MSIAN DPM'S SPECIFIC INVESTMENT MISSION TO JAPAN NETS US$1.45 BIL POTENTIAL INVESTMENTS

FROM M. SARASWATHI

TOKYO, Dec 8 (Bernama) –- The specific investment mission to Japan led by Malaysian Deputy Prime Minister Muhyiddin Yassin has netted RM4.96 billion (US$1.45 billion) in potential investments.

Of the total, projects worth RM1.7 billion (US$500.3 million) have the
prospects to be realised next year, he said.

“ The investment potentials are the immediate outcome from today's meeting
with captains of industries and businesses as well as proactive measures
initiated by the Malaysian Industrial Development Authority (MIDA) and the
International Trade and Industry Ministry," he told Malaysian journalists
covering his four-day visit to Japan beginning Monday. Muhyiddin will head for
Osaka Tuesday.

The Deputy Prime Minister met presidents and chairmen of 24 companies, part
of which have invested in Malaysia and have plans to expand their business and
newcomers intending to invest in Malaysia.

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

The meeting was 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.

Muhyiddin said this was the first time a meeting with Japanese captains of
Industry and businesses of Japan was held.

Among companies that attended 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.

Muhyiddin said the interest to invest in Malaysia among multinationals and
Japanese companies was still high.

“ In the current situation (world economic recession), they still feel
Malaysia
is the best investment destination for them," he said.

He said the National Automotive Policy (NAP) was among matters raised at the
meeting.

“ They also sought explanation on our NAP and its direction and foreign
workers
recruitment policy," he said.

The Deputy Prime Minister said he explained that the NAP had been revised
and
was more open now.

“ Before it was seen by many industrial sectors as not very open as it
protected the national car and because of that part of the investments supposed
to come to Malaysia went to Thailand which became a hub for international brand
cars that was much bigger than Malaysia," said the former International Trade
and Industry Minister prior to his promotion to Deputy Prime Minister.

" Malaysia is very keen to upgrade the status of the automotive industry by
encouraging investments in new technologies and making Malaysia the hub for
exporting vehicles with big brand names," he said.

Muhyiddin said the outsourcing issue was also raised as the manufacturing
cost of vehicle components in Malaysia was 10 per cent higher than Thailand.

“ Because of this Malaysia is considered not attractive. We need to look
into this matter whether raw materials' price or management cost that
contributed to higher manufacturing cost," he said.

He also said the Government was open to the issue of additional incentives.

“ The Government is pro-active in wooing investments and is prepared to
consider if there are certain suggestions and customised incentives for specific
projects," he added.

Before meeting the Malaysian media, Muhyiddin witnessed signing of two
agreements -- between Chenderong Capital Sdn Bhd and SIM Drive Co Ltd and
Chenderong and Bina Puri Holdings Bhd with Yasui Architects & Engineering Inc.

-- BERNAMA