malaysia

Why Malaysia?

The UK enjoys close historic, education and commercial ties with Malaysia, aided by a familiar legal and business framework and the widespread use of English. These factors – combined with Malaysians familiarity with the UK and love for English football, makes the country an attractive place to visit and do business.

UK exports of goods and services total more than £1.5 billion per annum and many leading UK companies are based in Malaysia including Standard Chartered, Tesco, Dyson, HSBC and GSK.

The Malaysian Government has embarked on an ambitious programme of change and liberalisation under the New Economic Model and Economic Transformation Programme, aimed at making Malaysia a high income nation by 2020. This opens up a host of opportunities for UK, particularly in infrastructure, education and services.

Malaysia is on course to reach 5 – 5.5% GDP growth in 2011 and ranks 16th in the IMD World Competitiveness rankings for 2011.

Key sectors of opportunity

Aerospace - This sector has been targeted by the Malaysian government as one of the main drivers for growth in Malaysia. There are plans to make Malaysia a regional hub for aircraft maintenance, repair and overhaul.

Infrastructure and Construction – As a key element of the Transformation Programme, the government has allocated around £24bn for infrastructure spend including a rail (MRT) system for the Klang Valley, a new financial district for Kuala Lumpur and other developments.

Defence and Security – The UK and Malaysia share a strong defence relationship. The UK continues to assist the Malaysian Armed Forces in a number of areas such as equipment, training and services.

Education and Training - Malaysia is one of the UK’s five priority markets for the export of products and services related to education and training, which is high on the Malaysian government’s agenda. There are over 13,000 Malaysian students studying in the UK each year, contributing an estimated £280 million to the UK's economy. At any one time there are around 40,000 people in Malaysia studying for UK qualifications. Both Nottingham and Newcastle University both have a campus in Malaysia and several other UK institutions are set to open facilities over the next 2 years.

Financial and Business Services – Kuala Lumpur is a significant centre for financial and professional services, a sector that has been opened up in recent years with further liberalisation expected. Malaysia is the leading Asian centre for Islamic finance.

Healthcare - There is a major drive in Malaysia to set up medical centres and state-run hospitals and to upgrade facilities and medical systems.

ICT - The Malaysian Electrical and Electronics sector has attained world-class capabilities and is the largest contributor to the country’s manufacturing output, employment and exports. The local ICT industry is currently contributing about 7.5% of total GDP.

Oil and Gas - Malaysia has substantial crude oil and gas reserves. Upstream, there are over 70 fields in production and more than 250 platforms in operation. The downstream sector boasts over 50 refineries, petrochemical plants and gas processing plants. Opportunities exist in deep water, subsea, enhanced oil recovery and marginal fields.