Growing Beyond Borders: Key Insights from the Japan-Malaysia M&A Opportunities Forum

For decades, Japan and Malaysia have built one of the region's most enduring economic partnerships. Japanese investment has helped shape Malaysia's industrial development, while Malaysia has provided Japanese businesses with a trusted base for regional growth. Along the way, both countries have benefited from a relationship built on mutual trust, collaboration and long-term commitment.

Today, that relationship is entering a new chapter.

In Japan, an ageing population and a maturing domestic market are encouraging more companies to look overseas for growth, including mid-sized firms that may not have explored international expansion in the past. Many of these companies already have a strong familiarity with Malaysia and see it as a natural destination for investment and partnership.

 At the same time, many Malaysian business owners who founded their companies during the 1980s and 1990s are approaching retirement. While they have built strong businesses with loyal customers, experienced employees and deep market knowledge, many are also beginning to consider how best to secure the future of what they have created.

Against this backdrop, Nihon M&A Center Malaysia partnered with RDS Partnership, which recently established a strategic alliance with Japan's largest law firm, Anderson Mori & Tomotsune (AMT), to co-host the half-day forum, Growing Beyond Borders: Japan-Malaysia M&A Opportunities. UOB Malaysia joined the event as strategic partner.

Held on 20 October 2026 at UOB Plaza 1 in Kuala Lumpur, the forum explored how mergers and acquisitions (M&A) can create opportunities for both sides. For Japanese companies, M&A provides a pathway into new markets through established local businesses. For Malaysian business owners, it can offer a way to preserve their legacy, strengthen their companies and position them for continued growth with the right strategic partner.

Here's a look at some of the key insights shared during the forum.

Built on Decades of Trust and Collaboration

The opportunities being discussed today are rooted in a relationship that has been decades in the making. Since the introduction of Malaysia's Look East Policy in the early 1980s, Japan has remained one of the country's most important economic partners. As of the end of 2025, Japanese investors had undertaken more than 3,800 approved projects in Malaysia, representing investments of RM142.9 billion and creating close to 500,000 jobs.

The relationship continues to deepen at the government level. In 2023, Japan and Malaysia elevated ties to a Comprehensive Strategic Partnership. During Prime Minister Anwar Ibrahim's visit to Tokyo in June 2026, both countries reaffirmed their commitment to strengthening cooperation ahead of the 70th anniversary of diplomatic relations in 2027.

As both countries prepare to mark this milestone, leaders on both sides have emphasised greater collaboration between governments, businesses and institutions, creating new opportunities for cross-border growth and investment.

While governments can create the framework for cooperation, businesses ultimately bring partnerships to life. We also believe that M&A can be one of the most direct ways to do that, connecting companies across borders, combining complementary strengths and creating opportunities for long-term growth on both sides.

Welcome Remarks: Why Now?

Rosli Dahlan, Partner at RDS Partnership, and Yuki Fukushima, Managing Director of Nihon M&A Center Malaysia, opened the forum by highlighting why this is an important moment for Japanese and Malaysian businesses to explore new forms of collaboration.

They noted that Japan-Malaysia collaboration is evolving beyond traditional investment relationships towards deeper, long-term partnerships built on shared growth ambitions. For Malaysian business owners, these opportunities extend beyond capital alone. The right Japanese partner can bring technology, operational expertise, management know-how and access to international markets, alongside a long-term perspective that aligns closely with how many family-owned businesses are built and managed.

They also stressed that the best opportunities often come to business owners who start planning early. Exploring options before growth challenges or succession concerns become urgent gives owners greater flexibility and a wider range of strategic choices.

His Excellency SHIKATA Noriyuki, Ambassador Extraordinary and Plenipotentiary of Japan to Malaysia, also delivered a special address at the forum. He highlighted the longstanding friendship between Japan and Malaysia and shared his views on the growing opportunities for collaboration between businesses from both countries. His presence underscored the importance of strengthening economic ties as the bilateral relationship continues to evolve.

Fireside Chat: A Malaysian Business Owner's Cross-Border Journey

The forum then shifted from macroeconomic trends to real-world experience through a fireside chat featuring Datuk Alan See, CEO of Firmus Sdn. Bhd., moderated by Vanessa Choy, Deal Manager at Nihon M&A Center Malaysia, and David Lee, Partner at RDS Partnership.

Drawing from his own experience as a business owner, Datuk Alan shared the factors entrepreneurs should carefully consider when evaluating cross-border M&A opportunities. Beyond financial considerations, he emphasised the importance of finding a partner whose values, culture and long-term vision align with the future direction of the business.

