Kuala lumpur: Approved Japanese investments in Malaysia's electrical and electronics (EandE) manufacturing sector are anticipated to total RM10.5 billion from 2021 to 2025. These investments encompass 46 projects, with expectations of creating 9,009 new jobs in the country.
According to BERNAMA News Agency, the Ministry of Investment, Trade and Industry (MITI) reported that Japanese investments in the digital infrastructure sector, particularly data centres, amount to RM1.79 billion through two projects under the Digital Ecosystem Acceleration Scheme (DESAC). This sector is expected to generate 80 new jobs.
MITI highlighted that these Japanese investments will significantly contribute to strengthening Malaysia's economic fundamentals by 2027. The investments are poised to drive the growth of high-value-added industries, enhance productivity, and boost exports and competitiveness. Furthermore, they are set to create new business opportunities for local vendors supplying raw materials, machinery, equipment, and manufacturing-related services. The investments will also stimulate demand for supporting businesses such as retail, logistics, and other related services.
The ministry's statement on the Parliament's website today was in response to Senator Datuk Mustafa Musa's inquiry about the impact of Japanese foreign direct investment (FDI) in the digital, artificial intelligence (AI), and electronics manufacturing sectors on employment and economic development at both national and state levels by 2027.
MITI emphasized the role of Japanese multinational companies in strengthening the capabilities of Malaysian small and medium enterprises (SMEs) through technology transfer, automation, and the adoption of high manufacturing standards. This effort aligns with one of the New Industrial Master Plan 2030 (NIMP 2030) targets to establish 3,000 smart factories by 2030.
States with industrial hubs, such as Penang, Selangor, Johor, Kedah, and Melaka, are projected to benefit most from the expansion of electronics clusters, data centres, and AI-related industries, further stimulating their local economies. MITI indicated that by 2027, the benefits of Japanese investments in these sectors would become increasingly evident through stronger economic activity and the development of high-technology industrial ecosystems in the states hosting these projects.
The ministry reaffirmed the government's commitment, through MITI and the Malaysian Investment Development Authority (MIDA), to attracting high-technology and high-impact investments nationwide. This includes investments from Japan, noted for its technological capabilities, innovation, high-quality management practices, and commitment to sustainable, high-value-added industrial development.