Johor's main source of FDI are from Singapore, China, Japan, says state govt rep
Johor Mentri Besar Datuk Onn Hafiz (second from right) and state investment, trade, consumer affairs and human resources committee chairman Lee Ting Han (second from left) viewing semiconductor products during the opening ceremony of the Japanese manufacturing plant in Pasir Gudang, Johor Baru on April 23, 2025.
JOHOR BARU: The main sources of foreign direct investments coming into Johor are from Singapore, China and Japan, says state executive councillor Lee Ting Han.
The Johor investment, trade, consumer affairs and human resources committee chairman said the investors also made up a good part of the figures recorded in the first quarter of the year.
'Johor currently has an investment value of RM23bil in the pipeline in April, as announced by Mentri Besar Datuk Onn Hafiz Ghazi two days ago.
'Almost all the investments are located within the Johor-Singapore Special Economic Zone (JS-SEZ), focusing on industries such as petrochemical, specialty chemicals and data centre,' he said after attending the opening ceremony of a semiconductor manufacturing plant in Pasir Gudang here on Wednesday (April 23).
Touching on the event, Lee said the Johor government's business-friendly approach in fast-tracking priority investments has helped the Japanese manufacturer complete its RM650mil facility in 12 months.
He added that the firm started investing in Johor in 2023 and started construction of the plant in November that year.
'The company's products are part of the semiconductor supply chain and we welcome their presence in Johor.
'The state government, through federal and state agencies, had helped to fast-track the processes including the issuance of the certificate of completion and compliance.
'We hope this will be able to attract more high-value projects into Johor and create more job opportunities for the locals,' he said.
He noted that the firm in Pasir Gudang has about 120 local employees at present and has committed to hiring up to 400 local staff in phases.
Earlier when launching the project, Onn Hafiz, reiterated that the state government is ready to collaborate with investors to make JS-SEZ a reality and make Johor a developed state by 2030.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
3 hours ago
- Borneo Post
Sarawak set to shine at Expo 2025 Osaka
The Malaysia Pavilion at Expo 2025 Osaka spans 2,654.52 square metres across three floors, reflecting the nation's diverse culture and dynamic economy. — Bernama photo OSAKA, Japan (June 15): It was a true sight to behold – a stunning lattice of interwoven bamboo three stories high – making the Malaysia Pavilion stand out upon entering the East Gate of the Expo 2025 in Osaka. The bamboo artwork champions sustainability, a reflection of Malaysia's participation guided by the theme 'Weaving a Future in Harmony', thereby sending the message of Malaysia as a diverse nation: rooted in tradition, yet constantly evolving. I was fortunate enough to attend the grand launch of the Malaysia Pavilion at Expo 2025 Osaka, officiated by Deputy Prime Minister Datuk Seri Fadillah Yusof, on 31 May 2025. The Malaysia Pavilion at Expo 2025 Osaka spans 2,654.52 square metres across three floors, reflecting the nation's diverse culture and dynamic economy. The pavilion serves as a hub for international collaboration and dialogue, as well as pocket talks, product launches, memorandum of understanding signings and business matching sessions. Experiencing Expo 2025 firsthand gave me a true sense of the breadth and scale of creation: 188 pavilions spread across 155 hectares on the man-made island of Yumeshima, Konohana-ku. Out of this figure, 161 pavilions represent participating countries, along with 15 pavilions hosted by organisations and the Japanese government, each offering unique perspectives on the Expo's central theme, 'Designing Future Society for Our Lives.' This impressive assembly underscores the Expo's role as a truly international stage for collaboration and a glimpse into the future. 'Looking back at history, I recall that Malaysia had participated at the Expo 1970 Osaka. It is amazing that after 55 years, we are back in this city to participate at such an Expo once again,' Fadillah said during the launch. 'The Malaysia Pavilion stands as a proud testament to our national resolve to advance Malaysia's international standing through innovation, inclusivity, and sustainability. 'We believe that by working together, sharing our knowledge, and respecting our diverse backgrounds, we can collectively address the pressing challenges of our time and pave the way for a more resilient and prosperous future for all. 