Malaysia Industry

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Automotive sales are set to accelerate in Malaysia this year with increased investment in production and greater emphasis on fuel-efficient vehicles, though a number of adverse factors such as a new goods and services tax (GST) as well as the strengthening US dollar may weigh on demand.

A diplomatic approach towards regional issues has strengthened Malaysia’s efforts to boost trade and investment ties with China, setting the scene for the two countries to roll out an ambitious programme of increased financial cooperation.
Efforts to position Malaysia as a regional centre for energy efficient vehicle (EEV) production took a key step forward in January, with news that the government intends to hand out its first green car manufacturing licence in the coming weeks.
The halal industry in Malaysia is fast becoming a magnet for international investment, as major players move to acquire a share of a growing global market.
Automotive sales in Malaysia slipped down a gear in the second quarter, with both April and May showing a deceleration in the figures, though experts believe activity in the industry will pick up in the latter half of the year after the government unveils a new policy aimed at reducing vehicle price tags.
Growth in Malaysia’s industrial production has so far been above expectations, suggesting that the manufacturing sector is supported by domestic expansion and reorientation toward the region even though demand in traditional export markets in the US and Europe look uncertain.

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