The footwear industry has its beginnings in the early 1900s and is considered to be one of the oldest manufacturing activities in Malaya (now Malaysia). In its early years and even up to today, a significant number of the industry players comprise small and medium sized businesses, operating from homes and utilizing largely labour-intensive methods.

Predominantly producing to meet domestic demand, these small and medium sized operations remain the backbone of the foorwear industry, existing side-by-side the more modern and better equipped manufacturing facilities operated by multinational companies. As the number of footwear manufacturers expanded, so too the industry saw a proliferation of supporting cottage industries supplying various parts, components and footwear-related accessories for the industry.

According to the Malaysian Industrial Development Authority (MIDA) there are currently about 1,030 footwear manufacturers, employing a workforce of some 30,000. They are mainly located in the states of Perak, Selangor and Johore. The annual production capacity is estimated at 60 million pairs.

The Malaysian footwear industry produces a wide variety of footwear ranging from safety and industrial footwear to sports shoes and high fashion footwear. In the quest to create an identity for their products, Malaysian footwear manufacturers have successfully marketed their own brands such as DR CARDIN, CROCODILE, JOHN BIRD and LARRIE. In addition to that, several Malaysian footwear manufacturers are producing, under license, internationally renowned brands like CAMEL, CALVIN KLEIN, HUSH PUPPIES, SCHOLL, PUMA, NIKE and LA GEAR. Made-in-Malaysia footwear has indeed become synonymous with quality, style and value for money.

In 1999, Malaysia’s exports of footwear stood at RM307 million (US$80.8 million) compared with RM276 million (US$72.6 million) in the previous year. Production, in 1999, was estimated at 47.6 million pairs. Singapore, Italy, the United Kingdom, Norway, Germany, the Netherlands, Japan, Hong Kong, France and the USA ranked as the top major markets, accounting for 72% of Malaysia’s footwear exports in 1999.

The Malaysian footwear industry like all other industries is expected to face stiff competition particularly from its competitors in ASEAN and the emerging economies. Malaysian footwear manufacturers particularly the small and medium-sized operators must modernize their operations, invest in R & D as well as intensify their global marketing efforts.