121st year | no. 42,271 ISSN 0289-1956 © THE TIMES, LTD., 2017 60 years of -Japan ties

Thursday, August 31, 2017 Many areas continue to benefit from bilateral ties

Mustapa Mohamed tal intensive and knowledge-based, while Minister of International Trade being export oriented. Investments and and Industry, Malaysia collaboration in these areas would facili- tate the development of more innova- 2017 marks the 60th anniversary of dip- tive and creative Malaysian products and lomatic ties between Malaysia and Japan. services. This relationship may have begun as early Based on the successful outcomes of as the 15th century when the Melaka Sul- the LEP from 1982 to 2012, particularly in tanate traded with the Ryukyu kingdom. the human resource development, Malay- It was reaffirmed when Japan became one sia has continued with its second wave, of the earliest countries to establish an the LEP 2.0. It shall be even more eco- embassy in the newly independent Fed- nomically oriented with focus on green eration of Malaya. technologies, renewable energies and in Our trade history as a nation with key areas such as cutting-edge technology Japan can be traced all the way back to and innovation; high-tech skills develop- the 1970s. Japan’s industrialization strat- ment; high-end services development, egy created a high demand for Malay- ecosystem management with safe, reli- sian commodities then. In the 1980s, our able and renewable energy; small and bilateral relationship flourished when medium enterprises; and senior citizen policies, incentives and cooperation pro- programs. Malaysian Prime Minister and Prime Minister Shinzo Abe shake hands following a bilateral summit meeting in on Nov. 16. posed between both countries set the We acknowledge that Japan has been Ministry of Foreign Affairs, Malaysia tone and pace for a healthy affiliation our top source of foreign direct invest- between both nations throughout the including Japanese conglomerates, could ment since 1980, with the majority of years. utilize Malaysia as their regional or global these investments stemming from the Further to this, the “Look East” policy operation hub, with access to a multilin- expansion or diversification activities (LEP) and the 1986 Promotion of Invest- gual workforce capable of communicat- of existing or new Japanese companies ment Act led to an unprecedented inflow ing effectively with most markets in the operating in Malaysia. Japan will be of Japanese foreign direct investment into region. In other words, Malaysia would one of our key strategic partners to help Malaysia. The growth of Japanese busi- be Japan’s gateway to other Association achieve our widely known aspiration to ness conglomerates, notably in the elec- of Southeast Asian Nations’ markets. On be a high-income nation by 2020. trical and electronics sector, facilitated top of this, Japan stands to also benefit We hope that Japan will continue its by the favorable business environment from the numerous trade agreements that support, especially when we are now in Malaysia, created the momentum to Malaysia has signed with other countries. entering the age of digitalization and aid Japan’s foray into the Malaysia mar- In the years to come, Malaysia wel- “Industry 4.0.” We will continue to build ket. Malaysia benefited not only from comes Japan to continue investing in upon the strong foundation of our rela- the trade perspective but more impor- industries that are high technology, capi- tionship and forge ahead. tantly, it has been a booster in develop- ing Malaysia’s local skilled workforce. Investments were not the only good thing that Malaysia gained from Japan, but also its culture and technical expertise. As a result, Malaysia went through a phase of “Nipponization” by assimilating Japanese culture and best practices. It was during this period that a joint venture between Heavy Industry Corporation of Malaysia and Mitsubishi Motors Corp. successfully produced the very first Malaysian car, the Proton Saga, in 1985. The bilateral relationship was further enhanced when Malaysia and Japan established the Malaysia-Japan Economic Partnership Agreement (MJEPA) in 2005. Today 97 percent of goods traded are tariff-free. The Malaysia-Japan Automo- tive Industries Cooperation was one of the notable outcomes under MJEPA, and some of the key programs implemented Clockwise from top left: The Malaysian Investment Development Authority and Sumitomo Mitsui Banking Corp. sign a memorandum of under- included the Automotive Skills Training standing in Tokyo in April; A Malaysia-Japan Economic Forum was held in on Feb. 4, 2016; From left, Yoichi Morishita, then-presi- Center, Business Development Program dent of JAMECA, Mah Siew Keong, then-deputy minister of international trade and industry and Azman Hashim, president of MAJECA, at the and Cooperation in Exhibitions. Tun Hussein Onn, then-prime minister of Malaysia, arrives for the official launching of the First opening ceremony of the 25th MAJECA-JAMECA Joint Conference on Sept. 1, 2004, in Kuala Lumpur; , then-minister of finance of In 2015, Malaysia introduced the Prin- Joint Annual Conference of the Malaysia-Japan Economic Association (MAJECA)/Japan-Malay- Malaysia, third from left, arrives at the 13th MAJECA-JAMECA Joint Annual Conference that was held on June 21, 1990, in Kuala Lumpur. cipal Hub incentive, where investors, sia Economic Association (JAMECA) on Nov. 14, 1977. MAJECA top left: Ministry of International Trade and Industry, malaysia / others: Malaysia-Japan Economic Association Diligently working to further expand business opportunities

