Malaysia Industry

Malaysian officials are confident the country’s manufacturing sector will continue to post strong growth throughout this year and beyond, on the back of an increasing swell of both foreign and domestic investment. There are some suggestions, however, that a general slowing of the global economy and the prospect of sharp wage increases could take some of the momentum from industrial expansion.

The early September announcement that Malaysia is home to some 6000 species of herbs, all of which could have commercial value, has refocused attention on the possibility of a brand-new industry for the South-east Asian nation.

The establishment of a new school for logistics training has set the supply chain industry on course for a high-tech future, fulfilling one of the key goals of the long-term master plan for the sector and reinforcing several recent positive developments.

The government of Malaysia recently agreed to allow an Australian company to build a new rare earths processing plant in the country – the first such plant to be constructed outside of China in decades.

Record-breaking sales in 2010 have seen Malaysia’s automotive industry racing along in recent times. Moderation in demand and government policies, however, may see growth shift down a gear in 2011.

Malaysia’s growing foreign trade is putting a strain on main ports, with delays in cargo handling being reported despite an increasing in throughput volume. This has prompted shipping firms and freight forwarders to call for greater investment in infrastructure.