The electrical and electronics industry is Malaysia's leading
industrial sector and contributes significantly to the country's
manufacturing output, exports and employment. In 2002, gross
output of the industry totalled RM136.3 billion (US$35.9 billion),
with exports of electrical and electronics products amounting
to RM206.6 billion (US$54.4 billion) or 58.3% of total manufactured
exports.
The Food Products
Industry
Malaysia is a net importer of food with imports totalling
about RM12.43 billion (US$3.27 billion) in 2002. As such, opportunities
abound for the further development of the country's food industry.
In terms of numbers, small and medium-sized firms dominate the
food industry in Malaysia. The major groupings are the fish
and fish products, livestock and livestock products, fruits
and vegetables, and cocoa-based sectors.
Malaysia is currently dependent on imports of pharmaceutical
products as the local industry supplies only about 30% of domestic
demand. Besides looking at opportunities for import-substitution,
investors can also take advantage of the country's potential for
the development of domestic generic and herbal medicines.
Malaysia is currently the world's leading producer of medical
gloves and catheters. Other medical devices and products manufactured
include syringes, needles, procedural kits, and surgical and dental
instruments.
The Petrochemical and Polymer Industry
The petrochemical industry is an important sector in Malaysia,
with investments totaling RM 28 billion (US$7.4 billion) as at
the end of 2002. From being an importer of petrochemicals, Malaysia
is today an exporter of major petrochemical products.
The Rubber-based
Industry
Malaysia today is the world's largest consumer of natural
rubber latex and fifth in natural rubber uptake. Exports of
rubber products amounted to RM5.4 billion (US$1.4 billion) in
2002, with the latex products sector being the major contributor
with exports totalling RM4.2 billion or about 80% of total rubber
product exports.
The Wood-based
Industry
Malaysia is already well known as one of the leading exporters
of quality furniture. The most popular wood for furniture is
rubberwood, a light coloured, medium hardwood popularly called
"Malaysian oak"
The Malaysian financial system comprises commercial banks, finance
companies, merchant banks and discount houses. Malaysia's banking
sector offers a comprehensive range of trade financial facilities.
These facilities include offshore foreign currency loans, export
credit and refinancing, trust receipts and guarantees. Finance
companies provide a range of services for the business sector.
These include hire purchase facilities and loans. Merchant banks
in Malaysia are evolving into full-service investment banks offering
investment advice and specialized services relating to corporate
finance and management. Services provided include international
factoring, import-export factoring and asset and fund management.
Commercial banks and approved merchant banks are freely allowed
to open foreign currency accounts for non- residents. There
are no restrictions on the inflow and outflow of funds through
the foreign currency accounts of non- residents.
Malaysia has set up 14 Free Industrial Zones (FIZ) to promote
international trade and investment. These are areas specifically
designated for export-oriented industries and offer tax incentives
to companies which export more than 80% of all their output.
