Global investors are back in Malaysia, still rely on country’s manufacturing expertise – Chief Economist

KUALA LUMPUR 1 June - Global investors are back in Malaysia and still rely on the country’s manufacturing expertise, said Chief Economist, Juwai IQI, Shan Saeed.

He said Intel and Porsche are big names in the global markets have chosen Malaysia as their base.

“Thanks to the Ministry of International Trade and Industry (MITI) and  the Malaysian Investment Development Authority (MIDA) for moving aggressively to spur growth of trade and commerce.

“MIDA and MITI have done a good job in keeping the momentum not only during COVID-19 but also Post COVID as well,” Shan told  DagangNews.com here today.

Shan said this when sharing his views on the latest development of the global economy.

He pointed the global economy is heading for greater volatility and fragility.

“Policy makers are working hard to keep the economic momentum since geo political risk, climate change, wobbly markets and macroeconomic stability come under huge pressure. Trade and commerce are the only savior for many economies,’ he said.

Noting that, emergence of Asia is inevitable, Shan said: “The trade and commerce is pivoting towards Asia.

“Manufacturing hubs are moving to the EAST to leverage from rising income, growing middle class, modern infrastructure, trade blocs and above all macroeconomic stability in the region. 

Shan said Asia is leading in the global manufacturing share. USA and Europe combined still cannot match the growing economic power of Asia.

“Pivot moves towards Asia with the east is expected to lead the global economy for the next three to five years.

“Manufacturing will become the backbone for many economies in these tempestuous times,” he said.

As of 2021, below is the global manufacturing market share:

Asia 52%

Europe 22%

North America 18 %

Latin America 5%

Africa 2%

Oceania 1%

ASEAN REGION MANUFACTURING HUBS

Indonesia US$ 207 billion

Thailand.  US$ 136 billion

Malaysia. US$ 77 billion

Singapore. US$ 73 billion

Philippines. US$ 63 billion

Vietnam. US$ 39 billon

Myanmar. US$ 16 billion

EUROPE

Germany      US$ 806 billion

Italy.             US$ 314 billion

France.         US$ 270 billion

UK.                US$ 253 billion

Russia.          US$ 204 billion

Spain.           US$ 159 billion

Switzerland US$ 129 billion

Holland        US$ 102 billion

SOUTH AND LATIN AMERICA

Mexico       US$210 billion

Brazil.         US$181 billion

Argentina  US$66 billion

Source: NewtraderU, FT, WSJ, Economist.

GRAPHICAL ANALYSIS

Shan said: “We at Juwai IQI expect global manufacturing to relocate to Asia more and leverage from the labour force potential.

“Malaysia has made good progress and is ahead of Singapore, Vietnam and Philippines. It has got strategic advantage due to her geographical significance, modern infra-structure and above all productive labor force. Malaysia remains on the global investors radar and MITI gets full credit,” he added. - DagangNews.com