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About Malaysia

Malaysia, home to a population of over 30 million, is one of the more developed economies in South East Asia. The economy, which is valued at US$ 302.7 billion, is well-diversified in terms of sources of growth and revenue owing to the economic, financial and fiscal reforms undertaken thus far by the government. The economy is expected to grow between 4.3 and 4.8% in 2017.

Business and consumer confidence has been boosted by the country’s strong economic performance, relatively low unemployment rates and the government’s commitment and initiatives to transform the economy. The country offers a competitive business environment, backed by its open investment policies and well-developed financial market.

Population: 30.95 million
Inflation Rate: 2%
Currency: Malaysian Ringgit (MYR)
Ave Exchange Rate: MYR 4.079: US$ 1
Imports: US$ 139.5 billion
Exports: US$ 167.3 billion
GDP: US$ 302.7 billion
GDP per capita (PPP) US$ 27,200
Real GDP Growth 4.2%
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INDUSTRY REPORTS

This report is designed to provide an overview of the medical technologies sector in Malaysia. The healthcare sector has been designated as one of the key economic drivers in the country, that is expected to play a big role in helping Malaysia transform itself into a high-income country by 202...

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This report is designed to provide an overview of the smart cities sector in Malaysia.  By developing smart cities, Malaysia aims to be globally competitive not only from an economic standpoint, but also from environmental and social perspective standpoint. Among Malaysia’s key citi...

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Malaysia suffers from a fast-depleting water supply, with the World Resources Institute estimating that annual renewable water supply might fall to 10,000 m3/person/year by 2025. The wastewater and sewerage system is largely underdeveloped, due to concerns over costly operation...

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Malaysia Country Profile

The report offers a wide range of data and information collected from various sources that were built together in order to provide not just facts but deeper insights about the country. Unlike other country reports that focus more on macro-economic data, we think that the most valuable part of ...

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Malaysia %281%29

ECONOMIC NEWS

Single Agency To Decide On Investments And Perks For Investors – MITI

Malaysia  -  October 2018

Malaysia's new government is currently restructuring agencies to be placed under new ministries, to ensure reduced overlap of functions. For example, the Export-Import Bank of Malaysia Bhd (Exim Bank) will soon be placed under Ministry of International Trade and Industry (MITI) alongside SME Bank Malaysia. Exim Bank is an agency under the purview of the Finance Ministry while SME Bank is under MITI. Such a move will allow Exim Bank to complement MITI's other agencies like Malaysia External Trade Development Corp in facilitating Malaysia’s global businesses by providing the necessary banking and credit support for cross-border business ventures. In addition, Invest KL Corp Sdn Bhd may also be under the purview of MITI as the government thinks that it can be better managed under the ministry, which has expertise in drafting international trade policies.

MITI is now proposing that a single agency should decide on investment decisions and perks to be offered to investors for the whole country. Currently, there is unhealthy competition among various investment promotion agencies, numbering between 30 and 40, under the purview of different ministries. MITI believes that the best way forward is to have one single agency to decide on the incentives for investors to improve efficiency and reduce the involvement of too many competing agencies. This will also help prevent investors bargaining for better perks.

MITI has provided assurances that both domestic and foreign investors will be given the right acceptable incentives, that would encourage them to create jobs and opportunities for Malaysians.  

(Sources: The Star; FMT News; The Malays Mail)

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ICT

NEC To Provide New Smart City Solutions In Sunway Iskandar

Malaysia  -  October 2018

Sunway Iskandar and NEC Asia Pacific Pte Ltd (NEC) today signed an MoU to explore a collaboration which aims to augment safety and security for the 1,800-acre Sunway Iskandar township in Johor and to develop smart city solutions together in an Innovation Centre of Excellence (CoE).

The MoU will see the appointment of NEC Asia Pacific as one of Sunway Iskandar’s preferred ICT Vendor (system integrator and equipment provider). NEC plans to invest an estimated USD 24 million into the township of Sunway Iskandar, which will create skilled tech jobs and develop local “technopreneurs” and tech-savvy talents within the economic growth corridor of Iskandar Malaysia.

As part of the MoU, NEC will explore the following:


  • The implementation of its range of digital solutions, including integrating IoT  and AI technologies such as fingerprint and facial recognition and video analytics technologies in Sunway Iskandar, augmenting its ongoing township security endeavours. 

  • The establishment of a one-stop service desk support centre for NEC’s Managed Service business in Sunway Iskandar

  • The creation of an 20,000 sq ft Innovation Centre of Excellence (CoE) in Sunway Iskandar in partnership with Sunway Innovation Labs. The parties will jointly explore the development of a pool of talent in the fields of public safety, transportation and healthcare, for the creation of new solutions by providing a “living lab” environment to allow proof-of-concepts before commercialization.

