Prospects for the textile and clothing industry in Malaysia, 2019
Malaysia's textile and clothing industry is one of the country's largest established manufacturing sectors. Overall, the industry employs over 90,000 people directly, and its exports were valued at US$3.3 bn in 2017. The Malaysian government has ambitious plans for the industry, and an export target of US$6 bn has been set for 2020. Moreover, the continuing importance of the textile and clothing industry to Malaysia is highlighted in the country's Third Industrial Master Plan (IMP3), which has identified industrial and home textiles, functional fabrics, high-end fabrics and garments, and ethnic fabrics as growth categories. Furthermore, the textile industry in Malaysia benefits from low import duties on industrial goods, membership of the Association of Southeast Asian Nations (Asean) and bilateral trade agreements with the EU, Chile, India, New Zealand, Pakistan and Turkey. That said, Malaysia faces increased competition from lower cost competitors in countries such as Bangladesh and Cambodia. Also, the textile and clothing industry in Malaysia is dependent on the importing of raw materials—particularly for the manufacture of fabric. However, as the industry shifts towards the manufacture of higher added value products, Malaysia has the potential to develop industrial and home textiles, functional fabrics and high value fabrics and clothing. This report looks at the development of the textile and clothing industry in Malaysia and its size and structure, and features: a geographical, political and economic profile; a detailed look at the country's imports and exports; a review of government policies and investment incentives; an analysis of the industry's strengths, weaknesses, opportunities and threats (SWOT); and an examination of Malaysia's infrastructure and human resources and how these affect the industry.
- SUMMARY
- IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO THE ECONOMY OF MALAYSIA
- DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN MALAYSIA
- MALAYSIA: GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
- Geographical profile
- Political profile
- Economic profile
- MALAYSIA: INFRASTRUCTURE
- Overview
- Transportation
- Roads
- Railways
- Seaports
- Airports
- Telecommunications
- MALAYSIA: HUMAN RESOURCES
- SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING INDUSTRY IN MALAYSIA
- Investment in machinery
- Output
- MALAYSIA: TEXTILE AND CLOTHING EXPORTS
- Textile exports by product
- Clothing exports by product
- Textile and clothing exports by destination
- Textile exports by destination
- Clothing exports by destination
- MALAYSIA: TEXTILE AND CLOTHING IMPORTS
- Textile imports by product
- Clothing imports by product
- Textile and clothing imports by supplier
- Textile imports by supplier
- Clothing imports by supplier
- MALAYSIA: DOMESTIC AND FOREIGN DIRECT INVESTMENT (FDI) IN THE TEXTILE AND CLOTHING INDUSTRY
- TEXTILES AND CLOTHING IN MALAYSIA: GOVERNMENT
- POLICIES AND INVESTMENT INCENTIVES
- Government policies
- Promoting investment in higher added value textiles and clothing
- Sustaining market share and promoting exports
- Intensifying regional integration
- Enhancing domestic capabilities and facilitating the utilisation of technologies
- Enhancing skills
- Strengthening institutional support
- Trade policy
- Investment incentives
- Tax incentives
- Financial assistance programmes
- Automation Capital Allowance (A-CA)
- Policy changes resulting from the election of the new government
- Industrial and specialised parks
- TEXTILES AND CLOTHING IN MALAYSIA: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
- Strengths
- Weaknesses
- Opportunities
- Threats
- List of tables
- Table 1: Malaysia: political and economic profile, 2018
- Table 2: Malaysia: economic indicators, 2015-17
- Table 3: Malaysia: no of employees in the textile and clothing industry by activity, sex and citizenship, 2015
- Table 4: Malaysia: no of establishments in the textile and clothing industry by activity, 2015
- Table 5: Malaysia: textile and clothing industry output, 2015
- Table 6: Malaysia: textile and clothing exports, 2010-17
- Table 7: Malaysia: textile exports by product type, 2012-17
- Table 8: Malaysia: clothing exports by product type, 2012-17
- Table 9: Malaysia: textile and clothing exports by leading destination, 2012-17
- Table 10: Malaysia: textile exports by leading destination, 2012-17
- Table 11: Malaysia: clothing exports by leading destination, 2012-17
- Table 12: Malaysia: textile and clothing imports, 2010-17
- Table 13: Malaysia: textile imports by product type, 2012-17
- Table 14: Malaysia: clothing imports by product type, 2012-17
- Table 15: Malaysia: textile and clothing imports by leading supplier, 2012-17
- Table 16: Malaysia: textile imports by leading supplier, 2012-17
- Table 17: Malaysia: clothing imports by leading supplier, 2012-17
- Table 18: Malaysia: approved textile and clothing industry investments, 2016
- List of maps
- Map of Malaysia
- Prospects for the textile and clothing industry in Malaysia