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Denmark moves to reduce China reliance by boosting Malaysia ties

KUALA LUMPUR – Denmark seeks to forge closer ties with South-east Asian nations in a bid to become less dependent on China, Foreign Minister Lars Lokke Rasmussen said.

“Lessons learned from Covid-19, and also from the geopolitical situation, have taught us that we have to diversify our relations and our supply chains,” Mr Rasmussen told reporters in Kuala Lumpur, where Denmark recently reopened its embassy.

“In that context, Malaysia is an attractive country for investments and deepening relations.”

Malaysia’s ambitious targets for its green transition offers opportunities for investments from Danish companies in areas including agriculture, energy efficiency and water management, Mr Rasmussen said.

Restarting negotiations for a free-trade agreement with Malaysia will be a priority for Denmark during its six-month rotating presidency of the European Union in the second half of 2025, he said.

Mr Rasmussen met with Malaysia’s Prime Minister Anwar Ibrahim and local business leaders from companies including Carlsberg A/S and United Plantations Bhd during his trip, noting it had been 17 years since a Danish foreign minister last visited Malaysia.

Denmark had closed its embassy in Kuala Lumpur in 2021 during the Covid-19 pandemic, but announced a return to Malaysia in 2023 as part of the Danish government’s goal to “build new partnerships with countries outside the West,” according to a statement.

Mr Rasmussen’s trip also included an official visit to the Philippines, where he met with officials to discuss the country’s long-running tensions with China in the South China Sea. BLOOMBERG

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