Exclusive Interview With German Ambassador On Trade, EV And TVET

Dr Peter Blomeyer at the Residence

Born in Bremen, Dr Peter Blomeyer was trained in law and history, obtained his first and second state exam by the Albert-Ludwigs University at Freiburg. He also studied in the academy for foreign service. His career in the foreign ministry started off as an advisor for economic affairs at the German Embassy in Tokyo. He obtained his doctorate by Albert-Ludwigs University at Freiburg. Served as an ambassador to Kosovo from 2012 – 2014, to Uganda 2014-2017 as well as General Consul in Nowosibirsk. As he told us at the end of this interview, he chose Malaysia to be his first choice of posting. The Federal Foreign Ministry of Germany granted his wish. He was appointed as Ambassador of Germany to Malaysia in 2020 and came in October 2020.

BusinessToday: Your Excellency, would you shed some lights on the balance of trade between Germany and Malaysia in 2021?

Ambassador: Germany and Malaysia are strongly tied by common economic interests. As trading nations with a deep integration into the world economy both countries are heavily relying on open markets as well as a common level- playing field. Our bilateral trade relations reflect our close economic partnership.

In 2021, there was a strong increase of both exports and imports. From a German perspective our exports to Malaysia improved by 11 % while our imports from Malaysia even increased by 19%.

The bilateral trade volume of more than €15 billion by far exceeds the trade figure for 2020, which was at around € 13 billion; for 2021 we expect it to be more than €15 billion. Malaysia will again be Germany’s principal trading partner among the ASEAN countries, after it has lost this position to Vietnam in 2020.

Looking at our bilateral trade balance, it is most striking that Germany is having a significant trade deficit with Malaysia, although Germany runs strong trade surpluses with almost any of our trading partners. In 2021, the German deficit was €4.8 billion. Malaysian products like medical gloves, E&E or semiconductors and so on are in high demand in Germany. Malaysia has achieved a remarkable increase in external trade during the last 1 to 2 years and the most recent trade figures again confirm this.

As I expect the focus of German companies to shift more towards ASEAN in the near future, a further increase our trade volume is possible if we focus on deepening the economic ties of both nations. And, I still see untapped potential for the future. A free trade agreement between the European Union and Malaysia could give our bilateral trade relations additional tailwind. I hope the negotiations can be resumed any time soon.

An impromptu piano performance by H.E. Dr Peter Blomeyer

BusinessToday: Your excellency, please brief us on the German Dual Vocational Training (GDVT) and how this program could be brought to the next level.

Ambassador: The important thrust behind innovations and inventions originating from our companies in Germany is a thorough technical and practical knowledge of employees combined with an academic skillset, enabling businesses to develop and produce solutions for which German companies are renowned all over the world. The basis of these skills is laid in early youth, just after school in the German Dual Vocational Training.

The concept of German Dual Vocational Training is an important foundation of the German economic success and has already made its way to Malaysia. Apprentices are educated 70-75% on the job, are paid an allowance while being trained and are integral part of the company’s work force.

Many of our 700 German companies in Malaysia, which have joined the program, contribute to creating a pool of qualified professionals with practical skills and competencies paired with sound theoretical knowledge. We can observe a lot of positive spill-over effects from that.

I would like to use this occasion to thank the Malaysian-German Chamber of Commerce and Industry, its partners German-Malaysian Institute (GMI) and the Penang Skills Development Center (PSDC), the German and Malaysian companies and last but not least the trainees for their participation and support of the German Dual Vocational Training.

For the future is most important that the training is defined by the actual demand of the industry and that the curriculums are permanently being updated and upgraded as the industrial revolution 4.0 unfolds. I hope we will see more and more companies joining the system of German Dual Vocational Training.

When more and more non-German companies engage in the concept of German Dual Vocational Training, I see tremendous potential. I hope that one day we can say that German Dual Vocational Training is not just the foundation of the German economic success, but it has also significantly contributed to making each participating company more successful and at the same time made Malaysia move up the global value chain.

BusinessToday: Thank you, Your Excellency for spending time with us for this interview.

Ambassador: Thank you. My pleasure.

For full version of the interview, kindly check out the print-version of BusinessToday magazine March 2022.

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