(Source: NEC)

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Tower grid electricity power

ENERGY

Malaysia's Ambitious New Goal Of 20% Clean Energy Generation By 2030

Malaysia  -  October 2018

Malaysia is looking to set an aggressive new clean energy target by 2030, which entails increasing the share of clean energy in its energy mix to 20%. At present, coal and natural gas account for roughly 50:50 ratio to the national power generation mix, while only 1% to 2% is generated by hydro and solar.

The Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) will roll out an initiative to reform Malaysia’s electricity supply industry known as Malaysia Electricity Supply Industry 2.0 (MESI 2.0).  MESI 2.0 includes transformation programs such as generating renewable energy and green energy, developing the grid of the future and enhancing customer experience initiatives.

Through MESI 2.0, the Malaysian government is looking to increase the industry's efficiency, future-proof the energy industry’s structure, regulations and key processes, and democratise and decentralize the electricity supply industry. The transformational program which will be undertaken by the Malaysia Program Officer for Power Electricity Reform (MyPower), an agency under MESTECC.

Some sources in the country have opinioned that the government is likely to introduce large-scale solar systems on a contract basis and under a quota system, in order to achieve the new target by 2030.

The government has indicated that it will help green technology and renewable energy players to have access to cheaper funding as financing cost is not cheap for such initiatives. Additionally, the Ministry has given its assurance that the electricity tariff in the country is unlikely to be raised.

(Sources: The Edge Markets; The Sun Daily; The New Straits Times; Eco-Business)

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MEDICAL

Mexter Partners Universiti Malaya To Provide Premium Fertility Services

Malaysia  -  October 2018

Mexter Technology Berhad, through its wholly-owned subsidiary, LYC Medicare Sdn Bhd (LYC Medicare) is partnering with Universiti Malaya Medical Centre (UMMC) to set up a fertility center called LYC Fertility Center.

The five-year service and collaboration agreement inked between the two parties will allow LYC Medicare to provide non-clinical services to LYC Fertility Center while UMCC will provide medical-related services to its high-end fertility patients and also to promote medical tourism to international patients. The contract comes with a five-year extension option, subject to the fulfilment of certain performance-based requirements.

LYC Medicare will leverage on the operational and medical excellence of UMMC’s fertility treatment division and market its services by establishing a premium category of service under the branding of LYC Fertility Centre to potential customers seeking treatments for infertility.

The Agreement is in line with Mexter’s current business direction and strategy to increase the revenue and profits contribution from the healthcare services business segment. With the commencement of its postpartum care business under LYC Mother & Child Centre Sdn Bhd at Plaza VADS, Taman Tun Dr Ismail, it believes the establishment of LYC Fertility Centre will allow it to generate business synergies by referral of potential customers upon successful fertility treatments.

The Agreement will also be beneficial to UMMC as it is able to attract fertility patients which are seeking premium services and also to promote medical tourism for international patients. It is expected that the Agreement will also help boost UMMC’s profile in the international market.

(Sources : The Edge Markets; The Star; Mexter)

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Plastic cap bottles recycle

ENVIRONMENT

Plastic Waste Imports To Be Restricted; Permit Application Processes Tightened

Malaysia  -  October 2018

The Ministry of Housing and Local Government is considering imposing a levy on plastic waste imports to address concerns related to plastic pollution from the local recycling industry. Currently plastic waste importers are importing the waste for free, however this may change if the government proceeds with its plan to impose a levy of MYR 15 (USD 3.60) per tonne of imported plastic waste.

The authorities will also make the application process for plastic waste factories to obtain approved permits to import plastic waste into the country more stringent, while making it necessary to get approval from the Malaysian Investment Development Authority to obtain the permits.

There are currently 114 active legal plastic recycling factories across Malaysia. In July 2018, the ministry revoked permits to import plastic waste for three months, a move that affected all the licensed factories till October 23. Following China’s recent ban on the import of plastic waste, much of the plastic waste from western countries including Britain, Australia and New Zealand were rerouted to South East Asian countries, including Malaysia, Vietnam and Thailand. This is said to have caused serious pollution, especially in the Kuala Langat area of the state of Selangor, where many illegal plastic waste recycling factories operate in the middle of vast palm oil plantations.

(Sources: The Star; The Straits Times)

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Airport

INFRASTRUCTURE

MAHB Formulates Financing Models For Airport Infrastructure In Malaysia

Malaysia  -  October 2018

The Malaysian government is encouraging the private sector to invest in airport development and expansion throughout the country. Currently, more than 75% of airports in Malaysia are not commercially viable and are managed on a cross-subsidisation model to provide the Malaysian people with the required connectivity among its smaller towns and rural outposts.

