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MONDAY | MAY 11, 2026

Malaysia on radar of Japanese SMEs

That combination of stability and momentum, he added, gives Malaysia a distinct position within the region’s investment landscape. While neighbouring economies may offer larger populations or faster headline growth, Malaysia provides a relatively predictable regulatory framework alongside sustained ex pansion across key sectors. Ojima said sectors such as information technology (IT), health care, semiconductors and food continue to expand, strengthening Malaysia’s position as both a stable and growth-oriented market within Southeast Asia. The breadth of activity across technology, manufacturing and consumer industries reflects what investors see as a balanced operating environment. “I think IT is definitely a hotspot for Japanese companies. Malaysia is already quite stable and well organised, with very advanced technology there, the country’s digital ecosystem and infrastructure make it particularly attractive for cross-border collaborations and acquisitions.” Malaysia’s governance standards and widespread use of English help facilitate cross-border transactions, offering Japanese investors greater transparency, clearer communi cation and smoother due diligence compared with parts of the region, Ojima said. “Malaysia’s regulatory and cor porate framework remains relatively structured and transparent by regional standards,” he said. Malaysia is seeing growing engagement not only in M&A but also in sector-specific partnerships, particularly in cybersecurity and IT

resistance to change is common when teams are accustomed to established ways of working. Guocera addressed this by adopting a phased approach, starting with basic features before gradually expanding usage. This allowed employees to build confidence while experiencing tangible benefits in their daily workflows. The company also leveraged Zoho’s low-code capabilities to develop customised applications tailored to evolving business needs, ensuring flexibility as market de mands shift. Support from implementation partner Binary Nexus further smoothed the transition, Cheng said, providing technical guidance and ensuring the system was effectively integrated. Looking ahead, Guocera sees digitalisation as a long-term business strategy rather than a one-off upgrade. “The key lesson is that trans formation should not be viewed as an IT project alone,” Cheng said. “It is about unlocking visibility, efficiency and agility across the entire organisation.” for companies in Malaysia or Southeast Asia through mergers and acquisitions or even purely greenfield investments as well,” he said. To deepen engagement, Nihon M&A Center has been working with Japanese regional financial insti tutions to introduce them to South east Asian markets, including Malaysia, through collaboration with agencies such as the Malaysian Investment Development Authority, Bursa Malaysia and CIMB. “I think this kind of event should continue, so that we can bring more investors, and collaborate with Malaysian firms, so we can see more growth and benefits for both countries,” Ojima said. Recent transactions reflect the growing momentum of Japanese corporate activity in Malaysia across financial services, energy and digital sectors. Among the latest notable deals, Japan-based Amova Group, formerly known as Nikko Asset Management, is acquiring near-full ownership of Malaysian fund management firm AHAM Asset Management. In the energy sector, Japan’s Idemitsu Kosan recently entered Malaysia’s upstream oil and gas segment through the acquisition of interests in offshore exploration blocks in Sarawak. Mitsubishi Corp has expanded its exposure to Malaysia’s liquefied natural gas sector through a larger stake in a Petronas linked project in Sarawak. Japanese technology companies, too, have been expanding their footprint in the region through Malaysia. An example is NTT Data’s acquisition of Malaysian payment solutions provider GHL Systems Bhd.

Malaysia’s manufacturing sector gains momentum, supported by a broader push towards smart factories, auto mation and integrated data systems. Cheng said Guocera’s digitalisation strategy is closely aligned with this national shift. “As the industry embraces automation and intelligent systems, we recognised that digitalising our commercial and operational pro cesses was equally critical.” For Guocera, which exports to more than 50 countries across Asia Pacific, the Middle East, Europe and the Americas, the move is not just about keeping pace locally but sustaining competitiveness on a global scale. “Customers today expect speed, accuracy and a seamless experience. Digitalisation enables us to deliver on those expectations while improving agility internally,” she said. However, Cheng acknowledged that digital transformation is not without its challenges, particularly for legacy manufacturers with decades old processes. “Internal adoption is one of the biggest hurdles,” she said, noting that related services. “We also engage in some deals related to cybersecurity and IT related service companies between Japanese companies and Malaysian companies,” Ojima said. Beyond digital services, the halal ecosystem has become a strategic focus. Ojima said the firm has been involved in deals involving halal certified food, personal care and logistics businesses. “I understand halal is not only for food, but also even skin care, personal care and sometimes related to logistics,” he said. Japanese companies are seeking knowledge and operational know how in Muslim markets, with Malaysia often serving as a starting point before expansion into Indonesia, the Middle East or Africa. “The standard of halal in Malaysia is quite high and well-organised. So, many Japanese companies are looking for halal in Malaysia first, then expand to other regions,” Ojima said. The China Plus One strategy has also contributed to interest in the region, though Ojima described it as one of several factors rather than the primary driver. The strategy en courages companies to maintain operations in China while setting up production in other countries to mitigate risks. Shifts in semiconductor and healthcare supply chains have created opportunities, prompting Japanese firms to pursue acquisitions and greenfield investments, Ojima noted. “Many of those companies are shifting to Southeast Asia to capture and acquire those opportunities, Japanese companies are also looking

