November 30, 2023

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Malaysia’s Sustainable Industries Driving Economic Growth

Malaysia has become a highly attractive location for Japanese investments following the successful Trade and Investment Mission (TIM) held in Japan from 29 May 2023 to 2 June 2023. The TIM concentrated on engaging with companies across a range of sectors, such as Electrical Vehicle (EV) related components, Electrical and Electronics (E&E), Machinery Parts & Components, Environmental, Social & Governance (ESG), Metal, and Chemical & Chemical Products, with the aim of fostering fruitful partnerships.

To meet the increasing demand for integrated metal substrates, a prominent player in the industry has announced its decision to expand production in Negeri Sembilan, Malaysia. These substrates play a crucial role in the electrification of automobiles, making this expansion timely and aligned with the projected growth of the electric vehicle (EV) industry.

The company’s plans include the construction of a new plant and facilities, which are expected to be completed by December 2023. This investment demonstrates the company’s enduring commitment to Malaysia, where it has been operating in Senawang, Negeri Sembilan since 1994. The expansion not only reinforces the company’s position as a key player in Metal-Based Printed Wiring Boards (PWB) manufacturing but also strengthens Malaysia’s position in the global supply chain for these components.

Meanwhile, a Japanese electronics company has revealed its forthcoming business investment strategy, with a particular emphasis on manufacturing products utilizing renewable energy sources in Malaysia. The company’s objective is to contribute to the establishment of a carbon-neutral society.

This commitment to sustainability closely aligns with Malaysia’s own endeavours to encourage environmentally friendly practices and promote green technology. By directing its investments towards renewable energy solutions, the company aims to actively support Malaysia’s transition to a low-carbon economy. Furthermore, their investments seek to stimulate technological advancements in the country and generate fresh opportunities for growth and development.

A hydrocarbon exploration, production, and transportation company from Japan has joined forces with a prominent Malaysian energy group to explore carbon capture and storage (CCS) opportunities. Their collaboration involves identifying and evaluating suitable carbon dioxide (CO2) storage solutions within Malaysia.

As an expert in hydrocarbon exploration, production, and transportation, the Japanese company will leverage its technical expertise to advance CCS solutions. This will include conducting technical maturation activities to determine the most optimal methods for capturing, storing, and transporting CO2.

Additionally, the collaboration, which was announced on 28 January 2022, will involve estimating emission levels, capturing volumes and implementing effective monitoring methods for the CO2 stored underground. The aim is to develop and implement sustainable practices that contribute to mitigating climate change and reducing greenhouse gas emissions.

The CEO of MIDA expressed satisfaction with the investment plans put forth by Japanese companies. These initiatives are in line with Malaysia’s national objectives and demonstrate the confidence that global companies have in the country’s business ecosystem. MIDA will continue to actively promote investment opportunities and offer comprehensive support to investors.

With a focus on high technology, innovation, and sustainable industries, including the electric vehicle ecosystem, Malaysia aims to create extensive growth opportunities. The country is dedicated to nurturing strong partnerships and driving sustainable economic development, solidifying its position as a preferred investment destination.

Esteemed officials from the Ministry of Investment, Trade and Industry (MITI), the Malaysian Investment Development Authority (MIDA), and the Malaysia External Trade Development Corporation (MATRADE) gathered under the leadership of the Trade and Investment Mission (TIM). The primary objective of the TIM was to strengthen bilateral relations and attract substantial investments from Japan. The mission, conducted in Tokyo and Osaka, played a crucial role in securing these significant investment opportunities.

In the first quarter of 2023, MIDA announced approved investments amounting to RM71.4 billion (US$16.2 billion) across various economic sectors. Among these approvals, 14 manufacturing and services projects with Japanese involvement were sanctioned by MIDA, totalling an investment value of US$47.0 million. These projects are expected to create job opportunities for approximately 653 individuals, positioning Japan as the 7th largest foreign investor in this segment for approved investments during Q1 2023.


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