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Malaysia Secures US$2 Billion in Tech, R&D Investment from Japan

Malaysia’s Senior Minister and Minister of International Trade and Industry announced that the Trade and Investment Mission to Japan was successful and resulted in the securement of investments worth RM9.30 billion in strategic and high-potential sectors such as E&E, Research & Development (R&D), biomass, information technology and communication, chemical industry and food.

Among them are new investment projects by a Japanese petroleum company and a company that specialises in the research, development, production and sale of microalgae products as well as investment expansion and diversification projects by a global chemical and speciality materials company, a Japanese telecommunications company and a Japanese multinational passive electronic components supplier. These investments are expected to generate employment opportunities, and skills training opportunities for local workers as well as contribute to the development of local vendors.

Additionally, RM300 million worth of potential trade was garnered from this TIM specifically for palm oil and palm oil-related products, halal and food and beverages products from one of the largest worldwide Sogo shosha general trading companies, and a Tokyo-based chemicals company.

The Senior Minister concluded the TIM in a bilateral meeting with the newly appointed Minister of Economy, Trade and Industry (METI) Japan. Over the course of the meeting, they discussed a wide spectrum of areas including how best to take Malaysia-Japan bilateral trade and investment relations to the next level, considering both countries’ participation in the various regional trade agreements and international economic cooperation.

In this vein, both ministers exchanged views on the spins-offs and strategic multiplier effects to be derived from the Regional Comprehensive Economic Partnership Agreement (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indo-Pacific Economic Framework for Prosperity (IPEF).

As regards the MoU on Aircraft Industry Cooperation inked between Malaysia and Japan, both sides have outlined cooperation for information exchange for the aerospace supply chain, business networking, as well as forming a dedicated Technical Working Group.

Malaysia and Japan will participate in greater engagement for cooperation for the presentation showcase at the Engine Forum Kobe 2022 on 25 and 26 October. The Senior Minister also outlined Malaysia’s SDG goals and expressed commitment to work together with Japanese companies and industries to ensure a stable energy supply and renewable energy by working closely with major Japanese companies for R&D and hydrogen energy.

In line with the NIA, this Mission marked a greater emphasis accorded to the ESG agenda while intensifying Malaysia’s focus on the digital economy, E&E, pharmaceutical, chemical and aerospace sectors. In this regard, the Senior Minister met with the representatives of prominent Japanese companies which have expressed interest to invest or expand their businesses in Malaysia in these priority sectors, as well as with potential importers.

Japan is one of Malaysia’s top sources of FDI in terms of implemented manufacturing projects, with a total investment value of RM3.03 billion (USD688 million) recorded from January to June this year. A total of 13 manufacturing projects have been implemented, creating 745 employment opportunities for Malaysians. Japan is one of Malaysia’s top bilateral trading partners, with total trade recorded last year at RM149.76 billion (USD36.14 billion), an increase of 20.6% compared to 2020.

About MITI

MITI is the key driver in making Malaysia the preferred destination for quality investments and enhancing the nation’s rising status as a globally competitive trading nation. Its objectives and roles are oriented toward ensuring Malaysia’s rapid economic development and helping achieve the country’s stated goal of becoming a developed nation.

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