'This Expo offers a strategic and complementary platform not only to showcase Malaysia's capabilities, but also to highlight the collective efforts of the Asean region in shaping a future that is inclusive, equitable, and environmentally responsible.' As of the latest official report from the Japan Association for the 2025 World Exposition, a cumulative total of 5,803,520 visitors were welcomed since its opening on April 13, 2025. This figure is current as of the end of May 31, 2025. The event has seen a steady increase in attendance so far in its six-month endeavour. Daily visitor numbers have also been on the rise, with a new daily record of 162,000 general visitors reported for Saturday, May 31. Malaysia has gained from this growing platform, as the Malaysia Pavilion has successfully secured more than RM8 billion in potential investments and 20 memoranda of understanding (MOUs) to date at the Expo. This is fast approaching the government's target of RM13 billion in potential trade and investments. According to Fadillah, this achievement represents 61.54 per cent of Malaysia's target of RM13 billion within just two months of operations, signalling optimism for Malaysia. A total of 101 companies are involved in these investment deals of RM8 billion, with 398 business meetings held so far. Fadillah and distinguished guests during the official launch of the Malaysia Pavillion on May 31. — Bernama photo Spotlight for Sarawak in a world setting It is at this very event that Sarawak is set to show its economical prowess and capability through Sarawak Week, coming up in the first week of August. It will be an opportunity to showcase the state's uniqueness by way of cultural shows and pocket talks on trade, investment, tourism, agriculture, oil and gas, renewable energy, and talent development. With the theme 'Sustainability for Tomorrow', Sarawak Week will run from August 3-9, 2025. But this is not the first that Sarawak makes its mark at the expo. On April 16 — just three days after the Expo opened its doors to the public — a strategic US$20 million agreement was formalised between Bintulu-based Pertama Ferroallows Sdn Bhd and the Export-Import Bank of Malaysia Berhad (EXIM Bank). This is set to pave the way for the development of Sarawak's first production facilities for electrolytic manganese metal and high purity manganese sulphate, both key materials in the renewable energy and electric vehicle sectors. Meanwhile, after the Malaysia Pavilion launch, Sarawak Energy Bhd (Sarawak Energy) signed a memorandum of understanding (MOU) with the Japan Bank for International Cooperation (JBIC) to collaborate on renewable energy development, enhance cross-border energy infrastructure, and exchange technical knowledge. The MOU was witnessed by Fadillah, and Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who is representing Sarawak Premier. The partnership reinforced ongoing efforts to support Southeast Asia's energy transition while advancing regional interconnectivity and sustainability. Awang Tengah, who is also Sarawak Minister for International Trade, Industry and Investment and Second Minister for Natural Resources and Urban Development, said this agreement between Sarawak Energy and the JBIC would also help to enhance ties between Sarawak and Japan. 'It is very timely. In this respect, I would like to invite more Japanese companies to invest and participate in Sarawak's economic development agenda,' he said in a press conference after the signing ceremony. Also present were Deputy Minister of Investment, Trade and Industry Liew Chin Tong and Ambassador of Malaysia to Japan Datuk Shahril Effendi Abd Ghany. In the statement, Sarawak Energy said the MoU establishes a framework for strategic collaboration with JBIC to advance RE initiatives and enhance regional interconnectivity. Aligned with the Asean Power Grid initiative and the Asia Zero Emission Community, the partnership would contribute meaningfully to long-term sustainability and strengthen regional cooperation. 'The MoU builds on continued engagements following the bilateral summit between Prime Minister Datuk Seri Anwar Ibrahim and Japan's Prime Minister Shigeru Ishiba in Putrajaya in January 2025. 'The summit addressed key areas including trade, investment, energy cooperation, education and regional security, culminating in the elevations of Malaysia–Japan relations to a Comprehensive Strategic Partnership,' Sarawak Energy added. Sarawak Energy group chief executve officer, Datuk Sharbini Suhaili (front, left) exchanges the MOU with JBIC managing executive director, Sekine Hiroki (front, right) witnessed by (back row, from left) Awang Tengah, Fadillah and Liew on May 31. Underscoring Sarawak's role for the future The Sarawak Deputy Premier hilighlighted Sarawak's efforts in integrating Borneo into the Asean Power Grid and affirming its commitment to regional energy cooperation. Notably, Sarawak has been supplying electricity to West Kalimantan, Indonesia, since 2016 and is currently in the process of supplying power to Brunei Darussalam. During a press conference, the Deputy Premier said Sarawak is also actively enhancing its grid infrastructure to strengthen power distribution across the state and beyond. 'Besides renewable energy (RE), Sarawak is transforming its industrial landscape through strategic diversification into hydrogen, carbon capture, utilisation and storage, oil and gas (O&G), petrochemical products, and aerospace. 