Many buyers are looking beyond China and asking what products people are sourcing products made in Malaysia. Both the trade war with China and the increasingly uncertain global landscape, buyers are searching globally for new sourcing destinations. Buyers, business owners, procurement officers, and more are looking outside China to find alternative sourcing destinations. Malaysia is one of the top choices for many reasons, including its vast manufacturing landscape and ease of doing business. If you are interested in other countries, check out our guide on the 13 best alternatives to China for Sourcing.
The Economy and Culture of Malaysia
Malaysia has a population of over 31 million people and a GDP that reached USD 358.6 billion in 2018. The GDP per capita in Malaysia was $11,373.23 in 2018. There was a decline in the unemployment rate in Malaysia over the last few years. In 2018, about 3.36% of the Malaysian population was unemployed, According to The World Bank. Kuala Lumpur is the capital and biggest city in Malaysia and home to many of its manufacturing plants, as well as the famed Petronas twin towers.
Malaysia is considered to be newly industrialized and has experienced significant growth in just a short period. One thing that Malaysia has to its advantage is the fact that the country’s labor productivity is much higher than many of the neighboring countries, including Indonesia and the Philippines. Knowledge-based industries and the implementation of cutting edge technologies – these are the factors that often put Malaysia at the top list of countries when looking at economic growth, as well as export opportunities.
Agriculture, and other similar products made in Malaysia, hold the most significant contribution to the country’s GDP. Many of these products form part of the exports that go from Malaysia to other countries.
List of Products Made In Malaysia
Malaysia is a significant exporter of products globally. Malaysia ships thousands of different products to other countries, allowing companies to stock their shelves with items sourced in Malaysia using the latest technological advancements.
Some markets seem to be more common when looking at exported products from Malaysia. These export opportunities include the following sectors.
Apparel, Clothing, And Garments Suppliers in Malaysia
Clothing is a significant industry in Malaysia. Domestic fashion trends often derive from international styles too. It is why many companies from other countries turn to clothing manufacturing plants in Malaysia to get their stores stocked with the latest fashion products.
There is no limit to the variety of apparel and clothing products that are available from manufacturing plants in Malaysia. Examples of clothing made in Malaysia include men’s, women’s, and children’s clothing. Malaysia’s manufacturing facilities also offer baby clothing and unisex apparel. Other categories for clothing include t-shirts, singlets, nightwear, and sportswear.
This category also extends to footwear, including socks and shoes. Many factories in Malaysia also offer these products.
Iron And Steel Suppliers in Malaysia
There are several iron and steel suppliers in Malaysia too. Iron and steel alone make up about 1.8% of the annual exports coming from this country. It accounts for about $4.4 billion in total.
Iron and steel are materials that are commonly used in the manufacturing process of many products, ranging from hardware to kitchen appliances and even beds that feature a coil or spring system on the inside. There is an endless number of manufacturing facilities throughout the world that depend on the use of a high-quality steel product in their process. Many of these companies may turn to suppliers in Malaysia to obtain a more cost-effective solution to find a quality, durable steel material.
Plastics Suppliers in Malaysia
Many companies in Malaysia specialize in making plastic and plastic products. Plastic holds a 3% market share in all exported goods from Malaysia. An estimated $9.6 billion worth of plastic items is exported from Malaysia to other countries every year.
Plastic products include molds that help companies create containers in bulk. It is a useful strategy for a company that is producing a product that requires distribution in plastic containers. Pre-made plastic containers are also available from several manufacturing plants located in Malaysia.
Electrical Machinery Manufacturers in Malaysia
An estimated 34.4% of all exports from Malaysia are in the form of electrical machinery. This sector also includes a wide range of different electrical components and devices and is not limited to larger machines only. About $82 billion worth of electrical items is exported from Malaysia every year.
Some of the electrical components and devices exported from the country include consumer electronics, as well as industrial electrical devices. Consumer electronics include air conditioning units, refrigerators, audiovisual equipment, and more. Manufacturing plants from other countries are also to import heat exchange systems, batteries, audiovisual accessories, and power cells from electrical suppliers in Malaysia.
Oils And Waxes suppliers in Malaysia
Another primary manufacturing sector involved in exports from Malaysia would be related to oils and waxes. Oils and waxes account for about 4.8% of all exports from the country. Mineral fuels are sometimes included in the category too, accounting for an additional 14.5% of the exports made from Malaysia to other countries. Animal and vegetable fats and oils alone total about $11.5 billion worth of exports to Malaysia each year.
Oils include cooking oils, refined palm oil, shortening, margarine, vanaspati, ghee, soap noodles, and crude palm oil. Palm-related oils and fat products are prevalent among manufacturing plants in Malaysia and account for the majority of the exports in this category. However, we will note that Palm oil is a leading contributor to deforestation and very unethical. We cannot in good conscience recommend sourcing Palm oil from Malaysia.
Prepared Food Product suppliers in Malaysia
Malaysia exports large amounts of prepared food products to other countries. These food products are produced and packaged locally in Malaysia, allowing resellers to avoid undergoing additional expenses with the packaging of these food products.
Various prepared food products are available from Malaysia. Some examples would include confectionery chocolates, cocoa products, dairy products, confectionery candies, and confectionery biscuits.
Other Products Made In Malaysia
Plastics, steel, and iron, prepared food – these are some of the most significant areas when looking at exports that come from Malaysia. While these hold the largest share in the export market, there are many other products that international firms buy from Malaysia too.
Some examples include:
- Pharmaceutical and toiletries
- Cosmetic products
- Oil and gas products
- Automation equipment and machinery
- Household products
- Telecommunication products
- Wooden goods
- Transportation equipment and parts
- Sports equipment
- Rubber products
Final Thoughts on Manufacturing in Malaysia
With a fast-growing economy, Malaysia offers a significant number of export opportunities for buyers and procurement managers from around the world. Malaysia has many different products produced locally and suitable for export to wholesalers, retailers, FBA sellers, and significant companies. While agriculture is one of the most significant sectors in terms of exports from Malaysia, products like Plastics, metal, clothing, textiles, and much more are made in Malaysia.