Based on a survey conducted by the Japanese Chamber of Trade and Industry Malaysia (Jactim), business sentiment among Japanese companies in Malaysia is expected to improve in the first half of 2022 (H122).
The business sentiment diffusion index is expected to improve to 3.1 points in H122, after being in negative territory since H218, according to the bi-annual survey.
Jactim general adviser cum Japan External Trade Organisation (Jetro) Kuala Lumpur managing director Mai Onozawa says, “Lots of Japanese companies are positive about Malaysia’s outlook, premised on the global recovery, and plan to continue their business activities in Malaysia”.
In September, 552 Jactim member companies participated in a survey on business trends in Malaysia for H221, with 120 companies from the manufacturing sector and 71 from the non-manufacturing sector.
“Following the relaxation of the Malaysian government’s restrictions on social and economic activities, many respondents in the survey stated that production activities are gradually resuming, in line with rising vaccination rates”, Onozawa told Bernama in an interview recently.
According to Onozawa, many Japanese companies have stated that production is insufficient to meet demand due to a labour shortage.
“Additionally, some companies are finding it difficult to procure parts and materials from both domestic and overseas sources due to problems such as disruptions in marine transportation.
“As these issues cannot be resolved immediately, companies are expecting the situation of excess demand to continue for the time being,” she said.
In light of the current circumstances, Jactim has encouraged the government to create a business environment that will allow multinational enterprises to continue their economic activities in Malaysia in a win-win situation for a long time.
In addition, she also adds, “We also praise the government for its move to extend the Additional Reinvestment Allowance, saying that this would be beneficial for both foreign companies and Malaysia to attract new investments.”
