KUALA LUMPUR, March 31 — Japanese companies in Malaysia have maintained an expansion trend, as regards their future investment direction, according to a survey conducted by Japan External Trade Organisation (Jetro) Kuala Lumpur and the Japanese Chamber of Trade and Industry Malaysia (Jactim).
The survey conducted between January 2020 and February 22, 2021, involving 199 companies, observed an expansion trend rather than reduction or withdrawal, with the ratio of companies that were considering the former remaining in the same level as in the previous survey in July 2020.
Approximately 20 per cent of both manufacturing sector and non-manufacturing sectors were found to be considering expansion of ‘pure extension’ and ‘new business development’.
Sub-sectors in manufacturing which selected expansion were food, electrical and electronics and chemical products and in non-manufacturing, wholesale/retail, transportation and communication, and information technology.
The respondents cited the advantages for medium to long term investment in Malaysia as English proficiency, few natural disasters and good living environment.
Meanwhile, Japanese expatriates view the time consuming and complicated employment pass application as a big concern.
Also, many companies in the manufacturing sector faced problems such as delay in maritime transportation and delay in delivery of products, parts as well as raw materials from overseas suppliers.
Due to the negative impact of Covid-19 pandemic, approximately, half of the respondents requested for a consistent policy implementation in terms of foreign workers. — Bernama