o Small and medium-sized businesses eye M&A and partnerships overseas amid shift in Japan’s market dynamics: Nihon M&A Center

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

familiar region for the Japanese since almost 30 to 40 years ago. Many Japanese companies such as auto mobile makers and E&E companies have already entered this market,” he said in an interview with SunBiz . For decades, Japanese expansion into Southeast Asia was dominated by large corporations in automotive and electronics. That dynamic is now shifting. “But now, we can see not only the large corporations, but also small and medium-sized enterprises, looking for faster expansion to Southeast Asia, including Malaysia,” Ojima said. He described Malaysia as occupying a middle ground within Southeast Asia, more mature and structured than some regional peers, yet still delivering consistent growth. “The market is not really that big compared with Viet nam or Indonesia. But one of Malaysia’s advantages is that it is already very mature.

PETALING and medium-sized Japanese firms are increasingly targeting Malaysia for mergers and acquisitions (M&A) and strategic partnerships as Japan’s overseas strategy shifts in response to a shrinking domestic market, according to Japanese M&A advisory firm Nihon M&A Center. Nihon M&A Center regional head for Southeast Asia Yusuke Ojima said engagement from JAYA: Small

Japanese corporations in cluding small and me dium-sized enterprises has been rising across acquisitions and sector focused collaborations. “Many Japanese com panies are looking for faster expansion overseas. Southeast Asia has been a

Ojima describes Malaysia as occupying a middle ground within Southeast

“At the same time, it is still a growing country and mar ket. Even in terms of GDP (gross domestic pro duct), we can still see

Asia - more mature and

structured than some regional peers, yet still delivering consistent growth.

growth of more than 4.5% every year.”

Guocera fast-tracks digital pivot to sharpen edge in global market

centralised platform to integrate its commercial and operational functions. The results, according to Cheng, have been immediate and measurable. “We now have a single source of

service and rapid turnaround. Before its digital shift, Guocera’s sales and operational teams worked largely in silos, creating friction that directly impacted performance.

PETALING JAYA: Tile manufacturer Guocera Sdn Bhd is accelerating its digital transformation to close long standing operational gaps and position itself for a more data-driven, globally competitive future, as Malaysia’s manufacturing sector leans into Industry 4.0. In an exclusive interview with SunBiz , managing director Sally Cheng ( pic ) said the group’s decision to overhaul legacy systems was driven by mounting inefficiencies that began to weigh on speed, visibility and customer responsiveness across its operations. “Transformation was no longer optional,” she said, pointing to heavy reliance on paper-based workflows, fragmented customer records and knowledge gaps that surfaced when staff transitioned roles. These structural issues, she added, limited real-time visibility across departments and slowed decision making, a disadvantage in an in creasingly fast-moving global market where customers expect seamless Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

truth,” she said. “Data accuracy has improved significantly, and reports that previously took days can now be generated in real time.” She noted that order processing cycles and inventory management have also become faster and more precise, while collaboration across domestic and inter national sales teams, as well as technical units,

Customer data was dis persed across different teams, including com mercial, technical and design units, often resulting in duplicated efforts and inconsistent communication. “At times, teams were referencing different data sets, which affected follow ups and slowed response times,” Cheng said. The absence of a uni fied pipeline view also

has improved markedly. By consolidating workflows into one system, Guocera has reduced duplication and minimised errors, allowing employees to focus on higher-value tasks. The enhanced pipeline visibility has also enabled management to take a more proactive approach in decision-making. The transformation comes as

made it difficult to track deal progression or to identify bottlenecks early, leading to stalled opportunities without clear ownership. At the leadership level, reporting remained manual and time-consuming, forcing management to rely on retrospective data rather than real-time insights. To address these challenges, Guocera implemented Zoho CRM as a