Malaysian export from January to October 2008 has increased by 13.9% compared to the corresponding period last year, whereby the export to Japan increased 25.9%, which is higher than the average rise. Malaysian export in October declined 2.6%, in which export to ASEAN fell by 6.1%, US 18.9% and EU 11.4%. In contrast, export to Japan in October increased by 33.4%. The drop in export to US and EU was due to the decline of exports in electronic and electrical products, while the rise in export to Japan was due to the growth of mainly LNG and timber exports.

On 30th October, an international symposium titled “EAFTA, CEPEA, FTAAP and Beyond” co-hosted by Institute of Strategic and International Studies (ISIS) & Japan Economic Foundation (JEF) was held. Speakers from Japan, Malaysia, as well as Asian countries took part and exchange views on the perspective of Free Trade Agreement in Asia.

On 25th November, “Business Matching Forum on Energy Efficiency Technology & Equipment” hosted by JETRO and supported by FMM, PTM & MIDA was held. Malaysia-based Japanese corporations in efficient energy application field exchanged views with the Malaysian corporations, and there were opportunities for business association and cooperation.

On 11th December, Special Envoys of the Prime Minister of Japan, Mr. Masakazu Toyoda and Ambassador Mr. Yoshinori Katori, visited Malaysia and had talks with Dato’ S.K. Devamany, Deputy Minister in the Prime Minister’s Department, and Tan Sri Nor Mohamed bin Yakcop, Second Finance Minister. They shared views that all nation leaders should be consistent in approaching the effects of international financial and economic crisis while providing specific directions at East Asia Summit and ASEAN+3 Summit. Leaders should also be aware on the importance of strengthening Asia growth and expansion of domestic demand while approaching the effects of the crisis.

Malaysia has well-developed infrastructure, quality skilled workforce, political, economic and social stability, and a relatively stable currency, therefore making itself the most attractive manufacturing location for Japanese investors. In order to improve business environment, Japanese government has been cooperating with JETRO Kuala Lumpur and JACTIM to conduct bilateral talks with Malaysian government via the Sub-Committee for Improvement on Business Environment (established under the Japan and Malaysia Economic Partnership Agreement for G-to-G talks).

On 5th December, the 3rd Sub-Committee Meeting of Improvement on Business Environment was held. Japan side had raised the issues of shortage of natural gas supply, hijacking, stable supply and quality of electric power, WEEE (Waste of Electrical and Electronic Equipment), Recycling Regulation and tax incentives for energy conserving consumer goods to the Malaysian government.

Japan will finance up to US$100 billion to the International Monetary Fund. Meanwhile, International Finance Corporation (IFC), a member of the World Bank and Japan Bank for International Cooperation (JBIC) will finance $1 billion and $2 billion respectively to establish a fund to recapitalize the local banks in developing countries. In order to encourage loans and credits to be made available to the private sector, the fund will assist the economies of small and new emerging countries by injecting capital into banks in Asia, Central and South America, Africa and other emerging markets. Japan also proposed the structure of the Asia-Pacific Trade Insurance Network which covers trade insurance among several countries.