Looking straight as Japan looks south

Prime Minister Anwar Ibrahim visited Tokyo this week at a moment when Japan is looking south with greater urgency. China has pushed into industries where Japanese firms once seemed almost unassailable. Its navy and coast guard operate more often in nearby waters. While America remains an indispensable ally geopolitically, in trade, it is at best transactional and on a cloudy day, capricious. In Takaichi Sanae, Japan has a prime minister who sees engagement with Southeast Asia as a strategic imperative.

Malaysia owes much of its modern industry to Japan. Malaysia’s electronics base and decades of Japanese investment all left their mark. For years, the bargain was easy to understand: Japan brought capital, technology and manufacturing know-how; Malaysia offered a platform for export production. That bargain still matters. But Tokyo now wants more: markets as well as partners whose diplomatic and security roles carry weight in the region. But it’s a fool’s errand to imagine there are free lunches in trade deals. Both sides will attempt to squeeze every last drop of value from the deals, and it’s fine if the outcome is mutually beneficial.