Sourcing in Malaysia

Overview by
Type of Production
The manufacturing industry (31.6% of GDP, WTO 2004) has long been the driving force behind growth. Electronics (semi-conductors, electronic equipment and telecommunications equipment) is the leading manufacturing activity, followed by the production of audio-video equipment, and office equipment. The manufacturing sector represents more than 80% of exports. Exporting industries, especially for electronic and electrical products, chemicals, and plastic and wood products, represent more than 70% of the index of manufacturing production. The manufacturing sector oriented towards the domestic market, which represents about 28% of the industry, includes mainly the manufacturing of metal products, products linked to building, foodstuffs and transport equipment. The mining industry (7% of GDP, WTO 2004) exploits tin, oil, copper, iron ore, natural gas and bauxite.
Manufacturers Associations of the Main Industries
Malaysian Plastics Manufacturers Association
Malaysian Textile Manufacturers Association   
Construction Industry Development Board Malaysia

Type of Manufacturers

Original Equipment Manufacturers
Malaysia is a top ranking supplier of original equipment, concerning products with a high technological content. For example, TFT Technology Group is a leader in the manufacturing of audio visual products for IT and electronics, Tractors Manufacturing and Assembly is an international leader in heavy equipment ....
Original Design Manufacturers
Especially in the electronics sector, industry is evolving from the OEM concept towards that of ODM, which shows it is looking for production with greater added value.
Recourse to subcontracting is made possible because there is a considerable, well qualified workforce, but competition from the Chinese is strong.
Useful Resources
Federation of Malaysian Manufacturers
Public - Private Group for High Technology

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