'These developments complement the sustainable O&G sector and expansion into high-value petrochemical downstream activities, leveraging advanced technologies and sustainable practices,' Awang Tengah said. 'Sarawak is shaping a dynamic economic hub in Southeast Asia, balancing economic growth and environmental responsibility while achieving long-term prosperity.' He said Sarawak is going to be the hub for RE, anchored in hydropower as it has the potential to generate at least 30,000 megawatts (MW) or 30 gigawatts (GW), if fully developed. Currently, Sarawak is targeting an increase in its generating capacity to 10,000 MW or 10 GW by 2030, and to 15,000 MW or 15 GW by 2035. 'Apart from hydropower potential, there is also huge potential for us to develop this RE through solar power and bio-energy from biomass and waste,' he explained. Two major companies from Japan are also said to be planning to invest US$1.5 billion (US$1=RM4.25) in the high-tech and chemical industries in the region, as part of Awang Tengah's work visit to Osaka. One of the projects involves the construction of a semiconductor-grade polycrystalline silicon production facility by Japan's Tokuyama Corporation in collaboration with South Korea's OCI Company Ltd, with the investment estimated at around US$435 million. Another planned investment is said to involve a consortium of Japanese companies in the chemical sector, with the investment estimated to reach US$1 billion. Awang Tengah says Sarawak is also actively enhancing its grid infrastructure to strengthen power distribution across the state and beyond. — Bernama photo Fostering ties between Malaysia and Japan Malaysia's presence at this expo in Japan serves to strengthen ties between the two countries. Statistically, Japan remains one of Malaysia's top economic partners, with more than 2,800 manufacturing projects implemented to date and bilateral trade valued at RM156.75 billion in 2023. Malaysia aims to secure a minimum of RM13 billion in potential trade and investment leads from its Expo 2025 presence. According to Fadillah, the camaraderie between Malaysia and Japan is one that has been carefully nurtured and strengthened over many decades, evolving into a truly comprehensive and robust partnership. 'Our relationship extends beyond mere economic ties, encompassing a deep appreciation for each other's cultures, a shared commitment to regional stability, and a history of mutual support. 'From early collaborations in industrial development to contemporary partnerships in technology and education, the connections between our people and our nations are profound. 'By being here, we are not only showcasing Malaysia's capabilities and ambitions but also engaging directly with the people of Japan and the wider international community. 'As we navigate the complexities of the 21st century together, this lasting partnership offers a solid foundation for continued collaboration and shared success. 'I am heartened to learn that our collective efforts are now beginning to take shape in meaningful and tangible ways, ranging from the exploration of investment opportunities and the forging of global partnerships that support local advancement and innovation, to attracting visitors through the celebration of Malaysia's rich cultural heritage.' Meanwhile, the presence of numerous Malaysian students and professionals in Japan, and the reciprocal interest of Japanese in Malaysia's unique heritage, natural beauty and business opportunities, are proofs to this strong affinity. This was felt during a meet-and-greet between Fadillah and members of the Malaysian diaspora in Japan, recognising their contribution as cultural ambassadors and economic connectors abroad. The gathering provided an opportunity to engage directly with Malaysian professionals and students based in Japan, reinforcing the government's commitment to citizen diplomacy. 'Malaysians abroad are the country's little ambassadors to contribute to Malaysia's positive image,' Fadillah said in his speech. 'All of you play an important role in building bilateral relations, especially in the fields of economy, technology and education. 'Malaysia is committed to achieving the Sustainable Development Goals (SDGs) and the aspiration of a low-carbon country. Thus, all parties, including Malaysians abroad, have a role to play in contributing to the sustainable agenda. 'Japan, a global powerhouse in technology and innovation, presents invaluable opportunities for Malaysian students to excel. However, true achievement extends beyond academic excellence, it is equally rooted in the cultivation of strong values, ethics, and a deep sense of patriotism. 