Malaysia Manufacturing & Sourcing
1. Full team on the ground in
Malaysia
2. Team of engineers, quality control experts, sourcing and procurement
3. Established relationship with hundreds of qualified factories
4. Full door to door service (freight and duties) managing
5. One of the Top sourcing companies for Malaysia
AASA is your complete source for overseas product development, manufacturing and logistics.
| Sector | Malaysia (Hub: Penang) | China (Hub: Guangdong) | 2026 Est. Growth |
|---|---|---|---|
| Electronics | Controls 13% of global semiconductor packaging/testing | Global lead in data units and ICs | Malaysia: 8-10%, China: 4-5% |
| Automotive | Specialization in EV sensors and auto-electronics | Global leader in EV production | Malaysia: 4-6%, China: 3-4% |
| Semiconductors | Expansion into front-end design & wafer fabrication | High focus on domestic chip-making | Malaysia: 15%+, China: 14%+ |
| Medical Devices | Dominant global lead in medical-grade consumables | Synthetic textile export powerhouse | Malaysia: 7-8%, China: 6% |
| Machinery | Key global site for Automated Test Equipment (ATE) | Rapid integration of AI and robotics | Malaysia: 5-6%, China: 1.6-3.6% |
*Data based on 2026 Malaysia Ministry of Investment, Trade and Industry (MITI) reports and S&P Global manufacturing forecasts following the 2025 "NIMP 2030" progress review.
The Semiconductor Stronghold: Malaysia is no longer just a "back-end" player. By 2026, the National Semiconductor Strategy (NSS) has successfully attracted high-value IC (Integrated Circuit) design firms, moving Malaysia up the value chain toward "front-end" manufacturing.
China + 1 Recipient: While China remains the volume king, Malaysia is the preferred "safe haven" for Western tech giants (Intel, Micron, NVIDIA) to build redundant supply chains that are insulated from US-China trade tariffs.
Medical Manufacturing: Unlike Vietnam (textiles) or Thailand (cars), Malaysia is a powerhouse in medical manufacturing—specifically in high-precision medical devices and gloves, a sector that continues to grow as global healthcare standards rise.
High-Value Labor: Malaysia’s English-proficient and technically skilled workforce allows it to compete for more complex manufacturing projects compared to lower-cost neighbors like Vietnam.
Here are some examples of products manufactured in Malaysia
-electronics
-petroleum
-palm oil
-plastics
-metals
-textiles
How Does AASA Find & Choose Factories?
The only way to evaluate a factory is to go down meet with them and review them. This will not be possible by reviewing websites or speaking to them by email or by phone. Some of the best factories have terrible websites and do not speak English well, or at all. Some of the worst factories have great websites and not only speak English well, they are great sales people too.
You cannot judge a book by its cover. You need to spend real time at the factory and learning much about them before you can evaluate them. This cannot be done by an email relationship or reviewing their websites!
Benefits of Malaysia or other Asian Sourcing for Overseas Manufacturing
As businesses seek to expand and optimize their manufacturing processes, Malaysia and other Asian countries are increasingly becoming attractive sourcing destinations. With lower labor costs, streamlined processes, and an abundance of skilled workers, Vietnam offers an array of benefits for overseas manufacturers looking to increase production efficiency and cut costs.
Investing in Asian sourcing not only improves the bottom line, but it can also provide growth opportunities and access to new markets.
At AASA, we understand the importance of unlocking the potential of your business through strategic partnerships and sourcing opportunities.
Let us help you navigate the complex world of overseas manufacturing and unlock the benefits of Asian sourcing... Read More
