Commenting on a report that Tokyo would be subsidising Japanese companies investing in factories in their home country and in Southeast Asia, they told FMT an opportunity had been presented that the government must not ignore.
Rajah Rasiah of Universiti Malaya said Malaysia should leverage its position as a traditional offshore production location for Japanese multinationals.
“The Malaysian government should act quickly to connect with potential investors from Japan and their suppliers to tell them to consider Malaysia and to approve their applications,” he said.
He called for “generous incentives” that would outdo offers from other Southeast Asian countries.
He also said the government should strengthen training activities in the so-called fourth industrial revolution, in cutting-edge technologies and in trade practices currently sought by final markets.
Geoffrey Williams of HELP University said Malaysia had yet to promote itself as an ideal site for investments currently done in China despite having proven itself with brands such as Toyota and Honda.
He suggested that a new strategy to promote foreign direct investments (FDI) be included in the recovery package coming up in October.
He called for complete openness by then, saying there must be an end to the protectionism of the past as well as a halt in restrictions that have been imposed because of Covid-19.
“Companies looking to relocate from China have many options,” he said. “Malaysia is competing with Vietnam, Indonesia and other emerging Asean countries. To attract FDI, opportunities must be liberalised.”
Adli Amirullah of the Institute for Democracy and Economic Affairs said Malaysia should focus on supplying skilled labour, adding that the country was “one of the best” in that area.
But he also said the government needed to ensure that investors create opportunities for high-skilled jobs and promote the transfer of technologies.
He said Malaysia needed foreign investors that would add value to the economy and not just those engaged in import and export activities.
“What we need are investments that can transfer real technology and skills to the locals and utilise our skilled labour in the most optimum way possible.”
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