Abstract: During Mahathir's tenure, Japan became one of the key partners in Malaysia's foreign relations. The proposal and implementation of the “Look East Policy” served as a crucial platform and vital medium for promoting economic cooperation and development between Japan and Malaysia. Drawing on the fieldwork and in-depth interviews conducted in Kuala Lumpur and Selangor, as well as primary sources from Malaysian newspapers such as Sin Chew Daily and Nanyang Siang Pau, this study provides a systematic analysis of the evolution of Malaysia-Japan economic relations during Mahathir's first premiership. The findings suggest that the implementation of the Look East Policy not only directly facilitated the rapid expansion of bilateral economic cooperation, enabling Japan to become one of Malaysia's most important economic partners, but also, to some extent, reinforced Malaysia's economic dependence on Japan. Although Japan has provided significant financial and technical support for Malaysia's economic development, certain structural issues remain evident in bilateral relations. The economic ties between Malaysia and Japan exhibit pronounced asymmetry, with Japan not viewing Malaysia as a fully equal partner but rather as a key strategic anchor in advancing its Southeast Asia agenda.

Key words: Mahathir Mohamad, Look East Policy, Malaysia-Japan relations, economic bandwagoning strategy, diversified development