More than £5 million is likely to be invested in Irish firms through partnerships with Malaysian companies, according to the Irish Trade Board (ITB) The investment is expected to result from meetings held yesterday between a Malaysian delegation and 40 Irish companies interested in forming strategic partnerships.

The meetings were organised by ITB and involved a delegation of Malaysian business figures and senior politicians in the first ever partnership sourcing venture held in the Republic. The partnerships are planned for both the Republic and Malaysia and are being sought in the food processing and electronics sectors in particular.

The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, who met the delegation, said the Republic, as a member of the EU, "could work closely with Malaysian partners in winning business in the expanding and deepening home market of the EU".

Leading the Malaysian delegation was the chief minister of Penang, Dr Koh Tsu Koon, who said ideas and services offered by Irish companies would "be looked at closely".

He said Malaysian companies would invest whatever equity they thought was necessary to make a particular venture work.

Irish exports to Malaysia have increased by 61 per cent since 1995 and are now worth £349.9 million a year. Dr Koon said Irish firms looking for access to the Asian market should seriously consider a partnership with a Malaysian company.

Mr Tom Courtney, from ITB's Malaysian office said there was particular demand from Malaysian companies in the areas of engineering, software and education.

"Successful companies must think in terms of global customers and global opportunities and the most effective way to achieve sales growth is through the creation of strategic alliances and partnerships among export-led companies," said Ms Harney.

Among the companies who already have joint ventures in Malaysia are ESB International, ILP, Keytech, Kentz and Aldiscon.