The Trade Council in Malaysia has identified specific sectors within which areas of growth are promising, and opportunities for Danish products and service extensively.
1) Food, Agriculture and Fisheries
The demand for food is changing with the increase in household spendings in Malaysia. It has impacted the development within the food, agricultural and fishery sectors. The focus is moving towards convenience products that will fit a busy lifestyle, where especially Western inspired products have experienced a rapid increase in demand. The overall growth of the market is estimated at more than 3% annually and the import of foreign food products to Malaysia is around RM35 billion per year.
Malaysia focuses on self-sufficiency and economic growth and has established the “Economic Transformation Programme” to be implemented by 2020. Aquaculture, swiftlet farming, diary, fruits and vegetables and premium processed foods is given special attention by the government. The political agenda supports the industry by offering tax benefits and other incentives to these sectors e.g. a budget of RM64 million has been allocated to set up larger scale dairy cluster in Sabah and West Malaysia.
2) Information & Communications Technology (ICT)
Malaysia’s ICT sector contributed 16.6% to the country’s gross domestic product (GDP) in 2014, and is internationally recognized for its low operation costs, accessibility to skilled labour (local + foreign), good internet infrastructure, low energy costs and possibility of 100% foreign ownership for MSC status companies.
The international rating bureau “A.T. Kearney” ranks Malaysia as the third most suitable country of outsourcing for business after India and China. With continued progress, the sector holds great opportunities for Danish companies.
The healthcare sector is among the most dynamic and rapidly growing sectors in Malaysia. Changes in diet and lifestyles are increasing the health burden of the country. Also, in recent years, Malaysia has experienced a population growth driven by a high birth rate, low mortality and increased life expectancy. More than 30 million people are living in Malaysia and by 2020 it is estimated that 10 per cent of the population will be 60 years or older. The country is experiencing a growing demand for premium medical devices, welfare technology, care products (services) and has become a destination for healthcare tourism.
4) Energy and Energy Efficiency
Currently Malaysian power generation is more than 90% dependent on fossil fuels. As part of its efforts to reduce carbon dioxide emissions 40% by 2020, and to diversify its electricity fuel mix, Malaysia encourages investment in renewable energy projects. To do so, Malaysia enacted feed-in tariffs for solar, biomass, biogas, and mini-hydro projects. Since 2009, installed Renewable Energy capacity has grown from 53 MW to 243 MW in 2014 and targeting 2065 MW in 2020.
Within the Renewable Energy Sector there may be promising prospect of e.g. green government buildings for Danish technologies and services as there are shortages of supply of such products.