This year marks the 65th anniversary of the establishment of diplomatic relations between Malaysia and Japan and the 40th anniversary of the Look East Policy.
Under the LEP, about 26,000 Malaysians have so far studied in Japan and are actively pursuing lives and careers in various fields. They have acquired knowledge of Japanese language and values, and have greatly advanced our mutual understanding, further bolstering an unshakable bridge between Japan and Malaysia. This has attracted more investment from Japan, and there are now about 1,600 Japanese firms doing business in Malaysia.
The exchanges between Japan and Malaysia are not limited to business. I visited Malaysia on my honeymoon in 1995. We enjoyed the beautiful sea and nature, the historical and modern cityscapes and the delicious Malay cuisine, leaving me with deep feelings for the country.
These deep connections between Japan and Malaysia are due in large part to the results of the LEP. Now that we are celebrating its 40th anniversary, we need to further develop this policy to meet the needs of the times, which have changed dramatically.
It is my intention to see the LEP advance in three core directions in the future.
First, we need to strengthen our supply chain. Malaysia is the hub of a global supply chain in Asia where Western semiconductor and aircraft-related companies are also concentrated. Malaysia is also an important partner in terms of stable energy supply as it accounts for 14% of Japan’s liquefied natural gas imports.
The risk of supply chain disruption became apparent with COVID-19. To cope with similar risks in the future, we must work on the diversification of production bases and the advancement of supply chain management, including visualizing risks and responses in the event of disruptions.
The Asia-Pacific is expected to account for approximately 40% of the world’s aircraft demand over the next 20 years. We look forward to working with Malaysia to build a competitive supply chain.
Furthermore, the economic partnership agreement is an important initiative to further stimulate trade and investment between our countries. I look forward to Malaysia’s early ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, for which I also served as Japan’s minister in charge.
Second, I would like to enhance innovation, including the use of digital technology. As digital transformation is making significant progress worldwide, there is a growing trend in Asia to use data to innovate and solve social issues. In Malaysia, Japanese trading companies are collaborating with Malaysian hospitals to help improve the efficiency of medical care, including remote health care using medical data. The Ministry of Economy, Trade and Industry will continue to support companies that take on such challenges in the Association of Southeast Asian Nations-Japan region.
The third direction is toward carbon neutrality. In Asia, achieving this will require the use of a full range of decarbonization technologies, depending on each country’s circumstances, and finding ways to balance carbon neutrality efforts with energy security and sustainable economic growth.
METI, under the Asia Zero Emissions Community plan and the Asian Energy Transition Initiative, is providing a wide range of technical and financial support based on these ideas.
Next year will mark the 50th anniversary of ASEAN-Japan friendship and cooperation. Japan and the business communities of Malaysia and the rest of ASEAN have launched a project to create a Japan-ASEAN Economic Co-Creation Vision for the future.
We are confident that these projects will contribute to the further development of the LEP, and we will continue to do our utmost to strengthen bilateral relations and regional economic development.