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Malaysia and Japan explore new auto industry model

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Japan and Malaysia eye collaboration in semiconductors, rare earths and supply chain to drive automotive innovation and new value chains.

RAWANG: Malaysia and Japan are exploring collaboration in semiconductors, rare earths and supply chain development that could drive a new model for the automotive industry, Japanese Ambassador to Malaysia Noriyuki Shikata said.

He said that stronger partnerships between Japanese and Malaysian companies could create new value chains and position Malaysia as a key hub for advanced manufacturing and automotive innovation.

Shikata said the cooperation also aligned with Prime Minister Sanae Takahashi’s growth strategy, particularly in priority sectors such as rare earth elements (REEs) and green transformation.

“In terms of Japanese contributions to the Malaysian automotive sector, Perodua is one of the best models of joint ventures between Japanese and Malaysian companies, and it is a very successful example,” he said during a media tour of the Perodua factory here on Thursday.

He added that Japan’s Ministry of Economy, Trade and Industry (METI) had decided to extend financial support for a new Perodua-led project, which could become another benchmark for bilateral industrial cooperation.

Citing Perodua’s collaboration with Daihatsu, he said the partnership had enabled technology transfer, workforce investment and knowledge-sharing.

“My impression is that Perodua is entering a new stage.

“There are new innovations or solutions being developed in Malaysia which we in Japan are also interested to learn from,” he said.

Meanwhile, Perodua President and Chief Executive Officer Datuk Seri Zainal Abidin Ahmad said he hoped more Japanese companies would invest and manufacture their final products in Malaysia to help address supply chain issues involving vehicle parts.

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