MIDA IN TALKS WITH TWO JAPANESE COMPANIES ON SUBSTANTIAL INVESTMENTS

KUALA LUMPUR, Nov 25 (Bernama) -- The Malaysian Investment Development
Authority (MIDA)expects to conclude negotiations with two Japanese companies on
substantial investments in the country by the first quarter of next year.

Its director general Jalilah Baba said, the companies are involved in
the chemical and petrochemical industries and electric car manufacturing.

"The investment is in the knowledge-driven industry, which is something new
for the country. The companies are taking some time to evaluate if the
infrastructure can meet their requirements," she told reporters, after the
opening ceremony of the MAJECA - JAMECA joint conference here Thursday.

The event was officiated by the Minister of International Trade and Industry
Mustapa Mohamad.

At a question and answer session, he said between 1980 and 2009, Japanese
companies had invested US$18 billion in Malaysia's manufacturing industry.

He also said, Japan remained Malaysia's top foreign investor in 2009, with
investments in the manufacturing sector worth RM7 billion (US$2.2 billion).

According to Mustapa, as a result of the Malaysia - Japan Economic
Partnership Agreement (MJEPA), the total annual bilateral trade level rose by at
least 10 per cent on average.

On concerns that some Japanese companies planned to exit the country
due to higher wages, he said, Malaysia is currently promoting automation to
reduce the labour force.

"This is a factor we believe will also help reduce the challenges faced by
Japanese companies," he added.

He highlighted that he would be talking with the Japanese Ambassador to
Malaysia regarding the wage issue and work out solutions on managing
the situation.

The joint annual conference, which also touched on the Economic
Transformation Programme (ETP) and outlook of the power sector, had about 160
participants comprising policy makers and industry players from Malaysia
and Japan.

-- BERNAMA



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