Expo 2025 Osaka elevates Japan-Malaysia economic relations
JETRO Kuala Lumpur managing director Koichi Takano noted that the expo presents a great opportunity to elevate cooperation between Japan and Malaysia to a new level as it opens up a long-term investment space that will continue to deliver benefits.
"Looking ahead, JETRO anticipates robust growth in investment across decarbonisation, renewable energy, digital technology, the halal sector and high-value services.
"Malaysia's role as the ASEAN chair in 2025 is expected to further accelerate cooperation, particularly through its involvement in the Asia Zero Emission Community (AZEC) initiative championed by Japan," he told Bernama.
The AZEC Summit, scheduled to be held in Malaysia this year, marks a significant milestone in energy collaboration between the two countries.
According to Takano, the ongoing negotiation of the Joint Crediting Mechanism is expected to unlock more opportunities for Japanese environmental technologies to be applied in Malaysia.
"JETRO has compiled a catalogue of Japanese companies contributing to decarbonisation and is actively supporting their expansion in the Malaysian market.
"These efforts are complemented by growing investment interest in consumer-related sectors such as food products, healthcare, education and Japanese lifestyle services," he noted.
To unlock the full potential of Japan-Malaysia trade ties in the coming decade, Takano stressed that strengthening the existing relationship of trust is the most critical step.
He said Japan, once Malaysia's largest investor, retains strong ties with the country, and JETRO remains committed to serving as a bridge for future cooperation.
"Economic security, energy transition and resilient supply chains are shared priorities. Building on our longstanding trust, we can create lasting partnerships that benefit both nations.
"JETRO will continue to lead efforts in business matching, market entry support and strategic engagement, ensuring Japanese companies remain active and invested in Malaysia's future," he said.
Japanese firms sees Malaysia as a hub
In addition, Takano said Japanese companies are also taking advantage of strategic tax incentives and increasingly considering Malaysia for regional headquarters.
He believed that Malaysia's attractiveness is further enhanced by its competitive cost base and growing role in regional value chains.
"JETRO is playing a key role in supporting these developments by providing updated information on policies, investment incentives and strategic sector opportunities.
"With Malaysia's current economic growth at 5.1 per cent, compared with 3.6 per cent the previous year, Japanese firms are showing increased confidence in the local market," he added.
The organisation's 2024 Business Conditions Survey revealed that profitability among Japanese companies in Malaysia continues to exceed the ASEAN average – attributable to strong performance in manufacturing, particularly in sectors such as electrical and electronics, food processing, transport equipment and general machinery.
Takano explained that Japanese small and medium enterprises (SMEs) have long contributed to Malaysia's manufacturing sector and continue to evolve with the changing economic landscape.
He expressed optimism that extending local SME support schemes to Japanese SMEs could further strengthen their resilience and integration.
TVET reform a shared challenge
In addressing workforce development, JETRO acknowledged the Malaysian government's efforts through Technical and Vocational Education and Training (TVET) reforms as Japan also faces similar labour challenges and is responding by promoting robotics, artificial intelligence and strategic foreign workforce integration.
He emphasised that these shared challenges require long-term commitment, continuous dialogue and policy coordination.
"Malaysia's Look East Policy has played a key role in fostering bilateral understanding, with more than 28,000 Malaysians having studied in Japan to date.
