Prime Minister Dr Mahathir Mohamad expressed his hope that Japanese universities will open their branches in Malaysia although there are constraints in their policy and funding.
He said the cost of opening a university branch is much lower and Malaysians could avail themselves of Japanese education.
At the same time, Mahathir said poor countries from Africa and Asia could send their students to Malaysia without having to go to Japan.
"We pointed out to them that now we have four British universities, some Australian universities, and even a Chinese university which has about 20,000 students in Malaysia.
"We have asked Japan to open a university branch in Malaysia. Unfortunately, they are constrained by their policy and funding," he told a press conference in Tokyo, Japan.
On the Japanese investors' sentiment towards the country, Mahathir said the reaction has been positive with them showing interest to increase their investments.
"They will provide more training for our workers and engineers."
Mahathir said the government will review bureaucratic process which hinders the investors, adding that the past government had set a lot of conditions.
"We will review whether the conditions set by the previous government are necessary or not," he said.