BM @ MY LNA Economy & Finance UTAMA

MALAYSIA SECURES RM23.07 BILLION OF POTENTIAL JAPANESE INVESTMENTS

ByE NEWSJune 3, 20232 Mins read450

YB Minister of MITI with Mr. Junta Tsujinaga, President and CEO of Omron Corporation (5th from left) and Mr. Masahiko Ezaki, Managing Executive Officer of Omron Corporation (7th from left).

Kuala Lumpur, 2 June 2023 – Malaysia has emerged as a prime destination for Japanese investments from the recently concluded Trade and Investment Mission (TIM) to Japan held from 29 May 2023 to 2 June 2023. The TIM focused on meeting with companies from various sectors including Electrical Vehicle (EV) related components, Electrical and Electronics (E&E), Machinery Parts & Components, Environmental, Social & Governance (ESG), Metal, and Chemical & Chemical Products.

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 electric vehicle (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. This expansion further solidifies NHK Spring’s role in Metal Based Printed Wiring Boards (PWB) manufacturing and enhances Malaysia’s position in the global supply chain.

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 environmental-friendly practices and green technology. By investing in renewable energy solutions, OMRON aims to support the country’s transition towards a low- carbon economy, foster technological advancements, and create new opportunities for Malaysia.

JAPEX is collaborating with PETRONAS on carbon capture and storage (CCS) opportunities, including the exploration of suitable carbon dioxide (CO2) 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. The collaboration, announced on January 28, 2022, also entails estimating emissions, capture volumes, and monitoring methods of CO2 stored underground.

“We are delighted by the investment plans by Japanese companies including NHK Spring, CKD Corporation, Denso Corporation and OMRON in Malaysia,” said Datuk Wira Arham Abdul Rahman, CEO of MIDA. “These initiatives align with our national objectives and reflect the confidence global companies have in Malaysia’s business ecosystem. MIDA will continue to actively promote investment opportunities and provide comprehensive support. 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.”

Led by Minister of Investment, Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, the TIM brought together high-level officials from MITI, the Malaysian Investment Development Authority (MIDA), and Malaysia External Trade Development Corporation (MATRADE) to foster strong bilateral relations and attract significant investments. The TIM, covering Tokyo and Osaka, played a pivotal role in securing these momentous investment opportunities.

In Q1 2023, MIDA announced approved investments in various economic sectors totaling RM71.4 billion (USD16.2 billion). Out of this, a total of 14 manufacturing and services projects with Japanese participation were approved under MIDA’s purview, with a total investment worth USD47.0 million. These projects are expected to generate potential employment for 653 people, positioning Japan as the 7th largest foreign investor in this segment for approved investments in Q1 2023.