FDI from Japan to exceed US$30bil this year – Tengku Zafrul

The Ministry of Investment, Trade and Industry (MITI) expects foreign direct investment from Japan to exceed US$30 billion this year, driven by sustained interest from Japanese companies, according to Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said businesses in both countries remain confident about prospects this year, even as the global trade environment slows.

"When we look at the local and global economy, we hope that the (Malaysia-Japan trade) growth will continue, but we still have to see (the progress because there is) too many uncertainties now in global trade. However, investment is a separate issue. I think (for) investment, we are optimistic," — Tengku Datuk Seri Zafrul Abdul Aziz, after officiating the Malaysia-Japan Economic Dialogue

Japan-Malaysia trade ties

Japan has been Malaysia's fourth-largest trading partner for eight consecutive years since 2015. In 2022, bilateral trade reached US$41.26 billion (RM181.73 billion), or 6.4% of Malaysia's total trade, despite a difficult global backdrop. As of June 2023, Japanese companies had implemented 2,778 projects in Malaysia worth US$27.25 billion (RM91.89 billion) in investment, creating 337,758 jobs. Tengku Zafrul said the continued appetite from Japanese investors is encouraging as Malaysia looks to attract further FDI from Japan.

New MoU to boost SME trade

At the event, the Japan Chamber of Commerce and Industry (JCCI) and the Federation of Malaysian Manufacturers (FMM) signed a memorandum of understanding on a joint crediting mechanism, aimed at helping SMEs and larger firms from both countries compete more effectively globally and gain better market access to each other's markets.

"Last year, we achieved about US$40 billion of trade (with Japan), but this year, we are hoping it to increase further by more than 10 to 20 per cent. With this MoU, we can have more direct business-to-business communications and more export from Malaysia, whilst at the same time Japan also can export to Malaysia," — Tan Sri Soh Thian Lai, FMM president

Source: The Star (Bernama)