KUALA LUMPUR: Malaysia must turn European investments into a catalyst for technology transfer, skilled job creation and stronger local industries as it seeks to move up the global value chain amid intensifying US-China competition, economists said.

Achieving this will require more than attracting foreign capital, they said in response to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani's remarks.

Johari said Malaysia wanted European investments to facilitate technology transfer, develop highly skilled talent and create better-paying jobs as the country moves into its next phase of economic development.

He said the emphasis was shifting towards the quality and long-term value of inbound investments, with the ultimate goal of moving beyond participation in global value chains to creating and capturing more value within them.