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Malaysia has a well-diversified economy and export structure, a supportive labour market, a track record of low and stable inflation, a robust and well-capitalized financial sector, and a positive net cash flow.
Malaysia’s economy remains resilient and rests on strong fundamentals. Its diversified economic structure, sound financial system, effective public health response and proactive macroeconomic policy support suggest that Malaysia will be able to ride out the storm better than many other countries.
-Richard Record, World Bank Lead Economist, Macroeconomics, Trade and Investments Global Practice (2020)
Malaysia is well-positioned in one of the fastest-growing economic regions in the world. The South-East Asia region has recorded average GDP growth of 5.3% per annum over the last 20 years.
The average ASEAN GDP growth is expected to expand by 5.2% in 2022 and 5.3% in 2023
(Asian Development Outlook, 2022)
Centre of South-East Asia
Centre of South-East Asia – Market access of over 660 million people with combined GDP of US$3.3 trillion (ASEAN Stats, 2022)
Well-connected to major ports in Asia
Reaching Mumbai, India within 6 hours and reaching Beijing, China within 9 hours
Next to one of the world’s busiest shipping lanes
Straits of Malacca provides access to global supply chains via 2 key ports.
Malaysia is a market-oriented economy with 16 Free Trade Agreements
Creating potential market size of 4 billion people
Lower cost of doing business
Almost 99% of products in ASEAN have zero tariffs
Attract 31% of Global FDI
Global market size is estimated to attract 31% of Global FDI
World’s 3rd Largest Workforce
ASEAN has the world’s third largest labour force and a growing middle class – a powerful engine for long term growth
Largest FDI inflow of any emerging market region
Continues to be an engine of growth for FDI in Asia and globally (UNCTAD’s 2021 Investment Trends Monitor)
Once reliant on agriculture and primary commodities, our economy has undergone a remarkable transformation into an export-driven and diversified powerhouse, powered by advanced technology, catalytic innovation, knowledge-based industries, and a comprehensive digital economy. This dynamic shift has paved the way for a robust ecosystem supported by mature and integrated supply chains that fosters the growth of businesses like yours.
Our manufacturing sector holds a pivotal position within the global supply chain, contributing significantly to international trade and commerce. Concurrently, the service sector comprehensively encapsulates and caters to diverse domestic activities, fostering economic growth and development within Malaysia.
Malaysia is a strategic business hub in Southeast Asia, boasting a diverse range of sectors supported by a skilled workforce. The country is well-connected to global markets and supply chains, offering a favourable business environment. It is the ideal place to start or expand your business.
Malaysia has already signed and implemented various free trade agreements (FTA), which include bilateral FTAs with Japan, Pakistan, India, New Zealand, Chile, Australia and Turkey. On the ASEAN level, Malaysia has regional FTAs through the ASEAN Free Trade Agreement (AFTA) with China, Korea, Japan, Australia, New Zealand and India.
This creates a potential market size of more than 4 billion people globally. Up to 99% of total products have 0% import duties under Malaysia’s FTAs with ASEAN.
Reduced trade barriers drive down business costs, granting companies preferential access to seize growth opportunities in one of the world’s largest trading blocs.
Malaysia is one of the 15 signatory nations of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement – representing 30% of the global population and 30% of global GDP and is expected to rise up to 50% by 2030. This agreement is set to foster cooperation, drive economic recovery, and create a liberal and competitive investment environment. With RCEP’s member countries among Malaysia’s top trading partners, it promises enhanced investment facilitation and investor aftercare, amplifying opportunities for growth.
RCEP seeks to create a mutually beneficial economic partnership as it aims to boost trade, investment, connectivity, and regional economic integration, driving the region’s recovery.
In addition to RCEP, Malaysia is also one of the 11 signatory nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In this holistic free trade agreement (FTA), Malaysia collaborates with countries representing 13.4% of the global GDP. The CPTPP will place Malaysia in a strategic position and elevate the country’s competitiveness in the global arena by broadening its access to new markets such as Canada, Mexico, and Peru, which are not covered by any existing FTA.
Under the CPTPP, almost 100% of Malaysian exports to all CPTPP countries would enjoy duty-free treatment by 2033.
Malaysia, one of the fastest-growing nations in the region, is ranked among the top emerging markets for investment. Renowned for its investor protection and responsiveness in facilitating business needs, Malaysia is your ideal destination for investments and business ventures.
Top country in emerging Southeast Asia for Foreign investment
(Global Opportunity Index, Bloomberg 2022)
Most potential to attract foreign investors among emerging South-East Asia
(Milken Institute Global Opportunity Index 2022)
Most competitive country in ASEAN
(World Competitiveness Yearbook 2023, IMD)
Most innovative upper middle-income economy in the world
(Global Innovation Index 2022, World Intellectual Property Organization [WIPO])
Most competitive emerging market
(Agility Emerging Markets Logistics Index 2022)
