MITSUI & CO., LTD. At the Heart of Southeast Asia
Situated at the center of Southeast Asia, Malaysia has a tropical rainforest climate and comprises the Malay Peninsula and part of Borneo. With a population of 29.33 million in 2012, approximately one-quarter the size of Japan's population, Malaysia is a multiethnic country that includes ethnic Malays, Chinese and Indians as well as many indigenous peoples. The range of religious beliefs in the country reflects this diversity. As well as Islam, which is the state religion, Buddhism, Hinduism and Christianity have a significant presence. The country's languages are similarly varied, with Chinese and Tamil spoken in addition to the official Malay.
Along with neighbours Indonesia and Singapore, Malaysia has been a member of the Association of Southeast Asian Nations (ASEAN) since its formation. Over the past two years, the country has achieved real GDP growth of more than 5%, and its economy is expected to continue growing steadily. The country's top export and import trading partners in 2012 were Singapore, China and Japan, and as such Asia's economy influences Malaysia significantly.
Kuala Lumpur Branch Operations
In 1963, Mitsui & Co., Ltd. opened a Kuala Lumpur branch to facilitate exports and imports between Japan and Malaysia and support the company's Malaysian operations. The branch celebrated its 50th anniversary in 2013. By collaborating closely with Tejana Trading & Management Services Sdn. Bhd., the branch conducts domestic transactions in Malaysia and other trading. Currently, the branch, which has 107 personnel, is investing in businesses with partners in a wide range of areas-such as chemicals, infrastructure projects, healthcare, environmental businesses and palm oil related businesses that include plantation management- and expanding and advancing trading and marketing activities throughout the country.
Initiatives Going Forward
The 1980s saw Japanese companies' investment in Malaysia surge. After peaking in the mid-1990s, investment levels stagnated for a time due to the Asian currency crisis. Since then, however, the number of Japanese companies choosing Malaysia as an overseas investment destination has been increasing for various reasons. Such reasons include the country's membership of ASEAN, political and economic stability, infrequent natural disasters and friendly relations with Japan as well as India's expanding market and steps to avoid risk associated with China. Also, Malaysia is keen to attract investment from Japan, with an emphasis on such areas as the aerospace, electronics and medical equipment industries. In addition to its existing initiatives, Mitsui will actively unearth new projects with a view to contributing to the further economic development of Malaysia and Southeast Asia as a whole.
Basic Data
| Population | 29.33 million (2012) |
| System of government | Constitutional monarchy (five-year term) |
| Currency | Ringgit |
| Nominal GDP | USD303.5 billion (fiscal 2012) |
| Land area | 329, 735 square kilometers |
| Official language | Malay |
Source: Ministry of Foreign Affairs of Japan
Major Business Activities in Malaysia
Mitsui has a variety of businesses in Malaysia. In addition to the businesses introduced here, we conduct trade in a range of areas, including steel products, ships and food. Also, we are involved in joint ventures with government-owned strategic investment fund Khazanah Nasional Berhad, one of Malaysia's flagship investment funds. We will continue working to discover joint initiatives with major local companies.
In 2011, Mitsui took a stake in IHH Healthcare Bhd. ("IHH"), Asia's largest private hospital group. Across Asia, primarily in its home markets of Malaysia, Singapore and Turkey, IHH operates hospitals, clinics, medical schools and other medical businesses. In emerging countries, medical needs are increasing as societies age, populations grow and lifestyles change due to economic development. Mitsui will take advantage of networks that it has developed through a variety of businesses to support the expansion of hospital businesses and their ancillary businesses in Asia. At the same time, through IHH we will help increase the quality and quantity of medical treatment in Asia's emerging countries by introducing Japan's advanced medical treatment and building hospital-related ancillary businesses, such as specialist clinics, medical examination centers and facilities for the elderly.
In 1993, Mitsui and Daihatsu Motor Co., Ltd. entered into a joint venture with local companies in Malaysia to establish a company for the manufacture and sale of automobiles, Perusahaan Otomobil Kedua Sdn Bhd ("Perodua"). We are comprehensively involved in the value chain, from supplying manufacturing companies with raw materials for automobile steel plate through to retail. As well as having stakes in companies that manufacture Perodua models, including their engines, Mitsui has an interest in Daihatsu (Malaysia) Sdn. Bhd., which was established in 1980 as a wholesaler and retailer of automobiles. Daihatsu (Malaysia) not only has the highest unit sales of Perodua models but wholesales and retails Daihatsu Motor's commercial vehicles and retails trucks manufactured by Hino Motors, Ltd.
Currently, Perodua manufactures and markets three models. In 2013, Perodua sold approximately 200,000 cars, giving it the largest share of Malaysia's automotive market, at roughly 30%, for the eighth consecutive year. Moreover, plans call for the establishment of a new plant in summer 2014, which will raise the company's international competitiveness and production capacity.
Mitsui will continue working with local shareholders and Daihatsu Motor to strengthen Perodua's business foundations.
Mitsui has a 20% interest in Medini Iskandar Malaysia Sdn Bhd, which is undertaking an urban development in the Medini area of Malaysia's Iskandar region. (A subsidiary of Khazanah, our partner in the development of hospital businesses, has a 60% interest in the company.) Through Medini Iskandar Malaysia, we are developing an environmentally friendly smart city.
Covering an area roughly equivalent to that of Tokyo and situated next to Singapore, the Iskandar region has progressed dramatically in recent years. The region's population is expected to double from its 2005 level to 3 million by 2025, making urban development an urgent task.
By introducing outstanding technology, mainly from Japanese companies, and exploiting information and communications technology, Mitsui aims to develop a sustainable, environmentally friendly smart city that not only is reliable, safe and convenient but has efficient energy and water supplies, transportation and other social infrastructure.
In 1989, Mitsui established Palm-Oleo Sdn. Bhd. in Malaysia as a joint venture with a local palm plantation business. Palm-Oleo's chemical manufacturing operations use oil palm as a raw material in the manufacture of fatty acids, glycerin and other chemicals. Chemicals made from biomass raw materials, such as palm oil and sugar cane, instead of fossil fuels are known as green chemicals. These chemicals have attracted attention in recent years because they have a low environmental burden and help prevent global warming. Furthermore, for some of its raw materials Palm-Oleo voluntarily uses environmentally responsible palm oil that the Roundtable on Sustainable Palm Oil has certified.
Through our partnership with Palm-Oleo, we will help supply raw materials for a range of environmentally friendly products that consumers worldwide need-from lubricant oils through to additives for rubber and tires.
Posted in April 2015
The posted information is as of the date of issuance. The information may change without notification.
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