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KUALA LUMPUR, October 4 (Bernama): After decades of focusing their operations on the electrical and electronic (E&E) sector, Japanese companies are now diversifying their huge investments in new areas to reaffirm their confidence in the country as their main destination. of foreign investment. .
Japanese Ambassador to Malaysia Hiroshi Oka said startups are starting to grow in new areas of the country by venturing into the healthcare, medical device manufacturing, digital technology and halal food industries.
“Japanese companies had started arriving in Malaysia in the 1970s and when trends accelerated with the start of the Look East Policy in the 1980s, world famous Japanese companies such as Toray, Hitachi, Sony and Panasonic rushed to operate in Malaysia.
“There are now about 1,500 Japanese companies in total in Malaysia and these companies have contributed to the industrialization of Malaysia. Approximately 40 percent of Malaysia’s exports come from the E&E sector and this E&E sector has traditionally been exactly the focus areas of the Japanese direct investment. We have grown along with the industrialization of Malaysia, “he told Bernama.
While industries in general suffered severe declines that resulted in massive job cuts due to the COVID-19 pandemic, Japanese companies have managed to keep and retain their employees totaling 340,000 in the manufacturing sector alone, in the many months of motion control order. This is one of the most fantastic dimensions of Japanese investments in Malaysia.
Oka said that last year Japan was the largest provider of foreign direct investment in Malaysia, accounting for about a third of the total flow of direct investment in Malaysia, “and this is the resounding endorsement of the Japanese company on the attractiveness of Malaysia and, curiously, the Japanese investment areas have diversified significantly. “
In the healthcare sector, last year Mitsui, one of Japan’s leading trading houses, acquired an additional 16% of Malaysia’s global hospital network, IHH.
A Japanese medical device manufacturing company, which has been producing highly sophisticated cardiovascular medical devices in Japan, has established its first new overseas plant in Malaysia to export its products to Japan.
“The company is also looking to export its high-quality medical devices to Asian markets in the future. Therefore, medical device manufacturing is one of the emerging new areas for Japanese investment in Malaysia,” he added.
In digital technology, a start-up company was created in Malaysia this year to provide mobility data-based services to improve safety awareness in fun-driving and contribute to traffic volume distribution and reduction of accidents
Another established name, Hitachi, also provides solution services based on digital technology and is making Malaysia its regional hub for this service throughout the Asean region.
As for the halal industry, the Ambassador said more and more, the Japanese food industries are attracted to Malaysia as the halal certificate provided by Malaysia is considered highly credible globally.
“Therefore, they are making Malaysia a starting point from which to go out into the Islamic and Middle Eastern market with their Malaysian halal certified food product,” said Oka.
Another new area for Japanese investment in Malaysia is the aviation industry.
“Within Asean, we are exploring cooperation with the Malaysian government to promote Japanese private sector participation in the aviation industry in Malaysia because of its high potential. This is an example of the efforts that the Japanese government is enthusiastically making. to further push future Japanese companies to Malaysia to seek business collaboration with Malaysian companies through investment, “he said.
On the Covid-19 pandemic, he said it had not affected Malaysia’s attractiveness as a destination for Japanese companies.
“On the contrary, in light of Malaysia’s attractiveness as a destination for Japanese companies, we as a government are supporting Japanese companies to make more commitments to Malaysia,” he said. – Bernama
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