Malaysia

The garment, textile and apparel industry in Malaysia was an early success story and growth miracle amid an export-oriented industrial transformation that started in the early 1980s. Despite being overtaken by other manufacturing sectors since then, some 68,000 workers are still employed across more than 970 factories in the country, of which over 400 are making ready-made garments, while others are engaged in related activities such as spinning, weaving and textile accessories. The garment sector is Malaysia’s eleventh largest export earner, generating incomes of around USD 3.2 billion per year.  Key markets for Malaysian garments include the United States, Japan and Turkey.

The domestic manufacturing market is highly fragmented between large international companies and smaller local enterprises. In recent years, the Government has taken steps to encourage new business growth in the sector, by reducing regulations and initiation procedures, thus lowering barriers to market entry. Nevertheless, Malaysia faces fierce and growing competition from lower cost neighbours such as Bangladesh and Cambodia, and is increasingly having to look for premium product segments for competitive advantage.  With a workforce dominated by migrants from other Asian countries, the sector has also faced scrutiny for labour rights violations and poor working conditions.