By Sharen Kaur
KUALA LUMPUR: France and Malaysia have agreed to deepen cooperation in strategic sectors, including aerospace, energy transition, critical minerals and advanced technologies, as both countries seek to strengthen economic ties amid shifting global supply chains.
French Minister Delegate for Foreign Trade and Economic Attractiveness Nicolas Forissier said the partnership would go beyond trade, with both nations focused on building more resilient supply chains and strengthening industrial capabilities.
"What we are building is a sovereignty partnership, not only a trade partnership. We need to build, secure and diversify our supply chains," Forissier said during his first official visit to Malaysia on Wednesday.
During talks with Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani, both sides discussed greater integration across industrial value chains and expanding collaboration in aerospace, energy transition, critical minerals, semiconductors and other advanced technologies.
They also reviewed progress on negotiations for the European Union-Malaysia Free Trade Agreement (FTA), which resumed in 2025 after a 13-year suspension and is expected to support greater trade flows and supply chain resilience between both economies.
Forissier also met Natural Resources and Environmental Sustainability Minister Datuk Sri Arthur Joseph Kurup to discuss cooperation in critical minerals, including the Carester-Malaco rare earth project in Perak.
French rare earth specialist Carester recently announced plans to develop a rare earth separation plant through a 10-year joint venture with Malaysian miner Malaco Mining Sdn Bhd, which includes the transfer of processing technology to Malaysia.
Forissier said the project would help Malaysia develop its own rare earth separation capabilities while supporting environmentally responsible mining practices, including the management of radioactive materials and protection of groundwater resources.
He said the partnership could eventually supply between 15 per cent and 20 per cent of global heavy rare earth demand.
Beyond critical minerals, Forissier said France was also keen to explore broader investment opportunities in Malaysia, including the Johor-Singapore Special Economic Zone (SEZ).
Asked whether French companies would be keen to participate in the development of the SEZ, he said: "We are interested in everything in Malaysia. We are looking at all opportunities."
Forissier said France's economic presence in Malaysia comprises more than 300 French companies and a similar number of businesses established by French entrepreneurs, collectively supporting about 30,000 jobs across various sectors.
Bilateral trade between France and Malaysia grew by more than 11 per cent in 2025, while Malaysia was the largest destination for French investment flows in Asia in 2024 and ranked 10th globally, accounting for about 10 per cent of France's net foreign direct investment outflows.
Source: https://www.nst.com.my/business/corporate/2026/07/1485104/france-malaysia-deepen-cooperation-aerospace-energy-and-critical
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