Nihon M&A Center sets up AtoG Capital to spur Japan-Asean investment opportunities

PETALING JAYA: Nihon M&A Center Holdings has established Asean to Global Capital (AtoG Capital), a subsidiary fund management company aimed at supporting Japanese companies’ expansion into the Asean region.

Through the fund, it aims to facilitate cross-border merger and acquisition (M&A) transactions, and the first partnership kicked off in Malaysia with CK MAC Global Sdn Bhd, a trading company specialising in computer numerical control (CNC) machinery and providing after-sales services, which has a presence in Malaysia and Singapore.

AtoG Capital focuses on promoting cross-border M&A opportunities between Japanese companies and SMEs within the Asean region. The initiative underscores the company’s commitment in assisting these SMEs in restructuring their operations, thus, fostering successful partnerships with Japanese companies as the ultimate outcome.

Nihon M&A Centre Asean region head Yusuke Ojima said, “For decades, Japan and Asean have forged strong business partnerships, driven by a mutual commitment to economic development in the region. With AtoG Capital, this represents a significant step in facilitating cross-border investment opportunities and we are dedicated to providing our clients with the resources and expertise to navigate international M&A complexities, fostering successful partnerships that promote sustainable growth.”

He added that with Japan’s domestic market at the phase of maturity and saturation, it presents limited growth potential compared to the dynamic and rapidly expanding economies in foreign markets.

The Asean region, including countries such as Malaysia, Singapore, Indonesia, Thailand and Vietnam, offers significant opportunities for Japanese companies seeking to diversify and grow. By expanding their investments into these high-growth markets, Japanese companies can not only mitigate risks associated with domestic economic fluctuations but also leverage new opportunities for long-term growth and market expansion.

Statistically, the influx of investment from Japan to Asean has highlighted that total two-way trade reached US$241.1 billion (M1.03 trillion) in 2023, while total foreign direct investment inflow from Japan to Asean amounted to US$14.5 billion.

Japan continues its robust investment in Malaysia, contributing approximately US$1.15 billion, with strong growth in electronics and automotive sectors​

In Malaysia, demand for Japanese investment has been increasing, with a notable rise in ongoing M&A deals year-on-year. Since 2020, Nihon M&A Center Malaysia has achieved remarkable success in closing up to 13 deals ranging from RM30 million to about RM200 million. M&A plays a strategic role for Japanese companies to enter the Asian market and Malaysia serves as a key entry point.

Malaysia’s position as a gateway in the halal industry is also valuable for Japanese companies aiming to expand in the Southeast Asian and Arabic markets. It offers a unique chance to tap into the halal markets and cater to specific consumer preferences.

Thus, by having the new initiative through AtoG Capital, Nihon M&A Center aims to empower Asean companies, especially middle-sized (mid-cap) companies to unleash their full potential on the global landscape.

AtoG Capital will facilitate a two-phase exit process for companies, supporting internal restructuring and later assisting in share sales through Nihon M&A Center’s advisory services. The fund will ensure alignment with Japanese business standards and offer a structured post-merger integration (PMI) approach, minimising time and costs for successful exits.

Specialising in restructuring corporate governance to align with Japanese business standards and providing a structured approach to PMI, Nihon M&A Center ensures a seamless transition into Japanese business culture. This investment model minimises the time and costs associated with successful exits while reducing the need for direct management involvement in strategic decisions, allowing businesses to operate more efficiently.