Hiroyuki Ishige medium enterprises (SMEs) in expanding people of Malaysia and Japan. After tak- Chairman and CEO, Japan External business overseas through various sup- ing office in 1981, the fourth Prime Minis- Trade Organization port programs. As Malaysia is one of the ter of Malaysia Mahathir bin Mohamad, most attractive destinations for Japanese launched the “Look East” policy in which On behalf of the Japan External Trade investors, numerous SMEs are consider- he passionately led an effort at modern- Organization (JETRO), I extend my hearti- ing doing business with Malaysian com- ization of the country by looking to Japan est congratulations on the 60th anniver- panies. In April we welcomed Minister for inspiration. Under this policy, the sary of the establishment of diplomatic for International Trade and Industry Malaysian government has sent numerous relations between Malaysia and Japan. of Malaysia H.E. Mustapa Mohamed, students and business trainees to Japan. Aug. 31 marks Hari Merdeka in Malay- and held meetings in Tokyo and Osaka The total number of participants who sia. Exactly 60 years ago today, in 1957, to exchange ideas with Japanese SMEs. have graduated from universities or com- Malaysia gained its independence. The Expressing interest in the advanced tech- pleted company training here has now establishment of diplomatic relations nologies possessed by Japanese SMEs, the reached approximately 16,000. As they between Malaysia and Japan followed minister made clear his strong hope for return home, they go on to play active soon after, and in the next year, 1958, collaboration between companies of our roles as government officials, as well as JETRO set up its office in Kuala Lumpur. countries to attain ever-greater heights. directors in Japanese-affiliated companies, The economic relationship between our I should not forget to mention the forming a vital bridge between Malaysia two countries has prospered ever since strong ties between Malaysia and Japan and Japan. thanks to the vitality lent by private in terms of trade. Malaysia has been at the This connection is not limited to the enterprise. forefront of free trade in as it has con- business field. From Japanese fast fash- Japanese companies have been active electronics industry in Malaysia. sistently maintained an open economic ion to animation and music, Malaysia in Malaysia since even before those of its With foreign direct investment by Japa- policy since its independence. In 2006, our is in the midst of a “Cool Japan” boom. neighboring countries in Southeast Asia. nese companies amounting to $13 billion countries concluded the Malaysia-Japan The number of Malaysian tourists visit- The first Japanese manufacturer approved at the end of 2016, Japan is Malaysia’s Economic Partnership Agreement. We ing Japan annually has increased from to establish a plant by the Malaysian gov- largest investor in the field of manufac- are fellow signatories of the Trans Pacific 100,000 to 400,000 over just the past five ernment was Lion Corp. in 1959. After a turing, and the second-largest investor Partnership Agreement (TPP). And we years. Recent years have also seen a grow- trade agreement between our countries after Malaysia’s neighbor when are both ardent in our promotion of the ing number of Japanese students studying came into effect in 1960, Ajinomoto Co. also including the services field. There are Regional Comprehensive Economic Part- in Malaysia. As this young generation of established its presence the following now almost 1,400 Japanese companies in nership (RCEP). I believe that we both Malaysians and Japanese interact, learn year. In 1962, Malaysia authorized 15 Japa- Malaysia, and they have been contributing bear the responsibility to play a leading about one another’s culture and then nese trading firms to open local offices. to local economic growth in every pos- role in promoting regional free trade and draw on their experiences in their future And three years later, the entry of Matsu- sible industry from electronics, automo- forming new rules to improve business careers, it is my hope that this multilay- shita Electric Industrial Co., Ltd. (currently biles and machinery to metal, chemicals reliability through the facilitation of the ered exchange will grow ever deeper Panasonic Corp.) helped usher in a rush and services. TPP and an RCEP with higher standards. and strengthen the economic relations of Japanese investment in the electric and JETRO assists Japanese small and Finally, there are the ties between the between our two countries.

