On July 30, 2024, Roundtable Meeting 2024 on ‘Investment Opportunities in Kulim Hi-Tech Park (KHTP) For Japanese Investors’, co-organized by the Malaysian Investment Development Authority (MIDA), Kulim Technology Park Corporation (KTPC), Kulim Hi-Tech Park, and the ASEAN-Japan Centre—represents a significant economic collaboration between Malaysia and Japan. The meeting reflects a strategic effort to attract Japanese investors, showcasing the high-tech investment potential of Kulim District, Kedah, in the ASEAN landscape.
A Historical Parallel: Collaborative Effort to Strengthen Economic Ties
Izran Abdullah, Director of MIDA Tokyo, opened the meeting by expressing his heartfelt gratitude to the attendees for their continuous support in promoting Malaysia as an attractive investment destination. Director Abdullah drew a historical parallel, referring to Japanese investors as “Samurai,” likening their pioneering role today to Hitachi in the 1970s when it established a strong presence in Malaysia. He highlighted Malaysia’s commitment to sustainability and the country’s ambitious goal to become a leading ESG practitioner by 2030. Malaysia is the top tenth global hub and the sixth-largest semiconductor exporter.
Reasons to invest and Business Opportunities in Malaysia
Chiaki Inoue from MIDA Tokyo presented an overview of the investment and business opportunities for Japanese companies in Malaysia. She provided a comprehensive analysis of approved private investments across various economic sectors from 2014 to 2023, noting a significant increase in Foreign Direct Investment (FDI) in 2023, totaling RM 329.5 billion (USD 70 billion). The manufacturing sector alone saw an 80.3% increase in FDI, rising from RM 84.3 billion to RM 152 billion. Inoue pointed out that Malaysia has been a leading exporter in the electronics and electrical (E&E) industry since the 1970s, ranking 7th globally. She concluded her presentation by providing three compelling reasons to invest in Malaysia: (1) the country’s diverse population, (2) its strategic location at the heart of ASEAN, and (3) its robust connectivity within the ASEAN infrastructure (ranking 2nd in the region for container structure).
Kulim Hi-Tech Park: A Premier Investment Location
Mr. Che Abdul Khalid Md Din, Chief Operating Officer of KTPC, presented the significance of the Kulim Hi-Tech Park as a premier location for high-tech investments, presenting a myriad of opportunities for Japanese companies. He provided a historical background of KHTP, noting its approval in 1989 and its conceptualization by UNIDO and JICA, highlighting the park’s long-standing foundation and international support. COO Khalid described KHTP as an “integrated industrial park” comprising various zones, including industrial, institutional, urban, sport, education, amenity, and R&D training zones, making it an attractive destination for a wide range of investment opportunities which promote high-tech industrial sectors include wafer fabrication, semiconductor, advanced electrical and electronic industries, machinery and metal technology, process control and automation equipment, and advanced materials.
A Success Story of CKD Corporation in Malaysia
Kazunori Matsumura from CKD Corporation shared his company’s 40 years of experience with investment in Malaysia. He detailed CKD Corporation’s expansion of Japanese production to Malaysia. He emphasized the positive opportunity in the ASEAN region, particularly the semiconductor sector, which has seen growth from 20% to 60% in the last few years. Matsumura also outlined the next phase of CKD Corporation’s business plan for Malaysia, highlighting growth in backend processing and industrial automation, which are expected to significantly enhance the company’s operations and market presence in Malaysia.
Way Forward:
The meeting concluded with a discussion on the next phases of investment in KHTP, focusing on the acquisition and securing of site locations and future strategies, setting the stage for continued collaboration and growth in the high-tech sector. ASEAN-Japan Centre together with MIDA will remain committed to addressing the needs of both Malaysian and Japanese investors. We will continue to facilitate a seamless collaborative partnership between Malaysia and Japan in hi-tech industry.
About the Event:
Roundtable Meeting 2024: Investment Opportunities in Kulim Hi-Tech Park (KHTP) For Japanese Investors
Date: 30 July 2024
Venue: Le Grand, InterContinental Tokyo Bay
Time: 2.30 PM – 4.30 PM
Participants: 28 attendees from Malysia and Japan stakeholders
Co-organizers: Malaysian Investment Development Authority, KULIM Technology Park Corporation, KULIM Hi-Tech Park, ASEAN-Japan Centre
