Japanese firms’ RM23 bln investment plans reflect trust in Malaysia’s biz ecosystem

KUALA LUMPUR: The RM23.07 billion worth of potential Japanese investments clinched during the recent trade and investment mission (TIM) reflect the confidence that global companies have in Malaysia’s business ecosystem, according to the Malaysian Investment Development Authority (MIDA).
 
Chief executive officer Datuk Arham Abdul Rahman said MIDA welcomes the investment plans by the Japanese companies, which include NHK Spring, CKD Corporation, Denso Corporation, and Omron, in Malaysia.
 
“As we focus on high technology, innovation, and sustainable industries, including the electric vehicle ecosystem, we aim to create vast opportunities for growth.
 
“We are committed to fostering strong partnerships and driving sustainable growth, propelling Malaysia’s position as a preferred investment destination,” he said in a statement.
 
The TIM to Tokyo and Osaka, Japan, from May 29 to June 2 was led by Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. 
 
The TIM focused on meeting with companies from various sectors, including electrical vehicle (EV)-related components; electrical and electronics; machinery parts and components; environmental, social and governance (ESG); metal; and chemical and chemical products.
 
MIDA said NHK Spring, a key player in integrated metal substrates, will expand production in Negeri Sembilan to meet the soaring demand for these substrates, which are essential for the electrification of automobiles. 
 
“With the EV industry projected to grow significantly, NHK Spring’s expansion plans align with Malaysia’s efforts to foster a robust ecosystem for EV development. 
 
“The construction of a new plant and facilities is set to be completed by December 2023, reaffirming the company’s commitment to Malaysia since its establishment in Senawang, Negeri Sembilan, in 1994,” the agency said.
 
The expansion further solidifies NHK Spring’s role in metal-based printed wiring board manufacturing and enhances Malaysia’s position in the global supply chain, MIDA said.
 
Meanwhile, Omron has outlined its future business investment plan, focusing on manufacturing products using renewable energy to contribute to a carbon-neutral society in Malaysia. 
 
“Omron’s commitment to sustainability aligns with Malaysia’s efforts to promote environmentally friendly practices and green technology,” the agency said.
 
Meanwhile, Japan Petroleum Exploration Company Ltd (Japex) is collaborating with Petroliam Nasional Bhd (Petronas) on carbon capture and storage (CCS) opportunities, including the exploration of suitable carbon dioxide storage solutions in Malaysia. 
 
As a hydrocarbon exploration, production, and transportation company, Japex aims to unlock potential CCS solutions through technical maturation activities, evaluating optimal capture, storage, and transportation methods, MIDA said. 
 
The collaboration, announced on Jan 28, 2022, also entails estimating emissions, capturing volumes, and monitoring methods for carbon dioxide stored underground.
 
“We will continue to actively promote investment opportunities and provide comprehensive support,” said Arham. 
 
MIDA announced previously that in the first quarter (1Q) of this year, Malaysia attracted approved investments in various economic sectors totaling RM71.4 billion (US$16.2 billion). 
 
Of this, a total of 14 manufacturing and service projects with Japanese participation were approved under Mida’s purview, with a total investment worth US$47.0 million. 
 
These projects are expected to generate potential employment for 653 people, positioning Japan as the seventh largest foreign investor in this segment for approved investments in 1Q 2023. – BERNAMA