Anticipated Japanese FDI to Surpass $30 Billion in the Current Year, Announces Tengku Zafrul

25 Oct, 2023

Anticipated Japanese FDI to Surpass $30 Billion in the Current Year, Announces Tengku Zafrul

The Ministry of Investment, Trade and Industry (MITI) anticipates a robust influx of foreign direct investment (FDI) from Japan, with expectations of surpassing the $30 billion mark in the current year. This optimistic outlook is underpinned by the unwavering support of Japanese companies.

Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of MITI, expressed confidence in the private sector of both nations regarding the business prospects for the year, even amid a global trade environment experiencing a noticeable slowdown.

While acknowledging the presence of uncertainties in the current global trade landscape, Minister Tengku Zafrul Abdul Aziz emphasized the separate nature of investments. He conveyed his optimism, stating, "However, investment is a separate issue. As for investment, we are positive."

During his speech, Tengku Zafrul highlighted the significance of the strong and resilient economic ties between Malaysia and Japan. Japan has consistently ranked as Malaysia's fourth-largest trading partner since 2015, with trade in 2022 accounting for 6.4% of Malaysia's total trade, amounting to US$41.26 billion (RM181.73 billion), despite global challenges.

Tengku Zafrul further noted that, as of June 2023, Japanese companies have executed a total of 2,778 projects in Malaysia, with investments totaling US$27.25 billion (RM 91.89 billion). These investments have generated 337,758 employment opportunities in the country, reflecting the sustained interest of Japanese investors in Malaysia.

As part of the Malaysia-Japan Economic Dialogue, an important Memorandum of Understanding (MoU) was signed. This MoU, establishing a joint crediting mechanism, aims to enhance the competitiveness of small and medium enterprises and large entities from both countries in the global market, with a focus on providing market access to their respective destinations.

Tan Sri Soh Thian Lai, the President of the Federation of Malaysian Manufacturers (FMM), emphasized the potential of this collaboration, anticipating a substantial increase in trade between the two nations.He conveyed,Last year, we successfully achieved around $40 billion in trade with Japan, and our ambition is to foster a growth rate of 10 to 20 percent for the current year.The Memorandum of Understanding (MoU) will facilitate enhanced direct business-to-business communications, leading to increased exports from Malaysia, while also paving the way for Japanese exports to Malaysia. - Bernama