Japanese companies keen to expand in various sectors in Malaysia
KUALA LUMPUR: Japanese companies are looking to expand in the decarbonisation, healthcare, innovation and service industries in Malaysia.
Japan External Trade Organisation (Jetro) Kuala Lumpur managing director Koichi Takano said several companies have made firm commitments to invest for two years, beginning from this year.
"These include the establishment of engineering and operations services in the oil and gas, semiconductor and biotechnology sectors," he told Bernama in an interview.
With regard to the decarbonisation sector, he said momentum is expected to build up in view of the Asia Zero Emission Community (AZEC) summit, hosted by Japan and Malaysia, which will be held in Kuala Lumpur later this year.
Major Japanese companies that have participated in decarbonisation in Malaysia, according to Takano, include Mitsui & Co and others that are working on projects in various areas of decarbonisation in Malaysia, such as energy efficiency, renewable energy, carbon capture and storage (CCS) and hydrogen.
"The diffusion index of business sentiment of Japanese companies is steadily recovering. This is seen as a sign of trust in and expectations of a robust Malaysian economy," Takano said.
However, he noted, the tariff measures imposed by the US have heightened uncertainty in the global economy, making the situation unpredictable.
"At this time of great global turmoil, expectations are growing for Malaysia's leadership as the ASEAN chair.
"Malaysia has already demonstrated its leadership on the tariff issue, holding discussions within ASEAN. We look forward to continued Malaysian leadership towards the stability and growth within the ASEAN region," he added.
According to Takano, Japan has been one of Malaysia's major investors, and more investments from Japan are expected for 2025.
Japan is the fourth-largest foreign direct investor in Malaysia in the fourth quarter (4Q) of 2024 with RM102.02 billion foreign direct investment (FDI) secured compared to RM94.18 billion in 4Q 2023, according to the Department of Statistics Malaysia.
He pointed out that based on a survey on Japanese companies in Malaysia, business sentiment was negative in the second half of 2024 at minus 11.5 points, but it is expected to improve to minus 4.5 points in 2025.
According to the survey conducted by Jetro and the Japanese Chamber of Trade and Industry, Malaysia (Jactim), the outlook remains uncertain due to cost pressures like minimum wage hikes, tax increases and subsidy cuts.
The survey revealed high-value manufacturing and decarbonisation as being top growth sectors.
Two hundred companies responded to the survey from Jan 22 to Feb 21, 2025.
The survey also highlighted that the non-manufacturing sector faces high demand for advanced technology talent.
"Additionally, there is a strong demand for clarification of environment, social and governance (ESG)-related investments, expansion of tax incentives, and thorough advance notifications when regulatory changes occur," it added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
34 minutes ago
- Free Malaysia Today
CDL to sell US$2.1bil Singapore office site to cut debt
The South Beach development, designed by Norman Foster's architectural firm, has seen ownership changes before. (IOI Properties pic) SINGAPORE : City Developments Ltd agreed to sell its majority stake in one of Singapore's most iconic office complexes, according to a person familiar with the matter, as the developer seeks to reduce debt and regain investor confidence after a family feud. CDL will sell its 50.1% stake in South Beach to minority owner IOI Properties Group Bhd, the person said, requesting not to be identified because the information is private. Malaysian developer IOI will have full ownership following the deal. 'The deal values the complex at about S$2.75 billion (US$2.1 billion),' the person said. An IOI spokesman declined to comment. CDL didn't immediately respond to an emailed query. Shares of CDL rose about 1.6% before a trading halt this morning, pending an announcement. CDL has been under pressure to sell assets after a feud divided the Kwek family, the wealthiest clan in Singapore. Despite mending relations with his father and chairman Kwek Leng Beng, the firm's CEO Sherman Kwek acknowledged in April that the dispute had hurt shareholders' confidence, and said that reducing the growing debt load is a priority. The deal will help CDL to meet a pledge to exceed the roughly S$600 million in divestments it made in 2024, which fell short of a S$1 billion target. The complex in Singapore's central business district includes retail space, a 34-story office tower, and a 45-story building housing a JW Marriott Hotel. The purchase adds to IOI's growing presence in Singapore, with residential developments as well as assets like IOI Central Boulevard Towers, a newly opened city center office project. The Malaysia-listed firm is controlled by the Lee family, which made its fortunes from palm oil. The South Beach development, designed by Norman Foster's architectural firm, has seen ownership changes before. CDL bought the site for nearly S$1.69 billion in 2007 along with two foreign partners, a unit of state-owned Dubai World Corp, and El-Ad Group Ltd. The global financial crisis led to a years long delay in construction and the two partners exited the project, with IOI eventually taking a minority stake in 2011. The elder Kwek resisted allowing IOI to take an equal stake in order to maintain control, according to a biography published in 2023. Major tenant Meta Platforms Inc gave up its seven floors of space at the office tower last year, and occupancy dropped to 92.4% as of the end of March, compared with 94.4% at the end of last year.
