Industry in Malaysia

Industry in Malaysia

The country of Malaysia (in English: Malaysia) has a vibrant and developed industrial sector, as the country includes many industrial fields and factories that produce various goods, products, and equipment. The country is open to various types of sectors that will develop and grow the economy, and the industrial sector’s contribution to Malaysia’s gross domestic product has reached about 38.3%, as it occupies second place in the list of the largest contributing sectors to the country’s economy after the services sector.

The importance of industry in Malaysia

The manufacturing sector in Malaysia contributes significantly to the growth and development of the country's economy. This sector supports the gross domestic product to a large extent, and has a prominent impact in attracting foreign investments and stimulating jobs, in addition to creating a large number of job opportunities and jobs for local residents from various businesses and industrial sectors. It has also enabled the industrial sector to show Malaysia at the global level as a strong center. And competitive in the field of manufacturing, Malaysia is expected to rank thirteenth in 2020 in terms of the global competitiveness index for industry at the level of countries around the world.

History of industry in Malaysia

The industrial sector in Malaysia has gone through many stages of development and transformation throughout the country's history. Before independence, the Malaysian economy was based mainly on two primary export products: Rubber and tin, and with the country’s independence in 1957 AD, the trend began towards industrialization as a main goal for economic development, and work to address previous economic problems. In 1958 AD, the Pioneer Industries Law was adopted, and the growth in manufacturing continued further after the mid-sixties, coinciding with the formation of the Industrial Development Authority. Malaysia and the issuance of the Investment Incentives Law, which stimulated important export-oriented industries.

By the mid-eighties, the Malaysian economy had become primarily based on manufacturing after it had been dependent on basic commodities. The manufacturing sector in Malaysia was included as a strategic sector of importance in the new economic policy and the promotion of exports in 1971 AD, and this sector developed further with the entry of the twenty-first century. The contribution of the manufacturing sector amounted to about 40% of the gross domestic product in 2001.

Main industries in Malaysia

Malaysia includes many major industries, which are as follows:

Electrical and electronics industry in Malaysia

The electricity and electronics industry is considered one of the most important manufacturing sectors in the country. It contributes significantly to the growth of Malaysian industry, as many small sub-sectors fall under this main sector, such as the electrical components production sector, which is represented by the manufacture of tools such as semiconductors, circuit boards or printed circuits, passive components in some circuits and other materials that operate A large part of the country's exports, and another sub-sector is the sector of manufacturing solar energy equipment or photovoltaic cells, as Malaysia occupies an advanced position globally in this field, and includes many factories and companies specialized in this, such as the First Solar Energy Company and Panasonic.

Automotive industry in Malaysia

The automobile industry is considered one of the important industrial sectors in Malaysia, as the country ranks third in Southeast Asia, and twenty-third in the world as the largest automobile industry sector, as this sector contributes to the production of about 500 million cars annually, and also supports the Malaysian gross domestic product by 4%. %, and the country includes many local companies for car production, such as Perodua and Proton, which manufacture cars completely, starting with car design and engineering, all the way to manufacturing and production, in addition to joint companies between local residents and foreign investors. And hundreds of factories that produce automobile components and parts.

Construction industry in Malaysia

The construction industry sector in Malaysia contributes approximately $32 billion; It is considered one of the main industrial sectors in the country, which has recently enjoyed significant expansion. As a result of the presence of capital expenditure projects with large amounts of money, strengthening government efforts in the sector, and increasing cooperation between the public and private sectors, several smaller sub-sectors also fall under this sector, such as the non-residential building construction sector, the civil engineering sub-sector, the residential buildings sector, and the Private trading, the construction industry is mainly concentrated in Malaysia in the five largest states; Selangor, Johor, Kuala Lumpur, Sarawak and Penang.

Other industries in Malaysia

Malaysia includes many other industries in addition to the previous main industries, such as:

• Pharmaceutical industry in Malaysia: Malaysia includes one of the best medical facilities in the world, including hospitals and health centres. Many factories have been established to provide these facilities with the necessary machinery and equipment, in addition to producing various types of medical foods, drugs and medicines.
• Economic Geology in Malaysia: Malaysia is interested in the geology sector and geophysical disciplines, which is considered a way to enhance science, profession and education, provide more information about the geology of the country and the Southeast Asian region, and strengthen the country's economy through publishing magazines, organizing field trips, seminars, and short courses.
• Textile and metal industry in Malaysia: This field is of great importance in the Malaysian industry, as it ranks eleventh among the largest exports. Due to the high quality of Malaysian textiles, several fields fall under this industry, such as dyeing, handicrafts, jewelery design and production, and embroidery.
• Banking and financial services in Malaysia: The banking and financial services sector in Malaysia has witnessed significant development recently. This is thanks to the entry of digital technology into this field, the rise in financial demand, and the greater need for banking services.
• Food delivery industry in Malaysia: The food delivery field is considered a profitable field; The number of people who prefer to order food delivery to homes has increased, rather than going to the place of sale and purchase directly.

Industrial policies in Malaysia

The Malaysian government constantly seeks to develop and advance the industrial sector, by following many effective policies and procedures, such as the strategy of moving towards exports early, following the growth models of the economies of successful countries such as Japan and South Korea, and replacing imports by shifting towards heavy industries, as this contributed The matter is in the growth of the manufacturing industry by expanding the scope of the industrial base and creating broader links for growth. The government also exploited natural resources in the production of many materials such as wood, rubber, and palm oil.