Federal
National policy, investment facilitation, international trade, federal incentives, approvals and national infrastructure.
Why Malaysia
Where in Malaysia?
Malaysia gives international companies more than one credible place to build, operate and grow.
The right location depends on what the business needs to do. Customer access, industrial ecosystems, suppliers, talent, logistics, land, utilities, costs, incentives and development priorities vary across Malaysia.
TAPiO starts with the requirements of the business and evaluates locations against those requirements rather than beginning with a predetermined location.
National choice
One country. Many business environments.
Malaysia’s commercial geography is diverse.
An international headquarters, a semiconductor facility, a food-processing operation, a distribution centre, a petrochemical project and a technical-service operation can have very different location requirements.
Malaysia’s advantage is that companies can evaluate several established operating environments within one national market.
A nationwide view
13 states. 3 Federal Territories.
Peninsular Malaysia
East Malaysia
- JHRJohorState
- KDHKedahState
- KTNKelantanState
- KULKuala LumpurFederal Territory
- LBNLabuanFederal Territory
- MLKMelakaState
- NSNNegeri SembilanState
- PHGPahangState
- PNGPenang / Pulau PinangState
- PRKPerakState
- PLSPerlisState
- PJYPutrajayaFederal Territory
- SBHSabahState
- SWKSarawakState
- SGRSelangorState
- TRGTerengganuState
Regional views shown separately at different scales. Map: geoBoundaries, © OpenStreetMap contributors, ODbL. Source and method.
What changes from one location to another?
The criteria vary by project and by location.
- Customers & market access
- Proximity to customers, partners, distributors and major demand centres.
- Industrial ecosystem
- Existing manufacturers, specialist suppliers, service providers and sector clusters.
- Talent & skills
- Availability of management, engineering, technical, production and specialist personnel.
- Land & premises
- Industrial land, factories, offices, warehousing and expansion capacity.
- Utilities & infrastructure
- Power, water, digital infrastructure, industrial utilities and specialised requirements.
- Logistics & connectivity
- Ports, airports, road, rail, border access and regional distribution routes.
- Operating economics
- Labour, property, utilities, logistics and other location-dependent operating costs.
- Incentives & development programmes
- Federal, state, regional and project-specific investment support where applicable.
- Supply chain
- Access to raw materials, components, subcontractors and supporting industries.
- Regulatory & implementation environment
- Local implementation requirements, relevant authorities and project-development considerations.
Understand the investment landscape
Malaysia works at several levels
State & Federal Territory
Local economic priorities, land, industrial areas, infrastructure, workforce conditions, state or territory agencies and implementation support.
Economic corridors & special development areas
Regional development programmes can combine multiple states or create specialised investment propositions.
Five recognised economic corridors
- NCERNorthern Corridor Economic Region
- ECEREast Coast Economic Region
- IMIskandar Malaysia
- SDCSabah Development Corridor
- SCORESarawak Corridor of Renewable Energy
These corridors are one layer of Malaysia’s wider investment landscape. They do not cover every Malaysian investment opportunity.
Source: MIDA, Malaysia’s Economic Corridors.
From business requirement to location
Start with the business, not the postcode.
Define the role
What should the Malaysian operation actually do?
Sales, regional management, manufacturing, technical support, distribution, sourcing or shared services.
Define the requirements
Identify what the operation needs.
Customers, suppliers, talent, land, utilities, logistics, capital expenditure, regulatory requirements and expansion needs.
Scan Malaysia
Consider relevant locations nationally rather than beginning with a predetermined state.
Compare the real conditions
Assess the conditions that matter to the project.
Ecosystems, infrastructure, operating economics, available sites, talent, logistics, incentives and implementation considerations.
Engage & shortlist
Engage relevant federal, state and regional organisations, verify conditions and narrow the options to locations that merit detailed investigation.
Location decisions should be project-specific
The right location starts with your operating requirements.
Compare each location’s ecosystem, costs, infrastructure and talent against the business it needs to serve.
We compare locations against your commercial objectives and operating requirements, then identify the options that deserve detailed investigation.
TAPiO is an independent advisory firm. We engage relevant institutions as the client’s project requires.
Where should your Malaysian operation be?
Tell us what the operation needs to accomplish.
TAPiO can compare locations across Malaysia against the factors that matter to the project, engage the relevant federal, state and regional organisations, and identify the locations worth investigating in detail.