Panel DiscussionJS-SEZ and Japanese Companies: Pathways to Sustainable Growth

Malaysia gained independence from British colonial rule in 1957. Just two years later, in 1959, Mitsui & Co. established a branch office in the country. Since then, the company “has contributed to Malaysia’s economic growth, industrial development, and job creation, mainly through trade and investment,” said Hiromitsu Narukama, Managing Director & CEO of Mitsui & Co. (Malaysia). Malaysia is now one of the countries Mitsui & Co. invests in the most.

In Johor, Mitsui has partnered with Lee Soon Seng Plastic Industries (LSSPI), a leading Malaysian manufacturer of functional food containers. “LSSPI is more than just a container manufacturer,” said Narukama. “It is addressing critical challenges such as food safety and packaging innovation.”

Narukama sees Johor as “a key hub for Asia’s future,” citing its strategic location near Singapore, modern infrastructure, and abundant land. He views Johor as “an ideal environment for industrial concentration and innovation.” Through Johor-Singapore collaboration, he believes the two regions will “jointly serve as a sustainable regional economic hub.”

Sumitomo Mitsui Banking Corporation (SMBC) operates a fully licensed commercial bank in Malaysia through its local subsidiary. With approximately 700 employees, it offers a suite of services including ESG financing, Islamic finance, and digitalization support.

Atsuhide Shiojiri, President & CEO of SMBC Malaysia, acknowledged that Malaysia has faced difficulties in attracting large-scale Japanese investment in recent years, with other countries gaining a competitive edge.

He identified the Johor-Singapore Special Economic Zone (JS-SEZ) as a turning point. Describing it as “a region well-equipped with logistical infrastructure,” Shiojiri sees the JS-SEZ as a future hub for investments in green energy, food security, digital economy, healthcare, and education.

In May 2025, SMBC was named by Malaysia’s Ministry of Economy as the sole Japanese strategic partner bank for the JS-SEZ. “We view this as a fresh starting point for a new wave of Japanese investment in Malaysia and are fully committed to supporting it,” said Shiojiri.

He also highlighted that many Japanese firms are already operating in Johor Bahru. “We hope synergies will emerge between those already present and those entering the JS-SEZ,” he added.

The AEON Group has eight companies operating in Malaysia across sectors including retail, finance, entertainment, and facility management.

AEON Malaysia runs 185 retail outlets nationwide and employs roughly 10,000 people. Across the country, the AEON Group’s workforce totals approximately 18,000.

AEON opened its first mall in Johor in 2002 and now operates six malls and three hypermarkets throughout the state.

The company recently announced a three-year tree-planting initiative in Johor, in partnership with the Forest Research Institute Malaysia (FRIM). AEON has conducted tree-planting projects globally for over 30 years, including a decade-long campaign in Malaysia that concluded in 2024. Johor has now been chosen as a focal point for AEON’s new investment.

Naoya Okada, Managing Director of AEON Co. (M), commented, “We’re seeing a growing flow of people from Singapore into Johor. Our goal is to continue investing so customers in both Johor and Singapore can enjoy a safer, more fulfilling life.”