For decades, Malaysia and Japan have enjoyed a thriving economic partnership, built on a foundation of trust and cooperation. The roots of this prolific relationship stretch back to the early 1970s, when Japan first emerged as one of Malaysia’s key trading partners. In the ensuing years, the ties between Malaysia and Japan have grown from strength to strength, mutually supporting each other’s progress.
Bilateral trade reached 156.64 billion ringgit ($34.39 billion) in 2023. As of March 2024, Japan also ranked among Malaysia’s top sources of foreign investment, contributing RM138.23 billion in the manufacturing sector. When Malaysia’s prime minister visited Japan in May, we agreed on fresh investment commitments to the value of RM1.45 billion, along with RM550 million of potential exports. These developments underscore the enduring appeal of Malaysia as a preferred trade and investment partner for Japanese businesses, and Japan’s status as one of its largest trading partners.
And yet, there are still more opportunities we can tap to further strengthen this prosperous relationship. With Malaysia’s progressive industrial policies, we see Japan as a key partner in advancing our industrial development. Malaysia’s National Industrial Master Plan 2030, which aims to enhance those capabilities, provides a framework for our continued collaborations in areas such as automotive, robotics, green technology and electronics that could be mutually beneficial.
Similarly, the National Semiconductor Strategy presents a unique opportunity for Malaysia to collaborate with Japan, a global leader in semiconductor technology. Such cooperation can facilitate valuable technology transfers and technical talent development, to support the security of the global semiconductor supply chain.
As businesses worldwide increasingly embrace sustainability, Malaysia’s National Industry Environmental, Social and Governance Framework and Green Investment Strategy underscore our commitment to help Malaysian businesses transition toward sustainable and responsible operations. These align seamlessly with Japan’s own focus on sustainable development, presenting various opportunities for us to join forces on cutting-edge green technologies, renewable energy solutions and other sustainable initiatives.
2025 will be a significant year for Malaysia as we chair the Association of Southeast Asian Nations and participate in the 2025 World Expo in Osaka, where we look to showcase how our robust policies support innovative capabilities, cultural diversity and economic progress. During its upcoming term as ASEAN chair, Malaysia stands ready to play a central role in strengthening ties with Japan to promote greater economic integration, trade and investment for a more prosperous regional economic community. Our goal is to bring about mutual benefits for ASEAN and its key partners.
Looking ahead, Malaysia’s progressive policies, ASEAN chairmanship, and participation in the Osaka World Expo present a wealth of opportunities to further deepen the already dynamic partnership with Japan. By capitalizing on these strategic advantages, I am confident Malaysia and Japan can unlock new areas of cooperation and drive economic growth for the mutual benefit of both countries.
