The EAMI 2024 report by Dezan Shira & Associates assesses manufacturing in Asian countries using 48 parameters across eight criteria. It highlights Malaysia as a major global hub, contributing significantly to electronics production, chip testing, and packaging.
Evaluation Criteria in EAMI 2024 Report
The Emerging Asia Manufacturing Index (EAMI) 2024 report by Dezan Shira & Associates assesses the manufacturing sector in key Asian countries, including Indonesia, China, Vietnam, the Philippines, Thailand, India, and Bangladesh. The evaluation is based on 48 parameters across eight criteria: economy, political stability, business climate, global trade, taxation, infrastructure, labor force, and innovation. This detailed assessment offers valuable insights into the manufacturing landscape of these nations.
Malaysia’s Electronics Production Contribution
Malaysia is identified as a significant global hub for electronics production, contributing 13 percent of global chip production and seven percent of global semiconductor output. This highlights the country’s pivotal role in the manufacturing ecosystem, particularly in chip production, testing, and packaging. Dezan Shira & Associates’ EAMI 2024 report underscores Malaysia’s strategic importance in the electronics manufacturing sector.
In the forthcoming 2024 Emerging Asia Manufacturing Index, Malaysia is poised to maintain its strong position, reflecting the country’s robust manufacturing sector and its continued appeal as a regional manufacturing hub.
Malaysia’s strategic location, coupled with its well-developed infrastructure and skilled workforce, has long made it an attractive destination for multinational corporations (MNCs) seeking to establish manufacturing operations in Asia. The country’s commitment to fostering a business-friendly environment, through initiatives such as tax incentives and investment promotion efforts, has further bolstered its position as a leading manufacturing destination.
In recent years, Malaysia has made significant strides in advancing its manufacturing capabilities, particularly in high-tech industries such as electronics, semiconductors, and aerospace. The country has also placed a strong emphasis on research and development (R&D), positioning itself as a regional leader in innovation and product development. This focus on R&D has not only enhanced Malaysia’s manufacturing competitiveness but has also enabled the country to transition towards higher-value manufacturing activities.
Another factor contributing to Malaysia’s favorable position in the 2024 Emerging Asia Manufacturing Index is its participation in various regional trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). These trade pacts have allowed Malaysia to expand its market access and strengthen its integration into global supply chains, thereby enhancing the country’s attractiveness to foreign investors.
However, the ongoing COVID-19 pandemic and its resulting economic fallout present challenges to Malaysia’s manufacturing sector. Disruptions to global supply chains and a slowdown in global demand have led to declines in Malaysia’s manufacturing output and exports. In response, the Malaysian government has implemented measures to support the manufacturing sector, such as providing targeted fiscal support to affected businesses and facilitating access to credit.
As the global economy recovers from the pandemic, Malaysia is well positioned to capitalize on the expected rebound in global demand for manufactured goods. The country’s strong fundamentals, coupled with its ongoing efforts to enhance its manufacturing capabilities and competitiveness, make it a compelling choice for MNCs seeking to invest in Emerging Asia’s manufacturing sector. Given these factors, Malaysia’s strong showing in the 2024 Emerging Asia Manufacturing Index is well deserved and indicative of its continued success as a regional manufacturing powerhouse.
Source : Insights on Malaysia’s Position in the 2024 Emerging Asia Manufacturing Index
