Malaysia: Electronics industry grows 4.3%
KUALA LUMPUR: A recent study found that a significant portion of the country’s foreign direct investment is provided by the services sector. In fact, after nearly a decade of stagnant growth, the services sector has played a greater role in driving the country’s economic rejuvenation. In the past few years, Malaysia’s telecommunications sector has made a splash with the introduction of high-speed fiber optic cables and a slew of new cellular phone models.
The country attracted 123.3 billion ringgit in approved investments in the first half of this year, according to the Malaysian Investment Development Authority. The largest foreign investors included Singapore, China and Japan. As a rule of thumb, Malaysia’s service sector was the largest contributor to the country’s approved investments in the first half of the year. Not surprisingly, the vast majority of these companies were enacted in Kuala Lumpur, the country’s largest city. Despite the economic slowdown, the country’s services sector maintained a respectable growth rate of 4.5%. Nevertheless, the share of the services sector in the total approved investments fell from 58.4% in the same period last year to 57.4% in the first half of this year. The aforementioned services sector is not just a moneymaker for the telecommunications industry. The industry has also managed to make a big splash in the e-commerce sector.
Malaysia’s top-tier e-commerce sector achieved a respectable growth of 4.3% in the first half of the year. The sector has also managed to spawn several new startups, including a recent high-profile entry into the industry, the online payment platform iPay. The sector has seen similar growth in the number of employees and total e-commerce transactions. While the numbers may be down at the moment, the industry is expected to shine in the coming years. The top 10 companies in the sector are DHL, Zalora and Uprint, among others.