PAGE: B1 B2 | The Japan Times | Thursday, August 31, 2017 60 years of Malaysia-Japan ties Strong bilateral support in ASEAN profit seen by investing in Malaysia Zahirul Ishak ment, including regional hubs, business and director, MIDA Tokyo professional services and information and communications technology services, among Yusri Jamal others. politics, economic relations director, MIDA Osaka Along with the rise of the digital revolution, Malaysia is also embracing “Industry 4.0” to History has proven that Malaysia is a resilient raise competitiveness by encouraging compa- As Malaysia celebrates the 60th anniversary nation, despite multiple challenges faced by nies to adopt smart manufacturing technolo- of its independence, gained from the United the global economy. The country has a well- gies and processes. Japan is already a robotics Kingdom on Aug. 31, 1957, the Southeast diversified economy resting on the back of powerhouse, with many of its companies, Asian nation also celebrates the 60th anni- solid economic fundamentals. With a stable Malaysian Investment Development Author- such as Daikin Industries Ltd., Hitachi Ltd. versary of the establishment of diplomatic economic and political environment, good ity (MIDA) CEO Azman Mahmud and Japan and Konica Minolta Inc., actively involved in relations with Japan. These past 60 years infrastructure and proximity to the large External Trade Organization (JETRO) Chair- automation and “Industry 4.0.” There are cer- have proven to be fruitful not only for the Association of Southeast Asian Nations man Hiroyuki Ishige shake hands after signing tainly many areas of potential collaboration two nations’ political ties, but also for their (ASEAN) and Asia-Pacific markets, Japanese a memorandum of cooperation in Tokyo on between both countries within this sphere. economic relations. firms have long found Malaysia to be suited Nov. 16. mida Malaysia has been recognized as an attrac- Official visits by key figures of both coun- for their activities as Malaysia is cost-competi- tive investment destination by a multitude tries show the value each side places on tive hub for investments in this region. country, to establish offices in Tokyo and of independent international institutes and the relationship. Malaysian Prime Minister Since the 1980s, Japan has been among the Osaka in 1973 and 1982 respectively. They are organizations. Recently, a Moody’s Investors Najib Razak has visited Japan every year country’s top source of foreign direct invest- responsible for promoting Japanese invest- Service credit analysis has reaffirmed Malay- since 2013, while Shinzo Abe has visited ment. As of the end of 2016, a total of 2,621 ment in Malaysia, providing potential inves- sia as being in the “A” category. Additionally, Malaysia three times as prime minister. In projects with Japanese participation have tors with the latest information on policies Malaysia is expected to achieve gross domes- April, Crown Prince made an offi- been implemented with investments valued and opportunities in the manufacturing and tic product growth of 4.3 percent in 2017. cial overseas trip to Malaysia, 11 years after at $27.8 billion. These projects are mainly in services sectors. They also provide the neces- In its latest assessment of Malaysia, the Emperor Akihito and Empress Michiko did the electronics and electrical product, chemi- sary assistance to potential Japanese investors International Monetary Fund highlighted the same. KLIA Aeropolis is a “city” built at Kuala Lumpur International Airport. malaysia airports cal and chemical product, non-metallic min- interested in seeking joint venture partners or that the country has made significant prog- Diplomatic and political ties naturally led holdings berhad eral product, transport equipment and basic technology collaborations in Malaysia. ress toward achieving high-income status. Its to stronger economic relations. The “Look metal product areas. 2017 marks the 60th anniversary of Malay- economy continues to perform well, despite East” policy moved Malaysia away from its rated with Japanese companies in devel- The DFTZ will have an e-fulfillment hub, Malaysia is proud to host notable Japanese sia-Japan bilateral ties. Many initiatives such significant headwinds. The World Bank also colonial ruler Britain and other Western oping a platform for mobile digital wallet satellite services hub and e-services plat- companies such as Rohm-Wako Electronic as the “Second Wave of the Look East Policy” recently indicated that while many nations nations in favor of development among payment systems. form. The e-fulfillment hub will be based Sdn. Bhd., Panasonic Corp., Nippon Electric (LEP 2.0) have contributed to this strong link are affected by falling commodity prices, Asian countries, especially Japan. An emerging market for Japanese compa- at KLIA Aeropolis, the “city” built at Kuala Glass Co., Toray Industries Inc., Fuji Electric between our nations. LEP 2.0 is expected to Malaysia stands out for having transformed In the first stage of the “Look East” policy nies centers on halal products, as Malaysia Lumpur International Airport, to facilitate Co., Ibiden Co., Sony Corp., NEC Corp. and increase more technology transfers, effective itself from a narrow commodity-exporting from 1982 to 2012, Malaysians sought train- has one of the largest populations of Mus- the movement of goods. KLIA Aeropolis, Honda Motor Co. Japanese investors are also collaborations in research and development nation into a modern diversified economy. ing and sponsorship in Japan to learn skills lims in Southeast Asia. with its business, aerospace and logistics present in Malaysia’s services sector, active in and successful business joint ventures. A 2017 survey by BAV Consulting and the and technical abilities to improve their Several Japanese companies in Malay- parks, aims to be a leader in air cargo and retail, convenience stores, financial services, Moving forward, in line with Malaysia’s Wharton School of the University of Pennsyl- home country. Through cooperation and sia have already adopted Malaysia’s halal logistics while also helping to draw visi- creative content and regional areas in addi- aspiration to become an advanced nation, we vania named Malaysia as the best country in support from Japan, Malaysia became one of standards and, with Tokyo hosting the tors through tourism and MICE (meetings, tion to many sales and trading offices that look ahead to receiving more quality invest- which to invest. A recent Cushman & Wake- the so-called economic tigers of Asia. 2020 Olympic Games, more collaboration incentives, conferences and exhibitions). have existed over the years. In recent years, ment from Japan, particularly in emerging field report titled “Manufacturing Risk Index During this time, Malaysia and Japan is underway to enhance halal awareness The facility also houses a shopping outlet more and more Japanese companies are high technology, capital-intensive, high-value- 2017” again named Malaysia as the most signed an economic partnership agreement and training and promote halal-related and the Sepang International Circuit that using Malaysia as their base for conducting added, knowledge-based, skills-intensive and attractive location for manufacturers. that went into effect in July 2006. trade and investment. Already, at least six hosts Malaysia’s Formula One grand prix their regional and global operations. This export-oriented new growth areas that are MIDA looks forward to continuously Since 2012, Malaysia has shifted the focus Japanese halal certification bodies are recog- race. includes the approved “Principal Hubs” of expected to provide high-income jobs. working together with Japanese investors to of the policy, seeking more advanced coop- nized by Malaysia. At the launch of the DFTZ was ’s Sharp Corp. and Daikin Industries Ltd., both These include biotechnology, advanced capitalize on the opportunities that are pres- eration. Two projects under this new focus Malaysia is also at the forefront of the new Jack Ma, the founder and executive chair- renowned Japanese companies in the con- electronics, display technology, optics and ent in the ASEAN region. show the deeper economic ties between economy with the world’s first Digital Free man of e-commerce giant Alibaba Group, sumer electronics sector. photonics, renewable energy, aerospace, Malaysia and Japan. Trade Zone (DFTZ). Launched in March, the who was appointed by Malaysia to be the The strategic importance of Japan to machinery and equipment, halal, pharma- To contact MIDA Tokyo, Tel: 81 (3) 5777-8808 | Under the Look East policy 2.0, which goal is to promote trade and increase the government’s digital economy adviser. As Malaysia has led the Malaysian Investment ceuticals and medical devices in the manufac- E-mail: [email protected]. To contact MIDA started in 2012, small and medium-size growth of Malaysia’s e-commerce — aiming Alibaba’s investment in an 80,000-sq.-meter Development Authority (MIDA), the prin- turing sector. Malaysia’s services sector also Osaka, Tel: 81 (6) 6451 6661 | E-mail: osaka@ Malaysian enterprises have learned from to double such growth, create 60,000 jobs distribution center at KLIA Aeropolis shows, cipal investment promotion agency for the provides exciting opportunities for invest- mida.gov.my Japanese industry about food safety and and generate $65 billion in trade — by help- Japanese companies can similarly look to security at the government’s Hokkaido Food ing firms such as small and medium-size benefit from the DFTZ. Complex in the Tokachi area of Hokkaido. enterprises export goods, while also lower- All these developments mean the future is Malaysian companies have also collabo- ing tariffs on imports. bright for Malaysia-Japan relations. Extensive resources to support businesses Halal food producer to strengthen

