Malaysia Advanced Manufacturing

Malaysia has made strides toward embracing the Fourth Industrial Revolution (4IR) to ensure that the manufacturing industry continues to be competitive in terms of productivity, innovation, and talent.

The Government of Malaysia, through its Ministry of International Trade and Industry (MITI), is developing a formulation of a national environmental, social, and government (ESG) framework for the manufacturing sector. It aligns with Malaysia’s net-zero greenhouse gas emissions (GHGs) target by 2050. It will include four main components — ESG standards, financial support and incentives, capacity building, and market mechanisms, including carbon trading and carbon pricing. 

The Malaysian Government will intensify its focus on sectors such as the digital economy, electrical and electronics, pharmaceuticals, chemicals, and aerospace with significant economic potential and sustainable long-term benefits along with the National Investment Aspirations (NIA) goals.  The Government would formulate the framework based on consultation and engagement with local and international stakeholders involved in the manufacturing, regulatory and financial sectors. 

There are opportunities in the manufacturing sector as companies actively try to adopt automation and digitalization, which is a critical factor in replacing the shortage of foreign workers in Malaysia.  As a call of action, the Government is planning to increase grants and facilities to help companies to transition to Industry 4.0 and rebound from the pandemic.  These funds are expected to be tabled in the upcoming Federal Budget 2023.  

If you represent a U.S. company with Advanced Manufacturing Technologies keen to explore opportunities in Malaysia, please get in touch with Commercial Specialist Kisok Kumar at office.kualalumpur@trade.gov.