Japan is fully committed to enabling Malaysia to become an investment destination and production hub for the automotive sector under the Japan-Malaysia Economic Partnership Agreement (JMEPA), a top Japanese official has assured.

The director-general for manufacturing industries policy in the Ministry of Economy, Trade and Industry (METI), Shunichi Uchiyama, said Japan regards the implementation of the 10 automotive cooperation projects under JMEPA as a very important task and is closely monitoring the implementation of the projects.

"This is very important cooperation. We want to maintain good business cooperation links with Malaysia in the automotive industry as stipulated in our EPA," he told Bernama in Tokyo.

The 10 projects include a mould-and-die centre, an automotive skills training centre and a components and parts testing centre.

The other projects are in the form of technical expert assistance such as capacity-building for Malaysian auto parts suppliers to ensure conformity with vehicle type approvals, and exposing Malaysian workers to the latest technology and production systems in Japan.

Proceeding smoothly

The JMEPA provides for Japanese companies to transfer their technology in the automotive industry to their Malaysian partners, and Uchiyama said the process has begun.

Uchiyama, who is also the lead Japanese negotiator for EPAs with Asean countries, said that under the arrangement, Japan will also help Malaysian companies improve their export performance for auto parts.

"This includes cooperation in obtaining automotive market information, participation in auto shows and joint venture contracts," he added.

According to him, the projects are proceeding smoothly.

"So our efforts now should be to ensure continued smooth implementation in the second year and up to the fifth year. After the fifth year, both sides will review the situation," Uchiyama added.