Why Malaysia

Economic Strength

Malaysia is a country on the move. From a country dependent on agriculture and primary commodities in the sixties, Malaysia has today become an export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries.

The structural transformation of Malaysia's economy over the last 50 years has been spectacular. Often dubbed the "lucky country" because of its wealth of mineral resources and fertile soils, Malaysia did not rest on its laurels but progressed from an economy dependent on agriculture and primary commodities to a manufacturing-based, export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries.

Today, Malaysia offers the world its Multimedia Super Corridor (MSC) which brings together a legislative framework and a next-generation telecommunications infrastructure in eco-friendly surroundings to create the best environment for the development of multimedia industries.

Continuous Economic Growth

2008, was a very challenging year to the global economic environment arising from the financial crisis in the US which had its contagion effects in Europe and Asia. In addition, the fluctuation in oil price and sharp increase on food prices also impacted the major economies of the world.

Despite these adverse circumstances, the Malaysian economy registered a gross domestic product (GDP) growth rate of 4.6 per cent for  2008, supported by domestic demand and continued expansion in private and public consumption. The economy is expected to record positive growth rate in 2009 as the Government is optimistic in weathering these challenges.

The services sector recorded the highest growth at 7.9 per cent from January to September 2008, followed by the manufacturing sector which grew by 4.8 per cent.

High Level of Global Integration

Malaysia 's total trade in 2008 reached RM1.19 trillion, an increase of 6.8 per cent from RM1.11 trillion in 2007.

Exports increased by 9.6 per cent to RM663.51 billion in 2008 from RM605.1 billion in 2007. Imports increased by 3.3 per cent to RM521.5 billion from RM504.6 billion in 2007. The growth in exports in 2008 had resulted in Malaysia recording a trade surplus for the eleventh consecutive year valued at RM142.01 billion.

The manufacturing sector accounted for 29.9% of Malaysia's GDP during the first nine months of 2008 while exports of manufactured goods made up 70.0% of the country's total exports. From being the world's largest producer of rubber and tin, Malaysia is today one of the world's leading exporters of semiconductor devices, computer hard disks, audio and video products and room air-conditioners.

Malaysia has edged up another position to rank 18th this year in the global competitiveness survey of 57 countries by the Switzerland-based Institute for Management Development (IMD) in its World Competitiveness Yearbook (WCY) 2009, which was released recently.

Malaysia is a natural choice for offshore services in view of its low costs, particularly for infrastructure, condusive business environment, and high levels of global integration.

Economic Growth Corridors

As a testament to the country's commitment to promoting free trade and business incentives, the government has established five economic growth corridors, to further develop Malaysia.

A Knowledge-based Economy

Malaysia is now moving-up the value chain and is currently focusing on attracting high-technology, high value-added, knowledge-based and skills intensive industries, incorporating activities such as design and development and research and development.

The last decade has seen a deepening and widening of Malaysia's industrial base as well as the further development of its services sector. As such, a strong foundation has been laid for the economy to move forward into the new globalised environment.

Source:
1. Malaysia - Performance of the Manufacturing and Services Sectors 2008
2. Malaysia - External Trade Statistic 2008