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JOHOR BARU: Johor is in a good position to attract small and medium enterprises (SMEs) from Japan to set up their manufacturing facilities or relocate their operations to the state, said Nikkan Kogyo Global Business Support Inc (NKGBS) chief operating officer and director Koichiro Nakajima.

He said it would further reaffirm Johor’s position as one of the leading manufacturing hubs in the region.

Nakajima said many of the Japanese-based SMEs were seriously looking to expand their operations in Asean countries due to the high cost of doing business back home.

“The second wave of business expansion is taking place now involving Japanese SMEs looking to expand their operations to other countries,” he said in an interview with StarBiz.

NKGBS offers “transplant service” for manufacturers looking to expand overseas by coordinating partnerships with local partners and providing comprehensive guidance and assistance with the setting up of production facilities and offices.

NKGBS is 70%-owned by Nikkan Kogyo Shimbun – a leading business and technology newspaper in Japan which has been around for 100 years with a daily circulation of 400,000 and a readership of two million – and 30% by a Japanese conglomerate.

Nakajima was the vice-president of the conglomerate and was instrumental in bringing 25 Japanese multinational corporations (MNCs) to invest in Malaysia during his stint with the conglomerate. Out of this, 15 had invested in Johor.

He said that the business expansion was similar to the first wave which had taken place between 20 and 30 years ago by Japanese MNCs to countries in the region.

According to Nakajima, Malaysia has always been the top choice among Japanese companies in their business expansion plans, and in this respect, Johor would be the main beneficiary.

He noted that apart from the country’s political stability, good infrastructure and utility supplies, there were hardly any issues related to disgruntled employees such as strikes taking place in Malaysia.

Nakajima added that another main factor most Japanese investors would consider before investing overseas were natural calamities such as earthquakes, typhoons, major floods and volcanic eruptions.

He said that Malaysia was rather fortunate, as the country was relatively free from natural disasters and foreign investors would be more than happy to invest here.

“Johor Baru’s close proximity to Singapore is an added advantage to attract Japanese SMEs planning to set up their operations in Iskandar Malaysia,’’ pointed out Nakajima.

He said Johor had established itself in the electronics and electrical (E&E) manufacturing sector for years, and that it was a good ingredient to attract Japanese companies here.

*source from The Star Malaysia on 21 June 2014