The government is looking at new financing models, supported by private sector capital, particular from the Malaysia Airports Holdings Bhd (MAHB), the operator and manager of Malaysia's 39 airports which comprise international, domestic and Short Take-Off and Landing (STOL) ports. It should be noted that some of MAHB’s airports are reaching their maximum capacity, particularly at the main terminal Kuala Lumpur International Airports and other airports in Penang, Kuching and Subang. 

In turn, MAHB is formulating financing models for its airport infrastructure development to boost passenger traffic and tourism sector in the country. Its basket of capital expenditure (capex) financing models include a review of airport tax mechanism and user fee charges by the government. Currently MAHB pays about 12% of user fees to the government including PSC, parking, landing, check-in counter charges, hotel revenue and assets within the airports land, which amounts to between USD124.7 million to USD166.6 million annually.

MAHB is also keen to be inclusive in the development and integration of the nation’s socioeconomic goals while providing capacity expansion and deriving value from the connectivity to drive local tourism in the rural and remote areas.

The Malaysian aviation industry had contributed a total of USD1.97 billion in direct benefits, USD 2.59 billion in indirect benefits, USD 369 million in induced benefits and USD 6.3 billion in tourism benefits. According to the International Air Transport Association (IATA) economic report, air passenger growth in Asia Pacific is expected to remain robust, with the region being one of the fastest growing and largest contributors to the air travel market.

(Source: The New Straits Times; The Star Online)

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Factory floor worker coating glass for solar panel assembly on production line

MANUFACTURING

New Digital Manufacturing Hub In Malaysia To Help SMEs Prepare For Industry 4.0

Malaysia  -  October 2018

The Malaysia Digital Economy Corporation (MDEC) together with The Federation of Malaysian Manufacturers (FMM) have announced a partnership to form a Digital Manufacturing Hub. The Digital Manufacturing Hub will be a center of excellence that aims to spearhead the digital transformation of manufacturers in future proofing themselves, and is expected to be a focal place for awareness, adoption and knowledge acquisition in preparation for Industry 4.0.  

MDEC will oversee the Digital Manufacturing Hub, which will offer local manufacturers hands-on experience in embedding digital technologies and transformation, and serve as a platform for reskilling human capital in this field. Many Malaysian manufacturers, especially small and medium enterprises, are still not ready to operate in the IR4.0 environment and adopt automation process in their business. A key reason for their hesitation is the costs related to adopting Industry 4.0 initiatives, such as investment in automation and IT. Malaysia is regarded as stuck at the level of Industry 3.0 in terms of manufacturing technology, with many companies preferring to rely on foreign workers and labor-intensive processes.

FMM is also looking into working closely with the other partners such as Singapore Manufacturing Association (SMA) to increase the manufacturing competitiveness small and medium enterprises (SME) through IR 4.0 initiative adoption.

(Sources : Bernama; Daily Express; The Star)

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Exhaust turbine aerospace

DEFENSE / AEROSPACE / AVIATION

30 New Aerospace Manufacturing SMEs To Be Developed By 2020

Malaysia  -  October 2018

The aerospace sector remains a strategic industry for Malaysia, with the government planning to develop 30 new small and medium manufacturing companies focusing on the sector by 2020, in addition to the current 20 companies.

Within the aerospace industry, the aerospace manufacturing segment has been growing tremendously since 1990s, and recently surpassed the maintenance, repair and overhaul (MRO) segment as the top revenue contributor in the industry. According to Malaysia's National Aerospace Industry Coordinating Office (NAICO), the aerospace manufacturing segment contributed to 48% or MYR 6.6 billion (USD 1.6 billion) of the industry’s revenue in 2017, followed by 46% from MRO and the remaining 6% from engineering and design services segment. It is hopeful that aerospace manufacturing revenue will increase between 7% and 15% annually, depending on whether the industry will be able to attract more investors into the local scene.

Malaysia’s 2017 aerospace export surged 54% to MYR 8.51 billion (USD 2.05 billion) from 2016, with parts and components making the lion share of the main exports, particularly wings, empennage and aircraft fuselage. Companies in Malaysia contributed to the aerospace value chain covering engineering and design services, system integration, and the manufacture of aircraft parts and components including ground support equipment and MRO activities. The Malaysia Aerospace Blueprint 2030, launched in 2015, has been targeting an annual revenue of USD 14.3 billion by 2030 and the creation of over 32,000 high-income jobs for the industry.

During the bi-annual Kuala Lumpur International Aerospace Business Convention (KLIABC) event, Malaysia Aerospace Industry Association (MAIA) entered into a MoU with Indonesia Aircraft Component Manufacturer Association (INACOM) to collaborate to improve human capital development in both countries to win more jobs from big industry players such as Airbus, Boeing and Rolls Royce in the region. Another local player Sapura Industrial Berhad also entered into an MoU with two Japanese aerospace companies, Wada Aircraft Technology Co Ltd and Aero Inc, to form a joint venture in aerospace component manufacturing in Malaysia. Wada manufactures aerospace components, jigs, fixtures and tooling, whereas Aero assembles and manufactures aerospace parts. Recognized as one of the leading aerospace industry events in South East Asia, KLIABC was organized by MATRADE in collaboration with MAIA and ABE France, involving 150 aerospace industry organizations from 21 countries. First introduced in 2014, a total of 63 Malaysian aerospace companies were participating in the 3-day event.

