121st year | no. 42,271 ISSN 0289-1956 © THE JAPAN TIMES, LTD., 2017 60 years of Malaysia-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 Najib Razak and Prime Minister Shinzo Abe shake hands following a bilateral summit meeting in Tokyo 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 Kuala Lumpur 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; Daim Zainuddin, 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 Asia 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 Singapore 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.