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Japan’s services sector to raise investments

Japan’s services sector to raise investments

03 Jun 2024

Japanese companies in the services sector in Malaysia are expected to increase investments here.

Managing director of Japan External Trade Organisation (Jetro) Kuala Lumpur, Koichi Takano, said Japanese restaurants are making forays here while some legal firms are jointly opening branches with Malaysian partners.

“Malaysia continues to be an attractive destination for Japanese companies, with some planning to expand in the manufacturing and non-manufacturing sectors,” he told Bernama recently.

Takano said most of Japan’s manufacturing companies are focused on expanding their existing base rather than putting in new investments but the services sector is seeing new investments.

“Based on a Jetro survey, some Japanese non-manufacturing companies consider Malaysia a regional hub,” he added.

Malaysia’s living environment, fewer natural disasters compared to other countries, the population’s good English proficiency level, political stability and being an Islamic market gateway were considerations among survey respondents.

These factors continue to attract Japanese companies, he said.

A recent Japanese Chamber of Trade & Industry Malaysia and Jetro survey revealed that Japanese companies here anticipate profit levels to notch up in 2024 due to improved business sentiment versus 2023.

The survey also noted that Japanese companies are also committed to decarbonisation efforts.

To support their investments, the survey also revealed that Japanese companies are seeking preferential treatment and flexibility when it comes to policy enforcement, particularly among companies that have been here for a while.

They are seeking tax breaks, green energy-related incentives and enforcement of policies in phases.

Source: The Star