Japan, South Korea firms eyeing Malaysia as Asean production hub

KUALA LUMPUR: More companies in Japan and South Korea are eyeing Malaysia as a production hub for the Southeast Asian market, said International Trade and Industry Minister Darrell Leiking.

Speaking in Dewan Rakyat, Leiking said a government-led business promotion entourage to the two countries from Oct 14 to 21 has garnered potential investments of up to RM2.9 billion.

“There is much potential for many companies focusing on petrochemical, electrical and electronic (E&E) and medical equipment.

“In Japan, we have garnered potential investments of RM2.13 billion, particularly in petrochemicals, logistics, medical equipment, E&E, home appliances and furniture,” he said.

The promotion entourage also conducted business-to-business (B2B) matching arrangements that may fetch an additional RM33 million of investments into the country.

“For South Korea, the potential investments comprise RM711.8 million in chemicals, E&E and home appliances,” Leiking said, adding the potential investments via B2B matching with that nation via the entourage are valued at RM1 billion.

“This is quite interesting; most companies seeking to invest in Malaysia this time around are huge companies.

“We have the second-largest foam producer in the world, as well as one of the leading heart stent mechanism manufacturers ... these companies want to make Malaysia a production hub for the Asean market,” said the minister.

On the halal industry, Leiking noted that businesses in the two nations have suggested digital commerce be strengthened in this regard.

“Companies in Japan and South Korea have proposed to manufacture their products here, to utilise the halal certifications from Malaysia to market their products around the world. It has gone beyond just food products; there are also cosmetics,” he added.

The entourage involved 91 representatives from the international trade and industry ministry, Malaysian Investment Development Authority and Malaysia External Trade Development Corp, with the participation of state executive councillors from Johor, Terengganu, Melaka and Penang.

“We will continue this activity through 2019, focusing on Malaysia’s main trading partners — Asean nations, the US, China, the EU, India, South Africa, Saudi Arabia and the UAE,” he said.

Source: The Edge Market