JAPAN WANTS TO UP TRADE VOLUME WITH M'SIA VIA GROWTH STRATEGIES

KUALA LUMPUR, Feb 11 (Bernama) -- Japan wants to increase trade with
Malaysia by implementing fresh growth strategies under the new Japanese Prime
Minister Yukio Hatoyama's administration.

Japanese Ambassador to Malaysia Masahiko Horie said he was positive that the
Japan-Malaysia two-way trade this year would be better than last year.

"I hope the growth strategies under the new administration will be
successfully
launched and bear fruition, leading to higher trade volume between Malaysia and
Japan," he told a media briefing on Japan's new growth strategies to bolster
bilateral trade.

Total trade between Malaysia and Japan last year stood at RM108.71 billion
(US$1=RM3.4), with Japan being the fourth major trading partner compared with
RM136.89 billion in 2008.

Export and import volume with Japan amounted to RM54.42 billion and RM54.29,
respectively.

Horie, however, said Malaysia needs to focus more in addressing certain
issues
that would affect foreign direct investments to the country such as the recent
freeze on foreign workers' recruitment and power outages.

Although the government had addressed both foreign workers' recruitment and
power disruptions, he said more could be done for a long-term solution.

"We hope the Malaysian Government will be more flexible in recruiting
foreign
workers as the manufacturers are affected due to the freeze.

"The remedial measures will in turn result in investors considering whether
to
go to Malaysia as they may consider other countries like Vietnam," he said.

Horie said Malaysia's good infrastructures, sound economy, political
stability, communication ability among Malaysians and racial unity are strong
plus points to woo foreign direct investments to Malaysia.

"With companies like Tokuyama Corporation building a new factory in Sarawak
to
produce polycrystalline silicon for solar cells and a famous Japanese food
manufacturing company opening a factory in Melaka to produce halal food clearly
showed a growing confidence among foreign investors to invest in Malaysia," he
said.

"I hope foreign workers' recruitment issue will not taint Malaysia's image
despite having all the attributes for a sound investment destination. We want
the positive trend for direct investments in Malaysia to continue," he said.

Todate, there are 1,400 Japanese companies operating in Malaysia.

On the policy for new growth strategies expected to be drawn up by June,
Horie said Japan would focus on a government-intervention market than a free
market.

"It will be more on a regulated form to a certain extent and not a full
intervention by the government to prevent a bubble economy.

"The new strategies will be more demand-led growth as the Japanese
government will be focusing more on environmental, health
and tourist industries besides stressing on a people-concept economy," the
diplomat added.

-- BERNAMA