Kuala Lumpur (VNA) – Amid intensifying competition for foreign direct investment (FDI) in Southeast Asia, Malaysian experts have candidly recognised Vietnam’s strong advantages in workforce capacity and market size.
Speaking at the New Japan–Malaysia Industrial Cooperation Seminar, Nazir Razak, Chairman of the ASEAN Business Advisory Council (ASEAN-BAC) Malaysia, acknowledged growing competition from regional economies such as Vietnam, which benefits from political stability, an abundant labour force, and a larger domestic market. However, he noted that Malaysia can maintain its position thanks to its open economy and consistent governance policies.
To address global geopolitical challenges, Malaysia is promoting its 70-year diplomatic ties and 50-year business partnership with Japan to attract investment. Nazir emphasised that ongoing global uncertainties, including tensions in the Middle East, present opportunities for Malaysia to demonstrate policy predictability and investment potential as international firms restructure supply chains.
Japanese Ambassador to Malaysia Shikata Noriyuki described Malaysia as a promising investment destination, despite rising costs and a stronger ringgit that may require Japanese investors to adjust their business models. He encouraged Japanese corporations to take a more proactive approach in strategic sectors such as semiconductors, artificial intelligence (AI), and data centres to deepen cooperation.
From an economic security perspective, Professor Suzuki Kazuto of the University of Tokyo highlighted trust as a core value, noting that businesses increasingly favour reliable partner countries. He praised Malaysia’s role as a natural gas producer and industrial hub, adding that a deeper regional division of labour across Asia will help build more resilient economic networks.
Regarding developments in the Middle East, experts suggested that Malaysia and Japan can serve as connectors to ease pressures and mitigate risks to global supply chains, given their unique relationships with the region./.
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