Kuala lumpur: Japan is aiming to expand its investment in Malaysia's digital industry, encompassing niche areas such as high-tech chip products and data centres. Masuo Kuremura, Special Advisor to the Minister for Regional Head, Asia-Pacific at Japan's Ministry of Economy, Trade and Industry (METI), stated plans to increase investment in Malaysia for more advanced new applications using Japanese technology.
According to BERNAMA News Agency, Kuremura mentioned that collaborations between Japanese and Malaysian companies would be promoted, utilizing Japanese technology in the digital industry for applications in artificial intelligence (AI), biotechnology, and food sectors to enhance investment. Investment in Malaysia's retail space from Japan is anticipated to increase in 2026. Malaysia plays a crucial role in the supply chain for Japan, owing to its manufacturing capability in semiconductor and chip products and the automotive industries.
Kuremura highlighted the established collaboration between Perodua and Daihatsu in the manufacturing sector, which has enabled Malaysia to be a key supplier in the automotive industry. He emphasized that Japanese companies are eager to provide innovative solutions to enhance Malaysia's manufacturing capacity within the global supply chain, positioning themselves as suppliers of premium products.
Major Japanese semiconductor players in Malaysia, including Renesas Electronics, ROHM Co Ltd, Murata Manufacturing, Toshiba Corporation, Shin-Etsu Chemical, and Sumitomo Electric Industries, support the chip ecosystem, particularly in specialized semiconductor components. Kuremura noted that Malaysia is Japan's fourth-largest investment destination within the ASEAN region and serves as a key base for its semiconductor investments in the region.
He explained that Singapore remains the top investment destination in ASEAN, driven mainly by the finance sector, while Thailand and Indonesia rank second and third, respectively, with investments largely concentrated in the automotive sector. Japan is also providing a matching platform to promote investment collaboration for start-ups in Japan and ASEAN.
Japan is eyeing collaboration mainly in four pillars within the ASEAN region, namely boosting supply chain resiliency, innovation, digital, and energy transition. The country has played a major role in the ASEAN region through its projects in the Asia Zero Emission Community (AZEC), promoting energy transition from fossil fuel towards decarbonization in Asia.
Japan, one of the AZEC partner countries, aims to invest in the critical rare earth supply used as an advanced material in the automotive and aerospace industries. In the area of computing resources, Kuremura expressed Japan's interest in sharing its technology developed in Kyushu, termed the Silicon Island of Japan, for ASEAN companies.
He concluded that big chip manufacturers, such as Japan Advanced Semiconductor Manufacturing (JASM) and Taiwan Semiconductor Manufacturing Company (TSMC), could provide the infrastructure to promote AI and advanced computing in ASEAN. According to the Department of Statistics Malaysia, Japan is among the top three countries for foreign direct investment (FDI) in the fourth quarter of 2025, with RM103.8 billion registered.