The historical development of Japanese investment in Malaysia 1971–1980

This study discusses the historical development of Japanese investment in Malaysia between 1971 and 1980. The research is based on the examination method of the resources available in the library and the National Archives of Malaysia. The objective of the study was to analyze the push and pull factors that contribute to the entry of Japanese investments in Malaysia during Tun Abdul Razak and Tun Hussein Onn administration. After 1970, Japanese investors began investing through a joint venture with government organizations such as the National Corporation Limited (Pernas), Majlis Amanah Rakyat (MARA) and the Federal Land Development Authority (Felda). This is in line with the NEP policy that emphasizes the participation of Bumiputera. These agencies represent Bumiputera participation. Relations between Malaysia and Japan continue to grow in 1977 through the formation of MAJECA in Malaysia and JAMECA in Japan. Japanese investment in this period was in labour-intensive industries that involve cheap labour, raw material processing and trade-related investment.