Introduction

Malaysia is a country based in South-East Asia. It is considered to be among the most developed economies in the region

  • Malaysia has witnessed tremendous economic growth over the past fifty years or so
  • The country’s leading cities are modern and well-developed. The country is home to several multinational corporations
  • Exports have also played a critical role in the economic development of the country
  • Malaysia is well-known for its export of palm oil, animal oils, as well as electrical machinery
  • The electrical machinery sector has proved to be extremely successful in particular. At present, this industry leads the way in Malaysia in terms of exports

This blog discusses Malaysia’s export of electrical machinery as well as the key reasons behind its success

Malaysia’s Electrical Machinery Exports Continue to Grow

During the year 2019, Malaysia exported electrical machinery worth more than $82 billion

  • This industry alone accounted for nearly 34.4% of the country’s total exports
  • It even dwarfs the second-most successful industry in terms of exports, which is mineral fuels
  • As of 2019, the export of mineral fuels from the country accounted for only 14.5% of the total exports 
  • Some of the leading countries that import electrical machinery from Malaysia include China, the US, and Japan

The electrical machinery industry has played a critical role in Malaysia’s economic development

  • It has helped the country in transitioning towards a high-tech nation
  • There are thousands of electrical machinery manufacturers in Malaysia. They cater to the domestic as well as international markets
  • Malaysia’s electrical machinery manufacturers provide a wide range of offerings, including design & development, test simulation and module assembly
  • This ensures that the demand for Malaysia-made electrical machinery continues to remain high

In addition to the above, the Malaysian government is also looking to attract foreign firms on a consistent basis

  • There are already hundreds of foreign firms active in the country
  • In particular, the Malaysian government has been looking to attract Foreign Direct Investment (FDI) in the electricals industry
  • Such investments could enable the country in ramping up its production and thereby increasing its exports to other nations
  • The industry is aiming to become an even more important driver of industrial development while also boosting export earnings

In fact, Malaysia recorded a trade surplus during the year 2019. This trade surplus was driven by the export of electrical machinery, a sector that has dominated exports for some time now

Overall, it is evident that the export of electrical machinery from Malaysia continues to play a critical role in its economy. The government is looking to strengthen its position even further in this regard

To conclude, it is clear that there are several reasons why Malaysia is among the leading exporters of electrical machinery and related products. Institutions such as Euro Exim Bank offer customized support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.