OSAKA, Japan, Oct 14 (Bernama) -- The Malaysian Investment Development Authority (MIDA) and the Japan External Trade Organisation (JETRO) signed a three-year Memorandum of Cooperation (MoC) yesterday, marking the final day of Expo 2025 Osaka. The agreement establishes enhanced mechanisms for bilateral investment promotion at a time when both countries are strengthening their economic strategies around sustainability and supply chain resilience.
 
Over the six-month duration of Expo 2025, MIDA secured RM12.79 billion in Japanese-led investment leads across semiconductors, renewable energy, medical devices, and advanced manufacturing—sectors that align with Malaysia's New Industrial Master Plan (NIMP) 2030 and Japan's Green Transformation (GX) and Digital Transformation (DX) initiatives. The MoC provides the institutional architecture to convert such interest into operational projects.
 
Areas of Cooperation
Under the framework, MIDA and JETRO commit to facilitating investment promotion missions, strengthening company linkages between two countries enterprises, providing mutual market entry support, exchanging intelligence on emerging sectors, and deepening collaboration on projects initiated at Expo 2025 Osaka.
 
The agreement, while non-binding, carries practical significance. It designates both agencies as single points of contact for businesses navigating cross-border investment, addresses a recurring complaint from investors about regulatory opacity, and signals policy continuity that Japanese corporations are known for long investment horizons.
 
Strategic Alignment
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, at the signing ceremony, said "The Expo results particularly the RM12.79 billion investment-leads generated happened because the national strategies between Malaysia and Japan align. Japan's GX and DX initiatives complement perfectly with our Malaysia's NIMP 2030, Green Investment Strategy, and r National Semiconductor Strategy. This MoC ensures that alignment translates into concrete outcomes for businesses on both sides.”
 
“The policy convergence is notable. Japan, seeking to diversify supply chains and secure renewable energy sources following its post-Fukushima energy transition, views Malaysia as a manufacturing alternative to China and a potential hydrogen supplier. Malaysia, aiming to attract quality foreign investment and climb the value chain, sees Japanese technology and patient capital as instrumental to achieving NIMP 2030 targets”, he added.
 
Broader Context
Japan is Malaysia's third-largest foreign investor in manufacturing, with cumulative approved investments of RM107.5 billion to date. Nearly 3,000 Japanese manufacturing projects have created employment for more than 346,000 Malaysians, concentrated in electrical and electronics, chemicals, machinery, and transport equipment.
 
The relationship has evolved. In the 1980s, Japanese firms came primarily for cost arbitrage. Today, they come for strategic positioning within ASEAN, access to renewable energy infrastructure, and participation in Malaysia's semiconductor ecosystem. The shift reflects broader changes in Asian manufacturing networks as companies reconfigure supply chains for resilience rather than pure efficiency.
 
The MoC takes effect immediately, with implementation coordinated through MIDA's Tokyo and Osaka offices and JETRO's Kuala Lumpur office.  

About MIDA
 
The Malaysian Investment Development Authority (MIDA) is the Government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.
 
SOURCE: Malaysian Investment Development Authority (MIDA) 

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Ms. Lim Ming Yee
Director of Foreign Investment Division 
Malaysian Investment Development Authority (MIDA) 
Email: maylim@mida.gov.my | DL: +603-2267 3762 

--BERNAMA