Malaysia Opportunities

• Malaysia’s per capita income is US$9,204 (2011) and its purchasing power is

among the highest in Asia, as evidenced by the strong consumer market.  The

Malaysian franchise industry registered a healthy 32% growth in 2011.  Almost

36% of the franchises operating in Malaysia are foreign franchises.

• Malaysia has joined the United States and seven other countries in negiotations

for a regional Trans Pacific Partnership (TPP) for free trade agreement.

• In 2010, the GOM removed Foreign Investment Committee (FIC) investment

guidelines, enabling transactions for acquisitions of interests, mergers, and

takeovers of local companies by domestic or foreign parties without FIC

approval. The GOM also embarked on four different economic programs to spur

additional investment: the New Economic Model economic policy reform

platform, the Economic Transformation Program (ETP) intended to stimulate

foreign and domestic private investment, the Government Transformation

Program (GTP) to decrease corruption and improve Malaysia’s social safety net,

and the Tenth Malaysia Plan (10MP) to guide public sector capital expenditures. 

The NEM proposes reforming ethnic biases in business ownership and social

safety net programs by improve the government delivery system and reduce the

cost of doing business as well as divesting state enterprises.

 In Malaysian manufacturing sector, the manufacturing sector which is mainly in the domestic market accounted for 47%. This part of the manufacturing including industry, paper and paper products industry, food manufacturing, beverage and tobacco products, non-metallic mineral products industry, gum products industry, industrial Chemical, the plastic products industry, the petroleum products industry, basic metal industry, cast metal industry and transportation.

    Malaysia is rich in oil, but the relatively petrochemical industry is weak. Malaysia is a big producer for palm oil, but most of the palm oil is export after rough process. So Malaysia has great potential in palm oil processing, oleochemicals, palm oil by-products ect..

Malaysia is also rich in aquatic resources, tropical agriculture, resource-rich and cash crops.

 Malaysia has a little industry, but it is lack of research, design and development capabilities. Its machinery industry and equipment manufacturing industry is also weaker.

    ASEAN Free Trade Area has been started, these products can also be exported to other ASEAN countries.

    The high-tech aspects should be a focus on Malaysia’s investment and economic cooperation. Malaysia is planning to build a space center for the development of the aerospace industry. Companies can cooperate with Malaysia in study launch and other areas of aerospace and satellite. Malaysia is also begin to set up a biological Valley,for the development of bio-engineering industries, and companies can participate in this emerging industry through technology investments. IT companies can make use of the Malaysia’s preferential policies of the Multimedia Super Corridor, and find business opportunities here. Malaysia is weak in software development, the company can play a role in this regard.

Information from CIA wordfacts ,WIKI，US Embassy ，China Embassy and so on.