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Manufacturing in Malaysia is becoming a key topic for global companies looking to strengthen and future-proof their supply chains in Asia. In this video, we explore Malaysia manufacturing as a strategic destination for contract manufacturing, sourcing in Malaysia, and working with reliable Malaysia suppliers. From modern Malaysia factories to advanced Malaysia production capabilities, the country offers a strong manufacturing ecosystem supported by well-developed industrial zones and free trade zones.

As part of the broader supply chain diversification in Asia and China+1 Malaysia strategy, Malaysia stands out as a competitive hub within Southeast Asia sourcing and ASEAN manufacturing. The video explains why many companies are choosing to diversify their supply chain in Asia by investing in Malaysia, supported by rising FDI in Malaysia and attractive Malaysia manufacturing incentives designed to move production up the value chain.

We also take a closer look at key industries and clusters, including the Penang semiconductor industry, often called the Silicon Valley of Malaysia. From electronics manufacturing services in Malaysia and electronics assembly, to industrial automation and plastic injection molding, Malaysia manufacturing companies are increasingly positioned for high-tech, high-mix, and export-oriented production.

Here are the timestamps for the video
00:12 – Manufacturing in Malaysia in 2026
00:26 – Malaysia contract manufacturing or sourcing in Malaysia
00:32 – Diversify supply chain Asia: why Malaysia makes sense
00:40 – Guest intro: experience in plastic injection molding
01:34 – Malaysia industrial area
01:52 – Northern region overview: Penang manufacturing cluster
02:24 – Penang semiconductor industry: the Silicon Valley of Malaysia
02:37 – Industrial automation Malaysia supporting semiconductors and medical devices
02:59 – Central region Malaysia manufacturing
03:30 – East Coast Malaysia industrial zones
04:16 – Malaysia free trade zones and FDI Malaysia
04:27 – Key Malaysia free trade zones
04:51 – Malaysia vs Vietnam manufacturing: strengths and weaknesses
05:07 – China+1 Malaysia and moving up the value chain
05:17 – Electronics assembly Malaysia and EMS focus
05:42 – Skilled workforce: engineers and attracting FDI Malaysia
06:11 – Malaysia manufacturing incentives
06:27 – Grants and tax incentives promoted to manufacturers
06:44 – Manufacturing work in Malaysia
07:11 – Factory labor mix: Malaysian nationals and migrant workers
07:45 – Regulations for foreign workers
09:20 – Labor cost tradeoff vs Vietnam for exporting from Malaysia
10:54 – Sourcing in Malaysia roadmap: trade shows, factory visits, Malaysia suppliers
11:16 – Semiconductors and opening a Malaysia manufacturing company
12:41 – Exporting from Malaysia: RCEP and CPTPP Malaysia trade agreements
13:12 – Malaysia and Vietnam together for supply chain diversification Asia

Finally, the discussion compares Malaysia vs Vietnam manufacturing, highlighting strengths, costs, and long-term competitiveness. We cover practical insights on exporting from Malaysia, trade advantages such as CPTPP Malaysia, and what it’s really like to do manufacturing work in Malaysia. Whether you are evaluating a Malaysia manufacturing company or planning your next expansion in Asia, this video provides a clear, on-the-ground perspective to help you make informed decisions.

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