Malaysia: Shaping the Future Today

Favorable economic conditions, government support and rising demand in the global outsourcing production market are contributing towards robust growth in the contract manufacturing market in Malaysia. Across industries including electronics, pharmaceuticals, food processing and automotive, contract manufacturers are an essential service that contributes to the Malaysian economy and remains an expanding role. Malaysia’s position as a gateway for global trade basis its strategic location in Southeast Asia has made the country attractive for contract manufacturing. Especially in the electronics manufacturing services (EMS) segment, the country's base of infrastructure, availability of skilled workforce and proximity to the markets have fueled its growth. As the major multinational corporations continue to outsource assembly, testing and production tasks to Malaysian contract manufacturers, they are employing them to minimize costs and achieve efficiency.

This is boosted by government initiatives, for example, tax incentives and investment in industrial parks. Programs are designed to push local manufacturers to adopt Industry 4.0, encouraging upgrades to capabilities. Contract manufacturers are globally competitive as a result of automation and advanced technologies that are helping to deliver superior quality and efficiency. Another big area of growth is the pharmaceutical and healthcare manufacturing sector that has seen a boom after the successful implementation of supply chains in response to the COVID-19 pandemic. Regulatory alignment with international standards has helped Malaysian contract manufacturers diversify into producing high value medical devices and pharmaceuticals. Hence, the contract manufacturing sector of Malaysia is at a promising stage with the advantages of strategy, technology and policy support.

It is with the view of staying updated with the emerging trends in the region’s business landscape that Asia Business Outlook has come up with a special issue containing stories of companies that have demonstrated their capability through their expertise. To strengthen the business landscape with their tightly-knit and result-oriented approach, they are setting new standards of effectiveness.

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