SHAH ALAM, July 24 — Selangor is among the states expected to benefit the most from Japanese investments in the country’s digital artificial intelligence (AI) and electrical and electronics (E&E) sectors, said Investment, Trade, and Industry Minister Datuk Seri Johari Abdul Ghani
The investments are set to drive high-tech industry growth, create jobs, and strengthen local supply chains by 2027.
“States with existing industrial hubs such as Penang, Selangor, Johor, Kedah, and Melaka are expected to receive greater benefits through the growth of electronics clusters, data centres, and AI industries, which can further boost local economies,” he said in a Dewan Negara written reply yesterday.
Johari was responding to Senator Datuk Mustafa Musa’s query on the impact of Japanese investment in the digital, AI, and electronics manufacturing sectors on employment opportunities and economic development.
Between 2021 and 2025, approved Japanese investments in Malaysia’s digital infrastructure sector, especially data centres, amounted to RM1.79 billion through two projects under the Digital Ecosystem Acceleration Scheme, with the potential to create 80 new jobs.
He added that Japanese investment in the E&E sector amounted to RM10.5 billion, involving 46 approved projects that are expected to generate 9,009 job opportunities.
These investments will stimulate the growth of high-value industries, improve productivity, boost exports, and enhance Malaysia’s competitiveness, while creating new business opportunities for local vendors involved in supplying raw materials, machinery, equipment, and manufacturing related services.
“The involvement of Japanese multinational companies in the local supply chain will help strengthen the capabilities of small and medium enterprises through technology transfer, automation and the adoption of high standard production practices,” Johari said.
The investments will also support the National Industrial Master Plan 2030’s target of establishing 3,000 smart factories by 2030.
On employment opportunities, Japanese technology companies are expected to create demand for skilled positions such as cloud engineers, cybersecurity specialists, data analysts, AI engineers, and network managers.
These companies will also invest in human capital development, which would enhance the skills of local workers and accelerate technology transfer.
“By 2027, the spillover benefits of Japanese foreign investment in the digital, AI and E&E sectors to states hosting these projects can be seen through increased economic activity and the development of high-tech industrial ecosystems,” he said.
