KUALA LUMPUR: Japan’s role within the supply chain is indispensable, says Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai.
He said due to the country’s significance in every corner of the supply chain, there are vast opportunities for Malaysia to work with Japan, should the latter be willing.
“These would constitute a huge investment, estimated to be about hundreds of millions. So, one thing that stands out is Malaysia’s location that makes us sheltered from risks around the world.
“We have remained neutral and non-aligned, which will be an advantage for Japan to do business with us,” he said on the sidelines of the New Japan-Malaysia Industrial Cooperation Seminar yesterday.
As of December 2025, 2,827 manufacturing projects have been successfully implemented, with a total investment value of RM107.9bil.
The momentum has continued with bilateral trade between both countries reaching RM142.9bil in 2025, while total trade increased 2.3% in the first month of 2026.
According to Wong, the fastest way both countries can collaborate is in talent development.
“In the 80s, Japan was using one production operator to manage 15 different machines, and we saw this. So, it is clear they’ve been ahead of us even since then.
“When it comes to designs of integrated circuits, we have sent our engineers to Japan to learn from them. This proves Japan has played a key role in our development.”
He added that there are various pockets of opportunities as Japan has begun opening up and expanding its trade economy at a faster pace lately.
“Perhaps more Japanese companies can bring in more capital and invest in Malaysian companies, or we collaborate with them together and invest. Both nations need to seize the opportunities,” he opined.
On a more sobering note, Wong cautioned that supply chains are at risk due to a number of global factors that the world is facing.
He said increasing geopolitical tensions, rising oil prices, tariffs and the strengthening of the ringgit are bringing about tremendous challenges to local companies.
Wong said the conflict in Iran has begun to impact helium supply, noting that five local companies rely on the gas for wafer fabrication – raising concerns over potential price increases.
“Many will need to find alternative solutions, not just for helium. The United States and Europe will have supplies for helium, so perhaps these companies would need to look there.”
As for the ringgit getting stronger, Wong said semiconductor exporters will bring in lesser earnings, and as a result, see margins squeezed.
“This is why companies have to navigate through many obstacles. But, Malaysia needs to emerge from this as being more competitive globally. We have done it in the past,” he noted.
Meanwhile, ambassador of Japan to Malaysia Noriyuki Shikata said both countries’ visions align closely together, and the goal is to build a partnership whereby Japan’s growth strategy supports the realisation of a Madani society and vice-versa.
He noted that Japan Prime Minister Sanae Takaichi chose Malaysia as her first overseas destination upon taking office.
“She emphasised her wish to further strengthen cooperation in various fields with Malaysia, which is an important comprehensive and strategic partner for the realisation of a Free and Open Indo-Pacific.
“(Both countries’ leaders) highly appreciate the progress in bilateral decarbonisation cooperation such as carbon dioxide capture and storage, ammonia-fired power generation and nuclear energy,” Shikata said in his speech.
He said by leveraging the respective strengths of both countries, a significant new value can be created.
“In this new era, it is no longer just a ‘Look East’ approach where one side learns from the other. I believe we must adopt a new perspective of ‘Looking at Each Other’ – learning from one another as equal partners,” he opined.
“Malaysia’s natural resources, digital infrastructure, and talented human capital diversity will powerfully support Japan’s global expansion, just as Japan’s experience and technologies can contribute to Malaysia’s continued growth,” said Shikata.