(Sources: The Star; The New Straits Times; The Edge Markets; Daily Express; MIDA; MATRADE)

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RETAIL / FMCG

LG To Open 20 More Stores Nationwide By 2020

Malaysia  -  October 2018

LG Electronics Malaysia has announced its plans to open at least 20 more LG stores nationwide by the year 2020. The company, which has existing 27 stores in Malaysia, expects to open seven new stores by end of 2018. It is aggressively promoting the sales of its premium and innovative products, such as TVs, audio-visual home entertainment products and washing machines, and is aiming for a double-digit percentage growth in sales in Malaysia this year.

LG is leveraging on its store-in-store (SIS) concept, which allows its customers to experience its products first-hand, and interact with its products. According to the company, its most popular products in Malaysia currently are its TVs. It is positive on Malaysian consumers' acceptance on its recently launched artificial intelligence (AI) enabled appliances, thus significantly boosting sales in the next one to three years. While LG considers it will be a long journey to get Malaysian consumers to fully adopt AI enabled electronics and appliances - called LG ThinQ, it is optimistic on long-term prospects in Malaysia. It hopes to become the leader in smart life innovator in Malaysia within one to three years.

(Sources: LG; Marketing-Interactive.com; New Straits Times)

Companies

1   customized agent   distributor search

Customized Agent/ Distributor/Reseller Search

Having completed over 1000 customized agent/distributor/reseller searches for our clients over the years, this is one of the most popular trade services that we offer to potential clients. Typic...

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Sourcing Services

There is a growing interest in sourcing for products from South East Asia for strategic and competitive reasons. Companies from around the world are looking for suppliers in Malaysia, Thailand, ...

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Business Incorporation/ Site Selection

We counsel businesses on where to locate their office and industrial operations and what the optimal business structure should be to meet local government and tax requirements. Some of the quest...

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3   market research

Market Research

To successfully export your products or services, you need to learn about your customers, your competitors and your industry. Our market research process starts off with brainstorming effective ...

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2   trade show support

Trade Show Support

Many companies participate in trade shows hoping to find customers or local agents or distributors. However, they come away from these events with less than desired results. But with our trade s...

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Additional Services

Based on past experience in helping companies that are looking to grow their exports to one or more markets in South East Asia, we have found that some of these additional services that we offer...

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Economic Development Agencies & Trade Associations

7   trade mission organization

Trade Mission Organization

Visiting a market to meet with prospective customers or partners is essential as business is built on developing personal connections and understanding the local culture. Traveling ...

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2   trade show support

Trade Show Support

Trade shows can be an excellent option for companies and trade organizations to make key business and industry connections overseas. But to maximize the benefit of participating in ...

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Trade Representation

With over 20 years of experience providing dedicated representation in South East Asia to economic development organizations (EDOs) from North America and Europe, we offer EDOs the ...

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3   market research

Market Research

Our strong track record in performing a targeted analysis of specific industry sectors in multiple markets has helped many economic development organizations (EDOs) to develop strat...

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9   investment attraction

Investment Attraction

Attracting investment from overseas can mean new or retained jobs in your area. Our investment attraction support services will position your economic development organization (EDO)...

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6   additional services

Additional Services

Having worked with government agencies and trade associations for over 20 years, we also provide a range of additional services customized to the requirements of these organizations...

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COMPANIES SEEKING AGENTS/DISTRIBUTORS/RESELLERS IN Malaysia

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ClaroNav Kolahi Inc.

Canada
Medical
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
NaviEnt is a simple, accurate and affordable Ear Nose Thr...
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Ramsoft Inc

Canada
Medical
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
Customizable and flexible radiology software solutions, P...
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Theralase® Technologies Inc

Canada
Medical; Others
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
The therapeutic laser is used to eliminate pain, reduce i...
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NewDVR (S) Pte Ltd

Singapore
Building Products - Residential & Commercial; Infocomm Technologies (ICT); Safety & Security
Malaysia, Philippines, Thailand, Vietnam, Indonesia
Our products include Alarm Systems, Visitor Management Sy...
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Pacer Pumps

USA
Agriculture & Livestock; Industrial Equipment & Parts; Others
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
Thermoplastic centrifugal pumps for these sectors - Agric...
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Abram's Nation, LLC

USA
Medical
Malaysia, Singapore
THE SAFETY SLEEPER - fully enclosed bed for children & ad...
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