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A recent survey by the Japan External Trade Organization (JETRO) shows that over 80% of Japanese companies in the Malaysian market are planning to implement decarbonization efforts. (Image: iStock)
To support the growth of low-carbon industries in Malaysia, the Japanese government, through the Japan External Trade Organization (JETRO), announced at the end of March a list of 47 Japanese companies with established operations in the country.
The majority of these companies are publicly listed, and among various sectors, energy efficiency solutions account for the largest share, followed by renewable energy initiatives.
Malaysia leads ASEAN with Japanese companies’ decarbonization efforts
According to a JETRO survey, 83.5% of Japanese companies in Malaysia are actively pursuing or planning decarbonization initiatives— the highest percentage among major ASEAN nations. To sustain their investments, these firms are urging the Malaysian government to introduce tax incentives, renewable energy policies, and other supportive measures.
Koichi Takano, Managing Director of JETRO Kuala Lumpur, highlighted the strong interest of Japanese companies in Malaysia’s decarbonization agenda, particularly in environmental technology and infrastructure. He noted that Malaysia’s role as ASEAN’s chair for 2024 positions it to drive regional sustainability efforts through these initiatives.
Takano emphasized that JETRO will leverage the Asia Zero Emission Community (AZEC)—a framework proposed by former Prime Minister Fumio Kishida—to foster greater collaboration between Japanese and Malaysian businesses. He also expressed optimism about the potential signing of a Joint Crediting Mechanism (JCM) agreement, which could further enhance carbon reduction projects and investment opportunities.
Chitose Group built world’s largest microalgae plant in Malaysia
Among the 47 companies featured, Chitose Group, a biotech firm specializing in microalgae cultivation, has drawn significant attention. The company develops algae-based products for cosmetics and food and is backed by major investors, including Shiseido, Mizuho Bank, and ENEOS. Chitose currently operates the world’s largest microalgae plant in Kuching, Sarawak.
Japan’s Chitose Group runs the world’s largest microalgae plant in Malaysia. (Photo: Chitose Group)
Microalgae capture carbon dioxide through photosynthesis at a rate 10 times faster than land-based plants, making them a promising tool for biological carbon sequestration. Chitose plans to expand its facility in Malaysia by 2027, increasing its production area from 5 hectares to 100 hectares. The company will also showcase its algae cultivation technology at the 2025 Osaka Expo.
Meanwhile, Zeroboard, a Japanese firm specializing in carbon emission calculation and visualization software, is actively entering the Malaysian market. The company has already gained traction among local Japanese businesses. Managing Director Shintaro Suzuki stated that Zeroboard aims to drive decarbonization management across ASEAN by partnering with Malaysian firms, with a focus on energy, manufacturing, electronics, and finance sectors.
Source: JETRO, Bernama Biz, e-nanyang, Chitose Group
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