German Mittel Stand Firms Ready To Nurture Mid-Sized Enterprise Ecosystem For Malaysia
KUALA LUMPUR, March 18 (Bernama) -- Autark Ltd, a global business services company, is keen to nurture a mid-sized enterprise ecosystem in Malaysia much like the highly-successful Mittelstand sector in Germany which contributes significantly to the European Union nation’s economic growth.
“This is in view that there is a significant gap in Malaysia’s economy as evidenced by the under-representation of mid-sized enterprises which are crucial to create high-value jobs, drive innovation and foster economic growth,” Gregor J. Scott, managing director of Autark, said on Monday.
“Our strategy involves leveraging German expertise in mid-sized enterprises to initiate this sector in Malaysia by facilitating partnerships between local and German businesses.”
This will encourage technology transfer, promote vocational training as well as education reforms to prepare the workforce for higher-skilled jobs, he told Bernama in an interview.
“Malaysia’s current focus is on foreign direct investments from multinational corporations and large companies,” he said.
Scott said Autark’s recent engagement with state and investment agency officials dovetails with Prime Minister Datuk Seri Anwar Ibrahim’s highly successful visit to Germany last week to strengthen economic ties, culminating in potential investments of RM45.4 billion and calls for further German investments.
The strategic plan to grow mid-tier companies also ties in neatly with the government’s efforts to pivot to the new economy of hydrogen energy, electrical vehicles (EV), space technology as well as biotechnology, among others.
The majority of Mittelstand companies are focusing on engineering-driven industrial activities, construction as well as medical devices and biotechnology.
A further benefit is that it encourages Mittelstand firms from the DACH region which refers to the three Central European countries of Germany, Austria and Switzerland to consider Malaysia as a vibrant hub for relocation and development.
In the process, the move would expand European footprints into Asia, prompted by high energy prices and inflation.
Scott said larger Mittelstand firms are each contributing close to one billion euros (RM5.1 billlion) in turnover whereas the top 1,000 German family companies add 2.17 trillion euros (RM11.06 trillion) to the German economy.
An engineer by profession, Scott, who is based in the industrial city of Ludwigshafen-am-Rhein, said he is part of a group of interested parties, including business leaders, academicians and innovators committed to bridging this gap here.
The collective aim is replicating the German model’s success by fostering a robust mid-sized enterprise sector in Malaysia.
On an encouraging note, he recognises the fact that the electrical and electronics industry especially in Penang, is a cluster of performing small and medium enterprises that are export driven and a major supplier of high value products as part of a global supply chain.
“The absence of this sector in Malaysia hampers its economic development (and) my visits and observations have solidified my conviction that introducing and nurturing a mid-sized enterprise ecosystem in this country could be transformative,” he said.
– BERNAMA
