WHEN PEOPLE IN this part of the world think of Germany or its people, precision manufacturing often comes to mind. Penangites are no strangers to German industrial influence; after all, companies such as Bosch and B. Braun have been part of the state’s Free Industrial Zone since 1972. Today, Germany is once again looking towards Penang and Malaysia, this time to source for chips, improve supply chain resilience and find talent. But what are the implications for Malaysia, and how can it leverage this broader shift?
CURRENT AND EMERGING GERMAN–MALAYSIAN LINKS
On 19 November 2025, Stefan Rouenhoff, the Bundestag (German parliament) state secretary at the Ministry for Economic Affairs and Energy, visited Penang as part of a German business delegation to forge closer ties with Malaysia’s semiconductor industry. An economist and member of the Bundestag since 2017, Rouenhoff has previously worked on trade policy in Brussels, served as a ministry spokesperson and held leading roles in small and medium enterprise and international economic policy work. He stood out for his understated manner, arriving quietly without bodyguards and simply introducing himself as “Stefan”.
The delegation toured Infineon’s facilities in Kulim and Bayan Lepas, holding discussions on investment trends, upcoming expansion and bilateral cooperation. According to Rouenhoff, Germany remains Malaysia’s second-largest destination for foreign direct investment, after the US.[1] Nearly 800 German companies employing more than 65,000 people operate in Malaysia. They are particularly represented in semiconductor manufacturing, alongside the significant presence of firms from other sectors, such as Allianz, BASF, SAP and Mercedes-Benz.
“We had an exchange about investments of the last few years and on those that are upcoming,” he said during a gathering in Bayan Lepas, organised by the Malaysian-German Chamber of Commerce (MGCC) and the German Embassy. The visit concluded with a simple reception attended by Penang Deputy Chief Minister II Jagdeep Singh Deo and German industry leaders. During exchanges with German and Malaysian semiconductor players, the delegation discussed diversification, supply chain security and investment resilience.
Shifts In German Geo-Economic Strategy Favour Penang
by
Carolyn Khor
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