KUALA LUMPUR: Malaysian Industrial Development Authority (Mida) has teamed up with the subsidiaries of one of Japan's largest financial conglomerates to facilitate cross-border investments, in a bid to attract more Japanese small- and medium-scale enterprises (SMEs) to invest in Malaysia.
Mida, which yesterday signed a two-year memorandum of understanding (MoU) with Mizuho Financial Group units Mizuho Corporate Bank Ltd and Mizuho Bank Ltd, is set to leverage on the group's extensive client network in Japan as well as Malaysia's excellent investment climate to enhance cross-border investments.
The MoU was signed by Mida director-general Datuk R. Karunakaran and Mizuho Corporate Bank managing director Yasufumi Miyazaki.
Karunakaran said the alliance would assist Japanese investors doing business in Malaysia and help attract more Japanese SMEs to invest here.
Datuk R. Karunakaran (left) exchanges documents with Yasufumi Miyazaki. Present at the eventare (2nd from left) Mizuho Corporate Bank GM Kazumasa Domen, Datuk Seri Rafidah Aziz andJapanese Ambassador Tadashi Imai.
Mida will provide a platform for Japanese companies, in collaboration with Mizuho, to discuss potential investment plans and general interests in investing in Malaysia, as well as advising corporation on investment incentive schemes, he added.
Mizuho, which was formed in mid-2002 after the consolidation of Japan-based Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan, lends to 2,500 large corporations and more than 90,000 SMEs in Japan.
Under the agreement, Mizuho will act as a conduit for strategic trade and investment inquiries, consultation and contact with Mida.
Miyazaki said Mizuho Bank was attracted to Malaysia's in-depth and sophisticated infrastructure, which was essential for the setting up of high-tech industries.
Earlier in his speech, Miyazaki said Japanese investments in Malaysia rose to RM3.7bil last year from RM1bil in 2004. Japan is currently the second largest source of foreign investments.
Japanese investors last year spent RM1.4bil on 20 new projects and the balance on expansion and diversifications.