REINFORCING MALAYSIA–JAPAN ECONOMIC PARTNERSHIP AMID GLOBAL UNCERTAINTY

Kuala Lumpur, 28 April 2026 – Tengku Datuk Seri Utama Zafrul Aziz, Chairman of the Malaysian Investment Development Authority (MIDA) and Senior Political Advisor to the Prime Minister, today participated in a fireside chat with the Japanese Ambassador to Malaysia, H.E. Noriyuki Shikata.

The session, held at MIDA headquarters in Kuala Lumpur Sentral, was attended by approximately 100 participants. This included key Malaysian government stakeholders from the Ministry of Investment, Trade and Industry (MITI), the Ministry of Finance (MOF), the Inland Revenue Board of Malaysia (LHDN), and MIDA, alongside prominent representatives from the Japanese business and financial community, notably key figures from the Japan External Trade Organization (JETRO), The Japanese Chamber of Trade &
Industry, Malaysia (JACTIM), MUFG Bank, Mizuho Bank, and leading Japanese manufacturers. The dialogue underscored the importance of long-standing bilateral cooperation between Malaysia and Japan. Both sides reaffirmed their shared commitment to deepening collaboration, particularly in navigating ongoing global challenges such as supply chain disruptions and broader economic uncertainties caused by the conflict in West Asia

Speaking on Malaysia’s strategic positioning, Tengku Zafrul said:

“Malaysia and Japan have long been reliable economic partners, built on decades of investment, trade and industrial cooperation. This strong foundation positions both countries well for the next phase of growth. In today’s highly volatile global environment, closer coordination and mutual support are essential to maintaining resilience and stability across our supply chains. Malaysia and MIDA, in particular, remain fully committed to providing policy clarity and efficient execution — the fundamentals that continue to underpin our long-term stability as an investment destination, providing Japanese businesses the confidence to establish or expand their footprint in Malaysia.”

H.E. Ambassador Noriyuki Shikata echoed this sentiment, emphasising that the current global environment requires closer cooperation on supply chain resilience and industrial modernisation:

“Malaysia has long been one of Japan’s most important economic partners in Southeast Asia. Our partnership is grounded in mutual trust and has been strengthened through decades of investment, trade, and industrial collaboration. In today’s increasingly uncertain global environment, closer cooperation between Japan and Malaysia is more important than ever. Prime Minister Takaichi’s Japanese new growth strategy, which places strong emphasis on economic security, energy security, and green transformation, is highly aligned with Malaysia’s own economic priorities, including its focus on resilient supply chains, sustainable industrial development, and the energy transition. Japan looks forward
to further deepening collaboration with Malaysia and MIDA to enhance supply chain resilience, promote high-quality and responsible investment, and create new opportunities for sustainable and inclusive growth.”

The dialogue focused on five strategic areas:

Energy Security Cooperation: Alignment on renewable energy targets and sustainability initiatives between Malaysia’s National Energy Transition Roadmap and Japan’s Asia Zero Emission Community.
Supply Chain Resilience: Opportunities for Malaysia and Japan to cooperate in building stronger, more diversified regional supply chains.
Investment Opportunities: Potential growth sectors including green economy, digital economy, halal industry, semiconductors, aerospace, and rare earth industries.
New Incentive Framework (NIF): A strategic shift in how Malaysia evaluates investment—moving beyond capital quantum alone to reward investment depth, R&D activity, sustainability performance, and economic complexity. This approach aligns well with Japanese companies known for precision, discipline, and long-term commitment.
Industry Engagement: Guidance for multinational corporations and Japanese companies on leveraging Malaysia’s investment ecosystem and new policy frameworks.

Japan remains among Malaysia’s top foreign investors with a deep and enduring partnership spanning over five decades. As of 31 December 2025, Japanese investment in Malaysia totals RM142.9 billion across more than 3,800 projects, with close to half a million job opportunities created and over 2,800 projects successfully implemented. The partnership has been further strengthened through the Malaysia-Japan Comprehensive Strategic Partnership, with support from key institutions including JETRO, JACTIM, and
prominent financial institutions such as MUFG Bank, SMBC, and Mizuho Bank. Japanese companies including Daikin, Denso, Mitsui, Panasonic, Sharp Corporation, ROHM Semiconductor, Nippon Electric Glass, and Taiyo Yuden have not only invested but grown in Malaysia, upgrading industrial standards across the manufacturing ecosystem and building deep regional supply chain integration.

MIDA and the Embassy of Japan in Malaysia have agreed to explore enhanced collaboration frameworks to support Japanese businesses seeking to establish or expand operations in Malaysia. This collaboration will place a particular focus on economic security through supply chain resilience, green transformation in alignment with Malaysia’s National Energy Transition Roadmap and Japan’s Asia Zero Emission Community initiative, and high-value technology sectors including semiconductors, artificial intelligence, and advanced manufacturing. Looking ahead, Japanese investment is anticipated to deepen across manufacturing, semiconductors, digital transformation, and sustainability sectors in 2026.

The fireside chat was initiated by the Embassy of Japan in Malaysia and Jiji Press, a Japanese news agency, to strengthen Japan’s engagement with strategic partners and ensure that Malaysia remains a competitive and trusted investment partner in the region. This engagement builds on the Comprehensive Strategic Partnership agreed between Prime Minister Anwar Ibrahim and Prime Minister Sanae Takaichi of Japan.

From left to right:

Puan Masni Muhammad, Senior Executive Director, Investment Policy Advocacy, MIDA ; Seiichi Oshima, Jiji Press, Ltd., Kuala Lumpur Bureau Chief; YM Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, MIDA Chairman; H.E. Ambassador Noriyuki Shikata; Puan Zalina Zainol, Deputy CEO, Investment Promotion and Facilitation, MIDA.

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Editors: This press release is issued jointly by MIDA, the Embassy of Japan in Malaysia, and Jiji Press. Please credit all three organisations in publication.

About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA partners with investors at every stage of their journey, supporting sustainable growth and long-term value creation for Malaysia. For more information, please visit www.mida.gov.my and follow MIDA on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

About Jiji Press
Established in 1945, Jiji Press is a leading provider of Japanese language news services based in Tokyo. Its partners include print, broadcast and digital outlets as well as corporates within and outside Japan. Jiji Press also publishes Jiji News Bulletin daily in Malaysia covering the policy and business news in detail to assist readers make business decisions in investment, trade and compliance.

MEDIA CONTACT
Ms. Lim Ming Yee
Director, Foreign Investment Promotion Division
Tel : 03-2267 3762
E-mail: [email protected]

Mr. Seiichi Oshima
Kuala Lumpur Bureau Chief, Jiji Press
Tel : 019-358-3745
E-mail: [email protected]

Embassy of Japan in Malaysia
Economic section
Tel: 03-2177 2600
E-mail: [email protected]