Ting

STUTTGART, Nov 15 (Bernama) -- German Small and Medium Industries (SMIs) or
better known as "mittlestand", are keen on partnering Malaysian companies in
high production technology, as they expand their presence in Asia.

The managing director of the German Engineering Federation (VDMA) in Baden-
Wurttemberg, Ulrich P. Hermani said the German SMIs are mostly located in the
state of Baden-Wurttemberg, one of the richest in the country.

"We are looking at further cooperation in Malaysia and Singapore. Both can
be ideal partners," he told visiting Malaysian and Singapore journalists' ahead
of the state trade mission to Asia, from Wednesday.

The 150-strong trade delegation is led by the Prime Minister of
Baden-Wurttemberg, Stefan Mappus. The delegation will visit Malaysia,Vietnam and
Singapore from Nov 16-23 to promote greater cooperation in high-tech industries.

Hermani said Malaysian companies can benefit from the strong relationship
and cooperation between the industries and research centres in
Baden-Wurttemberg,which are currently working to develop the high production
technology.

About 60 companies and 20 research centres, including some of the top
manufacturing companies, research institutions and unversities in Germany are
involved at present in high production technology.

Baden-Wurttemberg is also home to some of the oldest, most renowned and
prestigious universities in Germany.

It IS also home to four of Germany's nine "excellence universities"
-Heidelberg, Freiburg, Karlsruhe, and Konstanz.

"Our idea to transfer technology to Malaysia is to enable the industries
there to increase productivity," Hermani added.

Baden-Wurttemberg is also one of the wealthiest regions in Europe with a
traditionally low unemployment rate.

A number of well-known enterprises are headquartered in the state, for
example, Daimler AG, Porsche, Robert Bosch GmbH (automobile industry), Carl
Zeiss AG (optics) and SAP AG ( the largest software enterprise in Europe).

In spite of this, Baden-Wurttemberg's economy is dominated by small and
medium-sized enterprises which form the backbone of the state's economy.

It is also one of the world's leading machinery industry region with a
turnover exceeding 55 billion euros last year, ahead of countries such as
France, South Korea, the United Kingdom, the Netherland and Brazil.

Hermani said German companies has been working closely with their Malaysian
counterparts in the past, such as in automative production technology, and
are hoping to expand the cooperation beyond this sector.

"In production technology for example, we have had cooperation with Proton
in the past and are now looking at the food and bio-tech sector in Malaysia," he
explained.

The Baden Wurttemberg trade mission intends to promote its innovative
products and services related to the "production technology of the future".

A forum on this production technology of the future will be held in Kuala
Lumpur on Thursday.

Hermani said Germany's SMI strength is in innovation and the training of
people.

He highlighted that an average of six per cent of a company's turnover is
spent on research and development (R&D) and five per cent on training people.

He also explained that over the last three years, 77 per cent of all
companies had practiced innovation and 28 per cent of turnover involved products
of less than three years old.

"We have a well educated state and a strong influence in the market. A total
of 73 per cent of turnover is exported and only 49 per cent of goods are
imported, mainly from the middle east and europe," he said.

Hermani said the German SMIs had the know-how to improve the efficiency of
production and help others enter the international market.

He also said the SMIs have been looking for further cooperation in Asia as
26 per cent of Germany's exports are now to Asia as compared to less than 10 per
cent, 15 years ago.
-- BERNAMA


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