Malaysia’s economy is expanding at a solid pace, driven by strong global demand for electronics and higher incomes from commodities, such as oil and gas. On the domestic front, Malaysia’s strong employment is boosting private consumption, and investment is also helping to drive growth.
The highly educated work force and quality infrastructure will support the long term outlook. China’s increasing shift into higher value added production could support Malaysian firms involved in global supply chains. But the country will also need to identify its manufacturing niche to use its large stock of capital adequately.