Japanese investments rise in Malaysia amid new economies
Japanese investments rise in Malaysia amid new economies
KUALA LUMPUR (UPI): Japanese investments in Malaysia have been on the rise since early this year, despite the emergence of new potential powerhouse economies such as China and Vietnam.
A survey of 215 Japanese companies doing business in Malaysia conducted by the Japanese Chamber of Trade and Industry earlier this year revealed that 34 percent, or 74 companies, rated Malaysia as the best place to invest; 29 percent, or 63 companies, chose China; 14 percent chose Vietnam; and nine percent chose Indonesia.
The survey also indicated that Malaysian manufacturers aimed for the worldwide market while in China, the industrial operations seem to only cater to domestic consumption, said Hiroshi Nakano, managing director of Japan External Trade Organization, Kuala Lumpur Center.
He said Japanese enterprises in Malaysia regard the country as their most important strategic base.
As evidence, major part of the corporate respondents made more than 10 percent additional investments in Malaysia last year, and 58 percent planned to make more than 10 percent additional investments this year, Nakano said.
Malaysia's Minister of International Trade and Industry, Rafidah Aziz, was reported recently as saying that 106 projects involving Japanese investments, valued at US$220 million, were approved for the first six months of this year, compared to 75 projects involving $103 million in Japanese investments in the same period last year.
"This is a great achievement," Nakano said, noting that 23 projects were approved within one month.
Top investor
Nakano added that Japan remained the top investor in Malaysia for the first six months of this year, when 83 projects were approved by the Malaysian Industrial Development Authority.
Total Japanese investment during the January-June period, valued at some $592 million, was up by 320 percent compared to the $179 million invested in the same period a year earlier.
"What is more encouraging is the fact that investment during the first half of this year has already covered 87 percent of 1993's total investment of $652 million, with 133 approved projects," he said.
During the same six month period of 1994, 40 electrical and electronic manufacturing projects were initiated, which generated $230 million of Japanese investment, and some 10,780 jobs.
Chemical and chemical products manufacturing projects, saw only five newly approved projects, with an employment up by 266 jobs. However, these projects generated $211 million in investment, Nakano said.
These two areas, he added, would continue to spearhead most Japanese investment in Malaysia. Other areas of future investment will include machinery manufacturing, basic metal products, plastic products and wood and wood products.