The Ministry of Investment, Trade and Industry (MITI) will mount a Trade and Investment Mission to Japan in line with its priorities to ensure that international trade and foreign direct investment (FDI) remain a key driver for Malaysia’s robust economic growth.
The mission, which takes place from 29 May – 3 June 2023, will be led by MITI Minister Tengku Datuk Seri Utama Zafrul Azizwill covers Tokyo and Osaka and will comprise senior officials from MITI, Malaysian Investment Development Authority (MIDA) and Malaysia External Trade Development Corporation (MATRADE).
Trade and Investment missions are MITI’s flagship programme, which also reflects its leading function as the Ministry responsible for promoting trade, as well as attracting foreign investment and encouraging local investment.
Japan has been an important trading partner and a major source of Foreign Direct Investment (FDI) for Malaysia for decades.
This Mission is expected to further solidify the partnership between both countries in line with the elevation of Malaysia-Japan bilateral relationship to a Comprehensive Strategic Partnership last year and will focus on strategic high end and high value-added technology in electrical & electronics (E&E), chemical and chemical products and electric vehicle, with Environmental, Social and Governance (ESG) as the underlying theme.
To that end, Tengku Zafrul and his delegation will meet with prominent Japanese industry players in these sectors, who have indicated their keen interest to invest and expand their businesses in Malaysia.
Visits to facilities of new emerging technologies for the manufacturing sector in the automotive, E&E as well as carbon capture storage are also part of the programme.
Tengku Zafrul is also scheduled to have a bilateral meeting with his counterpart, H.E. Nishimura Yasutoshi, Minister of Economy, Trade and Industry, Japan to discuss bilateral issues as well as economic cooperation through various international platforms, notably the Japan-Malaysia Public-Private Industrial Policy Dialogue, Indo[1]Pacific Economic Framework (IPEF), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP) and Asia Pacific Economic Cooperation (APEC).
In 2022, Japan was the fourth largest trading partner for Malaysia with total trade amounting to RM181.50 billion (USD41.21 billion) compared to RM149.76 billion (USD36.41 billion) in 2021.
Malaysia-Japan total trade for 2022 had increased by 21.2% year-on-year. Malaysia’s major exports to Japan in 2022 were LNG, E&E products, crude petroleum, palm oil and palm oil-based agriculture products and chemical and chemical products; while Malaysia’s major imports from Japan in 2022 were E&E products, machinery, equipment & parts, manufacture of metal, chemical & chemical products, and transport equipment. In terms of investment, Japan has been one of Malaysia’s top sources of FDIs for the manufacturing sector.
As of 2022, a total of 2,746 manufacturing projects with Japanese participation have been implemented with total investment worth RM94.591.14 billion (USD28.427.25 billion).
These projects have generated positive spill-over impact for the domestic SME supply chain and provided employment for 336,326 people. Japan also ranked as the fourth largest foreign investor in terms of implemented manufacturing projects.
Most of these investments were in E&E products, chemicals & chemical products, non-metallic mineral products, transport equipment and petroleum products.
