Manufacturing in Malaysia

When someone says global manufacturing, most people would immediately think of China, maybe you might even think of Vietnam. Most people haven’t considered Malaysia as a manufacturing location despite how Malaysia is well positioned to take advantage of global supply chain. Let me give you 5 quick points on why you should consider manufacturing in Malaysia.

1. Malaysia has an established supply chain network

Malaysia has an established supply chain with global companies and strong local players. In fact companies such as Intel, opened their first manufacturing facilities in Malaysia in the 70s. The list has grown to include Robert Bosch, Clarion, Amphenol, B.Braun, Broadcom, Toshiba, Sony, Motorola, etc. The presence of these companies require material and resources which means the 2nd tier and 3rd tier vendors are well developed as a result this makes it easy to manufacture your product in Malaysia

2. LMW – Licensed Manufacturing Warehouse

We at Ge-Shen are a LMW – licenced manufacturing warehouse. This means that there are no tariffs placed on goods by the Malaysian government for goods related to manufacturing, in effect each of our factories are outside of Malaysia for custom purposes. Customs duty exemption is given to all raw materials and components used directly in the manufacturing process from the initial stage of manufacturing until the finished product is packed ready for export, easy!

3. Geography

Malaysia is well placed geographically. The straits of Malacca is one of the main global shipping routes. We are served by well established ports in Penang, Klang, Johor and we can even ship through Singapore. The proximity of Malaysia to China, Japan, South Korea and the rest of Asia also helps with sourcing and exporting finished goods.

4. English Speaking

Malaysia is a diverse country with many ethnic groups and languages, one of the upsides is that English is widely spoken as a business language. This means that we can communicate easily with you to get any issues resolved. Cutting out a layer of translation increases the ease of doing business.

5. Ease of doing business 

Malaysia ranks highly on the ease of doing business rankings as published by the World Bank http://www.doingbusiness.org/en/data/exploreeconomies/malaysia . Malaysia currently ranks at 15 across all economies in the world. Less red tape means it is easier to get things done, helping you with time to market.


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