Why Malaysia

Malaysia, strategically located in the heart of South East Asia, offers a cost-competitive location for investors intending to set up offshore operations for the manufacture of advanced technological products for regional and international markets.

A Dynamic Business Environment

Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. Malaysia's key strengths include well-developed infrastructure and productive workforce. A politically stable country with a well-developed legal system, Malaysia also provides attractive incentives for investors. Supported by a market-oriented economy and pro-business Government policies.

Advancing with Technology

Technological advancement has become an integral part of Malaysia's growth as an industrialised nation. With the help of technology, Malaysia is steadfast in providing for the modern day requirements of investor companies based in the country. Malaysia is one of the most technologically developed countries amongst industrialising nations in the ASEAN region. The nation's persistent drive to engage modern technologies proves to be a great advantage to manufacturers in Malaysia.

Well-developed Infrastructure

Infrastructure in Malaysia is designed to serve the business community; it is one of the best in Asia. Telecommunications network served by digital and fibre optic technology, five international airports (all with air-cargo facilities), well-maintained highways and seven international seaports make Malaysia an ideal springboard to the Asia-Pacific market.

Industries in Malaysia are predominantly located in over 500 industrial estates and Free Zones developed throughout the country. These zones are categorised as export processing zones, which cater to the requirements of export-oriented industries. There are also specialised parks that have been developed to cater to the needs of specific industries.

Human Resources

One of Malaysia's greatest assets is her human resources. The workforce here is young, educated and productive, proving to be one of the best in the region. The Government's emphasis on human resource development ensures the continuous supply of manpower to meet the needs of the expanding manufacturing and services sectors.

Towards the Economy of Tomorrow

As a result of perceptive foresight, strategic planning and abundant resources, Malaysia offers investors a wide spectrum of investment opportunities. The technologically-inclined economy of Malaysia is proven through the country's involvement in advanced electronics manufacturing, R&D, biotechnology, photonics, logistics, design, innovation and a highly automated manufacturing sector, to name a few. The Government's objective is also to make Malaysia a hub for other value chain activities, such as R&D, design and development (D&D), procurement, logistics, distribution and marketing, business support services and shared services.

A Heaven for Foreign Companies

The conducive business environment in Malaysia has made the country one of the world's top investment destinations for offshore manufacturing operations. Malaysia has to date attracted more than 5,000 foreign companies from more than 40 countries to establish their operations in the country. Many of them have also expanded and diversified their operations in the country, reflecting their confidence in Malaysia as a site for their business ventures.

Economic Strength

  • Natural resources - crude oil, natural gas, tin, timber, palm oil, rubber.
  • GDP growth  4.3% (2019)
  • Gross National Savings - RM400,774 million (USD96,339 million)
  • Per capita income - RM44,686 (USD10,741)
  • Unemployment rate - 3.3% (2019)
  • Inflation(CPI) - 2.1% (2020 est.)

Exchange Rate (December 2019) : US$1 = RM4.09

View Key Economic Indicators

Supportive Government Policies

  • Pro-business policies
  • Responsive government
  • Liberal investment policies
  • Attractive tax and other incentives
  • Liberal exchange control regime
  • Intellectual property protection

An Educated Workforce

  • Talented, young, educated and productive workforce
  • Multilingual workforce speaking two or three languages, including English
  • Comprehensive system of vocational and industrial training, including advanced skills training
  • Harmonious industrial relations with minimal trade disputes

Developed Infrastructure

  • Network of well-maintained highways and railways
  • Well-equipped seaports and airports
  • High quality telecommunications network and services
  • Fully developed industrial parks, including free industrial zones, technology parks and Multimedia Super Corridor (MSC)
  • Advanced MSC Malaysia Cybercities and Cybercentres

Vibrant Business Development

  • Market-oriented economy
  • Well-developed financial and banking sector, including the Labuan International Business and Financial Centre
  • Wide use of English, especially in business, legal and accounting practices based on the British system
  • Large local business community with a long history in international business links
  • Large foreign business community in all business sectors
  • Extensive trade links - country's total trade was valued at RM1.876 trillion in 2018 and total trade for the first quarter (Q1) of 2019 was valued at RM435.16 billion.

Quality of Life

  • Friendly and hospitable Malaysians
  • Safe and comfortable living environment
  • Excellent housing, modern amenities, good healthcare and medical facilities
  • Excellent educational institutions including international schools for expatriate children
  • World-class recreational and sports facilities
  • Excellent shopping with goods from all over the world


1.  Ministry of Finance 

2.  Matrade Press Release: Trade Performance for March 2019 and the period of January-March 2019

Last Updated : Wednesday 2nd December 2020