Two Japanese firms eye US$1.5 bln investment in Sarawak
KUCHING: Sarawak continues to strengthen its appeal as an international investment destination, as two major companies from Japan plan to invest US$1.5 billion (US$1=RM4.25) in the high-tech and chemical industries in the region.
According to a report by TV Sarawak (TVS) today, Sarawak Deputy Premier and Minister of International Trade, Industry and Investment Datuk Amar Awang Tengah Ali Hasan is currently in Osaka, Japan to discuss details of the investments.
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.
'This project has the potential to position Sarawak among the top five global locations in high-performance semiconductor production technology,' the report said, citing a statement from the Sarawak Ministry of International Trade, Industry and Investment.
Another planned investment involves a consortium of Japanese companies in the chemical sector, with the investment estimated to reach US$1 billion.
Feasibility studies and site evaluations have already begun, with the Sarawak government also committed to expediting the approval process to ensure that investment decisions can be finalised soon.
Both investments align with the Post-COVID-19 Development Strategy 2030, which emphasises economic prosperity, social inclusiveness, and environmental sustainability.
'The Sarawak government is always committed to supporting the implementation of high-impact investment projects like these. We offer a stable and competitive business environment, equipped with modern infrastructure and a skilled workforce,' said Awang Tengah.
He added that the Sarawak government will provide full support to ensure the smooth implementation and success of these investments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysian Reserve
9 minutes ago
- Malaysian Reserve
Buffett inspires retail investors to bet on Japan trading houses
JAPAN'S retail investors have started to place their bets on trading house stocks, heavily backed by Berkshire Hathaway Inc.'s legendary investor Warren Buffett, eyeing strong business models and stellar shareholder returns. Investment demand from Nippon Individual Savings Accounts, or NISA for short, has spread to trading companies alongside traditional favorites like Nippon Telegraph & Telephone Corp., Japan Tobacco Inc. and Mitsubishi UFJ Financial Group Inc. Mitsubishi Corp., one of Japan's biggest trading companies, placed third for the first time since March among retail holdings under the tax-exempt savings program. That's according to data from SBI Securities Co., while Rakuten Securities' ranked it fourth since April. Reflecting the support from retail investors, trading house shares have been outperforming the market since US President Donald Trump's 'Liberation Day' tariffs on April 2, despite uncertainties over effects on trade. Japanese trading companies shares gained following comments from Buffett at the Berkshire Hathaway's annual meeting that he expects his company to hold the shares for 50 years or more. Mitsubishi Corp., Marubeni Corp., Mitsui & Co., Itochu Corp. and Sumitomo Corp. rose by more than 3% in reaction. 'Many individual investors feel that their value-investing style aligns with Warren Buffett, who is known for such an approach, and they are inclined to follow his lead — 'If Buffett is buying, I'll follow',' said Naomi Kurimoto, an employee in the SBI Securities Investment Market Research Department. Buffett's name on reports boosts page views driven by individual investors, she added. The five major Japanese trading houses released cautious profit forecasts for the year, setting aside hundreds of millions of dollars to hedge against tariff uncertainty. Despite these concerns, the companies have actively been pursuing dividend increases. The projected 12-month dividend yields for Mitsubishi Corp., Mitsui & Co., Sumitomo and Marubeni are all above 3.5%, exceeding the 2.7% estimated calendar year average for 2025 for the Topix index. Although Itochu's projected 12-month dividend yield was 2.66%, it joins the other four in having doubled dividend payouts over the past five years. Characteristics of the sectors favored under the NISA program are those with low risk of dividend cuts, even if their earnings growth or share price aren't expected to rapidly rise, said Yusuke Maeyama, a researcher at NLI Research Institute. 'Among high-dividend stocks, trading companies may offer an additional advantage in the form of strong expectations for future dividend increases,' he added. Corporate governance reforms also play a major role in influencing individual investors' stock selection process. The Tokyo Stock Exchange is planning to encourage companies to conduct stock splits, which would make it easier for retail investors to participate. Because trading on the TSE uses 100 share lots, a stock split would reduce the minimum investment amount. While Buffett's influence has helped trading house shares, the companies themselves have been making efforts to expand their shareholder base in the past year. Before the launch of the revamped NISA system at the end of 2023, Mitsubishi Corp conducted a 3-for-1 stock split, lowering the minimum investment amount. Mitsui & Co. conducted a