JAPAN SEEKS TO EXPAND INVESTMENT IN MALAYSIA’S DIGITAL, HIGH-TECH SECTORS

By Christine Lim May Yu

KUALA LUMPUR, March 29 (Bernama) — Japan is aiming to expand its investment in Malaysia’s digital industry, encompassing niche areas such as high-tech chip products and data centres.

Masuo Kuremura, Special Advisor to the Minister for Regional Head, Asia-Pacific at Japan’s Ministry of Economy, Trade and Industry (METI), said there are plans to increase investment in Malaysia for more advanced new applications using Japanese technology.

“We will promote collaboration between Japanese and Malaysian companies, utilising Japanese technology in the digital industry for applications in artificial intelligence (AI), biotechnology, and food sectors to enhance investment,” he told Bernama during the Malaysia-Japan Fast Track Pitch, here recently.

Kuremura said that investment in the retail space from Japan to Malaysia is also anticipated to increase in 2026.

“Malaysia has a pivotal role in the supply chain for Japan based on its manufacturing capability in semiconductor and chip products and the automotive industries.

“One example is the established collaboration between Perodua and Daihatsu in the manufacturing sector that has enabled Malaysia to be a good supplier in the automotive industry,” he said.

Kuremura highlighted that Japanese companies are eager to continue providing innovative solutions to enhance Malaysia’s manufacturing capacity within the global supply chain, positioning themselves as suppliers of premium products.

Major Japanese semiconductor players in Malaysia — including Renesas Electronics, ROHM Co Ltd, Murata Manufacturing, Toshiba Corporation, Shin-Etsu Chemical and Sumitomo Electric Industries — support the chip ecosystem, particularly in specialised semiconductor components, he said.

Kuremura added that Malaysia is Japan’s fourth-largest investment destination within the ASEAN region and serves as a key base for its semiconductor investments in the region.

“Singapore remains the top investment destination in ASEAN, mainly driven by the finance sector, while Thailand and Indonesia rank second and third, respectively, with investments largely concentrated in the automotive sector,” he said.

Kuremura said that Japan is also providing a matching platform to promote investment collaboration for start-ups in Japan and ASEAN.

“Within the ASEAN region, Japan is eyeing collaboration mainly in four pillars, namely boosting supply chain resiliency, innovation, digital and energy transition.

“Japan played a major role in the ASEAN region through its projects in the Asia Zero Emission Community (AZEC), promoting energy transition from fossil fuel towards decarbonisation in Asia,” he said.

Japan is one of the AZEC partner countries, which include Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore and Thailand.

 Another potential investment between Japan and ASEAN is in the critical rare earth supply that is used as an advanced material in the automotive and aerospace industries.

In the area of computing resources, Kuremura said Japan would like to share its technology that has been developed in Kyushu, which is termed the Silicon Island of Japan, for ASEAN companies.

“Big chip manufacturers such as Japan Advanced Semiconductor Manufacturing (JASM) and Taiwan Semiconductor Manufacturing Company (TSMC) could provide the infrastructure to promote AI and advanced computing in ASEAN. This Taiwan company has anchored the semiconductor hub in Kyushu,” he said.

According to the Department of Statistics Malaysia, Japan is among the top three countries for foreign direct investment (FDI) in the fourth quarter of 2025, with RM103.8 billion registered.

-- BERNAMA