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Services and Manufacturing

Malaysia’s economy is driven by the services and manufacturing sectors, making up 59.2% and 23.4% of the country’s GDP respectively as of 2023. Once reliant on agriculture and primary commodities in the 1960s, the Malaysian economy has since transformed  into an export-driven and diversified economy, where knowledge, innovation and productivity are central to value creation.

Leveraging on the existing strong manufacturing and services base, Malaysia aims to pursue the next phase of industrial transformation via the introduction of NIMP 2030. Within manufacturing, Malaysia aspires to advance its capabilities in areas such advanced electronics and green industries. This will be strongly complemented by a highly dynamic and knowledge-intensive services sector, including digitalisation, research and development (R&D) finance and business services.

Capitalising on emerging shifts in global trends, digitalisation and ESG considerations, Malaysia also intends to broaden its growth potential in new areas of advanced materials, electric vehicles (EVs), renewable energy and carbon capture, utilisation and storage (CCUS).

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Keyindustries 1
Electrical & Electronics

Electrical & Electronics

Malaysia's electrical and electronics (E&E) industry is contributing significantly to Malaysia's exports. As a global hub for semiconductor production, Malaysia hosts major multinational tech corporations and a robust supply chain. The industry comprises of four main sub-sectors namely electronic components, consumer electronics, industrial electronics and electrical products.

With the NIMP 2030 and the National Semiconductor Strategy (NSS), Malaysia aspires to transform the industry to greater heights, building on its existing solid foundation to establishing home-grown global integrated circuit (IC) design and advanced packaging champions and attract new advanced wafer fabrication, all while creating a thriving ecosystem that fosters research and development (R&D) and technological collaboration

Among the goals set by the Government include the establishment of at least 10 home-grown global IC companies focused on design and advanced packaging, and a further 100 new semiconductor-related companies, all while creating a thriving ecosystem that fosters R&D and technological collaboration. 

6.8%

Contribution to GDP

12th

Largest E&E exporter globally

6th

Largest semiconductor exporter globally

RM85.4 billion

Total approved investment for 2023

Keyindustries 2
Aerospace

Aerospace

The aerospace industry consists of five sub-sectors namely the maintenance, repair and overhaul (MRO), aerospace manufacturing, systems integration, engineering and design services as well as education and training. Strategically located at the heart of the wider  Asia-Pacific region, Malaysia sits within the world’s largest air travel market and has world-class infrastructure to support demand within the sector.

With a strategic focus on enhancing local capabilities, Malaysia has attracted significant foreign investment and established partnerships with major aerospace companies. Malaysia’s government actively supports this sector through initiatives aimed at fostering innovation, skill development, and infrastructure improvements, as outlined in the NIMP 2030. 

RM55.2 billion

Projected revenue by 2030

32,000

Projected employment by 2030

13.3%

Export CAGR from 2006 to 2020

RM4.6 million

Total approved investment for 2023

Keyindustries 3
Medical Devices

Medical Devices

Malaysia's medical devices industry is the largest in the ASEAN region, with an estimated total market size of USD1.8 billion. 

This section is poised to further capitalise on its immense growth potential in line with the Governments prioritisation of national health and wellbeing as a key theme of the Twelfth Malaysia Plan 2021-2025.

The industry encompasses a wide range of products, from single-use consumables such as medical gloves, to advances electromedical health equipment such as ultrasonic devices and MRI machines. With increasing demand for healthcare solutions and advancements in technology, the medical devices industry in Malaysia is set for significant growth.

RM33.4 billion

Total approved investments from 2006 to 2020

10.9%

Export CAGR from 2006 to 2020

RM2.17 billion

Total approved investment for 2023

RM1.18 billion

Total approved foreign investment for 2023

Keyindustries 4
Chemical

Chemical

The chemical industry is a key component of Malaysia’s national exports. Products from this sector are among the top five in terms of exports, contributing to 5.0% of total national exports in 2023.

The industry covers a wide range of products under three sub-sectors: organic chemicals, inorganic chemicals and bio-based feedstock. 

Guided by the Chemical Industry Roadmap 2030, Malaysia’s chemical industry is expected to see an increase in its global competitiveness with enhancements to ESG practices, upstream and downstream integration, and diversification into higher-value added specialty chemicals, among others.

RM36.6 billion

Contribution to GDP

236,414

Job Opportunities in 2022

5.0%

Export CAGR from 2006 to 2020

RM8.9 billion

Total approved investment for 2023

Keyindustries 5
Pharmaceutical

Pharmaceutical

Malaysia’s pharmaceutical industry has seen steady growth over the past decade and is poised to reach an estimated total valuation of USD2.1 billion by 2027. 


The industry primarily focus on the manufacturing of products, medicines and supplements. These range from generic pharmaceutical products, health supplements, traditional medicines and veterinary products.

RM9.8 billion

Market value

RM5.3 billion

Total approved investments from 2006 to 2020

10.3%

Export CAGR from 2006 to 2020

RM154.8 million

Total approved investment for 2023

Keyindustries 6
Other Sectors

Other Sectors

Malaysia's diverse economy comprises of thriving sectors such as agriculture, mining and construction, each contributing significantly to the nation's growth and development.

Further detailed information on all major industries can be found below:

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