01/04/2026

BIZ & FINANCE WEDNESDAY | APR 1, 2026

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Japan sees Malaysia as key partner

CIMB Securities maintained a “Buy” call on DBB, but lowered its target price to RM1.93. The research house reduced DBB’s core net profit forecasts for FY26–28 by 8%, 7% and 7% respectively – to reflect higher input and logistics costs. The firm said the revised target price represents a 7% cut and is based on an unchanged FY27 price-to earnings multiple of 16 times, in line with its three-year historical average. incentives increasingly tied to innovation, sustainability and eco nomic complexity. “This framework is tailor-made for Japanese companies known for precision, discipline and long-term commitment,” he added. Zafrul highlighted Malaysia’s role in critical supply chains including rare earth processing and energy exports, noting that the country already plays a significant role in supporting Japan’s industrial ecosystem. Malaysia currently supplies about 15% of Japan’s liquefied natural gas needs, reinforcing long-standing energy ties between the two nations. At the same time, both countries are looking to expand cooperation into emerging areas such as artificial intelligence, aerospace and digital industries. Beyond investments, talent development is also gaining prominence, with calls for deeper collaboration in training, internships and knowledge exchange to support long-term industrial growth. The seminar comes as Malaysia and Japan prepare to mark 70 years of diplomatic relations next year, following the elevation of ties to a comprehensive strategic partnership in 2023. Shikata said the relationship is entering a new phase, moving from a traditional “Look East” approach to one based on mutual learning and equal partnership. “We must evolve from learning from each other to learning with each other,” he said.

o Envoy says there is ‘powerful synergy’ for collaboraton’ as Tokyo prioritises economic security, especially energy and supply chains

KUALA LUMPUR: Japan is posi tioning Malaysia as a key anchor in its evolving supply chain strategy, as both nations seek to deepen industrial cooperation amid rising geopolitical and economic uncertainties. Speaking at the Japan–Malaysia Industrial Cooperation Seminar, Japanese ambassador to Malaysia Shikata Noriyuki said economic security, particularly in energy and supply chains, has become a top priority for Tokyo amid heightened global tensions. He pointed to vulnerabilities in global energy routes, especially in the Middle East, as a wake-up call for countries to diversify their energy sources and strengthen supply chain resilience. “In this increasingly complex landscape, reinforcing energy security and supply chain resi lience is a critical challenge for Japan,” he said. Against this backdrop, Malaysia has emerged as a natural partner, given its established industrial base and strategic position in Asean. Shikata noted that both countries’ policy frameworks are increasingly Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

Regarding the spike in raw material prices, particularly active pharmaceutical ingredients, DBB indicated that it currently holds sufficient inventory to last at least six months. CIMB Securities said this is broadly in line with the Health Ministry’s previous guidance of maintaining stock buffers of up to five months, thereby mitigating the risk of raw material shortages. aligned, with Japan’s growth strategy intersecting with Malaysia’s Madani vision, creating what he described as a “powerful synergy” for future collaboration. The partnership is already substantial. Japan remains one of Malaysia’s largest investors, with thousands of manufacturing projects implemented over decades that form the backbone of the country’s industrialisation. Deputy Investment, Trade and Industry Minister Sim Tze Tzin said Malaysia continues to offer a stable and competitive base for Japanese firms seeking to diversify operations in the region. “As of December 2025, a total of 2,872 manufacturing projects have been implemented with investments worth RM107.9 billion,” he said. Bilateral trade reached RM142.9 billion last year and continued to grow in early 2026, underscoring sustained economic momentum between the two nations. Sim emphasised that Malaysia is transitioning beyond traditional manufacturing into higher-value, innovation-driven activities, creating new opportunities for Japanese companies. Key sectors identified include

RM107.9b in manufacturing projects highlights decades of deep-rooted industrial collaboration between both economies. – UNSPLASH PIX

“The company continues to closely monitor developments related to the Middle Eastern conflict and will implement price adjustments in the private sector, where feasible, to cushion any cost impact,” the research firm said. CIMB Securities said DBB expects the award of a new three-year contract to supply human insulin by the third quarter of 2026. The previous contract expired in October 2025. semiconductors, advanced materials, medical devices and green technologies. Malaysia’s push into the semiconductor value chain including IC design, advanced packaging and R&D, is expected to be a major draw for Japanese investment, particularly as global chip supply chains are being restructured. “Invest not just in assembly, but in innovation,” Sim urged, calling on Japanese firms to co-locate research and development (R&D) activities in Malaysia. Green transformation is another major pillar of cooperation, with both countries exploring collaboration in electric vehicles, renewable energy

The research firm also noted that in February 2026, the Health Ministry (MOH) awarded DBB a short-term contract worth RM65.1 million to supply recombinant human insulin (RHI) until May 2026. “As MOH insulin supply contracts typically run for three years, the current arrangement is seen as an interim extension pending the finalisation of the longer-term tender,” CIMB Securities said. and carbon capture technologies. Senior political adviser to the prime minister and Mida chairman Tengku Zafrul Aziz said the shifting global landscape is accelerating the need for resilient and diversified industrial networks. “The old world of efficiency is collapsing. A new world of resilience must be built,” he said. He stressed that Malaysia is no longer pitching potential, but proven capability, backed by decades of industrial collaboration with Japanese firms. The country’s new investment framework also signals a shift towards quality over quantity, with

CIMB says Duopharma navigating geopolitical risks, keeps ‘Buy’ call KUALA LUMPUR: Duopharma

Biotech Bhd (DBB) is navigating geopolitical risks as the intensifying US-Iran conflict poses two primary risks to the group: a direct impact on export sales and spikes in raw material prices. CIMB Securities Sdn Bhd noted that the impact on sales is expected to be minimal, as only 0.4% of DBB’s total sales are derived from exports to Middle Eastern countries.

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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