Malaysia

The agricultural sector is playing an increasingly important role in Malaysia’s economy, not only helping the country to achieve food security for local consumption, but also generating strong levels of export earnings. The palm oil industry leading the way here, though lingering concerns over sustainable production and labour shortages could hamper growth.

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 Malaysian government is continuing its campaign to reform the nation’s economy, broadening its base and liberalising many previously restricted sectors. However, its most recent moves to rein in subsidies, which are designed to reduce the strain on the budget, may prove unpopular and could stoke inflationary fires in the short term.

With a young population and a growing economy, demand for residential property in the greater Kuala Lumpur (KL) area is expected to remain strong, as new transportation schemes to add to the city’s attractiveness.

A recent report on information and communications technology (ICT) has shown that regional rivals are advancing at a faster rate than Malaysia, and that more needs to be done to achieve public targets set by the government. However, officials remain confident that the lost ground will soon be made up.

Following a strong year in 2010, Malaysia’s manufacturing sector looks set for a repeat performance in 2011 in its effort to draw in foreign investment. The Malaysian Investment Development Authority (MIDA) is setting a target of bringing in RM55bn ($18.22bn) in new investment for the year.