KOBE: Malaysia wants to diversify its exports to Japan as currently, about half are made up of liquefied natural gas (LNG) and the rest are wood and wood-based products and electrical and electronic products.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the government wants to reduce its dependency on LNG exports.

“Malaysia has a lot to offer to Japan other than LNG. Under the 12 National Key Economic Areas, we can export more in services, palm oil, tourism, healthcare, financial services and agriculture,” he told delegates at a seminar on investment and business opportunities in Malaysia here on Monday.

Mustapa is leading a 25-member trade mission to Japan and South Korea which ends today.

He said Malaysia has a lot to offer to companies which plan to set up their regional headquarters in Kuala Lumpur.

“Malaysia is cost-competitive and is well connected to the region with good infrastructure, talents, tax breaks and liberal policies.”

Mustapa said apart from attracting giant companies such as Panasonic, it also wants to entice the Japanese small and medium enterprises, and that it has set up a dedicated agency within the Malaysian Industrial Development Authority.

Malaysia-Japan total bilateral trade hit US$47 billion (RM149.55 billion) last year.

Malaysia’s imports from Japan include electrical and electronic products, chemicals and chemical-based products, automotive parts and minerals and mineral-based products.

Japan was Malaysia’s third largest export market last year