Why More Japanese Students Are Choosing Asia Over the West

In a shared apartment in Kuala Lumpur, a Japanese student navigates daily life alongside roommates from Pakistan and Malaysia, learning to move comfortably between cultures, languages and beliefs. 

Utana Arai, 22, is an international student from Japan studying at Sunway University, and since arriving in Malaysia in mid-2025, the experience has quietly reshaped how she understands people, community and her future in Asia.

“I wanted to experience the front lines of economic growth,” Utana said. “I also realised that around 40% of ASEAN’s population is Muslim, and that this figure is expected to grow. Rather than seeing that as something distant or unfamiliar, I felt it was important to deepen my understanding of the culture and religion.”

Her interest in culture drew her toward Malaysia, but financial reality made it the practical choice.

In recent years, currency pressures have become a decisive factor shaping Japanese students’ study-abroad decisions. Since 2022, the yen has weakened sharply, hovering around 140 to 150 yen per US dollar, compared with around 100 yen a decade ago.

As tuition fees and living costs overseas are largely denominated in foreign currencies, this prolonged depreciation has significantly increased the financial burden of studying abroad.

Utana’s decision reflects a broader shift underway in Japan. Across the country, a weak yen is prompting students to look beyond traditional Western destinations, but for many, the turn toward Asia reflects more than affordability.

While several Asian countries offer English-language education, high costs in Singapore, the focus on language schools in the Philippines, and the limited number of English-taught university programmes in Thailand have made them less accessible.

By comparison, Malaysia presents a more affordable and comprehensive option, attracting Japanese students seeking both quality education and a pathway to regional experience.

For many, the choice signals a growing aspiration to gain regional exposure, build independence, and engage directly with Asia’s social and economic realities at a formative stage of their lives. 

When Studying Abroad No Longer Means the West 

While many students’ starting point when considering studying abroad is often the Western countries, Utana carefully considered both the cost and practicality of each destination. 

“Initially, I considered popular destinations like Australia. However, financial constraints and the short timeline for saving money made those options difficult,” Utana explained.

Behind this shift is a reassessment of cost. As the yen has weakened since 2022, students tend to look for places that offer quality education without the high cost of  financial burden.

The financial strain caused by the weakening yen has acted as a key catalyst driving Japanese students to pursue studies abroad.

In a survey of students currently studying abroad or planning to do so conducted by RyuLog,  66% reported that the weakening yen has increased the burden of overseas tuition and living expenses.

“Given the limited conditions, I dug deep into my interests and what I wanted to do in the future, and I felt that the environment in Malaysia was the closest to what I was looking for in terms of studying abroad,” Utana expressed. 

According to the Japan Association of Overseas Study (JAOS), the number of Japanese students heading to Malaysia nearly doubled between 2019 and 2024, rising from around 480 to roughly 890.

By contrast, traditional destinations such as the US and Australia, long considered default options for Japanese students, have seen slower recoveries amid rising costs and the prolonged weakness of the yen. 

The same survey showed that the number of students choosing the US declined by more than 2,000 from the previous year.

Once considered an unconventional choice, Malaysia is now gaining attention as an alternative to traditional study-abroad destinations.

“Malaysia is a country where people live together at the individual level, despite ethnic and political conflicts. 

“Even if people belong to different ethnicities or religions, they still have relationships with one another,” she added.

What Malaysia Offers Beyond Lecture Halls

Through her daily life, Utana began to look beyond Malaysia’s rapid economic growth and examine the social challenges beneath its surface.

“Because Malaysia is developing so quickly, I wanted to understand not only the bright, visible side of that growth, but also the issues that are less visible,” she said.

She observed that family responsibilities lead some Malay youths to leave school early and take up gig work, while students in the Chinese community often have greater access to business opportunities.

“Even within the same country, I felt there were very clear differences in access and opportunity,” Utana said.

She also noted regional political contrasts, pointing out that Penang is one of the few states led by Chinese politicians, while many others are dominated by Malay leadership. 

The contrast and the rich diversity, which differed from that in Japan, deepened her interest in Malaysian society.

Rethinking Careers Outside Japan’s Hiring System

Japanese students often face particular pressure when thinking about their future because of Japan’s employment system, especially the practice of mass hiring of new graduates.

As a result, job hunting typically begins in the third year of university, encouraging students to consider early on how each experience will connect to a future career.

Living in Malaysia gradually shifted Utana's mindset. She had envisioned working for a trading company, but interactions with a wide range of people, including not only local Malaysians but also Japanese business professionals, reshaped her view of her future.

“I want to develop the ability to focus on the workplaces of ordinary people, identify problems independently, and create solutions on my own. 

“Rather than conforming to a large organization, I want to be someone who can act independently,” she said.

A representative from a scholarship program led by Japan’s Ministry of Education called ‘Tobitate! Study Abroad JAPAN’ noted that companies are now looking for these skills instead of just following rules.

This shift aligns with market demands, as companies are placing greater value on employees who can solve problems independently and communicate across cultures.

Testing the Region Through Work

Utana started her internship in January. She works at a microfinance company focused on small businesses, which is led by a Japanese woman as CEO.

“I was drawn to work in a diverse environment with Malay, Chinese, and Indian members, where I can engage in real cross-cultural teamwork,” she said.

Specifically, the company identifies the difficulties of obtaining loans for women, youth, and small businesses. 

Building an environment in which anyone can access finance and achieve their goals is their philosophy.

Their business goal will help her gain more insightful perspectives.

“Being able to gain firsthand insight into local businesses and their struggles matches my interests exactly."

According to JETRO, more than 1,600 Japanese companies have established operations in Malaysia, which means that there is a certain Japanese community.

For students like Utana, this environment serves not only as a place to study, but as a testing ground for their future careers in Asia.

Looking ahead, Utana hopes to engage in socially meaningful work in Malaysia.

While she plans to work in Japan first to strengthen her language skills and professional expertise, her goal is not to stay there.

Ultimately, she hopes to return to Malaysia to give back by building her own NGO or social enterprise and working alongside local communities.

For students like Utana, Malaysia is not merely a place to study abroad. It has become a stepping stone toward a future in which she hopes to contribute, together with the people she has come to know.