Why invest to Malaysia?

1. Economic Strength
Malaysia is a country on the move. From a country dependent on agriculture and primary commodities in the sixties, Malaysia has today become an export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries.
The structural transformation of Malaysia's economy over the last 50 years has been spectacular. Often dubbed the "lucky country" because of its wealth of mineral resources and fertile soils, Malaysia did not rest on its laurels but took decisive steps to progress from an economy dependent on agriculture and primary commodities to a manufacturing-based, export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries.
Today, Malaysia offers the world its Multimedia Super Corridor (MSC) which brings together a legislative framework and a next-generation telecommunications infrastructure in eco-friendly surroundings to create the best environment for the development of multimedia industries.
The mid-1997 economic and financial crisis which hit several countries in the Asia Pacific Region and caused a currency crisis and stock market crash in Malaysia, provided further proof of the strength and resilience of the Malaysian economy. Within less than two years, helped by selective exchange controls and the pegging of the ringgit, Malaysia bounced back and went on track towards economic recovery.

2. Continuous Economic Growth
Malaysia's pragmatic and flexible management approach has enabled the economy to raise its competitivenes and enhance its resilience in facing challenging circumstances. Deliberate measure has been taken to make the economy more diversified and broadbased to ensure sustainable growth. Continuos efforts have been pursuit to enhance the services sector, accelerate value-added of the manufacturing sector as well as boost the agriculture and agrobased sector as the third engine of growth. New sources of growth continue to be promoted and developed such as biotechnology, information and communications technology, halal products and Islamic finance. Indeed Malaysia is developing as a knowledge-based economy, driven by human capital, innovation and ideas.
The global environment remains challenging in 2008, as a result of a persistently high crude oil price, inflationary pressures and monetary tightening, which has resulted in higher interest rates. However, Malaysia remain confident in facing these challenges toachieve a healthy growth rate for 2008, given the nation more diverse economic structure and strengthened domestic fundamentals.
Malaysia continues to enjoy healthy surplus in the external trade, low unemployment as well as strong international reserves and high national savings.

Sources:
1."Economic Report 2007/2008" published by the Ministry of Finance, Malaysia
2. Malaysia: Performance of the Manufacturing and Services Sectors 2007

3. High Level of Global Integration
Malaysia's total trade in 2007 was valued at RM1.11 trillion, an increase of 3.7 per cent from RM1.07 trillion in 2006. Exports increased by 2.7 per cent to RM605.1 billion in 2007 from RM589 billion in 2006. Imports increased by 4.9 per cent to RM504.6 billion from RM480.8 billion in 2006. The growth in exports in 2007 had resulted in Malaysia recording trade surplus for the tenth consecutive years valued at RM100.5 billion*.
The manufacturing sector accounted for 30.3% of Malaysia GDP in 2007 while exports of manufactured goods make up 74.8% of the country total exports*. From being the world largest producer of rubber and tin, Malaysia is today one of the world leading exporters of semiconductor devices, computer hard disks, audio and video products and room air-conditioners.
Malaysia rapid industrialisation was the result of the country opening itself relatively early in the 1960s to foreign direct investments (FDI). Today, its market-oriented economy, combined with an educated multilingual workforce and a well-developed infrastructure, has made Malaysia one of the largest recipients of FDI among developing countries.
Malaysia was ranked the fifth most competitive economy in Asia, after Singapore, Hong Kong, Taiwan, and China; and 19th worldwide based on the recently-released World Competitiveness Yearbook 2008, covering 55 economies.
Malaysia is a atural choice? For offshore services in view of its low costs, particularly for infrastructure, the most attractive business environment among emerging markets, and high levels of global integration.
*Source - Malaysia: Performance of the Manufacturing and Services Sectors 2007

4. A Knowledge-based Economy
In the coming decade, an important policy component in Malaysia's development plans will be to enhance the knowledge content of the economy. There will be intensive research and technology development with support from venture capitalists, with ICT as the enabling technology.
The next 10 years will see a greater emphasis on human resource enhancement as availability of skilled and knowledge workers is a major pre-requisite to transform Malaysia from a production-based into a knowledge-based economy.
The last decade has seen a deepening and widening of Malaysia's industrial base as well as the further development of its services sector. As such, a strong foundation has been laid for the economy to move forward into the new globalised environment.

5. Herbal market
MALAYSIA needs to tap local and foreign expertise to increase the share of local content in the country’s herbal market, which currently stands at only 5 per cent.
Nona Roguy Sdn Bhd managing director said of the estimated RM2 billion Malaysian herbal market in 1999, only RM100 million was locally produced while the remainder was imported from overseas.
He said Malaysian should increase the percentage of local content in the Malaysian herbal market to 15 per cent in 2005 and 48 per cent by 2010.
"The global market for herbal products is estimated to be worth US$80 billion (US$1 = RM3.80) in 2000, and will increase to US$200 billion in 2008 and US$5 trillion in 2050. Assuming we capture just 1 per cent of the global market share would translate to a RM190 billion industries, "he said.
Speaking at a seminar on investment opportunities in the agriculture sector yesterday, Hamzah said Malaysia is among the top 12 nations in the world in terms of biodiversity, the fourth largest in Asia.
"Malaysia is home to more than 10 per cent of all plant species and the oldest rainforest in the world, "he added.
Hamzah said among the strengths of Malaysia’s herbal industry include diversity of genetic resources, excellent tropical climate, increasing research and development(R and D) interest, increasing demand for specialty natural products and indigenous knowledge.
Among the industry’s weaknesses, however include shortages of local raw materials and lack of large scale cultivation activities, domestic grading and standards, technological mechanization, skilled human resources and scientific evidence for health related claims.
"There are opportunities for development of new and improved products, development of new and improved processing technologies, and use of biotechnology and cell culture technology, "Hamzah said.
He said possible strategic moves to strengthen the domestic herbal industry include smart partnerships with existing local players, collaboration with international research institutions and with foreign players.