MIDA Eyes More Investments From Japan

By Nor Baizura Basri KUALA LUMPUR, Nov 24 (Bernama) -- The Malaysian Investment Development Authority (MIDA) expects Japanese total investments in Malaysia this year to surpass last year's US$1.3 billion (US$1=RM3.18) with several negotiations expected to conclude by the end of this year. Its deputy director-general I Azman Mahmud said for the January-August period this year, approved Japanese investments in the manufacturing sector amounted to US$828.3 million with 57 projects. "We are currently in active discussions with some Japanese companies on several projects and hope to conclude some by end of this year," he told Bernama on the sidelines of the Kanagawa Business Opportunity Seminar here Wednesday. Without unveiling the sectors involved, he said more than 10 Japanese companies are involved in the discussions, which are in different stages. "Some of them, we have been talking to for several months, some recently and because of the current world economic situation, they took some time before making a decision," he said. An announcement will be made by MIDA by the end of January or early February, he added. These new projects, if they come through, are likely to kick off in the middle of next year, said Azman, who currently oversees services and resources industries at the investment authority. Even though Japanese companies are seen as active in the electrical & electronics (E&E), transport and chemical sectors, they are encouraged to venture into new areas that have been liberalised by the Malaysian government like the services sector, he said. Earlier in his speech, he said Japan is Malaysia's third largest trading partner with total trade of US$41.2 billion in 2010, behind China and Singapore. More than 2,300 Japanese companies are operating in Malaysia with realised investments of more than US$18.7 billion, making Japan the largest investor in Malaysia. These companies are both in the manufacturing and services sectors like E&E, chemical, automotive, renewable energy and other services-related industries, he said. The seminar was jointly organised by the Kanagawa prefectural government and Japan External Trade Organisation (Jetro) Kuala Lumpur and Jetro Yokohama. It was attended by 53 industry players, mostly from Malaysian and Japanese automotive parts companies, as well as a 12-member delegation from Kanagawa Prefecture on a business mission starting on Sunday. -- BERNAMA