Shah Nizam Ahmad petroleum products. Imports from Japan such as facilitation in trade promotion MATRADE tokyo Director also rose by 4.9 percent to $7.02 billion. activities, exchange of information, collab- presence in Japan Certainly, Japan is expected to continue oration in specific programs and projects to What is the mission of the Malaysia Exter- as Malaysia’s major trading partner and promote sectors, including the halal sector. nal Trade Development Corporation there are new areas that Malaysia and In this regard, export promotion for alvin Ang heads Aya- have achieved the best (MATRADE)? Japan can further enhance and strengthen food and beverages, including halal prod- mas, Malaysia’s lead- practices in Malaysia. ing producer of As a group (through its The main mission of MATRADE is to in our bilateral economic and trade ties. ucts had been one of the core activities of Cchicken-based products. upstream and downstream assist Malaysian In relation to this development, the year MATRADE Japan. In March, MATRADE The company’s goods are business divisions), QSR exporters to expand 2016 marked a milestone in the relation- Japan participated in FOODEX Japan, the processed by Ayamas Food Brands has over 30,000 em- their market over- ship between MATRADE and the Japan largest food and beverage trade show in Corp., a subsidiary of QSR ployees and is the major seas, as well as to External Trade Organization (JETRO), as a the Asia-Pacific region for 15th consecu- Brands Holdings. “farm to fork” operator in support foreign memorandum of cooperation to double tive year, together with Malaysian food Ang leads the company Malaysia. importers to pro- the efforts in promoting trade between the and beverages companies showcasing their through its trading and dis- “It owns the national cure products two countries was signed and witnessed products and capabilities to Japanese and tribution arm, QSR Trad- franchising rights for KFC and services from by the prime ministers of both countries in international buyers. ing. Once known as KFC in Malaysia, Singapore, Malaysia. As the November. On the occasion of the International Marketing, QSR Trading is Cambodia and Brunei, as building a path to future well as for Pizza Hut in Ma- National Trade Sourcing Program held in conjunction with success by maintaining its laysia and Singapore,” Ang Promotion Agency What is the mission and focus of the Malaysia International Halal Showcase robust growth momentum said. “Our expertise has under the Ministry of International Trade MATRADE Japan? What does MATRADE in Kuala Lumpur, 13 buyers from Japan of the last few years. grown our house brand and Industry of Malaysia, MATRADE also do to promote Malaysian businesses? attended, which resulted in sales of $8.77 “Our products are widely Ayamas into one of Malay- assists and develops Malaysian companies As for Japan, MATRADE Tokyo and million, or 8 percent of the total sales gen- accepted by Muslims in sia’s favorite home brands. to be export ready. Aided by a network Osaka have been assisting both Malaysian erated by 391 international buyers. Malaysia and abroad, hence Ayamas has also extended of more than 40 overseas offices located companies and Japanese importers in The other sector would be the creative, we look forward to expand- its expertise to provide ha- expanding their markets and businesses, multimedia and content area of the gam- ing worldwide, particularly lal primary products and

