It is a privilege to contribute to this special edition of The Japan Times in celebration of Malaysia Day.
Japan and Malaysia have a long-standing and steadfast partnership, particularly in the fields of industry and the economy, a bond significantly deepened by the Look East policy advocated by former Prime Minister H.E. Dr. Mahathir Mohamad.
Over the past four decades, the policy has also fostered human resource development and strong people-to-people ties. I believe that the strength of our bilateral relations lies in our shared spirit of “co-creation” — a commitment built upon decades of mutual trust. Over the years, Malaysia has remained committed to providing a stable supply of liquified natural gas to Japan, while Japanese companies have actively contributed to the expansion of Malaysia’s industrial ecosystem, as exemplified by the automotive sector, which stands as an emblematic area of co-creation firmly rooted in Malaysia’s local economy.
Building upon this hard-earned and enduring trust, I believe that Japan-Malaysia relations are entering a new chapter in 2026. As the global economy reaches a major turning point — marked by rising geopolitical uncertainty, concerns over energy security, the rapid advancement of digitalization and artificial intelligence and the urgent transition toward decarbonization — Malaysia is increasingly asserting its presence as one of the premier investment destinations in the region.
According to the Malaysian Investment Development Authority, Japan has emerged as the largest foreign investor in the first quarter of 2026, with approved investments totaling 21.5 billion ringgit (¥828 billion). This represents a more than 13-fold increase compared to the same period last year, with a significant portion directed toward digitalization and advanced technology. This surge clearly reflects the high regard in which Japanese companies hold Malaysia’s future potential, positioning the country as a vital strategic hub for their operations within the region.
In June, I had the honor of meeting with Johari Abdul Ghani, the minister of investment, trade and industry of Malaysia. We held a productive exchange of views on key sectors that will drive our mutual future growth, including energy, critical minerals, the automotive industry and AI. We reached a firm consensus on the importance of deepening our cooperation to meet the demands of a new era, building upon the solid foundation we have cultivated together while leveraging the unique and complementary strengths of both Japan and Malaysia.
These priorities were further reaffirmed at a summit meeting held that same month. The two leaders concurred on advancing bilateral cooperation toward achieving energy and resource security, centered on the Partnership on Wide Energy and Resources Resilience Asia initiative, known as POWERR Asia, and the Asia Zero Emission Community, as well as strengthening supply chain resilience through enhanced bilateral economic and industrial cooperation.
It is the mission of the Ministry of Economy, Trade and Industry to maintain this solid momentum between our public and private sectors and to accelerate a virtuous cycle of growth. As we look forward to the 70th anniversary of our diplomatic relations next year, I sincerely hope that, as partners in co-creation, we will continue to generate greater value, achieve further growth and contribute to the prosperity of the region.
