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Malaysia’s media scene is dominated by cross-platform conglomerates such as Media Premia, which operates the country’s most popular free TV channels and has a commanding presence in print, radio and online as well. Other groups include Star Publications, Sin Chew Media and the Redberry Media Group. Meanwhile Astro Holdings, which relisted on the KL bourse in 2012, dominates the pay-TV sector and owns various radio and magazine outfits. Print media continues to command the largest share of adex, at 42%, although this has slipped slightly with the growth of pay-TV and the internet.

Malaysia has developed competitive industries in a number of key fields, from agriculture-based products like rubber and halal food, to petroleum and chemical products, to high-tech electrical and electronics manufacturing. The government’s strategy for turning Malaysia into a high-income economy includes shifting from low- to high-value production, emphasising sectors like bio-technology and pharmaceuticals that require more talent and R&D inputs. Along these lines, many firms are looking to upgrade their offerings, with medical device manufacturers moving from disposable rubber products to more high-tech equipment, and electronics manufacturers building their own tablets. Challenges for the sector include a new minimum wage introduced in 2012, although defenders of the policy say it will encourage a shift toward higher-value labour. This chapter includes interviews with Mustapa Mohamed, Minister of International Trade and Industry (MITI); and Wong Lai Sum, CEO, Malaysia External Trade Development Corporation (Matrade).

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 of an Achilles heel nowadays as they try to entice visitors to spend more money. Tourism promoters are hoping the “Luxury Malaysia” campaign, launched in 2012, changes these attitudes. Malaysia is also focused on attracting more Muslim travellers and improving the country’s ecotourism offerings.

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 IT sector, meanwhile, is seen as a prime candidate for powering a next-generation Malaysian economy, and possible sources of growth include the creative multimedia, outsourcing, and data centre industries. Sourcing talent for this industry, however, is proving to be a perennial headache. This chapter includes interviews with Mohamed Sharil Tarmizi, Chairman, Malaysian Communications and Multimedia Commission (MCMC), and Zam Isa, Group CEO, Telekom Malaysia.

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 a private-sector-driven approach to finance these developments. Infrastructure development, particularly of the KVMRT, will help fuel the real estate market, allowing for affordable housing in Selangor Valley with access to central business districts. Developers are also looking to exploit Iskandar Malaysia’s proximity to the wealthy Singaporean market for property investment.

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 the extension of KL’s Light Rail Transit and a potential high-speed rail link to Singapore. New highways are also being planned in both Peninsular and Eastern Malaysia, with the latter aimed at improving logistics and facilitating access to the hinterlands. Finally, Kuala Lumpur International Airport is set for a massive new low-cost carrier terminal, which will feed the expansionary appetite of Air Asia and Malaysia’s other budget operators. This chapter includes interviews with Syed Hamid Syed Jaafar Albar, Chairman, Land Public Transport Commission (SPAD); and Bashir Ahmad, Managing Director, Malaysia Airports Holdings Berhad (MAHB).