In light of the recent trade tensions, especially between US and China, setting up an automotive parts manufacturing facility in Malaysia for the purpose of export offers several advantages.
Avoidance of Tariffs and Trade Barriers
US-China trade war has led to higher tariffs on Chinese goods entering the US. Establishing operations in Malaysia allows companies to bypass these tariffs, making their products more competitively priced in the US market.
StrategicLocation
Centrally located in SEA, excellent access to regional markets and global shipping routes.
Favourable Trade Agreements
Malaysia has multiple FTAs, including CPTPP and RCEP.
Competitive Costs with Skilled Workforce
Labour and operational costs are generally lower than in China, improved margins and offer a competitive advantage – as well as well-educated and skilled workforce.
GovernmentIncentives
Malaysian Government actively promotes FDIs through tax incentives, grants and other benefits. Programs from MIDA can be leveraged to lower operational costs
Reputation as a Neutral Manufacturing Base
Products made in Malaysia are less likely to face backlash and less likely to face geopolitical scrutiny