Malaysia
Malaysia
Malaysia stands as one of the economic giants in Southeast Asia, securing the second position in the region for the maturity of its business environment and its economic competitiveness.
Economic powerhouse
Malaysia's economy in 2023 is expected to be diverse and resilient, with a focus on high-tech industries, green technology, and services.
Educated workforce
The country boasts of a literacy rate of over 95%. This educated workforce gives Malaysia an advantage in the global arena
Bilateral relations
Malaysia has established close economic relationships with neighboring countries in Southeast Asia to promote trade, security, and development.
Economic statistics
US$11.972
GDP per capita (2022)
The World Bank
3.6%
Foreign direct investment, net inflows (2022)
The World Bank
32nd
Global Competitiveness Index (2022)
Institute for Management Development
About this market
33.9M
Population (2022)
The World Bank
US$406.31B
GDP (2022)
The World Bank
8.7%
GDP growth (2022)
The World Bank
Key opportunities
Malaysia’s digital economy has gained a significant advantage in Southeast Asia. This sector specializes in the production of computers and consumer electronics, as well as offering computer programming and IT consultancy services.
Consequently, this focus has not only fostered the growth of Malaysia’s digital economy as a whole but has also provided a robust foundation for digital entrepreneurship, particularly within the realm of technology startups. In 2020, the country introduced the MyDIGITAL initiative, comprising 23 sub-activities aimed at elevating the digital economy’s contribution to 22.5% of the GDP and generating 500,000 jobs by 2025.
Within the framework of the 12th Malaysia Plan (12MP), which delineates Malaysia’s strategic priorities for the period 2021-2025, the government is actively exploring infrastructure and policy reforms. This is aimed at fostering the adoption of cutting-edge technologies, enhancing the skills of the workforce, and fostering a culture of innovation through research and design endeavors.
Looking ahead to the years up to 2025, the manufacturing sector will continue to serve as a pivotal driver of foreign direct investment (FDI) in Malaysia. Furthermore, businesses can anticipate the availability of investment-friendly incentives at the state level, with a particular emphasis on states with a strong manufacturing focus such as Selangor, Penang etc.,
With a population close to 34 million, of which roughly one-third reside in urban areas, Malaysia is undergoing a rapid transition towards e-commerce and online-to-offline consumer interactions. This shift opens up promising prospects for businesses in the retail, food and beverage (F&B), and other consumer-oriented sectors.
Given the increasing appetite among consumers for global brands, foreign companies can anticipate a surge in external demand for exports and manufacturing products. This trend is particularly pronounced in product categories like home appliances, fashion, and home and lifestyle retail items.
Malaysia has undertaken a resolute commitment to attain carbon neutrality by 2050 and to emerge as a frontrunner in the regional efforts for decarbonization. This endeavor will be facilitated through the overhaul of its energy and water sectors, orienting them towards a “green” paradigm and bolstering environmental governance.
Furthermore, notable initiatives encompass the implementation of carbon pricing and tax structures, alongside the introduction of a comprehensive National Energy Plan. In a display of ambition, Malaysia has set forth formidable targets to elevate its renewable energy component from under 10% in 2018 to a remarkable 31% by 2025.
Ways for you to start in Malaysia
Doing Business | Malaysia
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