He also spoke about the importance of post-merger integration (PMI), noting that the success of a transaction is often determined after the deal has closed. The ability of both organisations to work together effectively, align expectations and build trust ultimately plays a major role in creating long-term value.

His candid reflections offered a practical view of what cross-border M&A looks like beyond the transaction itself, highlighting the importance of alignment, trust and integration in building a successful long-term partnership.

Keynote Presentation: Why Japan? Unlocking Cross-Border Opportunities for Growth & Business Continuity Through M&A

Yusuke Ojima, Corporate Officer & Head of Overseas Division at Nihon M&A Center, shared reflections from his own experience helping his family business navigate an M&A transaction with a strategic buyer. His personal story offered attendees a practical and relatable perspective on what the seller's journey can look like, from preparing a business for transition to finding a partner capable of carrying the company forward.

He highlighted the importance of preparing early, from reducing reliance on the founder and strengthening the management team to building a business that can continue to grow under new ownership. His experience also showed participants that preparing for M&A is not only about getting ready for a transaction, but also about thinking ahead about the future of the business.

Mr. Ojima also shared broader market perspectives on the growing opportunities between Japan and Malaysia. As Japan's ageing population and mature domestic market encourage more companies to seek growth overseas, Malaysian businesses are increasingly attracting interest from Japanese buyers looking for trusted partners in Southeast Asia. For business owners, this presents an opportunity not only to secure business continuity but also to gain access to new capabilities, markets and growth pathways through strategic partnerships.

Through both his personal experience and market insights, he reinforced the idea that M&A should not be viewed simply as a transfer of ownership. Instead, it can be a strategic tool for business continuity, succession planning and long-term growth. His key message was clear: successful M&A starts with preparation. The earlier business owners plan for the future, the better positioned they are when the right opportunity comes along.

Panel Discussion: Behind Every Successful Transaction: Legal, Valuation & Deal Readiness

The afternoon concluded with a panel discussion on M&A readiness, bringing together Dato' S. Saravana Kumar, Partner at RDS Partnership, and Akitaka Anzai, Partner at Anderson Mori & Tomotsune, who covered legal and tax perspectives; Ryosuke "Rio" Sakamoto, Deputy Director of Nihon M&A Center Malaysia, who discussed valuation and M&A preparedness; and Jason Voon, Country Head of Investment Banking at UOB Malaysia, who shared insights on banking and financing considerations.

The panellists highlighted that being M&A-ready starts well before a buyer comes into the picture. Issues such as unclear ownership structures, informal arrangements or incomplete documentation may not seem urgent in the day-to-day running of a business, but they can create challenges once due diligence begins.

Valuation was another key area discussed. Buyers look beyond profitability when assessing a business, taking into account factors such as the stability of earnings, customer concentration, the strength of the management team and key-person risks. These factors can ultimately affect both the value of the business and how attractive it is to potential buyers.

The panel also covered deal structuring and financing. Different deal structures can affect tax, risk and the level of control retained by each party, while the right financing approach can help support the transaction, particularly in a cross-border M&A deal.

Overall, the discussion showed that M&A readiness involves more than preparing for due diligence or achieving a certain valuation. It is about putting the business in a strong position across its legal, financial and operational areas, with the right advisers working together throughout the process.

What Business Owners Can Take Away:

• Preparation is the real advantage. The strongest outcomes typically go to business owners who start preparing well before a transaction becomes necessary.
  
• M&A is more than an exit strategy. It can be a pathway to growth, market expansion, succession planning or strategic partnership, often while founders continue to play an active role in the business.
  
• Japan is actively seeking growth opportunities overseas. For well-prepared Malaysian businesses, this creates a meaningful opportunity to explore partnerships with Japanese companies looking to expand regionally.
  
• A coordinated advisory approach matters. Legal, tax, valuation, financing and M&A advice are most effective when considered together from the outset.

Looking Ahead: Seventy Years On, a Partnership Built to Grow

As Japan and Malaysia approach 70 years of diplomatic relations in 2027, the relationship between the two countries continues to evolve in new and meaningful ways.

Malaysian businesses bring local market expertise, entrepreneurial drive and regional connectivity, while Japanese companies contribute operational excellence, deep industry experience and a long-term approach to growth. M&A provides one of the most practical ways to bring these complementary strengths together.

As Japan and Malaysia enter a new phase of economic collaboration, the question for business owners is no longer whether opportunities will emerge, but whether their businesses will be prepared to seize them. Those who start planning early, strengthen their foundations and understand their strategic options will be best positioned to help shape the next chapter of growth between the two countries.