Deputy investment, trade and industry minister Sim Tze Tzin said Malaysia encouraged Japanese investors to source from local suppliers by using Malaysian machinery and services, and to build long-term partnerships.
“This is not just about cost efficiency. It is about creating shared value and strengthening supply chain resilience.
“Invest in our local ecosystem. Work with Malaysian small and medium enterprises (SMEs), develop local suppliers, and transfer not just technology, but also the management practices that have made Japanese industry world-class,” he said at the New Japan-Malaysia industrial cooperation seminar today.
He said Malaysia’s industrial policy demonstrated strong alignment with Japan’s strategic priorities, such as the 17 strategic fields outlined in Japan’s growth strategy, particularly in semiconductors, green transformation, and economic security, which present significant opportunities for collaboration.
Malaysian Investment Development Authority (Mida) chairman Tengku Zafrul Aziz also said Malaysia invited Japanese investors to deepen their presence in the country.
“Secondly, Malaysia offers policy clarity and consistency. And third, the Mida-MUFG partnership and Jactim’s network are built to open doors for Japanese SMEs in particular. So use these networks,” he said.
Japan remained one of Malaysia’s top investors at the end of 2025, with RM142.9 billion in approved investments across more than 3,800 projects, creating nearly half a million jobs.
More than 2,800 projects were implemented, reflecting the continued commitment of Japanese companies to Malaysia.
Tengku Zafrul also said that the conflict in West Asia had sent energy prices soaring, and that shockwaves were now hitting everything from the chemicals and metals that power semiconductor production to the supply chains that keep Asia moving.
He said this demanded absolute clarity among Japanese companies as to where their regional supply chain anchors must be, adding that Malaysia and Japan already had the links, alignment and history.
“Malaysia is not asking Japanese companies to gamble on potential, but to bank on proof. Proof based on five decades of solid partnership, a foundation that has already stood the test of time again and again. And they can also premise their next growth phase on Malaysia’s clear policy direction,” he added.