Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Last Published: 8/19/2019

Key highlights on Malaysia’s economic development and outlook for 2019 according to Bank Negara are as follows:

  • Sustained growth momentum, GDP forecast 4.3-4.8 percent

  • Broadly stable inflation, 0.7-1.7 percent

  • Exports and current account to remain positive, gross exports 3.4 percent forecast, current account balance at RM28 billion (approximately US$6.8 billion) or 1.5-2.5 percent of 2019 GNI. 2018 prelimenary is 2.4 percent.

In the World Bank’s global Doing Business 2019 report, Malaysia ranked 15th on ease of doing business among the 190 economies covered in the survey (an increase of its 2018 rank of 24th).   According to this year’s report, two economies entered the top 20 —the United Arab Emirates and Malaysia. For Malaysia, it is the second highest regional improvement in the ease of doing business score.  Specifically, Malaysia improved on the following areas:

  • Ease of start a business: introduced or improved online procedures, and reduced permit applications processing time.

  • Ease of obtaining construction permits: reduced processing application time, and streamlined procedures.

  • Ease of obtaining electricity: steamlined approval process.

  • Ease of property registration: reduce registration processing time.

  • Ease fo cross borders trading: introduced or improve electronic document processing submission for imports and exports, strengthened border infrastructure for imports and exports, and enhanced customs administrations and inspections for imports and exports. It also noted that Malaysia strengthened infrastructure at Port Klang by opening a second gate with additional scanners, upgrading the management system, expanding two terminals and decreasing the cut-off time.

  • Ease of insolvency resolution: introduced a new restructuring procedure.

  • Change of labor legislation: reformed legislation regulating worker protection and social benefits.

The Goods and  Service Tax (GST) has been repealed and replaced with a Sales and Service Taxation (SST).  Malaysia enjoyed a GST-free holiday from June-August 2018 and this tax holiday increased consumer’s consumption of durable goods, especially in the automotive sector.  This tax holiday further boosted consumer sentiment and increased the consumption of food, beverage and entertainment.   The SST enter into force on September 2018. This is part the the new PH government manifesto.

Major infrastructure projects reviewed, renegotiated and approved to move forward by the new government are: 

  • East Coast Rail Link

  • Bandar Malaysia

  • KTM Komuter Railway Lines Second Phase Updgrade Project

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