Malaysia - Export Britain

Export Britain

Malaysia

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Capital
Kuala Lumpur

Largest city
Kuala Lumpur

Administrative divisions
12 states

Currency
Ringgit (RM)

Area
329,847km2

Population
(2012) 28,334,135

Calling code
+60

Official language
Malaysian

Latest Business Opportunities

See more opportunities for Malaysia.

Ease of trading across borders

Importing a standard container of goods into Malaysia requires:

6documents
8days
£259

Introduction

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Malaysia is the third largest economy in South East Asia behind more populous Indonesia and Thailand. Manufacturing has a large influence in the country's economy, although Malaysia’s economic structure has been moving away from it. Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain.

Economic snapshot (% annual growth rate)

201120122013-16
GDP 5.1 5.6 4.6
Export of goods and services 4.6 -0.1 3.8
Import of goods and services 6.1 4.7 4.8
Inflation 3.2 1.7 2.7
Short-term interest rates (%) - - -
Exchange rate (per £) - - -
Population 1.6 1.5 1.4
Unit labour cost 2.8 -0.8 0.7
Source: Oxford Economics

Economic outlook

The pace of growth in the first quarter of 2013 slowed to 4.1%, due to the continued contraction in the external sector and, surprisingly decelerating private investment. Nonetheless, private consumption remained robust, providing the necessary support for aggregate domestic demand. Domestic demand will continue powering growth of the Malaysian economy, with growth of 4.8% expected for 2013. Growth outlook for 2014 is projected to be between 5.0-5.5%, on account of weak global economic outlook, generally tight fiscal and financial conditions and enhanced downside risks.

Trade outlook

Malaysia’s trade growth will be dominated by emerging markets, particularly in Asia. The fastest growth in exports will be to India, Vietnam, China and Indonesia. Exports to some Middle East markets are also expected to perform strongly, led by Saudi Arabia and the UAE. Exports to some large Latin American economies such as Brazil and Argentina is expected to slow, while imports from Mexico, India and Vietnam are forecast to grow particularly strongly.


SWOT analysis

Strengths
Abundant of Natural Resources
Weaknesses
Political uncertainity
Opportunities
high-income status by 2020
Moving up the value-added chain
Threats
Slowdown in the global economy

Malaysia's trade with the UK

Sector segmentation growth

Sectors to watch:
  • chemicals & fertilisers
  • electronic components & boards
  • computers & office equipment
Manufacturing
  • motor vehicle bodies & parts
  • machine tools

Fastest-growing exporters into Malaysia

Rank2012
1 Mexico
2 Vietnam
3 India
4 China
5 France
6 Indonesia
7 Egypt
8 Korea
9 Hong Kong
10 Poland

Total merchandise trade - Leading import partners

Total merchandise trade - leading import partners
Opportunities for UK businesses

Malaysia is attempting to achieve high-income status by 2020 and is moving up the value-added production chain. This is offering great opportunities for UK businesses in particular for the following sector: business services, communications, education & training and construction.

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