Malaysia

With nearly 25m arrivals and $19bn in revenues in 2011, Malaysia’s tourism sector is a major contributor to employment and economic growth. Visitors are attracted by Malaysia’s cultural diversity, natural beauty, historic landmarks, and of course, the gleaming shopping malls of Kuala Lumpur. The country also offers a strong value proposition, although tourism operators are finding this something...

From a regional perspective, Malaysia’s communications industry is at an intermediate level of development: significantly ahead of most ASEAN countries, but trailing “Asian tigers” like Singapore, Hong Kong, and South Korea. New developments in telecoms may be changing this, with wireless operators rolling out 4G networks and Telekom Malaysia deploying a fibre-to-the-home network in core areas....

The construction sector is in the midst of a boom thanks to infrastructure outlays under the 10th Malaysia Plan. The highlight is the Klang Valley Mass Rapid Transit (KVMRT), which includes contracts potentially worth over $20bn through 2018. Other state-driven projects include the Pengerang petrochemical facility, the Tun Razak Exchange and several highways, although the government is promoting...

Having already developed a comprehensive transportation and logistics network across key economic regions, Malaysia is focused on improving access to rural areas and decreasing congestion in cities. The government’s biggest project is the Klang Valley Mass Rapid Transit system, which kicked off construction in 2012 on the first line, with two more to come by 2018. Other plans in the works include...

Oil and gas represent an important but slowly declining source of Malaysia’s exports and government revenues. Projected to become a net importer of both fuels by 2017, Malaysia is seeking to boost both upstream and downstream capacity, develop expertise in oilfield services, and promote renewable energy. The government has offered tax incentives for projects that use enhanced oil recovery (EOR)...

Malaysia’s insurance sector, which saw premiums rise by nearly 15% in 2011, is growing in tandem with the country’s economic development. The sector saw a wave of mergers and acquisitions for conventional insurers in recent years as regulators imposed a risk-based capital (RBC) framework. Now, with the application of RBC to takaful firms, the Islamic insurance sector is expected to consolidate as...