Jactim: More Japanese companies investing in Malaysia

Japanese companies are investing more in Malaysia even though there are concerns of high labour and energy costs, as these investors are optimistic on Malaysia's growth prospects, says Japanese Chamber of Trade and Industry Malaysia (Jactim) president, Shuichi Yoshida.

The new investors would take into consideration Malaysia's on-going transformation while noting that the country is now considered as an upper middle-income economy, Yoshida told Business Times in Kuala Lumpur recently.

He said some Japanese companies are looking for business partnerships, particularly for the production of parts for television and video equipment.

The Japanese investors are also keen to venture into the halal and services sectors as well as railway and power plant construction, he added.

Based on data from the Malaysian Investment Development Authority (MIDA), Japan topped the list of foreign direct investors in Malaysia with cumulative investments of RM26.3 billion between 2009 and August 2013.

To-date, there are some 1,400 companies with Japanese interests in Malaysia with a strong presence in the automotive and electrical and electronics sectors. Mitsubishi, Honda, Daihatsu, Nissan, Mitsui, Marubeni, Panasonic, Toshiba, Sharp, Taisei and Ibiden are among the major Japanese companies with operations in Malaysia.

Meanwhile, Yoshida has urged Malaysian companies to invest in three key sectors in Japan - automotive, construction and services either directly or in partnerships with Japanese businesses as all indices point to a recovery in Japan's economy.

Source: NST Business Times