KUALA LUMPUR: Malaysia is poised to take a leadership role in ASEAN as it gears up for its chairmanship next year. Japan External Trade Organisation (Jetro) Kuala Lumpur managing director Koichi Takano expressed confidence in Malaysia’s capability to lead, emphasizing the importance of the ASEAN community vision 2045, which is to be adopted at the ASEAN Summit in Malaysia.

According to Bernama News Agency, Malaysia is gaining global recognition as it works towards becoming a high-income nation through industrialisation. The country is emerging as a key hub for regional and third-country markets, driven by a strategic focus on overcoming the middle-income trap.

Takano highlighted the increasing trend of Japanese investments in Malaysia, notably in the retail sector. A Japanese department store has recently become a core tenant in a major commercial facility in Kuala Lumpur, with bookstores, drugstores, and furniture companies expanding their presence. The digital transformation sector is also witnessing acqu
isitions, with Malaysia being eyed for regional headquarters due to its favourable business environment.

Takano further mentioned that Japanese investments will target carbon neutrality, health and medical care, digital sectors, data centres, and halal industry hubs. Japan stood as the third-largest source of foreign direct investment (FDI) in Malaysia last year, with significant contributions to the manufacturing sector, as reported by the Department of Statistics Malaysia.

Jetro, in collaboration with the Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA) and the Japanese Chamber of Trade and Industry Malaysia (Jactim), aims to strengthen business ties between ASEAN and Japanese companies. Jactim president Takero Sawamura stressed the importance of fostering Japan-ASEAN relations and enhancing the business environment through ongoing dialogue with ASEAN leaders.

Sawamura underscored Malaysia’s pivotal role in leading Japan-ASEAN cooperation, particularly in green and digital trans
formations, as affirmed by Japanese Prime Minister Shigeru Ishiba at the Japan-ASEAN Summit. Malaysia’s proactive approach to business and industry perspectives is expected to enhance regional cooperation and attract high-value FDI.

Japan’s contributions in technology, expertise, and human resource development are deemed crucial for Malaysia, especially in addressing challenges related to an ageing population and natural disasters. Sawamura noted the significance of supporting existing businesses in Malaysia amidst growing competition and diversified supply chains.

Since the 1970s, around 1,600 Japanese companies in Malaysia, primarily in the manufacturing sector, have played a key role in the country’s industrialisation, notably in the electrical and electronics industry. This has positioned Malaysia prominently in the ASEAN region, supported by pioneering Japanese industries.