MALAYSIA and Japan have taken a significant step towards deepening their economic and strategic partnership, with both nations unveiling new initiatives in energy security and financial cooperation during Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Japan.
At the centre of the strengthened relationship is a landmark long-term liquefied natural gas (LNG) agreement between Petronas and JERA, which will see Malaysia supply two million tonnes of LNG annually to Japan over a 20-year period beginning in 2028.
JERA Co Inc is a massive Japanese energy company and the largest power generator in Japan.
Anwar described the agreement as a major milestone that reflects the depth of trust and confidence underpinning relations between the two countries.
“We have just concluded a long-term LNG sale and purchase agreement between Petronas and JERA to supply two million tonnes of LNG annually for a period of 20 years beginning in 2028.
“This is an extraordinary achievement and a success in terms of trust and cooperation between two great friendly nations,” he said.
The announcement was made during a joint press conference with his Japanese counterpart, Sanae Takaichi, following bilateral discussions in Tokyo.
Beyond energy cooperation, both governments also moved to reinforce financial ties through new arrangements aimed at expanding the use of local currencies in bilateral trade and investment transactions.
A key focus of the discussions involved efforts to increase settlements using the Malaysian ringgit and Japanese yen, reducing reliance on third-party currencies while strengthening economic resilience and financial connectivity between the two countries.
Anwar said the initiative represented an important step towards building a more balanced and mutually supportive economic relationship.
“What is very important and close to my heart is expanding local currency transactions using the ringgit and yen so that we can increase our interdependence on one another.
“I am also very pleased to hear of the agreement and understanding reached between Bank Negara Malaysia and the Bank of Japan on this matter,” he said.
The Prime Minister said the progress achieved in both energy and financial cooperation demonstrates the willingness of Malaysia and Japan to broaden collaboration in strategic sectors capable of delivering long-term benefits to their respective economies and citizens.
He noted that the latest agreements further reinforce the Comprehensive Strategic Partnership framework that has increasingly guided bilateral relations between Kuala Lumpur and Tokyo.
The developments come at a time when countries across Asia are seeking to strengthen supply-chain security, diversify financial arrangements and reduce exposure to external economic shocks amid an increasingly uncertain global environment.
For Malaysia and Japan, the twin initiatives in LNG supply and local currency settlement represent more than commercial agreements. They reflect a growing strategic convergence between two longstanding partners seeking greater economic resilience, stronger financial integration and enhanced regional stability in the years ahead.
Earlier, Anwar received an official welcome ceremony in Tokyo, where he was greeted by Takaichi before reviewing a guard of honour and meeting senior members of the Japanese Cabinet and government leadership.
The Malaysian Prime Minister subsequently introduced members of the Malaysian delegation accompanying him on the official visit, underscoring the broad scope of engagement between the two nations. - June 10, 2026
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