An investment potential of RM16.05B expected from the trade mission to Korea, Japan

Mohamed Azmin Ali (left) talking to Kajiyama Hiroshi during their bilateral talk in Tokyo, Japan, recently.

KUALA LUMPUR 7 April - The Trade and Investment Mission (TIM) to the Republic of Korea (ROK) and Japan, led by Senior Minister and Minister of International Trade and Industry Dato’ Seri Mohamed Azmin Ali, from 1 to 6 April 2021 concluded with RM16.05 billion in potential investment value and RM986.15 million of export value reported to be realised in the coming years.

Through Senior Minister’s Mission to the two of Asia’s economic powerhouses, of these potential investment and export value figures, companies in the ROK had committed in the immediate term, to cumulatively invest a total of RM 7.3 billion in Malaysia.

Concurrently, the ROK companies had also committed to purchase exports of Malaysian goods amounting to RM 70 million. Similarly for Japan, the Japanese companies had committed in the immediate term, to cumulatively invest a total of RM8.75 billion in Malaysia. The Japanese companies had also committed to purchase exports of Malaysian goods amounting to RM 916.15 million.

The Mission, also the first for this year, was paramount to the rigorous efforts by the Ministry of International Trade and Industry (MITI) to bring in foreign direct investments (FDIs) into Malaysia, as well as an active promotion of Malaysia’s exports to the global market amidst the economic uncertainties around the globe.

During the week-long Mission, Senior Minister had productive engagements with prominent enterprises and companies in the ROK and Japan. All of them wholeheartedly welcomed the engagements and commended the tenacious leadership by the Senior Minister, that had come at a time where many countries were
still focusing on domestic efforts to manage the pandemic situation.

The enterprises and companies further added that the high-level representation would greatly assist in
elevating their confidence to accelerate many business decisions, despite the gloomy and uncertain global economic outlook brought about by the pandemic.

The soon-to-be-launched Malaysia’s new investment policy National Investment Aspiration (NIA) is eagerly awaited by the companies in the ROK and Japan as they chart their future investment plans in Malaysia.

The Mission started off in Seoul where the Senior Minister had a promising meeting with SK Group, the third largest conglomerate in the ROK and ranked 73rd in the Fortune 500 companies, where Senior Minister had warmly welcomed their strong interest to invest in high-potential areas of green technology, electric vehicle (EV), waste management and waste to energy (WTE) in Malaysia.

In a similar vein, Senior Minister also met with Korea Aerospace Industries to discuss the potential transfer of technology and developing human capital in the defence aerospace industry in Malaysia.

One-to-one sessions were also held with ILJIN Materials that already have operation in Malaysia, where Senior Minister strongly encouraged them to consider expanding their operations for the production of Elecfoil.

In addition the Senior Minister had a meeting with LG Chem, ranked 490th in the Fortune 500 companies, which have indicated their interest to develop the petrochemical cluster in Malaysia. The Senior Minister also met with SK Nexilis, which would almost double their initial investment value in Kota Kinabalu.

A meeting was also held with SPC Group, a large conglomerate producing food and confectionary products, with a view to explore franchising and halal collaborations with Malaysia, supplying the regional market. To further explore market potentials for Malaysia’s exports, the Senior Minister had engaged with GS Retail, to increase the presence of Malaysian products on the shelves of their 15,000 convenience stores
and 289 supermarkets in ROK.

In keeping with efforts to create jobs in the creative industry in Malaysia, discussion was also held with Moggozi to promote the development of local animation content.

In Tokyo, the Senior Minister had a constructive engagement with Mitsubishi Corporation, the largest “Sogo Sosha” and top five corporation in Japan, on potential sourcing opportunities and expansion of trade and investment with Malaysia.

In a similar regard, discussions were also held with Daiso, for potential increase of sourcing from Malaysia, with a view to further distribute the products within and beyond the region from its global distribution centre Malaysia. Substantive discussions were also held with Taiyo Yuden, a leading E&E Japanese company producing the world’s thinnest Multilayer Ceramic Capacitor (MLCC), employing more than 5,000 locals in
Sarawak.

The Senior Minister also had a promising session with ENEOS to discuss deeper collaboration in the renewable energy sector in Malaysia, as well as with Nippon Electric Glass which had agreed to a new investment amounting to RM 1 billion in Malaysia for the new production of state-of-the-art glass fibre for the automotive, construction and energy sector, capitalising on AI and other advanced technologies.

The Senior Minister also met with Menicon, the only manufacturer dedicated to all areas of contact lenses-related business, which is planning to have their first footprint in Malaysia.

In the Senior Minister’s session with Mitsui Fudosan and Mitsui & Co., both shared their future business plans in Malaysia, including expanding their establishment in Malaysia.

At governmental level, the Senior Minister had bilateral discussions with Yoo Myung-hee, Minister for Trade, ROK; Kajiyama Hiroshi, Minister for Economy, Trade and Industry, Japan, and Minister Nishimura Yasutoshi, Japan’s Minister for the Comprehensive and Progressive Trans Pacific Partnership (CPTPP).

Together with Kajiyama Hiroshi, Minister for Economy, Trade and Industry, Japan, the Senior Minister witnessed the signing of the Memorandum of Cooperation (MOC) between MATRADE and Japan External Trade Organisation (JETRO), signalling the intensification of collaboration in the long-run, by capitalising opportunities in the current economic context with a particular interest in digitalisation and in the area of
halal.

During the Senior Minister’s engagements with his counterparts, both sides exchanged views on efforts to ensure the relevance and resilience of the business and investment environments in Malaysia, economic recovery measures vis-à-vis domestic COVID-19 pandemic responses, strengthening international  economic co-operation, as well as enhancing bilateral trade and economic co-operation. All parties expressed readiness to continue working together to deepen existing close bilateral economic
ties.

The Mission was also participated by senior officials from MITI, Malaysian Investment Development Authority (MIDA) and Malaysia External Trade Development Corporation (MATRADE), in a collective and tireless effort to achieve a balanced, stable and sustainable economic growth and development, in view of the increasing global economic challenges to ensure that socio-economic benefits continue to be
delivered for the Rakyat. - DagangNews.com