Malaysia has been eyeing opportunities emerging from companies shifting away from China, for years.
It has already made some headway with the efforts, as it has attracted at least 32 projects which have relocated from China to Malaysia, the Malaysian Investment Development Authority said in July 2020. The authority didn’t provide specific details of the projects or of the companies that moved.
However, even before the pandemic, tech investments into Malaysia had been rising due to lower labor costs and US-China trade tensions. Major deals over the last few years included a 1.5 billion Malaysian ringgit, or $339 million, investment by US chip giant Micron over five years starting from 2018. Jabil, a US company that makes iPhone covers, has also expanded its operations in Malaysia.
“We knew quite a number that have expressed their intention to shift from China and we have engaged them. The only thing is timing,” Azman Mahmud, then CEO of Malaysian Investment Development Authority told the Malaysian Reserve media outlet in 2020.
Malaysia’s FDI inflows hit a five-year high of $48.1 billion in 2021, with manufacturing the electronics and vehicles being the main contributor, according to official government information.
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