'I urge students to bring their expertise home and contribute to the nation's progress, as the knowledge and skills they have gained are vital in shaping Malaysia's future. This was felt during a meet-and-greet between Fadillah and members of the Malaysian diaspora in Japan, recognising their contribution as cultural ambassadors and economic connectors abroad. — Bernama photo The gathering provided an opportunity to engage directly with Malaysian professionals and students based in Japan, reinforcing the government's commitment to citizen diplomacy. Malaysia could play role in upcoming Expo 2030 Riyadh In a move to plan ahead, the Kingdom of Saudi Arabia has extended an invitation to Malaysia to assist in organising Expo 2030 in Riyadh. This offer is a sign of confidence, a testament to Malaysia's capabilities and shows a mark of strength of the Malaysia-Saudi Arabian relationship. According to Fadillah, this was highlighted by Kingdom of Saudi Arabia Ambassador to Japan, Dr Ghazi Faisal Binzagr, during Fadillah's visit to the Saudi Arabia Pavilion. 'They want to invite Malaysia to be involved together for Expo 2030, which they will host in Riyadh. This is an opportunity for us (Malaysia). It means we are recognised. 'Later, I will bring this back to discuss with the Cabinet, to see how we can explore what are the areas that we can work with them on this,' he told reporters during a press conference after attending a dinner with the Malaysian Diaspora in Osaka. 'They want to see how we can be involved from the beginning, from the planning stage – and also what else that we can contribute from our country. 'After this, our Malaysian Ambassador to Japan will discuss this further with the Saudi Arabia Ambassador. 'From there, we will start the initial discussions, and they will make a report for us to bring back. The detailing part is, how we can identify the opportunities to be involved together.' This showcases a continued collaboration between Malaysia and Saudi Arabia, following a joint cultural showcase by both pavillions at Expo 2025 Osaka, reflecting not only artistic tradition, but a shared commitment to cross-cultural understanding on the global stage. Hosted at the Saudi Arabia Pavilion, Malaysia's dancers were invited to perform as part of a special event that reflected both nations' soft diplomacy efforts to strengthen collaboration through the universal language of art. The showcase also signalled deepening ties between Malaysia and the Kingdom of Saudi Arabia, especially in promoting intercultural exchange through heritage and youth expression. At the heart of the showcase was the Tarian Anggalang Magunatip, a dynamic bamboo dance rooted in the traditions of the Murut community of Sabah. In a standout moment of the programme, the Magunatip performance evolved into a joint segment with dancers from the Saudi Pavilion, weaving in elements of the Al-'Azawi, a spirited and athletic youth dance from the Jazan region. The fusion of the two styles created a powerful visual narrative: distinct traditions, harmonised by shared values of rhythm, identity, and ancestral memory. The invitation to organise Expo 2030 in Riyadh showcases a continued collaboration between Malaysia and Saudi Arabia, following a joint cultural showcase by both pavillions at Expo 2025 Osaka. Fadillah (third left) with Ghazi during his visit to the Saudi Arabia Pavilion at Expo 2025 Osaka on May 31. Awang Tengah DPM Fadillah Yusof Expo 2025 Osaka investment
New Straits Times
5 hours ago
- New Straits Times
Analysts: Labour market to stay stable in 2025
KUALA LUMPUR: Malaysia's labour market is expected to remain stable throughout 2025, supported by resilient domestic demand, said economists. TA Securities economist Faris Burhanuddin said that despite persistent global geopolitical tensions, the labour market remains resilient, backed by a stable unemployment rate and strong growth in the services and technology sectors, as well as increasing investments in digitalisation and automation. "We also believe that Malaysia's labour market continues to demonstrate resilience, supported by the country's emergence as a prominent global hub for electrical and electronics (E&E) products, particularly semiconductors," he said in a note. Farid said the government's effort to position Malaysia as a leading hub for energy and semiconductor manufacturing has attracted substantial foreign investment. This includes a recent move by a Japanese company, which opened a manufacturing facility in Pasir Gudang, Johor, creating 460 high-skilled jobs with competitive salaries. In April 2025, the employment rate rose by 2.8 per cent year-on-year to 16.82 million persons, according to the Department of Statistics Malaysia. Meanwhile, the labour force participation rate increased to 70.8 per cent and the employment-to-population ratio sustained at 68.6 per cent. Farid said that structural initiatives such as preparations for Visit Malaysia 2026 are also expected to boost tourism-related employment starting this year. He pointed out that tourism data reinforces this positive outlook, with tourist arrivals reaching 13.38 million in the first four months of 2025, an increase of 21 per cent from 11.07 million last year and 12.4 per cent higher than the pre-pandemic level at 11.90 million in 2019. MIDF Research said rising employment and wage growth in domestic-orientated sectors will provide support to household spending. The firm said expansion in job creation and a healthy labour demand will be fuelled by robust