Malaysia is Always Open for Business: A Global Supply Chain Hub


The European Union Chamber of Commerce in China (Shanghai Chapter) and the Malaysian Investment Development Authority (MIDA) successfully organised a webinar session on 16 June 2020. The webinar highlighted Malaysia’s diversified economic structure, which contributes to the countries competitiveness as well as one of the top global manufacturing nations amid the COVID-19 pandemic. 

Dato’ Azman Mahmud, CEO of MIDA, during his presentation, said that the main challenge arising from the COVID-19 pandemic is supply chain disruptions. Countries such as Japan, Korea and the USA have made announcements to encourage their respective home-based companies to relocate from China, to mitigate risks of being overly-dependent on one singular country. 


Therefore, as more companies are seeking to diversify their supply chains to be more resilience, Malaysia is positioning itself as a global supply chain hub in Asia. This builds upon Malaysia’s current long term focus of developing catalytic industries, namely electrical and electronics (E&E), machinery and equipment (M&E) and chemical; as well as high-potential industries such as medical devices and aerospace. Coupled with Malaysia’s transition towards the implementation of Industry 4.0, there are vast opportunities for innovative industries to grow in the country. 

Dato’ Azman strongly encouraged companies to consider Malaysia as a global supply chain hub in Asia. Malaysia has the advantage of having a robust E&E base, good supporting local engineering clusters and a broad talent base. Notable supporting industries includes medical precision engineering, tool and die making, contract moulding and assembly, machinery fabrication as well as electronics manufacturing services. 

The DHL Global Connectedness Index 2018 study highlighted that Malaysia is among the countries that exceeded expectations of international flow. Ranked second in Southeast Asia and 12th out of 169 countries for trade connectivity, Malaysia is undoubtedly an important player in the global value chain. This is a result of Malaysia’s strong and reputable diplomatic ties, linkages with the wider Asian supply chain networks and the ASEAN economic integration policies. 

In closing, Dato’ Azman reaffirmed that Malaysia is more than just a strategic location and gateway to Asia. The country offers a pro-business Government; economic stability; liberal investment policies; well-developed infrastructure and connectivity; high quality Malaysian products and services; young, trainable and educated labour force; IP protection; as well as 50 years-strong industry base. MIDA also stands ready to facilitate investors seeking to leverage Malaysia as their operations hub, easing their transition and project implementation. 

The webinar also featured presentations from Mr. Julian Neo, Managing Director of DHL Express (Malaysia) and Mr. Christoph Muller, Senior Vice President Operations of B.Braun Medical Industries.



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Last Updated : Thursday 22nd October 2020