23/07/2026 11:24 PM

Approved Japanese E&E Investments Reach RM10.5 Bln Between 2021 And 2025 - MITI

KUALA LUMPUR, July 23 (Bernama) -- Approved Japanese investments in Malaysia's electrical and electronics (E&E) manufacturing sector totalled RM10.5 billion between 2021 and 2025, involving 46 projects that are expected to create 9,009 new jobs.

The Ministry of Investment, Trade and Industry (MITI) said that approved Japanese investments in the digital infrastructure sector, particularly data centres, amounted to RM1.79 billion through two projects under the Digital Ecosystem Acceleration Scheme (DESAC), with the potential to generate 80 new jobs.

"From the perspective of strengthening economic fundamentals, particularly by 2027, these Japanese investments will help drive the growth of high-value-added industries, enhance productivity, and boost Malaysia's exports and competitiveness.

"In addition to creating new business opportunities for local vendors supplying raw materials, machinery, equipment and manufacturing-related services (MRS), the investments will also stimulate demand for supporting businesses such as retail, logistics and other related services," stated MITI on the Parliament's website today.

The ministry was responding to Senator Datuk Mustafa Musa on 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 the national and state levels by 2027.

The ministry said the participation of Japanese multinational companies in Malaysia's local supply chain would help strengthen the capabilities of small and medium enterprises (SMEs) through technology transfer, automation and the adoption of high manufacturing standards.

It said the effort directly supports one of the targets under the New Industrial Master Plan 2030 (NIMP 2030) to establish 3,000 smart factories by 2030.

"States with established industrial hubs, such as Penang, Selangor, Johor, Kedah and Melaka, are expected to benefit the most through the expansion of electronics clusters, data centres and AI-related industries, which will further stimulate their local economies," the ministry said.

MITI said that the benefits of Japanese investments in the digital, AI and electronics manufacturing sectors are expected to become increasingly evident by 2027 through stronger economic activity and the development of high-technology industrial ecosystems in the states hosting these projects.

The ministry said the government, through MITI and the Malaysian Investment Development Authority (MIDA), remains committed to attracting high-technology and high-impact investments nationwide.

This includes investments from Japan, which is renowned for its technological capabilities, innovation, high-quality management practices and commitment to sustainable, high-value-added industrial development.

-- BERNAMA

 

 

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