Malaysian Reserve
36 minutes ago
- Malaysian Reserve
Malaysia, Guinea-Bissau deepen ties with focus on halal industry, Islamic finance and energy
PUTRAJAYA — Malaysia and Guinea-Bissau have reaffirmed their commitment to strengthening bilateral relations with focus areas including the halal industry, Islamic finance, energy and capacity building. Prime Minister Datuk Seri Anwar Ibrahim said he had encouraged Malaysian corporations, including Petroliam Nasional Bhd (Petronas) and FGV Holdings, to explore potential ventures in Guinea-Bissau. 'Hopefully, Petronas, FGV and others will explore potential opportunities not only in Malaysia and Guinea-Bissau, but also use them as a base to expand further into Africa and beyond,' he said during a joint press conference with visiting Guinea-Bissau President Umaro Sissoco Embalo, here today. Anwar said that Malaysia remains committed to supporting capacity-building efforts through the Malaysian Technical Cooperation Programme (MTCP), which offers scholarships and specialised training across sectors including governance, agrotechnology and public administration. He said discussions with Guinea-Bissau also explored potential collaboration in semiconductors, oil and gas and food technology and the further implementation of MTCP programmes tailored to Guinea-Bissau's developmental priorities. 'We are prepared to offer assistance under the MTCP and through larger programmes coordinated by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani,' said Anwar. On international affairs, the Prime Minister highlighted Embalo's strong diplomatic ties with key global powers, including the United Arab Emirates, France, Russia, the United States, and several African nations. 'As a country that practices neutrality and balanced foreign policy, Malaysia and ASEAN have long been involved with nations globally. This aligns closely with President Embalo's vision for Guinea-Bissau,' Anwar said. The Prime Minister warmly welcomed the deepening of ties between the two nations, adding that, 'Malaysia will be your second home. My colleagues, the people of Malaysia, and I are very pleased that you have taken the initiative to establish a new relationship based on trust and affinity with Malaysia'. Embalo is currently undertaking a three-day official visit to Malaysia, marking the first-ever visit by a head of state from Guinea-Bissau. — BERNAMA
Free Malaysia Today
37 minutes ago
- Free Malaysia Today
South Korea's new leader vows to ‘heal wounds' with nuclear-armed North
South Korea's new President Lee Jae-myung and his wife Kim Hea-kyung greet supporters after the inauguration ceremony in Seoul. (AP pic) SEOUL : South Korea's new President Lee Jae-myung vowed to reach out to the nuclear-armed North and 'heal wounds' as he took office Wednesday, after winning snap elections triggered by his predecessor's disastrous martial law declaration. South Korea's new centre-left leader also warned that 'rising protectionism and supply chain restructuring' posed an existential threat to Asia's export-dependent fourth-largest economy, which has been buffeted by the global trade chaos sparked by US President Donald Trump. Lee scored a thumping victory over conservative Kim Moon-soo, of disgraced ex-president Yoon Suk Yeol's former party, in snap elections, with his term beginning immediately after the vote tally was certified early Wednesday. Lee secured 49.4% of the vote, far ahead of the 41.2% for Kim – who conceded, having been hampered by party infighting and a third-party candidate splitting the right-wing vote. Lee spoke to South Korea's top military commander and formally assumed operational control of the country's armed forces Wednesday, urging them to maintain 'readiness' in case of Pyongyang provocations – but said in his first comments that he was ready to talk. 'We will heal the wounds of division and war and establish a future of peace and prosperity,' he said. 'No matter how costly, peace is better than war.' He said the country would 'deter North Korean nuclear and military provocations while opening communication channels and pursuing dialogue and cooperation to build peace on the Korean Peninsula'. Lee took office just hours before the US was set to slap tariffs of 50% on South Korea's crucial steel and aluminium exports. 'The rapid changes in the global order such as rising protectionism and supply chain restructuring pose a threat to our very survival,' Lee said. Markets reacted favourably to the election, with the benchmark KOSPI and the won rising Wednesday. 'Significant departure' Lee's comments on North Korea are a 'significant departure' from those of his hawkish predecessor Yoon, as he did not immediately attach preconditions to dialogue with Pyongyang, said Hong Min, a senior analyst at the Korea Institute for National Unification. It signals 'his desire to resolve disagreements through talks', Hong told AFP. 'While it remains to be seen how Pyongyang will respond, it is notable that Lee has clearly indicated a different approach to North Korea,' he added. Lee held a modest inauguration ceremony at the National Assembly – where Yoon deployed armed troops on the night he attempted to suspend civilian rule. Just a few hundred guests attended, in contrast to the large outdoor events held after regularly scheduled elections, which often attract tens of thousands. He will later head to the presidential office to begin naming key cabinet members, with the focus on who is tapped to serve as presidential chief of staff, prime minister and director of the National Intelligence Service. The day is expected to end with a flurry of congratulatory phone calls from world leaders, with Trump likely to be the first on the line. Trump's top diplomat, Marco Rubio, was swift to offer his own congratulations and voice hope for working with Lee, who previously has sought greater distance from the US. Washington's alliance with Seoul was 'ironclad', the US secretary of state said in a statement, citing 'shared values and deep economic ties'. Lee comes to power with his party already holding a parliamentary majority – secure for the next three years – meaning he is likely to be able to get his legislative agenda done.