stock split at the end of June last year, halving the minimum investment amount. Trading houses will benefit from increased retail investor participation through programs like NISA as 'they can expect medium- to long-term ownership, which helps build a more stable shareholder base,' said Kazuhiro Sasaki, head of research at Phillip Securities Japan. On the other hand, there could be downsides like increased burden associated with servicing hundreds of investor accounts and handling of much larger shareholder meetings, he added. The total amount of new purchases made under the growth investment quota across all financial institutions' NISA accounts in 2024 reached approximately ¥12.5 trillion ($87.4 billion), according to data compiled by Japan Securities Dealers Association. At the end of 2024, the total number of NISA accounts stood at 25.6 million. Among securities firms, Rakuten Securities held the largest share with 6 million accounts, followed by SBI Securities with 5.36 million. Any deployment of funds by domestic investors would be positive for Japanese equities and even a 1 percentage point shift from cash into domestic stocks 'would unleash $220 billion of flows into equities,' said HSBC strategists including Herald van der Linde in a note. –BLOOMBERG
New Straits Times
30 minutes ago
- New Straits Times
Ireland's Dalata Hotel rejects US$1.5bil buyout proposal from Pandox, Eiendomsspar
KUALA LUMPUR: Ireland's largest hotel group Dalata on Tuesday rejected a 1.3 billion euro (US$1.48 billion) buyout proposal from Scandinavian property companies Pandox AB and Eiendomsspar AS for "materially" undervaluing it. Dalata, which launched a strategic review in March, said Pandox was not participating in its ongoing sale process, which has drawn interest from other potential bidders. The Irish group operates 55 hotels under the Maldron Hotel and Clayton Hotel brands, mostly in Ireland and Britain, and aims to expand its portfolio to 21,000 rooms across Ireland, the UK and continental Europe under its "2030 Vision" strategy. The proposal from the groups had comprised a cash offer of 6.05 euros per ordinary share of Dalata, representing a premium of about 5 per cent to Dalata's closing price on Monday. Shares of Dalata closed up 5.2 per cent at 6.06 euros on Tuesday, their highest since May 2019. It said it continues to engage in "constructive discussions" with other parties who have submitted initial non-binding proposals, without naming who they were. The Pandox-led consortium did not immediately respond to a request for comment on the rebuff by Dalata. Under Irish takeover rules, Pandox and Eiendomsspar had until July 15 to make a formal offer for Dalata or walk away. Norway-based Eiendomsspar is the second largest shareholder in the Irish group with a stake of around 8.8 per cent and in Pandox, in which it has a stake of around 8.5 per cent. Sweden-based Pandox AB specialises in the ownership, development and leasing of large hotel assets in major cities across Sweden and northern Europe. It has been expanding its portfolio through acquisitions and leases in key European cities including Stockholm, Berlin and Brussels. Dalata's adjusted core profit rose 5.1 per cent last year to 234.5 million euros as revenue grew 7.3 per cent to 652.2 million euros, driven by additions to its portfolio over the past two years.
The Sun
44 minutes ago
- The Sun
China FM urges ‘healthy' ties in meeting with new US ambassador
BEIJING: China's top diplomat met with the new US ambassador to Beijing on Tuesday, calling for 'healthy' bilateral ties while Washington's envoy pressed Beijing on trade, drugs and immigration as the two powers wage a tariff war. The meeting came ahead of what the White House said was a likely call between US President Donald Trump and Chinese counterpart Xi Jinping this week, after the world's two biggest economies accused each other of jeopardising a preliminary trade deal. Beijing and Washington last month agreed to slash staggeringly high tariffs on each other for 90 days after talks between top officials in Geneva. But the United States has since accused China of violating the terms of the deal, a claim that Beijing called 'bogus' and 'contrary to the facts'. China's foreign minister Wang Yi on Tuesday said he hopes recently appointed US ambassador David Perdue 'will play a positive role in promoting the healthy, stable and sustainable development of China-US relations', according to a readout published by Beijing's foreign ministry. Wang said China opposed what he called recent US measures that 'jeopardise China's legitimate rights and interests'. Washington should 'create the necessary conditions for China-US relations to return to the right track', Wang said. Meanwhile Perdue said on X that he 'emphasized President Trump's priorities on trade, fentanyl, and illegal immigration'. Washington has long accused China of exporting chemicals used to make the fentanyl sold in the United States, which has reported tens of thousands of deaths related to opioids annually. And the Trump administration has targeted Chinese nationals who entered the United States both legally and illegally, with the president vowing last week to aggressively revoke Chinese student visas.
