Japan aims to increase investments in services sector

KUALA LUMPUR: Japan aims to increase investments in Malaysia’s services sector that includes the consumer and information technology (IT) industries.

Managing director of Japan External Trade Organisation (Jetro) here, Akira Kajita, said the new areas or growth in the business-to-consumer would be the driving factors for the growth of Japanese investments in Malaysia.

“Among the Association of Southeast Asian Nations’ (Asean) members, Malaysia, being a top player in the association’s IT market, has huge potential for Japanese companies,” Kajita told Bernama on the sidelines of the Navigate Kuala Lumpur networking event between Japanese and Malaysian companies.

Kajita said Malaysia was the best partner for Japanese companies to expand into the Asean region by using the country’s expertise in the IT sector.

“Jetro, a government-related organisation that promotes trade and investment, is looking forward to hosting multiple events in Asean countries as well as foster business collaborations among entrepreneurs and start-ups.

“Japanese start-ups could collaborate with lead agency that promotes digital economy such as Malaysia Digital Economy Corporation (MDEC) as well as the Japanese embassy and Jetro, towards the development of Industry 4.0 and Internet of Things,” he said.

Akita said MDEC’s vast knowledge of the Malaysian market and network to local start-ups supported Jetro to organise the networking event yesterday to enable Malaysian start-ups in the IT industry to pursue possible expansion with Japanese companies.

He said Jetro has launched a series of ASEAN start-up pitch events in Bangkok, Jakarta and Manila this year for nurturing new industries and creating a platform for ASEAN countries and Japan to meet potential business partners and expand investment.

To encourage business growth and investments, Kajita said, Japanese investors were looking forward to robust economic growth and stable government policy as important criteria in their investment decisions.

Commercial Attache of Embassy of Japan in Malaysia, Sosuke Tanaka, said investors looked to the long-term business direction in Malaysia as an important criteria in investment decisions.

“Business stability is important as well as government support and policy,” Tanaka told Bernama.

Tanaka said the IT industry was the new direction for Japanese investments in Malaysia, while manufacturing, electrical and electronics, motor vehicle sectors had always been key traditional investments.

Japan continued to be Malaysia’s top source of foreign direct investments in the manufacturing sector since 1980.

As at 2016, a total of 2,621 manufacturing projects with participation from Japan were implemented with investments of RM88.5 billion and generated 343,281 jobs.

For the first six months of this year, Malaysian Investment Development Authority has approved an additional 16 manufacturing projects from Japan with investments of RM559 million.

These projects are in Johor, Melaka, Kedah, Selangor and Penang. — Bernama