MALAYSIAN DPM WOOS JAPANESE MULTINATIONALS TO INVEST IN HI-TECH, CAPITAL-INTENSIVE

TOKYO, Dec 7 (Bernama) –- Malaysian Deputy Prime Minister Muhyiddin Yassin
Monday invited Malaysia Japanese multinationals and businesses to invest in
high technology, capital intensive, high value-added, knowledge-based and
skills-intensive operations, incorporating design and development and research
and development (R&D).

He said such quality investments are key to the country’s move towards
higher level of industrialisation, he said.

Malaysia’s priority sectors are electrical and electronics, information
and communications technology, machinery and equipment, biotechnology, halal
products, services and automotive industry.

“ The government is rationalising all research funds and grants to be more
effective. Japanese companies focusing on R&D are welcomed to explore and take
advantage of opportunities in these areas,” he said at a meeting between him
and captains of industries and businesses of Japan.

Muhyiddin is in Japan leading a four-day specific trade and investment
mission beginning Monday. Besides Tokyo, he will also go to Osaka.

Present at the meeting were Malaysian Industrial Development Authority
(MIDA) Director-General Jalilah Baba and Malaysian Ambassador to Japan
Shaharuddin Mohd Som.

The meeting is organised by MIDA with Bank of Tokyo-Mitsubishi and
Asean-Japan Centre as co-organisers. Among the supporters are Japan Finance
Corporation, Japan External Trade Organisation (JETRO), Mizuho Financial Group,
Japan Chambers of Commerce and Industry and Japan-Malaysia Economic Association.

Among the companies attending the meeting are Furukawa Electric Co, Japan
Silicon Co, Tokyo Yuden Co, Mizuho Corporate Bank, Sumitomo Corp, Toray
Industries, Sojitz Corp, Honda Motor Co, Toyota Motor Corp and Sony Corp.

In the automotive sector, he welcomed Japanese investors to explore
investment opportunities in the hybrid and electric cars which have large
investment prospects in the region.

He said while manufacturing would continue to be the foundation to the
Malaysian economy, the services sector was increasingly becoming the main
contributor to Malaysia's economic growth.

“ In this context, the Government liberalised 27 services sub-sectors, with
no equity condition imposed. The sectors include health and social services,
tourism, transport and logistics, business services and IT-related services,”
he said.

With the growing interest in Islamic banking, Japanese banks are invited to
collaborate with Malaysian banks in Islamic financial services to enter the
financial markets not only in Asean but also in the Middle East, he said.

The Government also announced the deregulation of investment guidelines
administered by the Foreign Investment Committee (FIC) in acquisition of equity
stakes, mergers and takeovers, acquisition of properties and treatment of fund-
raising by listed companies.

The deregulation will strengthen Malaysia’s attractiveness as a place to do
business and invest, for Malaysians and foreigners alike, he said.

Through these measures, the Government intends to place Malaysia on a high
growth trajectory, while at the same time maintaining the philosophy of growth
with equity, he said.

Muhyiddin, who is also Education Minister, said Malaysia would be
increasing investments in human capital development and building a strong
foundation in R&D, commercialisation of research activities and design and
engineering.

The country’s new economic model also focuses on enhancing private
investment from domestic sources.

These companies are encouraged to collaborate with Japanese investors strong
in high knowledge content industries, he said.

Muhyiddin also told the participants the country's 1Malaysia philosophy,
“People First, Performance Now”, encapsulates the country being a multi-racial,
multi-cultural and multi-religious society, with the people living together in
peace and harmony, sustaining the trust and mutual respect for one other.

“ The business aspect of this philosophy entails forging closer relationship
between the public and private sectors and building enterprises on the premise
of genuine partnerships,” he added.

-- BERNAMA