Malaysia

The Malaysian economy grew 4.2% in 2002, 5.3% in 2003, an estimated 7.2% in 2004, and the government has targeted 6% growth for 2005. U.S.-Malaysia bilateral trade totaled U.S. $35.4 billion in 2003, ranking Malaysia as America’s 10th largest trade partner and its largest trade partner in SE Asia. Trade data for Jan-Nov 2004 indicates a 7% increase in bilateral trade, most of it due to a rise in Malaysian exports.

The U.S. has consistently been the largest foreign investor in Malaysia, with significant presence in the oil and gas sector, manufacturing, and financial services. According to the Malaysian Industrial Development Authority, the U.S. accounted for the second greatest number of new and expanded foreign investment projects in the manufacturing sector in terms of value in 2002, with approved projects valued at U.S. $702 million.

Recognizing the importance of biotech and the opportunities it represents as a growth engine, the government has taken steps to encourage the development of a biotech industry. On May 20, 2003, Prime Minister Mahathir presided over the groundbreaking ceremony for BioValley, an ambitious Construction of the centers is expected to be complete by 2006.

In 2004, Arizona exported over $744 million worth of products to Malaysia making it Arizona’s third export market.

Best prospects (by sector) for US exports:

• Healthcare
• Franchising
• Water and Wastewater Treatment
• Oil and Gas Equipment
• Information and Communication Technology (ICT) and Broadcasting
• Municipal Solid Waste Management
• Biotechnology
• Higher Education: 4-Year Colleges and Universities
• Plastic Materials and Resins
• Tourism

A full copy of the Country Commercial Guide to Malaysia can be obtained through the Market Research resource at: http://www.export.gov