Investment ties between Japan, M’sia remain strong
KUCHING: Trade and investment ties between Japan and Malaysia remain strong as Japan retains its top spot in the list of Malaysia’s foreign investment projects approved by country in 2014 at US$3.1 billion.
According to Japan External Trade Organisation (Jetro) director Rasol Abu Bakar, Japan was the second highest rank in Malaysia’s inward foreign direct investment (FDI) by country in 2013.
This reflected Japan’s strong interest in investing in Malaysia, he told the media during an informal meet yesterday.
“Among some of the recent investment trends by Japanese companies in Malaysia include infrastructure and utilities projects, such as the KualaLumpur-Singapore High Speed Railway project. Japan, as we all know, have the expertise in building and maintaining high speed trains.
“Theyalsolooktothedevelopment of energy intensive industrial areas like here in Sarawak,” he added, referring to the Sarawak Corridor of Renewable Energy (SCORE) and the Samalaju Industrial Park.
Rasol, along with Jetro senior director Yoshihisa Takenaga and project officer Yuki Sengoku, were in Sarawak the past three days to tour the aforesaid locations.
At present, the total number of Japanese companies in Malaysia amount to 1,421, whereby 28 of those companies are here in Sarawak.
Among some of the recent investment trends by Japanese companies in Malaysia include infrastructure and utilities projects, such as the Kuala-Lumpur-Singapore High Speed Railway project.
Rasol Abu Bakar, Jetro director
Thirteen are in the manufacturing segment while 15 are in nonmanufacturing.
With Malaysia taking chairmanship of the Asean Economic Community ( AEC) this year, Rasol outlined certain expectations from Japanese companies in order to ease doing business in Malaysia.
“Some of them home for simplified customs clearance,” he highlighted. “Some still issues with their work permit, in terms of movement of skilled labour. Hopefully clearance can be enhanced.”
He also called for the introduction of standardisation, certification and labelling system standards for Asean nations; integration of interpretation and management concerning rules of origin; and the avoidance of double taxation and correction of irregulat withholding tax rates.
Malaysia remains an attractive investment spot for Japan, with political stability, linguistic capability, proJapanese sentiment and substantial infrastructure being the top key criteria.