"Collaboration in education also continues through institutions such as the Malaysia-Japan International Institute of Technology and the University of Tsukuba Malaysia," he noted.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
18 minutes ago
- Barnama
Malaysia And Bangladesh Can Jointly Produce Halal Products For Fast-growing Global Market
BUSINESS By Kisho Kumari Sucedaram KUALA LUMPUR, Aug 15 (Bernama) — Bangladesh has invited Malaysian investors to expand their halal production facilities in the South Asian country and jointly penetrate the fast-growing global halal market. 'By combining our resources, the halal sector would be a natural area for increased partnership between Dhaka and Putrajaya,' the Bangladesh Government's Chief Adviser Prof Dr Muhammad Yunus said in an exclusive interview with Bernama at the end of this three-day official visit to Malaysia. He was here on the invitation of Prime Minister Datuk Seri Anwar Ibrahim between Aug 11 and 13. He noted that Malaysia's expertise in halal certification and branding and Bangladesh's abundant land, labour and facilities would be a potent combination to scale up production. 'This positions both countries well to meet the demand for halal products in international markets,' he said. The interview was led by Bernama Editor-in-Chief Arul Rajoo Durar Raj, together with Editor of International News Service Voon Miaw Ping and Assistant Editor of Bernama Economic Service Kisho Kumari Sucedaram. Yunus said the halal market is not confined to Bangladesh or Malaysia, but constitutes the global market, alluding to the consumer base for halal products based on the two billion Muslim population globally. According to Future Market Insights Inc.'s projections, the global halal food market is expected to grow from US$1.5 trillion in 2025 to US$3.8 trillion by 2035.
New Straits Times
32 minutes ago
- New Straits Times
Malaysian shares trading cheap, may climb further — Analyst
KUALA LUMPUR: Malaysian shares are trading at valuations below their historical average, offering room for gains despite persistent foreign selling and policy uncertainties, said Hong Leong Investment Bank Bhd (HLIB). It said the FTSE Bursa Malaysia KLCI's (FBM KLCI) 2026 valuation is below its five-year mean and along with a firmer ringgit and expectations of a US interest rate cut in September, could support the market in the near term. "The recent reduction in US–Malaysia tariffs to 19 per cent, the rollout of the 13th Malaysia Plan and easing US–China trade tensions, underpinned by a 90-day truce, provide a constructive backdrop for the FBM KLCI," it said in a note today. Yesterday, the FBM KLCI slipped 5.6 points to 1,581.05, snapping a seven-day winning streak totalling 59.6 points, in line with weaker regional sentiment. HLIB said a decisive close above 1,587 points, the May 15 high, would confirm a breakout and pave the way towards the 1,600 to 1,615 resistance zone. "While a brief pullback is possible after the 67.8-point August rally, the near-term bias remains constructive," it added. However, the research house flagged several headwinds, including persistent foreign selling, muted corporate earnings and domestic policy risks. Year-to-date, foreign investors have withdrawn RM14.61 billion from the local bourse, the highest annual outflow since the RM24.6 billion recorded during the 2020 pandemic. In contrast, local institutions have been net buyers of RM12.86 billion, supplemented by RM1.76 billion in retail inflows. HLIB also highlighted a "tariff overhang" as Malaysia awaits clarification from the US on the status of its semiconductor exports following President Donald Trump's proposal for a 100 per cent levy on chips made outside the US. Back home, it said concerns over subsidy rationalisation and a potential expansion of the sales and service tax could weigh on consumer sentiment and cloud earnings visibility.
New Straits Times
32 minutes ago
- New Straits Times
Malaysian students from UK unis share ideas with PM to tackle brain drain
KUALA LUMPUR: Representatives from the Malaysian Students' Council in the United Kingdom and Eire (UKEC) shared ideas and suggestions with Prime Minister Datuk Seri Anwar Ibrahim on addressing Malaysia's long-standing brain drain issue during a courtesy call to his office recently. In a Facebook post, Anwar said the meeting saw UKEC propose opportunities for more strategic collaboration between the federal government and the council through the Higher Education Ministry, covering various fields within existing policies. The prime minister said he valued the students' perspectives and stressed the need for all stakeholders to fully utilise existing government structures and frameworks to avoid duplication. "We must ensure that engagement and dialogue continue regularly so that various issues can be coordinated effectively and systematically," he said. Anwar added that such collaborations could open new avenues for Malaysian talent abroad to contribute to national development, whether by returning home or through overseas initiatives connected to Malaysia. The UKEC delegation, led by chairman Vincent Tang, represents more than 16,000 Malaysian students studying in the United Kingdom and the Republic of Ireland. "They are all currently on summer break and undergoing internships at private companies and government-linked companies (GLCs) in Malaysia and abroad," he said.
