MALAYSIA IN POSITION TO DEMONSTRATE LEADERSHIP IN ASEAN -- JETRO, JACTIM

By Christine Lim

KUALA LUMPUR, Nov 17 (Bernama) -- Malaysia is in a position to demonstrate leadership in ASEAN as the country assumes its chairmanship role next year.

Japan External Trade Organisation (Jetro) Kuala Lumpur managing director Koichi Takano said there are expectations and trust in Malaysia’s leadership.

“The ASEAN community vision 2045, which (outlines) the region’s future direction, is expected to be adopted in Malaysia at the ASEAN Summit next year,” Takano said to Bernama in an interview.

Malaysia is also gaining traction in the eyes of the world as it strives to rise above the middle-income trap and become a multi-ethnic, high-income nation through industrialisation, he said.

He emphasised that the country is gaining attention as a hub for access to the region and other third-country markets.

JAPANESE INVESTMENTS

Takano said there is a recent trend of increasing Japanese investments in Malaysia, especially in the retail sector.

“For example, in the retail industry, a Japanese brand department store recently established as a core tenant for the first time in a large commercial facility that was opened in Kuala Lumpur in 2023. 

“Bookstores, drugstores, major furniture companies and second-hand goods stores are also expanding their store networks in Malaysia,” he elaborated.

He noted that several acquisition cases have also been reported in the digital transformation field.

“In addition, due to rising costs and stricter visa acquisition procedures in some other ASEAN countries, there is a movement to establish regional headquarters in Malaysia, (as companies) evaluate the relative advantages of Malaysia's business environment,” he concluded.

According to Takano, Japanese investments will focus on carbon neutrality, health and medical care, digital, data centres, and halal industry hubs in the future. 

Japan was the third-leading source of foreign direct investment (FDI) flows into Malaysia last year, with RM5.5 billion registered, a significant portion of which was in the manufacturing sector, according to the Department of Statistics Malaysia.

Takano said Jetro, as an adviser to the Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA), will also work with the Japanese Chamber of Trade and Industry Malaysia (Jactim) to connect ASEAN and Japanese companies to improve the business environment.

Jactim president Takero Sawamura said Jactim, as a member of FJCCIA, will continue to work toward realising the ASEAN community vision, strengthening Japan-ASEAN relations and enhancing the business environment through dialogue with the ASEAN secretary-general and other means.

“I believe that a major theme going forward will be whether the private sector can promote more steady and sustainable growth, so it is necessary to strengthen further the relationship between Japan and ASEAN that has been built so far,” Sawamura told Bernama in an interview.

The FJCCIA comprised 10 Japanese Chambers of Commerce and Industry in nine ASEAN member states, with 7,370 companies in total.

MALAYSIA’S ROLE IN ASEAN CHAIRMANSHIP

Sawamura emphasised that Malaysia’s role in ASEAN chairmanship next year will allow it to lead in promoting cooperation between Japan and ASEAN, particularly in areas where Japan will increase its investment in the green transformation (GX) and digital transformation (DX) sectors.

At the Japan-ASEAN Summit held in Vientiane in October, Japanese Prime Minister Shigeru Ishiba underscored that Japan will promote cooperation to tackle emerging issues such as GX and DX.

According to Sawamura, Malaysia’s consistent attention to companies' and industries' perspectives will improve the business environment and promote cooperation in the ASEAN region.

“Jactim also hopes to continue actively contributing to building a better business environment through dialogue with the Malaysian government,” Sawamura said.

He added that the Malaysian government focuses on attracting FDI in areas with higher added value.

JAPAN’S CONTRIBUTION

“From that perspective, we believe that Japan can continue to contribute in terms of technology, know-how, and human resource development.

“In particular, Japan's experiences will be useful in many areas like the ageing population and natural disaster countermeasures Malaysia will face in the future,” he noted.

However, Sawamura said that as supply chains become more diversified, competition will intensify, and the business environment will become tougher. 

“And we believe that maintaining, expanding, and strengthening the business of companies already operating in Malaysia is equally or even more important than attracting FDI.

“To that end, as a chamber of commerce and industry, Jactim would like to promote activities such as policy advocacy and economic exchanges,” he added.

Sawamura noted that Jactim, established in 1983, will continue to contribute to the economic development of Japan and Malaysia through trade, commerce, industry, and investment activities.

This is also in line with Jactim’s objective to protect the interests of Japanese companies.

“There is no doubt that Malaysia will continue to deepen its relationship as an important partner for Japan,” he noted.

According to Sawamura, Japanese companies in Malaysia have been operating mainly in the manufacturing industry since the 1970s, and there are currently approximately 1,600 Japanese companies in the country.

“It is no exaggeration to say that they have played a major role in Malaysia’s industrialisation, focused on the electrical and electronics (E&E) industry.

He concluded that in today’s E&E industry, centred on semiconductors, Malaysia has established a prominent position in ASEAN due to the formation of supporting industries by pioneering companies from Japan.

-- BERNAMA