Malaysia Industry

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What tools can be used to encourage low-end manufacturers to move up the value chain?

Requiring sophisticated manufacturing techniques, skilled labourers, reliable power supply and developed infrastructure, solar manufacturing fits neatly into the Malaysian government’s strong push into the development of value-added industrial capabilities. In addition, the government implemented a new feed-in tariff renewable energy incentive...

Malaysia is a multi-ethnic society of 29m split between the Malay Peninsula and the island of Borneo. With a per-capita GDP that has hovered around $10,000 for the past decade, the country is struggling to escape a “middle-income trap” 

Chapter | Industry from The Report: Malaysia 2012

Malaysia has developed competitive industries in a number of key fields, from agriculture-based products like rubber and halal food, to petroleum and chemical products, to high-tech electrical and electronics manufacturing. The government’s strategy for turning Malaysia into a high-income economy includes shifting from low- to high-value production, emphasising sectors like bio-technology and...
Growth in Malaysia’s industrial production has so far been above expectations, suggesting that the manufacturing sector is supported by domestic expansion and reorientation toward the region even though demand in traditional export markets in the US and Europe look uncertain.
Malaysian officials are confident the country’s manufacturing sector will continue to post strong growth throughout this year and beyond, on the back of an increasing swell of both foreign and domestic investment. There are some suggestions, however, that a general slowing of the global economy and the prospect of sharp wage increases could take some of the momentum from industrial expansion.

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