KUALA LUMPUR : Japanese companies are actively exploring investment opportunities across Malaysia’s decarbonisation, healthcare, innovation, and service sectors, according to the Japan External Trade Organisation (JETRO).
JETRO Kuala Lumpur managing director Koichi Takano said several Japanese firms have committed to multi-year investment plans beginning in 2025, with a focus on establishing engineering and operational services in industries such as oil and gas, semiconductors, and biotechnology.
“Interest in Malaysia’s decarbonisation sector is set to accelerate in the lead-up to the Asia Zero Emission Community (AZEC) Summit, co-hosted by Japan and Malaysia later this year,”
he said in an interview with Bernama.
Major Japanese players including Mitsui & Co are currently involved in key decarbonisation initiatives in Malaysia, spanning energy efficiency, renewable energy, carbon capture and storage (CCS), and hydrogen technology.
Takano noted that the improving diffusion index of Japanese business sentiment reflects renewed confidence in Malaysia’s economic outlook. “This signals increasing trust and expectations for Malaysia’s sustained growth,” he added.
However, he also cautioned that global economic uncertainties persist, particularly due to US-imposed tariff measures. In this context, Malaysia’s leadership within ASEAN is becoming increasingly vital.
“Malaysia has already taken initiative by engaging in ASEAN-level discussions on tariffs. We hope to see continued leadership that promotes stability and growth across the region,”
Takano said.
Japan remains one of Malaysia’s leading foreign investors. According to the Department of Statistics Malaysia, Japanese foreign direct investment (FDI) stood at RM102.02 billion in the fourth quarter of 2024, up from RM94.18 billion in the same quarter of 2023. This makes Japan the fourth-largest source of FDI in Malaysia.
Takano shared insights from a recent business sentiment survey conducted jointly by JETRO and the Japanese Chamber of Trade and Industry, Malaysia (JACTIM). While sentiment was negative in the second half of 2024 at –11.5 points, it is projected to recover to –4.5 points in 2025.
The survey, which gathered responses from 200 companies between 22 January and 21 February 2025, identified high-value manufacturing and decarbonisation as Malaysia’s most promising sectors.
In the non-manufacturing segment, firms reported a strong demand for skilled talent in advanced technologies. Respondents also called for clearer guidelines on environment, social and governance (ESG) investments, the enhancement of tax incentives, and timely notifications on regulatory changes.
–Bernama
