Najib: Japan still playing big role in Malaysia’s growth

KUALA LUMPUR: Malaysia continues to draw substantial investments from Japan, with 16 manufacturing projects having Japanese participation worth RM559mil approved within the first half of this year alone.

Prime Minister Datuk Seri Najib Tun Razak said Japan played a significant part in Malaysia’s growth and has been a top source of foreign investment since the 1980s.

“It is notable that 75% of these investments are for expansion and diversification projects by Japanese companies already operating here.

“These reinvestments underscore their continued trust and confidence in Malaysia as a prime place to do business,” he said in his keynote address at the Malaysia Nikkei Business Forum 2017 yesterday.

The event was held in conjunction with the 60th anniversary celebration of diplomatic relations between Malaysia and Japan. The Prime Minister said 2,621 projects with Japanese participation have been implemented to date, with investments valued at RM 88.5bil as at the end of last year.

“These projects benefitted more than 340,000 Malaysians through new job opportunities,” he said.

Najib noted that Malaysia has collaborated with Japan since 1982 under the Look East policy by sending Malaysian students to Japan to gain experience and training in various industries.

“To date, more than 16,600 Malaysians have benefitted. This is an important part of the talent pool to meet the business community’s needs, particularly Japanese companies operating here,” he said.

The Government, he added, would also provide world-class infrastructure for foreign businesses, another vital ingredient for healthy long- term economic growth.

This includes infrastructure projects like the East Coast Rail Link, the Kuala Lumpur-Singapore HighSpeed Rail, and the Pan-Borneo Highway project, he added.

In terms of foreign direct investment stock, Japan stands as the second-largest foreign investor in the country after Singapore, with investments valued at about RM 70bil as at September this year.

On the international front, Najib said Malaysia would continue to expand its global network through multilateral and bilateral free trade agreements (FTAs), allowing investors to gain greater market access for their products in the region.