Japan is stepping up its support for Malaysia’s low-carbon industry, with the Japan External Trade Organisation (JETRO) recently releasing a list of 47 Japanese companies operating in the nation. These companies are making tremendous progress in energy efficiency and renewable energy, two critical sectors driving Malaysia’s shift to a greener economy. Most of these companies are publicly traded and are actively pursuing environmental measures.
According to a JETRO poll, 83.5% of Japanese companies in Malaysia have initiated or are preparing decarbonization initiatives. This is the highest percentage among the major ASEAN countries. To stimulate additional investments, these companies are requesting tax breaks, renewable energy policies, and regulatory support from the Malaysian government.
Koichi Takano, Managing Director of JETRO Kuala Lumpur, emphasised Malaysia’s important role in furthering decarbonisation as ASEAN’s chair in 2024. He stated that JETRO will use the Asia Zero Emission Community (AZEC) to enhance Japan-Malaysia collaboration. He also voiced confidence in a future Joint Crediting Mechanism (JCM) deal, which may boost carbon-reduction initiatives and investment flows.
One such endeavour is the Chitose Group’s world-class microalgae factory in Sarawak. This biotech startup, backed by large investors, intends to considerably expand its production capacity by 2027.
