Kosovo offers investment incentives to attract Malaysian businesses in key sectors

LocalBusiness & Finance
3 May 2025 • 1:39 PM MYT
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Kosovo offers investment incentives to attract Malaysian businesses in key sectors

KOSOVO is inviting Malaysian businesses to invest in high-potential sectors such as information and communication technology (ICT), renewable energy and manufacturing, offering access to European markets and a range of investor incentives, President Dr Vjosa Osmani Sadriu said today.

Despite its small size, the Balkan republic offers strategic advantages, including free trade agreements that grant access to a European consumer base of over 600 million people.

“This means that investing in Kosovo offers the same opportunities as investing across Europe,” Osmani said in an interview with Bernama during her official visit to Malaysia.

She added that Kosovo is focused on strengthening its economy through foreign direct investment (FDI), especially in its developing industrial and manufacturing sectors.

“With the ease of doing business, Kosovo has the youngest population in Europe which is multilingual and tech-savvy, along with labour costs being much lower than in other European countries,” she said.

During her four-day visit, the President met with representatives from the National Chamber of Commerce and Industry of Malaysia (NCCIM) to explore collaboration opportunities. Although no formal agreements were signed, Osmani said discussions are progressing and the next step would be to hold a joint economic forum.

“Our teams are actively discussing potential areas of cooperation and I hope Prime Minister Datuk Seri Anwar Ibrahim will visit our country soon to help finalise these agreements,” she added.

Osmani also expressed hope for a future direct flight between Pristina and Kuala Lumpur to ease travel and facilitate business and tourism links.

“Even now, connections are quite good, mostly through Istanbul… however, direct flights are always a more convenient way to enhance communication and travel,” she said.

She highlighted the growing popularity of regional tourism packages that include Kosovo, Albania and Montenegro, particularly among ASEAN tourists.

Kosovo is also aiming to grow its global exports, including to Malaysia. While Europe remains its largest market, Osmani said Kosovar exports have expanded significantly to the United States and other regions in recent years.

“Our businesses are now looking for new markets where they can export their products, and I believe that once the joint economic forum takes place and businesses begin engaging with one another, they will be able to identify the specific needs in this part of the world,” she said.

Besides ICT, Kosovo is also targeting Malaysia for potential exports in food and energy.

“We see Malaysia and the broader ASEAN region as important new markets,” she added.

In 2024, trade between Malaysia and Kosovo totalled RM28.55 million, with Malaysian exports at RM25.92 million and imports from Kosovo at RM2.63 million. Malaysia officially recognised Kosovo on 30 October 2008 and established diplomatic ties on 18 March 2011.

Kosovo Hails Malaysia’s decision to grant visa-free entry

Separately, Dr Vjosa Osmani Sadriu has hailed Malaysia’s decision to grant visa-free entry to Kosovar citizens for stays of up to 30 days as a significant milestone in strengthening bilateral ties.

Speaking during her official visit to Malaysia, Osmani described the move as “timely and welcome”, noting that it has been enthusiastically received in Kosovo.

“So, this has made quite a big news in our country. I am sure that a lot of people will want to visit Malaysia now,” she told Bernama and RTM in an exclusive interview on Friday.

She added that Malaysia’s decision to lift visa restrictions reciprocates Kosovo’s earlier move to allow Malaysians to enter the country visa-free for up to 90 days.

“This also shows the personal dedication of Malaysian Prime Minister Datuk Seri Anwar Ibrahim to enhance the relations between the two countries,” Osmani said.

She expressed hope that the visa exemption will encourage greater people-to-people exchange, particularly in tourism, education and cultural ties, and also lead to an increase in two-way business and trade.

Looking ahead, Osmani said she hopes to see the launch of direct flights between the two countries to improve connectivity and encourage more travel.

“Even as we speak, connections are very, very good, mostly through Istanbul, but there are also other connections as well on a daily basis. However, direct flights are always an easier way to expand more communication and more travel,” she added. - May 3, 2025