in major commercial cities around the © QSR TRADING world, MATRADE provides a wide range while sourcing products and services from ing industry. Today, Malaysia’s digital in Japan,” said Ang. “We further processed products QSR Trading headquarters of services to both Malaysian exporters Malaysia in all sectors and industries. How- content industry has succeeded in mak- are already supplying table (FPP) to KFC and Pizza sauces to Japan’s Aeon and Hut.” and foreign importers in promoting trade ever, recent developments in Japan’s mar- ing the country a regional hub for digital Olympic supermarkets.” In fact, the QSR Up- “Being a major halal player among Malaysian consum- activities. ket have created a number of niche areas content among Japanese digital content “Since our build-up in ex- stream Division has a port- that has been around for 30 ers, especially the halal- where Malaysian and Japanese companies companies. ports in 2013, our presence folio of more than 100 SKUs years, the QSR Upstream conscious sector. What is the background of trade between could collaborate and leverage on each Based on observations and interactions has been strongly felt in (stock keeping units) and is Division looks forward to Over the years, the QSR Japan and Malaysia and where do you see other’s capabilities to take advantage of with Japanese digital content companies, Brunei, Singapore, Cambo- well positioned to maxi- collaboration partnerships Upstream Division has it in the future? available business opportunities. Among we’ve found that they are keen for out- dia, Myanmar, , In- mize its price capture, vol- with Japanese companies won numerous awards and The history of Japan’s trade with Malay- those sectors are halal, creative content sourcing and finding joint venture part- donesia, Bangladesh, the ume expansion and higher keen on catering to athletes certifications, including sia started with the trading of primary industries, renewable energy, including ners to further expand both their business Middle East, the Maldives, value-added range to cater and tourists in internation- the prestigious “Interna- commodities, namely logs, tin and natural palm kernel shell and wood pellet and and market. At the same time, Malaysian Australia, and to its domestic and export al events such as the Olym- tional QUDAL (QUality rubber. As the years went by, Malaysia’s wood-based products. creative talent is recognized for its capabil- Japan,” he continued. markets. pic Games in Tokyo. Our MeDAL) Gold Award” for “Our exports to Japan, “We foresee that our cur- FPP range has an interna- 2016-17, by Switzerland’s shift to industrialization has largely con- Opportunities in the halal area are get- ity to produce quality 3-D animation and Singapore and Brunei en- rent growth of 10 percent tional flavor that should ap- ICERTIAS (International tributed to changing the bilateral trade ting serious attention from Japanese com- visual effects, post-production work for dorse our stringent food will be enhanced, especially peal to all.” Certification Association), composition into more manufactured panies, particularly those in the food and films and TV and video game development, quality and halal require- in the Asia-Pacific region,” The QSR brand — Aya- for Ayamas as the best products. services industries to cater to increasing as well as mobile applications and games. ments — which are sim- Ang said. “In particular, we mas Kitchen — is currently brand in the category of In 2016, Japan was ranked as Malaysia’s foreign tourists in Japan. Japanese pre- A number of Malaysian digital content plified by JAKIM (the are eyeing Japan — with its venturing into specific top-quality frankfurters in fourth-largest trading partner, fourth- fectures are aggressively promoting their players are now providing services to Japan Department of Islamic Ad- upcoming hosting of the market segmentation to Malaysia. largest export destination and third- Muslim-friendly business environment companies. vancement of Malaysia), Rugby World Cup in 2019 bring it closer to its target- On March 30, Ayamas re- largest import source. Total bilateral trade to accommodate the growing demand for MATRADE Japan conducted the first known for having the high- and the Olympic Games in ed age groups. It recently ceived the “Best Buy” between Malaysia and Japan last year was halal food and services. More restaurants Export Acceleration Mission on creative, est halal standards in the 2020 — as a target market launched its ready-to-eat award for 2017-18, from $28.98 billion, which included liquefied are currently offering halal menus and multimedia and content to Japan in Tokyo Islamic world — as estab- to import halal products for range of food, offering deli- ICERTIAS for its frozen lished,” Ang explained. the events to meet the ex- cious portable meals for food, while QSR Trading natural gas (LNG), electrical and electronic Muslim-friendly options to tourists as Japa- last year. Sixteen Malaysian gaming com- The term halal refers to pected huge demand of its consumers living life on the was selected as the “Best products, machinery, equipment and parts, nese tour operators have begun to offer panies and the Malaysia Digital Economy food and drink that is per- Muslim visitors. We hope go. Regional Enterprise — transport equipment, chemical and chemi- Muslim tour packages in Japan. Malaysian Corporation participated in the mission, missible for Muslims to to achieve this via OEMs QSR Trading has also had 2016” by the London-based cal products and manufactured metal, halal food products are able to leverage the and also took part in the Tokyo Game consume under Shariah for Japanese brands for our significant experience in Socrates Nomination Com- among other things. widely recognized halal JAKIM logo in sell- Show 2016. law. It specifies what food range of halal food under the sale and marketing of mittee. Additionally, ICER- During the first six months of 2017, trade ing to Japanese companies and consumers. MATRADE Japan, with the strong sup- is allowed (types of meat FPP.” Japanese products in Ma- TIAS in May nominated with Japan amounted to $15.59 billion, Additionally, Tokyo has also recognized port of the Embassy of Malaysia, strives and animal tissues) and “Halal is not only about laysia since 2010. As Malay- the company for its “Cus- growing 17.5 percent from the same period the importance of halal in its preparations to promote Malaysia’s exports to Japan how it must be prepared. Muslims, it also refers to sia’s distributor of Japan’s tomers’ Friend — Because Ayamas has also been JA- hygienically treated food most widely known sesame it’s You we Care About” a year ago. Exports to Japan were valued toward the 2020 Tokyo Olympic and Para- through various trade promotion activities t at $8.58 billion, up 14.4 percent due to lympic Games. such as trade fairs and business matching KIM’s reference point in and products, making them dressing, Kewpie, QSR award for 2017-18. the context of halal, and the ideal for consumption by Trading has successfully On Facebook: qsr brands higher exports of electrical and electronic The memorandum signed in November programs and welcomes enquiries from group is widely known to all religions,” he explained. made this product famous upstream division products, LNG, chemicals and chemical between MATRADE and JETRO will inten- Japanese companies interested in sourcing products and crude petroleum, as well as sify co-operation in areas of mutual benefit products and services from Malaysia.

PAGE: B2 Thursday, August 31, 2017 | The Japan Times | B3 60 years of Malaysia-Japan ties Promoting downstream oil and gas industry

