MIDA Report on the

Performance of the Malaysian Textile Sector in 2008 

To date, there are 662 licensed companies in operation with investments of RM8.3 billion producing a wide range of textiles and textile products and activities from fibres, yarn and fabrics to made-up garments including dyeing, printing and finishing of yarn and fabrics. In addition, it is estimated that about 1,000 small textile companies which are exempted from manufacturing licence are in operation.  

The major producers of the textiles and textile products are Recron (Malaysia) Sdn. Bhd. (fully integrated textiles), Berjaya Soutex Sdn. Bhd. (yarns), Ramatex Textiles Industrial Sdn. Bhd. (knitted fabrics), Penfabric Sdn. Berhad (woven fabrics) and Perusahaan Chan Choo Sing Sdn. Bhd. (made-up garments). 

Exports of textiles and textile products for the period January –November 2008 totalled RM9.6 billion while imports amounted to RM5.0 billion thus making Malaysia a net exporter of textiles and textile products.  

The main product exported was apparels. Malaysian apparel manufacturers continue to maintain an excellent reputation for quality and capability in the production of up-market brands such as Nike, Adidas, DKNY, Ann Taylor, Armani, Talbots and Tommy Hilfiger. The main products imported were yarn and woven fabrics which are used to produce apparels. 

Projects Approved in 2008 

In 2008, a total of 18 projects were approved in the textiles and textile products industry with investments of RM408.3 million. Domestic investments amounted to RM105.4 million while foreign investments totalled RM302.9 million. Of the projects approved, eight were new projects (RM171.0 million) and ten were expansion/diversification projects (RM237.3 million). 

Approved investments were in the production of primary textiles with nine projects (RM351.1 million); made-up garments with three projects (RM24.4 million) and made-up textiles and textile products with six projects (RM32.8million). The projects approved are expected to generate a total of 3,090 employment opportunities. 

In the primary textiles sub-sector, of the nine projects approved, four were new projects (RM117.2 mi l l ion) and five were expansion/diversification projects (RM233.9 million). Domestic investments amounted to RM87.6 million (25%) while foreign investments totalled RM263.5 million (75%). 

The major projects approved included:

§         An expansion project by a wholly foreign-owned company with an investment of  RM232 million for the manufacture of yarn, fabrics, and to undertake activities of bleaching, dyeing, printing and finishing; and

§         A new Malaysian-owned project with an investment of RM57 million. The company proposed to manufacture polyester yarn and webbing mainly to cater for the export market.

In the made-up garments sub-sector, three projects were approved with investments of RM24.4 million in 2008. Of these, one was a new project (RM22 million) and the other two were expansion/diversification projects (RM2.4 million). Domestic investments amounted to RM15.6 million (64%), while foreign investments totaled RM8.8 million (36%). 

A new Malaysian-Japanese joint-venture project with an investment of RM22.0 million to manufacture undergarments was the major project approved in this sub-sector. The entire production of the proposed project will be exported to Denmark, Canada and United Kingdom. 

In the made-up textiles and textile products, six projects were approved with investments of RM32.8 million in 2008. Of these, three were new projects (RM31.8 million) and the other three were expansion/diversification projects (RM1.0 million). Domestic investments amounted to RM2 million (6%), while foreign investments totalled RM30.8 million (94%). Major projects approved included a wholly foreign-owned company with an investment of RM20 million. The company’s proposed products are elbow guard, ankle and knee guard, gloves and waist belts. 

Outlook 

The Malaysian textiles industry is facing stiff competition from low cost producing countries. Efforts will be intensified to promote investment in the targeted growth areas which include industrial and home textiles, functional fabrics and high-end garments. Initiatives will also be taken to encourage Malaysian textile producers to strive for cost competitiveness, product differentiation and prompt response to the market requirements.

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