Japanese Firms See ASEAN As Increasingly Important Strategic Base – Survey
KUALA LUMPUR, Sept 24 (Bernama) -- ASEAN’s importance as a strategic base for Japanese companies has grown over the past five years amid rising geopolitical tensions.
According to the 2026 survey by the Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA), more than half (52 per cent) of the companies surveyed are either expanding or considering expanding their investments in ASEAN, reflecting the region’s growing strategic importance.
Representing 7,420 member companies across 10 ASEAN countries, the FJCCIA is reaffirming its identity as an “ASEAN Citizen”, deeply rooted in local communities and going beyond the role of an external investor.
The FJCCIA Survey 2026, from July 2 to 24, 2026, received 1,041 valid responses from Japanese companies operating in the region.
“ASEAN is overwhelmingly positioned as a strategic base for diversifying geopolitical risks and a core for supply chain resilience, establishing it as a core haven in global supply chains,” according to an FJCCIA statement on the survey findings.
The survey was released in conjunction with the 18th Dialogue between the FJCCIA and ASEAN Secretary-General Dr Kao Kim Hourn, in Manila, the Philippines, on Sept 18.
The dialogue brought together representatives from ASEAN, the FJCCIA, the Japan External Trade Organisation (JETRO), Japan’s Ministry of Economy, Trade and Industry (METI), and the Economic Research Institute for ASEAN and East Asia (ERIA) to discuss strengthening ASEAN-Japan economic co-creation.
The statement said Japanese companies’ involvement was shifting from “self-contained investment” towards “co-creation” with local partners to address social issues.
The survey showed that approximately 63 per cent of companies were engaged in joint development, technical guidance, joint ventures or capital alliances with local firms, making Japanese companies key technical partners supporting ASEAN’s industrial advancement at the “Gemba”, or on-the-ground operational level.
As “ASEAN Citizens”, Japanese companies are also supporting human capital development to ensure technological advances do not leave behind local workers.
In this regard, Japanese large companies and local startups are creating new business models in Malaysia and Indonesia through JETRO’s “Fast Track Pitch” initiative.
Approximately 140 billion yen (100 yen=RM2.58) has been invested in “Global South Future-Oriented Co-creation Projects” led by Japan’s METI and the ASEAN Economic Ministers (AEM) and the METI Economic and Industrial Cooperation Committee (AMEICC), with more than 300 private-sector projects underway.
The Global South Future-Oriented Co-Creation Project supports developing countries and is an initiative sponsored by METI, with implementation support from organisations including JETRO.
ASEAN’S SUPPLY CHAIN RESILIENCE
To strengthen ASEAN’s supply chain resilience through deeper Japan-ASEAN cooperation, the Japanese business community is calling for a revision of the Japan-ASEAN Comprehensive Economic Partnership (AJCEP).
More than 90 per cent of companies surveyed called for improvements to the business environment through a revision of the AJCEP.
The recommendations include introducing new disciplines to address developments since the agreement came into force in 2008.
“To resolve bottlenecks in expanding business in ASEAN, respondents highlighted trade-related barriers, calling for the facilitation or digitalisation of customs procedures, elimination or reduction of tariffs, and relaxation of rules of origin or simplification of procedures.
“In addition, they called for rule-making to address modern challenges, including economic security (cooperation in the supply of critical goods, among others), the environment (dissemination of renewable energy), and rules related to the digital economy, including cross-border data collaboration,” stated the FJCCIA.
The survey also found that companies wanted improvements in green and energy systems, citing insufficient tax incentives and related legislation by local governments, inadequate infrastructure such as power grids and charging networks, unprepared power systems and Third-Party Access (TPA) systems, as well as a lack of institutional coordination and mutual recognition within ASEAN.
DIGITAL TRANSFORMATION and SUSTAINABLE FUTURE
Approximately 74 per cent of companies surveyed are undertaking or considering digital transformation. Many called for the development of legislation and guidelines on artificial intelligence (AI) ethics, governance and utilisation.
“Ahead of the planned signing of the ASEAN Digital Economy Framework Agreement (DEFA) in 2026, it is required that Japan and ASEAN build a practical infrastructure of trust that goes beyond mere rule compliance, such as sharing AI ethics, mutual recognition of digital signatures, and real-time sharing of cyber threat information, to realise a world-leading digital co-creation zone.
“Japanese companies already have over 300 co-creation projects in AI-assisted medical diagnosis and smart manufacturing,” said FJCCIA.
Many Japanese companies have also implemented green practices, with the survey showing that they are introducing energy-saving technologies, expanding the use of renewable energy, managing greenhouse gas emissions, and promoting recycling activities, including the recovery and reuse of used products.
FJCCIA chairman Shigeru Shimoda said Japanese companies were prepared to work together towards a future in which ASEAN leads Industry 4.0 and becomes the world’s most dynamic “Epicentre of Growth”.
“We expect these recommendations to bear fruit as specific annual milestone deliverables under the strong leadership of the ASEAN Secretariat,” he said.
-- BERNAMA
