Japan Enterprises Looking for Value Added Strong Yen Strategy

 - The Challenges of Japan in the Globalized World for Value Chain Expansion - 

In the extreme strong Yen era, surviving of Japan small and medium enterprises is a challenge.  The lost of price competitiveness significantly reduced the enterprises' profit, which in turn has an impact on business growth.
In addition, the recent power supply shortage and emerging of enterprises in neighboring countries or region (Korea, China, Taiwan) are factors that threaten Japan enterprises. Consequently, after serious thought, the enterprises moved their manufacturing operations overseas to maintain price competitiveness in the global market. 
Lower cost, safe business environment as well as worry-free are among the important factors to be considered by Japan enterprises before they relocating their manufacturing operations outside of Japan.

With its stable political and economic environment, well developed infrastructure, established logistics and transportation, skilled and high quality workforce, congenial international business environment, multilingual culture, natural disasters free, low inflation rate as well as government incentives, Malaysia is an attractive place for Japan enterprises to relocate their manufacturing operations.

Besides taking advantage of Malaysia as manufacturing operation location for a lower cost, Japan enterprises can also utilize Malaysia's multilingual culture especially English speaking culture and international business environment as an intermediary to expend or sustain products in the global market especially the ASEAN and Middle East, in which Malaysia is a member of ASEAN and OIC (Organization of Islamic Cooperation).  

In addition, enterprises can leverage the EPA between Japan and Malaysia (Japan - Malaysia Economic Cooperation Agreement)  to gain a maximum benefit.  The EPA is win-win economic cooperation agreement between two countries which extended from Malaysia's Look East Policy (LEP) launch in 1982 by the 4th Malaysian Prime Minister Tun Dr Mahathir Mohamad. 

According to consultant firm, A.T. Kearney's 2011 Global Services Location Indexes, Malaysia was ranked as top third location for shared services and outsourcing.  The survey based on economic attractiveness, human resource (skilled workforce) and business environment of 50 countries worldwide.  The indexes proved that Malaysia offers a competitive cost with value added location for globalization value chain. 

Invest Malaysia provides various supports to ensure  Japan enterprises can start their operation in Malaysia smoothly at the right location based on the nature of their businesses, from company setup to operation readiness.   Invest Malaysia will act as a facilitator and provide services as covered below. 

 

  • Feasibility study & cost estimation
  • Incorporation of a company
  • Accounting & Auditing supports (after incorporation)
  • Visa application
  • Office or factory premises search
  • Talents Recruitment
  • Local partner introduction or search
  • Local supplier / vendor introduction or search
  • IT infrastructure setup
  • Malaysian government related application supports
  • Other custom services for operation readiness and after operation

Contact us for detail information.

Other Go-To-Market strategies include:

 

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