Japan-Malaysia Economic Relations: Official Development Assistance, Look East Policy and Opportunities

Mohd Ikbal Mohd Huda and Nur Aiman Nabilah Ramle

Business and Economic Research, 2025, vol. 15, issue 2, 23-39

Abstract: This article investigates the current dynamics of Japan-Malaysia economic relations with a focus on the continuing influence of Japan's Official Development Assistance (ODA) and Malaysia's Look East Policy (LEP). Japan's ODA remains a critical driver in areas such as infrastructure development, disaster resilience, and sustainable growth, aligning with Malaysia's national priorities and its transition to a high-income economy. The LEP, revitalized in recent years, continues to shape Malaysia's socio-economic landscape through knowledge transfer, skill development, and strategic collaboration in sectors like technology and green energy. The study highlights how these frameworks have adapted to contemporary challenges, including digital transformation, climate change, and the shifting global economic order, fostering deeper bilateral cooperation. By examining recent projects, policy adjustments, and collaborative initiatives, the article underscores the mutual benefits and enduring significance of ODA and LEP in enhancing economic ties. It concludes by exploring opportunities for innovation and expansion in the Japan-Malaysia partnership to address shared goals in regional stability and sustainable development.

Date: 2025
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