IZHAR HIFNEI ISMAIL investing in Malaysia or the PIPC. The JPDC, The formulation of the PIPC is hinged on CHIEF OPERATING OFFICER OF being the appointed organization to over- the mission that it will be able to add value PETROLEUM DEVELOPMENT see the overall development of the PIPC, to the crude oil that Malaysia produces CORPORATION BERHAD (JPDC) collaborates with the Malaysian Invest- and simultaneously monetize the strategi- ment Development Authority (MIDA) cally located extensive land with its natural The PIPC sits on a to actively guide investors, and potential deep-water port in Pengerang. 20,000-acre piece of investors alike, to the applicable incentives. The PIPC is expected to generate gross land in Pengerang, Two investors, one of them Malaysian national income (GNI) of $489 million and in Malaysia’s Johor and the other a joint venture of a Malay- 4,883 new high-income jobs by 2020, and state. The PIPC is sian company and a Dutch company, are GNI of $2 billion and 27,064 new high- Left: People shopping at the 2016 Malaysia Makan Fest in Yokohama. Right: The Nippon Budokan Foundation organizes a Japanese budo demon- designed to accom- already in the PIPC. We welcome diverse income jobs in the subsequent phase of stration outside Japan every year. malaysia gohan kai / nippon budokan foundation modate down- investors. completion. stream oil and gas We have been targeting petroleum and The PIPC is set to have oil refining capac- industrial facilities petrochemical storage terminal investors, ity of 1 million barrels per day, production such as refineries intermediate petrochemical companies, of 11.8 million tons of petrochemicals per Strong bonds through food, culture, sports and petrochemical plants, deep-water ter- integrated petrochemical companies (with day, 5 million cubic meters of oil storage minal and storage tanks, naphtha crackers, naphtha cracking facilities) and specialized and an annual capacity for 3.5 million tons Over the next several months, a variety regasification plants and supporting facili- petrochemical companies for collabora- of liquid natural gas regasification by 2020. of events will be held to celebrate the ties, as well as manufacturing plants and tion. In order to realize that, we have been JPDC collaborates with key stakeholders, 60th anniversary of diplomatic relations industrial parks. organizing one-to-one business meet- government-related agencies and industry between Malaysia and Japan. To be developed in phases, the PIPC cov- ings in targeted countries, participating in experts in ensuring equitable participation Malaysia Gohan Matsuri 2017 ~ Malaysia ers both core and non-core downstream investment trade missions with MIDA and among Malaysians in general, and the resi- Makan Fest will be held on Saturday and activities. Included in the PIPC master plan the Johor state government, as well as tak- dents of Pengerang specifically, empower- Sunday at Zou-No-Hana Terrace in Yokoha- are designated areas for related support ing part in major downstream oil and gas ing them to tap into the economic space of ma’s Naka Ward, where visitors can enjoy services such as a plastic and fine chemicals exhibitions such as the Asia Oil and Gas the PIPC. Malaysian foods, see ethnic costumes and park, a light and medium industrial park, a Conference, Oil and Gas Asia and others. To date, a series of re-skilling and up- listen to Malay song performances. Admis- waste management center, an emergency And of course, we are interested in bring- skilling training programs for more than sion is free for this indoor event. response center, a logistics hub, a commer- ing in Japanese investors. We see this as an 2,000 locals has been coordinated and Zou-No-Hana (literally meaning ele- cial hub and others. ideal time for Japan to invest in the PIPC. facilitated by the JPDC. These programs are phant trunk in Japanese) Terrace is in the The striking attraction of the PIPC lies in In Malaysia’s context, the weakened ring- aimed at creating a downstream oil and gas bayside Zou-No-Hana Park, a three-minute the robust design of the PIPC master plan git against major currencies has made it industry workforce with an impressive 93 walk from Nihon-Odori Station on the that strives to enable and promote future an attractive destination for investors. For percent employability rate. Minatomirai Line. growth and sustainability, by offering a Japan, this translates into a lower cost of Compared to other regions or similar Makan means eating in the Malay lan- wide spectrum of investment opportuni- doing business and an opportunity for it to projects, the PIPC possesses more strength guage and here at the event, you will find ties targeted at downstream oil and gas diversify its business in the PIPC. with access to existing major international delicious food such as nasi lemak, bak kut players. As mentioned earlier, the PIPC will shipping lanes between the Middle East teh, chicken rice, rendang beef, satay and Being a project of national strategic house oil refineries, naphtha crackers, and China. The proximity of Pengerang to other authentic Malaysian cuisines, pro- Japan x Malaysia Friendship Concert 2017 will Malaysian badminton pro will importance, the PIPC is given perks with petrochemical plants that will produce Singapore is a huge benefit, as Malaysia’s vided by restaurants Pokok Pisang (Khao be the biggest-ever concert involving major play in the Daihatsu Yonex Japan Open 2017 in the government of Malaysia’s prioritized feedstock for companies focused on the refinery hub has to be close to the world’s Man Gai in Five Minutes), Malaychan, Japanese artists in Malaysia. September. Tang Shi support. This can be seen with the estab- manufacturing of downstream products commodity traders that are largely based Malay Kampung, Malay Asian Cuisine, A1 lishment of the Johor Petroleum Devel- such as plastics, packaging, automotive in Singapore. Apart from that, the PIPC has Bak Kut Teh and Gootara Cafe Kagurazaka. nationalities. tured on the Malaysian TV program “Mad opment Corporation Berhad (JPDC), a components and chemicals. When invest- water depth of more than 24 m with a har- There will also be booths selling pre- The Daihatsu Yonex Japan Open 2017 Markets Hokuriku Special,” a travel show dedicated federal government agency ing in the PIPC, petrochemical and manu- bor that is safe and sheltered throughout served foods, such as curry paste, curry Badminton Championships in Tokyo