Malaysia is moving towards Industrial Revolution 4.0
Japan has been Malaysia’s main source of foreign investment since 1980. As of September 2017, it was Malaysia’s second largest source of foreign investment after Singapore, with an investment value of 16.6 billion U.S. dollars (approximately 70 billion ringgits).
Najib said: “Japan is also the main source of foreign direct investment in the manufacturing sector in Malaysia. As of the end of 2016, Japan participated in 2,621 projects worth US$27.8 billion (approximately RM88.5 billion).” Najib said on November 30, 2017. In a speech at the Nikkei Business Forum in Malaysia in 2017, it was stated that in the first half of 2017, the Malaysian Investment Development Agency approved 16 manufacturing plans with Japanese participation, valued at RM559 million, of which 75% were reinvested by Japanese companies in Malaysia. . He said this shows that Japan continues to trust Malaysia as a stronghold for doing business.
Najib said that since 1982, Malaysia and Japan have cooperated under the policy of learning from the east. The two countries have recently reiterated their commitment to maintaining the highest bilateral cooperation.
Under the eastward learning policy, Malaysia sent students to Japanese universities and technological colleges to learn, gain experience and industrial training. At present, more than 16,600 Malaysian students have benefited.
Najib said that by 2050, 5.3 billion people are expected to live in Asia, accounting for 54% of the world's 9.9 billion people, so it has the potential to become a profitable market. "Many people say that the 19th century belonged to the United Kingdom and the 20th century was dominated by the United States. Today, market professionals and analysts predict that Asia will become the global economic center in the 21st century."
Japan's inflows to Malaysia increase by about 30% year-on-year in 2017
With the gradual improvement of the Malaysian economy, it has boosted the confidence of Japanese companies to expand. The Japan Trade and Industry Association of Malaysia (JACTIM) once believed that in 2017, Japan’s foreign direct investment (FDI) in Malaysia increased by about 30% year-on-year. Get rid of the downward trend. Japan's foreign direct investment in Malaysia in 2016 decreased by 61% year-on-year to 3.3 billion ringgit.
The Japan External Trade Organization (JETRO) managing director and JACTIM consultant Kiota Lang said that despite the substantial increase in labor costs in Malaysia, good infrastructure and talents still make the country extremely competitive. Furthermore, the willingness of local consumers to spend will also attract Japanese companies to invest in Malaysia.
Looking ahead, JACTIM President Toshihiko Odai looks positively at Malaysia’s future economic performance and pointed out that once the dust settles in the general elections expected in the second half of 2018, he believes that a more stable political situation will lead Japanese companies to expand their business. “As long as international oil prices remain at US$45 to US$50 per barrel, we expect Malaysia’s full-year economic growth in 2017 to grow by about 5% year-on-year.”
Malaysia announced earlier that its gross domestic product (GDP) for the first quarter of 2017 increased by 5.6% year-on-year.