the investment climate in japan and business opportunities for malaysian … · ·...

The Investment Climate in Japan and Business Opportunities for Malaysian Companies

Hiroyuki Ishige Chairman & CEO

Japan External Trade Organization (JETRO)

Copyright (C) 2016 JETRO. All rights reserved.

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1. Investment Imbalance between Japan and

Malaysia

2. Abenomics has changed Japan

3. Allures of Japan as an investment destination

4. Making Japan the most business friendly

country in the world

5. Talk to JETRO First


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Japan – Malaysia FDI （2014 Stock）

601 million USD

13,706 million

USD

Sources Prepared by JETRO “Japan's Outward and Inward Foreign Direct Investment” From The Ministry of Finance “Balance of Payment Statistics” and Bank of Japan foreign exchange rates.

1. Investment Imbalance between Japan and Malaysia


4 4 Copyright (C) 2016 JETRO. All rights reserved.

Outward FDI is now above Inward FDI

Prepared by JETRO from UNCTAD World Investment Report 2015, 2013, 2011 Annex Tables

1. Investment Imbalance between Japan and Malaysia

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Inward FDI

Outward FDI

(Million USD)



Malaysia






2.3% Increase

Employment

GDP (Real GDP (seasonally adjusted))

Increase

Business conditions (Tankan current situation,

manufactures)

Greatly Improved

Improving Economic Indexes Under Abenomics


517 Trillion Yen

529 Trillion Yen

Large firms -3 Medium-sized firms -5 SMEs -12

Large firms 12 Medium-sized firms 5 SMEs 0

Before the launch of Abe administration

Current

Operating profit of companies

Increase 126

Trillion yen 152

Trillion Yen


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(2015 July-Sep)

(2015 Sep)

(2015 Apr-Jun)

(2012 Dec)

(2012 Oct-Dec)

(2012 Dec)

(2015 Dec)

(2012 Apr-June)

63.8 Million

62.2 Million

Positive Growth Cycle



7

Corporate Earning

improvement

Expansion of

Investment

Salary

Improvement

Expansion of Consumption

8 8

Structural Reform



・ Opening up the electricity market

・ Joining the TPP negotiations

・ Improving the approval process of medicine and medical appliances

81,516

130,183

176,521

249,521

305,500

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2012 2013 2014 2015

9 Copyright (C) 2015 JETRO. All rights reserved. 9

Number of tourists from Malaysia


Source: Japan National Tourism Organization (JNTO) “Foreign Visitors to Japan by Nationality and Month for 2015 - Total” compiled by JETRO

6,218,752

8,358,105

10,363,904

13,413,467

19,737,400

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2011 2012 2013 2014 2015

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Source: Japan National Tourism Organization (JNTO) “Foreign Visitors to Japan by Nationality and Month for 2015 - Total” compiled by JETRO Copyright (C) 2015 JETRO. All rights reserved. 10

Number of foreign visitors to Japan


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Source: Japan National Tourism Organization (JNTO) “Foreign Visitors to Japan by Nationality and Month for 2014 - Total” compiled by JETRO Copyright (C) 2015 JETRO. All rights reserved. 11

Ratio of Asian foreign visitors to Japan


South Korea 26%

China 22%

Taiwan 26%

Hong Kong 9%

Thailand 6%

Malaysia 2% Asia

Others 9%

Ratio of foreign visitors to Japan:

Asia: 81% North America, Europe :8% each



Malaysia






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International comparison of Japanese regional gross production (nominal, FY2011)(Unit: $1billion)

Source: Cabinet Office, “Report on Prefectural Accounts 2011" (FY2014)



Source: Ministry of Economy, Trade and Industry, “FY 2014 Survey Report on Foreign-affiliated Companies' Attitudes toward Foreign Direct Investment in Japan”

14 Copyright (C) 2015 JETRO. All rights reserved. 14

Japan offers a market for test marketing before entering Asian markets. It is also a country with “soft power,” which sets trends for fashions and entertainment content in Asia.

Japan’s Reputation among Foreign-affiliated Companies in Japan


Attractiveness of Business

Expansion in Japan?

(Mutliple answers: top 5 responses per conpeny)

MADE IN JAPAN

Sensitive to added value and trends in products and services. Proving ground for measuring competitiveness of new products and services.

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Business Friendly Infrastructure


Source: World Economic Forum, “The Global Competitiveness Report 2014-2015”

Source: Ministry of Economy, Trade, and Industry(METI), “Survey on Attitudes of Foreign Companies toward Direct Investment in Japan Report 2014”

Easy environment for business

Foreign companies validate Japan’s infrastructure


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16 Copyright (C) 2016 JETRO. All rights reserved.


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RANK

Source: MONOCLE, UK

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1. Tokyo 2. Vienna 3. Berlin 4. Melbourne 5. Sydney 6. Stockholm 7. Vancouver 8. Helsinki

：

12.Fukuoka 14.Kyoto

Comfortable Living



Most livable Japanese cities as chosen by the world



Malaysia






Down to a range of the

20s% in the next few years

Reduction of the corporate tax rate

19 Copyright (C) 2016 JETRO. All rights reserved.

4. Making Japan the most business friendly country in the world

Japan’s Business Cost

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Office Rent (Monthly) (per sq.m)

Housing rent for expatriates (Monthly)

(USD) (USD)

Source : JETRO Source : JETRO


Tokyo

Mumbai

Jakarta

Shanghai

Singapore

0 20 40 60 80 100 120 140 160 180

Kuala Lumpur

Tokyo

Shanghai

Jakarta

Hong Kong

Mumbai

0 1000 2000 3000 4000 5000

4. Making Japan the most business friendly country in the world

Kuala Lumpur



Malaysia






North America

31%

Europe 31%

Asia 31%

Malaysia 1%

Pasific 4%

Central and South America

1%

Middle East and Africa 1%

Investment projects supported by JETRO (2003～2015)

Supported

projects 14,000

1,400 Foreign companies’ startups

over

Malaysia: 11 companies


5. Talk to JETRO First!

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Invest Japan Business Support Center (IBSC)

IBSC Kobe IBSC Tokyo

IBSC Yokohama

IBSC Nagoya

IBSC Osaka

IBSC Fukuoka



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Invest Japan Business Support Center (IBSC)

JETRO’s inward FDI promotion activities

Conference room

Consultation

Private office space

Invest Japan Business Support Center (IBSC) Temporary offices

Consultation service

Specialists give advises about how to start up business in Japan

・Business culture ・Human resources ・Real estate

Temporary offices in 6 major Japanese cities are available for

free of charge for 50 business days

・Legal advise ・Business cost ・Market regulations



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the investment climate in japan and business opportunities for malaysian … · ·...

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