runs collaboration between Japan and Malaysia. mandated to plan, coordinate, facilitate facturing companies from Japan can expect the year. With no breakwater, it enables powder, tomato-flavored canned sardines from Sept. 19 to 24. Malaysian pro Lee Malaysian performers include rock band and promote the overall development of to have access to raw materials nearby, very large crude carriers (VLCC) and ultra and coconut milk, as well as various goods Chong Wei will be competing as he aims to Bunkface, Jaclyn Victor, Joe Flizzow and the PIPC. The JPDC covers the depth and resulting in reduced operating costs and large crude carriers (ULCC) to operate. It such as sea cucumber soap, pewter mugs win the tournament for the seventh time. Alvin Chong. Additionally, Fazz, who per- breadth of a “project manager” role in mak- improved profit margins. also has few environmentally sensitive and other Malaysian products. Uchiyama Lee, who will turn 35 in October, played formed in the Haneda International Anime ing sure the development of the PIPC is on Apart from that, Japan has always been areas and these can easily be preserved. Shoten bookstore, in Tokyo’s Jimbocho dis- the Daihatsu Yonex Japan Open for the first Music Festival 2015 in Tokyo and toured track, according to plan and with sufficient among our main trade partners and we These key strengths make it the ideal loca- trict, will sell Malaysia-related books at the time in 2001, when he was 18. His first vic- Tokyo in 2016, is slated to perform. funds. It is under this purview that the acknowledge Japan’s reputation as having tion for the development of a major inte- event. tory came in 2007, and since then, his love The Japan x Malaysia Friendship Concert JPDC provides guidance to potential parties some of the top companies in the world grated petroleum complex. When fully In addition to a photo exhibition, there for Japan has brought him back almost 2017 is jointly organized by IME Malay- seeking to invest in the PIPC. when it comes to specialty chemicals. We completed, the PIPC will have a complete will be workshops where visitors can try every year. sia, Toybox Projects and Ishida Taiseisha Further evidence of government support are always interested in welcoming these portfolio of products, full trading facili- Malaysia’s traditional batik cloth dyeing. Similar exchange events will be taking Inc. and will be attended by people from can be seen through the development of companies to come and invest in the PIPC, ties and will be a center of excellence for There will also be a discussion among place in Malaysia as well, including the both countries, strengthening the bonds world-class infrastructure and public ame- not only because of the above mentioned downstream oil and gas for the country Malaysians who love Japan on recom- Japan x Malaysia Friendship Concert 2017 between the two countries and enhanc- nities for convenient mobility and connec- reasons, but because we can also benefit and region. mended Malaysian cuisine. that will be held on Sept. 23 at Sunway ing the understanding of the music cul- tivity, as well as improved quality of living from the technology and skills they bring Adding value to the chain of attrac- The second edition of this annual event is Lagoon Surf Beach in Malaysia, featuring ture between both countries. The event for all dwellers of Pengerang. in. tions of the PIPC is the readiness of good organized by Zou-No-Hana Terrace, Malay- Japanese and Malaysian singers. is endorsed by the Japanese Embassy in Additionally, a further benefit lies in hav- The inception of the PIPC began with the infrastructure and public amenity projects sia Gohan-No-Kai (Malaysia Food Net) and This will be the biggest concert involv- Malaysia, Wisma Putra, the Japan External ing a dedicated government forum to fast launching of the Economic Transformation catered for industrial use and tenants of the Malay Asian Cuisine Yokohama, and spon- ing major Japanese artists in Malaysia, and Trade Organization, Japan National Tour- track development of the PIPC, supported Programme (ETP) on Sept. 25, 2010, that PIPC, as well as surrounding areas. These sored by the Malaysia Tourism Promotion certainly the first of its kind to have such a ism Organization and Japan Foundation. by the strong involvement of both the fed- seeks to transform Malaysia into a high- projects are crucial as they provide modern Board, the Malaysia External Trade Devel- collaboration among Malaysian and Japa- In another event, the Nippon Budokan eral government of Malaysia and the state income nation by 2020. means of access such as transportation and opment Corporation (MATRADE) and Hati nese artists. Foundation will organize a Japanese budo government of Johor. Twelve industrial sectors were identi- internet connectivity, as well as conducive Malaysia. Japanese performers include Japanese martial arts demonstration, to be held in There are other forms of incentives appli- fied to drive the ETP, and the key thrust to working and living environments. To date, While food and other events bring peo- idol group Juice=Juice, former AKB48 mem- Shah Alam, Malaysia, on Nov. 12. cable to investors, both local and foreign. achieving the ETP for the oil, gas and energy 52 percent of the infrastructure and public ple from different cultural backgrounds ber Tomomi Itano, Harajuku dance rock A delegation of 75 Japanese will demon- These include investment tax allowances, sector is by implementing two Entry Point amenity projects have been completed and together to have fun and deepen mutual band An Café, electro-rap group Charisma. strate judo, kendo, sumo, aikido and other import duty exemptions, reinvestment Projects. These include building a regional are in operation, including an upgrading understanding, exchange through sports com and Anna Tsuchiya, who is also a martial arts to estimated 2,000 to 2,500 visi- allowances and others. These incentives oil storage hub and increasing petrochemi- of roads, drainage systems, medical clinics, brings friendship among players and model and award-winning actress. tors. The foundation organizes such dem- may vary between plans and structures, cal output by developing integrated refin- schools, fire and police stations, day care excitement among fans, regardless of Charisma.com’s DJ Gonchi has been fea- onstrations every year outside Japan. depending on the status of companies ery and petrochemical complexes. centers and others.

