Prospects for the Textile and Clothing Industry in Malaysia, 2019

January 2019 | 44 pages | ID: PE9F007F477EN
Textiles Intelligence Ltd

Abstracts

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.

Contents

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

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

LIST OF MAPS

Map of Malaysia
Prospects for the textile and clothing industry in Malaysia