domestic demand and sustained investment activities. "Steady employment growth coupled with a lower unemployment rate suggests more job seekers are successfully securing employment, though youth employment remains a persistent challenge. "Looking ahead, favourable labour market conditions are expected to support domestic demand and underpin economic growth despite external trade uncertainties," it said. Meanwhile, Hong Leong Investment Bank Bhd (HLIB Research) chief economist Felicia Ling said sustained domestic demand and supportive government policies will support the labour market. She said the continued realisation of RM89.8 billion in approved investments in the first quarter of this year is also expected to fuel job creation. TA Securities upgrades its full-year 2025 unemployment rate forecast to an average of 3.0 per cent, while MIDF Research expects it to average around 3.1 per cent. Despite the positive outlook, the economists remain cautious of potential external and domestic headwinds. Ling said the downside risks remain, as ongoing global policy uncertainty may worsen domestic business sentiment. "While we anticipate minimal impact from the Sales and Service Tax expansion taking effect on July 1, the potential pass-through of higher operational costs may prompt employers to be cautious," she added. Farid pointed out that the escalating trade tensions, particularly between the US and China, pose downside risks to Malaysia's trade-reliant sectors such as electronics, machinery and intermediate goods. He said this may lead to employment volatility in key export-oriented regions like Penang and Johor. He added that Petronas' intention to right-size its workforce in response to a more challenging global operating environment adds further uncertainty. "While the full details of the restructuring have not been disclosed, and the new organisational structure is only expected in the second half of the year, we currently view this as a limited downside risk to our labour force projections," he added.
The Star
6 hours ago
- The Star
Japan's Ishiba heads to G7 to press Trump to drop auto tariffs
FILE PHOTO: U.S. President Donald Trump holds a joint press conference with Japanese Prime Minister Shigeru Ishiba in the East Room at the White House in Washington, U.S., February 7, 2025. REUTERS/Kent Nishimura/File Photo TOKYO (Reuters) -Japanese Prime Minister Shigeru Ishiba heads to Canada on Sunday for trade talks with U.S. President Donald Trump, hoping to persuade him to drop trade tariffs that have imperilled Japan's auto companies and threaten to undermine his fragile government. The two are expected to meet on the sidelines of a summit of the Group of Seven nations in Kananaskis, Alberta, for their second in-person encounter. It follows a sixth round of high-level trade talks in Washington on Friday. Japan's top tariff negotiator, Ryosei Akazawa, said he explored the possibility of an deal in detailed meetings with U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. The trick for Ishiba, who spoke with Trump by phone on Friday, will be to get the president to drop the 25% tariff he imposed on Japanese cars, as well as a paused 24% across-the-board levy that Trump calls a reciprocal tariff, without making concessions that could hurt the prime minister's public support at home. Returning to Tokyo with no deal would be better politically than conceding too much, analysts say. "If it goes badly, it could even be seen as a positive for Ishiba, standing up to Trump and standing up for his country when he's under assault," said Michael Cucek, a political science professor at Temple University in Tokyo. Ishiba and his ruling Liberal Democratic Party face an upper house election next month that comes after a lower house loss in November that left him reliant on the support of other parties to stay in power. Another poor electoral result could bring down his government and would force Trump to reset trade talks with a new Japanese administration. "The most important thing is that Ishiba does not cave in for a bad (auto) deal," said Joseph Kraft, a financial political analyst at Rorschach Advisory in Tokyo. "I expect there will be some kind of deal, although it could be haphazard. Trump needs some good news and I don't think he has much interest in G7 activities." Failing to reach an agreement in Canada might not have an immediate economic impact on Japan, but tariffs that stay in place will eventually drag down growth, said Asuka Tatebayashi, senior analyst at Mizuho Bank. "If you look at the data for car exports to the U.S. for April, it was quite striking. The volume in dollars was down by nearly 5%, but the number of cars has increased a lot," she said. "It means either they are only selling cheap cars or the manufacturers are absorbing the cost. I think the latter is the case and this is not very sustainable." Tariffs could shave 0.9% off Japan's gross domestic product, Mizuho Research & Technologies estimated in a report in April. (Reporting by Tim Kelly; Additional reporting by John Geddie; Editing by William Mallard)