PAGE: B3 B4 | The Japan Times | Thursday, August 31, 2017 60 years of Malaysia-Japan ties KHTP the perfect gateway for hi-tech firms in ASEAN

Malaysia continues to be an attractive disk and semiconductor business from the population. destination for foreign direct investment park. There are six zones throughout the from around the world, especially Japan. One of the major advantages of invest- park: industrial; urban; housing; institu- According to the latest figures from Japan’s ing in KHTP is the access to a talented labor tional; amenity (such as a golf course); Ministry of Foreign Affairs, direct invest- pool. More than 70 percent of the workers and research and development, and train- ment from Japan in Malaysia totaled $9.2 come from Kedah. The federal government ing. Green reserves have also been inte- billion in 2015 and initiatives such as the has been supporting the country’s labor grated into the plan. This zoning allows Kulim Hi-Tech Park (KHTP) has helped to force in acquiring necessary industrial-sec- people to work and live in a pleasurable smooth the way for Japanese companies tor skills, with emphasis on technology. environment. looking to set up shop in the Southeast Another advantage is the access to key More than 1,760 hectares of land at Asian nation. markets in the Asia-Pacific region that KHTP have been developed, with a further KHTP is a strategic national economic Malaysia can provide through its geo- 2,000 hectares set to be developed in the development. Located in northern Malay- graphic location and as a member of the KHTP Master Plan 2. With so much land, sia in the state of Kedah, which includes Association of Southeast Asian Nations the opportunities for investment are ripe. the resort island of Langkawi and borders (ASEAN). Under normal traffic conditions, Prime industrial land is available for long- , KHTP is partially funded by the KHTP is about 40 minutes from term lease, while commercial space at sev- federal government and administered by International Airport. According to air- eral purpose-built centers can be rented. the state government. port operator Malaysia Airports Holdings, Adding to the incentives to invest in Since opening as Malaysia’s first high- Penang handled 6.6 million passengers KHTP is the fact that this prime industrial tech science park in 1996 and welcoming and 130,000 tons of cargo in 2016. Looking land comes already leveled, so construc- its first client, the U.S. chip making com- at Penang International Airport’s limited tion can start immediately on the facilities puter technology giant Intel Corp., KHTP capacity, the state of Kedah has proposed a in mind. With the flexibility that comes has attracted a wealth of multinational new international airport to be built near with an abundance of land, the high-tech industrial tenants such as German com- KHTP. This airport will be linked through a park can cater to the spatial needs of each pany Osram GmbH, Infineon Technologies highway to the KHTP Industrial Zone. tenant. AG, Fuji Electric Co. and Panasonic Corp. Moreover, the stable political environ- The prime office space and buildings Japanese businesses are the major inves- ment and complete support from local and ready for rent at KHTP offers even more tors at KHTP, with 10 companies having federal governments also add to the incen- options for those wishing to conduct busi- a presence at the park. Panasonic has set tives for investing in KHTP. ness at the high-tech park. This space can up Panasonic Energy Malaysia at the high- These were among the elements Pana- be rented by companies while awaiting tech park as its solar manufacturing base. sonic pointed out when talking about the the completion of their facilities, so they The other Japanese companies there are ease of setting up its business at KHTP: can continue their business activities with Fuji Electric Malaysia of Fuji Electric Co.; “Malaysia is very business-friendly, and minimal disruption. Companies that offer Kulim Hi-Tech Park is home to many foreign companies’ factories and research and development centers. khtp Fuji Logistics Malaysia of Fuji Logistics Co.; MIDA (the federal government’s Malay- services to park tenants can also make use Fujimi-Micro Technology of Fujimi Corp.; sian Investment Development Authority) of this office space, providing visibility and For those who like to add the spice of Support for Japanese companies is nology Park Corp. as a park developer are Hamadatec of Hamada Technos Co.; Hoya as well as Kulim Technology Park Corp. ease of access. The office space is also per- adventure to their nature activities, the prevalent throughout Malaysia. Among the looking forward to welcoming more Japa- Electronics Malaysia of Hoya Corp.; Showa helped us to set up our operation so much fect for organizations to establish branches Sedim River offers whitewater rafting. In recent visitors to KHTP was the Japanese nese investors to make KHTP their first Denko HD Malaysia of Showa Denko K.K.; faster in Kulim Hi-Tech Park.” to serve people in the high-tech park and the same area, the longest treetop walk in Chamber of Trade and Industry, Malaysia choice investment destination. The large System Seiko Malaysia of System Seiko Co.; The corporation, which develops and surrounding areas. Malaysia, spanning 925 meters, will take (JACTIM), which on May 17 conducted a number of Japanese investors in KHTP is Tomoe Malaysia of Tomoe Shokai Co.; and manages KHTP, is a wholly-owned subsid- Among other perks of doing business at you at elevations up to 26 meters through research mission on the investment envi- further proof that it is a secure and stable Toyo-Memory Technology of Toyo Seikan iary of the Kedah State Development Corp. the park are the intangible attractions of the flowers and among the birds of the ronment in Kulim Hi-Tech Park. With such place to invest in. Co. The park corporation has developed Kedah State itself, such as cultural, natural Gunung Inas tropical rainforest, and its a strong and deep-rooted Japanese pres- As Malaysia and Japan mark the 60th Fuji Electric Malaysia, which registered the greenfield into a well-integrated sci- and historical sites. wealth of flora and fauna. Both attractions ence in Malaysia, doing business in the anniversary of the establishment of diplo- its business in KHTP in 1996 and started ence park. Careful planning of the project Perhaps most well-known to those from are a short drive from KHTP. country has never been easier for Japanese matic relations, perhaps now is the perfect operations there two years later, cites the by the government has helped create a outside Malaysia, Langkawi is a perfect day The state of Kedah, coincidentally, is companies. opportunity to think about starting an “overall infrastructure and ecosystem,” and development that balances work, life and trip or holiday getaway. The island resort known as the rice bowl of Malaysia since These are some of the many reasons for investment relationship with the Kulim Hi- “fast and readily available logistics solu- the environment while bringing tremen- is also home to the Langkawi UNESCO it is the major producer of the grain in the Japanese investors to consider KHTP, but Tech Park to foster the future development tions” as reasons for running its magnetic dous benefits to investors and the local Global Geopark. country. above all, Malaysia and the Kulim Tech- of Malaysia and Japan.

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Some of our renowned corporate residents:

Fuji Electric Fuji Logistics FUJIMI-MICRO TECHNOLOGY SDN. BHD. Innovating Energy Technology

SYSTEM SEIKO (MALAYSIA) SDN. BHD. (Co. No. 455349-H)

TOMOE MALAYSIA SDN. BHD. 1164031-V Distinctive Advantages of KHTP

Developed & managed by: • Large pool of local talent • Reliable electricity supply • Clean, potable water KULIM TECHNOLOGY PARK CORPORATION • Easy access to logistic network • Tremendous government support For more enquiries please call: • Mature industrial ecosystem +604-403 2420 • Highly sustainable development KULIM TECHNOLOGY PARK CORPORATION SDN. BHD. (Co.No.44351-D) Email: [email protected] • Autonomous local authority 3.01-3.02, 3rd Floor, KHTP Business Centre. Kulim Hi-Tech Park, P.O. Box 60, 09000 Kulim, Kedah, Malaysia • Flexible and innovative incentives and so much more www.khtp.com.my

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