Mapping Malaysia's Resource Centres

19 Trade As a trading nation, Malaysia’ s exports represent over 60% of its economy and generates an estimated RM900 billion of the nation’s revenue. Among the key sectors that represent Malaysia’s main exports include electrical & electronics, mineral fuels & oils, machinery and mechanical appliances, animal or vegetable fats & oils and medical & surgical instruments. Being an established trading nation, Malaysia is expected to move into the bracket of generating higher revenue from trade activities. Hence, it is natural to see Malaysia progress into the next phase of its manufacturing segment whereby innovation in the industry is to be facilitated by research and development. The paradigm shift will see Malaysia produce a high percentage of complete or final products on the back of companies adopting Industry 4.0, pushing Malaysia’s capability towards a high supply chain network. Application of technology will improve product quality and increase efficiency in production. Consistency in production will largely address some areas on the non-tariff barriers segment while producing world class quality products. This achievement would place Malaysia in a competitive position as compared to its neighbouring countries. ASEAN countries such as Cambodia, Indonesia, Thailand and Vietnam are countries whereby manufacturing sectors are strongly supported by low-skilled and semi-skilled labour. Thus, the manufacturing segment, especially that involving labour intensive operations and low production cost would thrive well in these countries. In the case of Malaysia, industries must gain a competitive advantage through application of good machineries and technology especially with the recent announcement of the monthly minimum wage of RM1,200. Hence, industries such as pharmaceuticals, aerospace, machinery and equipment, electrical and electronics are foreseen to be the next key contributor for the manufactured product, driving the Malaysian economy. Consequently, these products should be Malaysia’s next best export. Taking this plan into cognisance, Malaysia’s advanced infrastructure that includes good port accessibility, financing for trade activities, strong logistic connectivity and concerted support from respective government agencies shall strengthen the country’s position as a respectable trading nation.