40 Foreign Companies Have Moved Out Of Malaysia In The Past 4 Years
Some companies have cited business restructuring and a drop in raw materials as reasons for leaving Malaysia.
By John Lim — 08 Nov 2017, 03:53 PM
The unstable economy and increase in manufacturing costs are some of the reasons why many foreign companies have moved out of Malaysia in recent years
International Trade and Industry Dato' Sri Minister Mustapa Mohamed revealed the startling statistic to the Dewan Rakyat yesterday, according to a report by China Press.
In a reply to Fong Kui Lan from DAP, he disclosed that about 40 foreign companies have closed down and moved their operations to other countries since 2013.
Mustapa said a number of factors attributed to the phenomenon
Amphenol TCS, one of the many foreign companies that has moved its operations out of the country.
Image via Viet Lam Tot Blog"A drop in sales and demand, as well as the weak market environment, are among the factors for companies to transfer their operations to other countries," he said as quoted by Free Malaysia Today (FMT).
According to him, some companies have cited business restructuring and a drop in raw materials as other reasons for leaving Malaysia.
However, Mustapa added that the impact from the companies' departure has been minimised as the country is expecting more foreign investors to pour in soon
"Between 2013 and 2016, some 1,598 foreign investments in the manufacturing sector were approved, with a total value of RM119.5 billion. From the total, 705 projects were new projects worth RM64.3 billion, while the other 893 projects valued at RM55.2 billion involve expansion and diversification," he said.
He listed some of the major investors as Lotte Chemical Titan, Biocon, Robert Bosch and B Braun Medical Industries.