Malaysia’s trade with Japan is expected to increase this year, driven by investments in the semiconductor and renewable energy sectors, according to Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“Last year, trade with Japan totaled around RM35 billion, with one-third of this involving liquefied natural gas,” he informed Malaysian reporters.
Tengku Zafrul mentioned that Malaysia has been providing Japan with a secure supply of energy and is now focusing on renewable energy. During Prime Minister Anwar Ibrahim’s working visit to Japan from May 22 to 24, 2024, Malaysia secured potential investments of RM1.45 billion and potential exports of RM550 million from meetings with Japanese companies. These meetings involved six companies already present in Malaysia and one company looking to invest in the country.
Tengku Zafrul revealed that one of the companies planning to invest in Malaysia is from the semiconductor industry. The company’s name will be announced later pending necessary approvals. The other companies expressed intentions to commit to new investments in Malaysia, particularly in new and renewable energies, with interest in Sabah and Sarawak.
“Investments in renewable energy could reach RM40 to RM50 billion over a ten-year period. Many companies in the electrical and electronics products, especially the semiconductor industry, want green energy supplies and see potential in Sarawak,” he said.
He also mentioned that the government received tax incentive requests from Japanese companies and will conduct a cost-benefit analysis before deciding on any incentives for the sectors. “These are new sectors, so they need support in terms of subsidies and tax incentives. The government will carry out a cost-benefit analysis before deciding on any incentives for the sectors,” he added.
As of 2023, a total of 2,810 manufacturing projects with Japanese participation have been implemented, with total investments valued at RM102.11 billion (US$29.67 billion), creating 344,120 job opportunities.
