Malaysia Offers High-Quality Products at Affordable Prices, According to Mukhriz
Japanese companies are increasingly viewing Malaysia as a strategic investment destination, according to recent reports. This shift in interest is partly driven by disaster-related risks faced by these companies in Japan and neighboring countries, such as Thailand.
During the ongoing trade and investment mission in Kyoto and Nagoya, Datuk Mukhriz Tun Mahathir, the leading representative of a 28-member delegation, highlighted Malaysia's safe and secure natural environment, making it an attractive destination for investments. He also emphasised Malaysia's ability to help these companies mitigate national disaster-related risks.
The Malaysian Investment Development Authority (MIDA) and the Ministry of Investment, Trade and Industry (MITI) have been actively promoting Malaysia as a prime location, highlighting its readiness and resilience compared to riskier regions like Japan and Thailand. This proactive approach has paid off, with Malaysia securing RM4.68 billion in potential investments from Japanese companies during Expo 2025 in Osaka.
Japanese companies are also engaging in outbound investments and mergers and acquisitions (M&A) across Asia aggressively, indicating their strategic moves to diversify and find safer or more growth-oriented markets. Southeast Asia, including Malaysia, is a key target for these strategic moves.
The trend of Japanese capital flowing into the region is further supported by the Japan Investment Corporation's moves to back startups and innovation ecosystems not only in Japan but also through partnerships in Southeast Asia.
While specific references linking disaster-related risks in Japan and Thailand to Japanese companies' increased investments in Malaysia are limited, the broader context of Japanese firms seeking stability and growth avenues outside their home country aligns with Malaysia's recent successes in attracting Japanese capital.
Datuk Mukhriz Tun Mahathir did not mention any specific Japanese companies or industries in his statements. However, he did mention that the response to the possibility of relocation has been very good. The trade and investment mission, which began on Monday, is currently ongoing in Kyoto and Nagoya.
The statements made by Datuk Mukhriz Tun Mahathir were reported by Bernama. He also stated that a country within ASEAN that can absorb the level of Japanese technologies is Malaysia. This suggests that Malaysia's innovation ecosystem is viewed as a key factor in attracting Japanese investments.
In conclusion, the growing interest of Japanese companies in Malaysia as an investment destination is a positive development for Malaysia's economy. The proactive efforts of the Malaysian government, coupled with the country's stable environment and burgeoning innovation ecosystem, make Malaysia an attractive alternative for Japanese investors concerned with regional risks.
- Given the increasing instability and disaster-related risks in Japan and neighboring countries, some Japanese companies may be considering investing in Malaysia's safe and secure business environment, as a means to mitigate those risks.
- As Japanese companies aggressively engage in outbound investments and mergers and acquisitions (M&A) across Asia for diversification and growth, Southeast Asia, particularly Malaysia, presents an attractive destination due to its established readiness and resilience compared to riskier regions.
