
Following the delivery difficulties, market lockdowns and logistics bottlenecks it experienced during the Covid-19 pandemic, the German machine tool industry is focusing on how it can position itself more broadly on the global market. A recent
Innovations in Production Technology – German Machine Tools Symposium held on 10 July in Kuala Lumpur, was designed to help members of the
VDW (German Machine Tool Builders' Association) to gain a stronger foothold in new growth markets.
Klaus-Peter Kuhnmünch, who is responsible for organising the VDW’s international symposia, said: “The Malaysian machine tool market holds a great deal of potential – estimated at more than 700 million euros and up until now, Germany has accounted for around 8% of imports. There is still plenty of room for improvement here.”
Malaysia is the most important sales market for German production technology in the ASEAN region. Following the example of China, the Malaysian government is keen to generate more added value at home and create high-quality jobs. Rising levels of investment are expected in the aerospace, electronics, electrical engineering and medical technology sectors and among their suppliers.
Eight German high-tech companies used the VDW Symposium to sound out their opportunities in the Southeast Asian market in the presence of 110 Malaysian trade visitors. Companies involved including DMG Mori, Chiron, Grob, Hermle, Index, Open Mind Technologies, Schütte and United Grinding Group. Thye also took part in 48 B2B meetings in addition to presenting their products and services.
New footholds in AsiaAll are keen to establish new footholds in Asia alongside their operations in China – and Malaysia stands to benefit here. The country is politically stable and it has a growing economy. It also offers a high degree of legal security and has a very good infrastructure.

Carl Martin Welcker, managing partner of Cologne-based Alfred H. Schütte Werkzeugmaschinenfabrik, said: “We see the potential in Asia and it is now important to view Malaysia as a prime location in our efforts to diversify.”
Tara Meite, deputy managing director of the German-Malaysian Chamber of Industry and Commerce in Kuala Lumpur, speaking out in favour of doing business in the country, added: "Malaysian industry has plenty of well-trained specialists that can be quickly retrained and deployed to meet the needs of German companies.”
Germany exported machinery to the tune of 42 million euros to Malaysia in 2023. Machines for a wide range of special applications which are not available from any other supplier are in particular demand, in sectors such as automotive and aerospace.
Roland Merz, Chiron Group SE sales manager (Asia), said: “Malaysian customers appreciate the high precision, reliability and special solutions offered by German machine tools. The higher price compared to Asian suppliers is by no means an obstacle here.”
The VDW is expecting to see rising demand for machine tools in Malaysia. Kevin Chue, business development manager at Kuala Lumpur-based GPI Geopile Engineering SDN BHD, backed up this view. “I value German machine tools because they are very precise and flexible to use. The main focus is not on the price, but on the technology. We have a lot of experience with German machines and know that our production suffers when we use cheaper and more basic machines.”
Mr Kuhnmünch concluded: “Having the latest production technology is decisive when it comes to modernising, expanding capacity and increasing the efficiency of industrial production in Malaysia. German manufacturers not only supply machines, but also offer advice, financing, service, maintenance and training.”