Malaysia - Facts & Figures

MALAYSIA: KEY ECONOMIC DATA

  • Population: 30.95 million

  • GDP: EUR 269.8 billion

  • GDP (per capita): EUR 8.509

  • GDP (PPP): EUR 770.1 billion

  • GDP (PPP, per capita):EUR 24.252

  • Real GDP Growth:4.3%

  • Consumer Price Index (CPI): 2.0%

  • Labor Force: 14.77 million

  • Unemployment Rate: 3.3%

  • PPP – purchasing power parit

 

MALAYSIA: KEY MESSAGES

Despite challenges & global uncertainties, Malaysia continues to strengthen its growth momentum & remain as a competitive investment destination.

Some policy alignments are undertaken to address the misperceptions among investors.

Investments projects realised will have substantial effect on the economy:

  • Forward-and-backward linkages
  • Development of supporting industries
  • Transfer of technologies and R&D
  • Creation of employment opportunities
  • Local sourcing
  • Skills development
  • Generation of foreign exchange earnings

Source: MIDA

KEY TRENDS

As per the Ministry of Trade and Industry's (MITI) weekly bulletin on Malaysia's trade perfomance in October 2017, the increase in trade volume amounts to 19.8% with a total value of RM154.3 billion as compared with October 2016. The trade surplus (exports - imports) reached RM 10.6 billion, the highest since April 2016. 

In total, trade for the first 10 months of this year amounts to 1.47 trillion, up 21.5 % as compared with the same period of last year.

In terms of total trade volume from January until October 2017,  Asia stands out as the most important trading partner, With RM 86.5 billion worth of exports Europe is the second largest trading partner before North America (RM 77.1 billion) and Oceania (RM 32.3 billion). Overall growth rates have been underpinned by strong increases in oil palm trade with Malaysia being the largest exporter in 2016. The Netherlands and Italy belong to its top 5 export destinations. 

Source:Ministry of International Trade and Industry (MITI). Weekly Bulletin, Volume 464. Published 12th of December 2017. 

MAJOR IMPORT SOURCES

Source: Ministry of International Trade and Industry (MITI). Interactive Trade Statistics. Retrieved on December 15th, 2017.

MAJOR IMPORTS 2017

Source: Ministry of International Trade and Industry (MITI). Interactive Trade Statistics. Retrieved on December 15th, 2017.

MAJOR EXPORTS 2017


Source: Ministry of International Trade and Industry (MITI). Interactive Trade Statistics. Retrieved on December 15th, 2017.

MALAYSIA: INVESTMENT OUTLOOK

  • According to UNCTAD, fundamentals support a rise in global FDI flows in 2017 but uncertainties abound
  • Global economic growth is projected to accelerate to 3.4% in 2017 compared to 3.1% 2016
  • Greater economic activity boost world trade volumes and forecast to expand by 3.8% in 2017 compared to 2.3% in 2015
  • UNCTAD projects global FDI flows to increase by 10% over the year
  • The World Bank expects Malaysia’s economy to remain resilient to external headwinds, with GDP growth projected around 4.2% in 2016 and 4.32% in 2017.

 

Source: IMF/ UNCTAD / The World Bank

 

 

MALAYSIA: FDI STOCK

Source: DOSM

 

MALAYSIA: INVESTMENT BY SECTOR & SOURCE

"Services sector remains strong and continues to lead with investment of RM 141.2 bil. Domestic Investments continue to spearhead private investments."

Source: MIDA

 

MALAYSIA: FDI INFLOWS BY SECTOR

"In 2016, FDI inflows in the Services sector increased to RM20.9 bil. compared with RM 12.6bil. recorded in 2015."

Source: MIDA & DOSM

 

MALAYSIA: SOURCES OF FDI

MANUFACTURING

"China, the Netherlands, Germany, the UK and Republic of Korea were the main sources of FDI, contributing more than half of the total foreign investments approved."

Source: MIDA

 

MALAYSIA: WAY FORWARD

Mitigating Strategies

  • Implementing the manufacturing sector’s investment strategies/ policy formulations on 11MP’s “3+2” catalytic & growth sectors
  • Increasing efforts to develop and enhance local supply chains to support MNCs
  • Intensifying promotion high quality projects with focus on R&D, productivity, green technology and other quality features to locate in Malaysia
  • Adopting & adapting the Fourth Industrial Revolution/ Industry 4.0 or the Smart Manufacturing revolution
  • Leveraging on FTA Networks and AEC in making Malaysia an investment gateway and to gain better market access
  • Continuously intensify handholding and facilitation efforts actualise implementation of approved projects
  • Continuing with Turun Padang visits, Roundtable Meetings, and other outreach programmes as a means of more direct engagement with the private sector and relevant stakeholders.