A Land of Opportunities -Invest in Malaysia

Malaysia lies just above the equator, right in the heart of South-East Asia. Strategically located between the Indian Ocean and the South China Sea, Malaysia is well serviced by all primary air and shipping lines. Malaysia’s strong and sustainable economic foundation, its business-ready environment, forward-looking focus, and dynamic workforce have made it an attractive, cost-competitive investment location in the region. It is quickly becoming a preferred centre for shared services and leading technology industries.

Malaysia is well-positioned in one of the fastest-growing economic regions in the world. The South-East Asia region has recorded average GDP growth of 5.3% per annum over the last 20 years.

Once reliant on agriculture and primary commodities, our economy has transformed into an export-driven and diversified economy, fuelled by high technology, innovation as well as knowledge-based and capital-intensive industries.

Our mature and integrated ecosystems have nurtured a strong local supply chain that supports the long-term growth of businesses.

Malaysia’s manufacturing sector plays an important role in the global supply chain while domestic activities are well represented by the services sector, which has gained greater prominence in the past two decades. We continue to be an attractive location for businesses across various industries. Malaysia’s diversified sectors offer abundant opportunities for investors expanding into alternative markets.

Source: Malaysia: Investment Performance Report, 2022

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Malaysia has already signed and implemented various free trade agreements (FTA), which include bilateral FTAs with Japan, Pakistan, India, New Zealand, Chile, Australia and Turkey. On the ASEAN level, Malaysia has regional FTAs through the ASEAN Free Trade Agreement (AFTA) with China, Korea, Japan, Australia, New Zealand and India. 

This creates a potential market size of more than 4 billion people globally. Up to 99% of total products have 0% import duties under Malaysia’s FTAs with ASEAN.

Reduced trade barriers drive down business costs, granting companies preferential access to seize growth opportunities in one of the world’s largest trading blocs.

Malaysia is one of the twelve (12) signatory nations of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement – representing 30% of the global population and 30% of global GDP and is expected to rise up to 50% by 2030. This agreement is set to foster cooperation, drive economic recovery, and create a liberal and competitive investment environment. With RCEP’s member countries among Malaysia’s top trading partners, it promises enhanced investment facilitation and investor aftercare, amplifying opportunities for growth.

RCEP seeks to create a mutually beneficial economic partnership as it aims to boost trade, investment, connectivity, and regional economic integration, driving the region’s recovery.

In addition to RCEP, Malaysia is also one of the 11 signatory nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In this holistic free trade agreement (FTA), Malaysia collaborates with countries representing 13.4% of the global GDP. The CPTPP will place Malaysia in a strategic position and elevate the country’s competitiveness in the global arena by broadening its access to new markets such as Canada, Mexico, and Peru, which are not covered by any existing FTA.

Under the CPTPP, almost 100% of Malaysian exports to all CPTPP countries would enjoy duty-free treatment by 2033.

Take a look at how Malaysia stacks up against global competition.

Malaysia is one of the fastest growing nation in the region. Ranked among the top emerging markets for investment and recognised for its protection of investors as well as its responsiveness to facilitating business needs, Malaysia is the offshore base from which your company can prosper.