Textile Sector Investment Performance 2016

The textiles and textile products industry comprises both upstream (primary textiles) and downstream activities (garments, textile products and accessories).

In 2016, the industry was the country’s 10th largest export earner with total exports of RM12.6 billion and contributing approximately 2.1 per cent to Malaysia’s total exports of manufactured goods.

Turkey becomes a leading export market for Malaysian textile products, contributing RM776.7 million (11.4%) of the industry’s total exports followed by Japan and Indonesia.

In 2016, a total of eight projects were approved in the textiles and textile products industry with total investments of RM763.4 million. Domestic investments amounted to RM401 million (52.5%) while foreign investments accounted for RM362.4 million (47.5%).

Of the total projects approved, two for primary textiles (RM698 million), two for ready-made garments (RM1.2 million) and four for textile products/ accessories (RM64.2 million).

Of the eight projects approved, four were new projects (RM456 million) while the remaining were expansion/diversification projects (RM307.4 million). The approved projects are expected to generate 344 employment opportunities of which 143 in the managerial, technical and supervisory categories. Some of the high income jobs to be created include engineers, quality controllers and high-skill technicians.

Projects Approved in 2016

The significant projects approved in 2016 was by Malaysia majority company with investments of RM410 million.

The company is planning to undertake the production of knitted polyester fabric with investment in the state-of-the art machine from Germany and eco-friendly facilities for the

process modernisation of knitting, dyeing and finishing of the high-end garments. It furnishes high stretch, sustainable, fine yarn count and functional performance fabric features in the sport shirt and casual dress for Nike, Under Armour and Adidas. This project will lead to substantial creation of employment and rural development in Kluang district, Johor.   

Besides, there was another significant investment of RM287.9 million for non-woven fabrics. This is an expansion foreign-owned project with focusing on more higher value-added products and the improvement of existing products. Its strong exports market is further strengthened by an increased in sales and production output with the highest demand coming from high-value brand customers namely, Kimberly Clark, Procter & Gamble, SCA and 3M.

In addition, the company’s expansion and continued emphasis on research and development of new high quality products will offer various job opportunities to local skilled employees. Its commitment to training will benefit employees in acquiring knowledge and experience in the latest technological innovations and development.

Moving forward, textiles industry are still relevant and to be promoted especially on niche market and the upstream activities. Under the Malaysian 2015 Budget, the Government introduced a new tax incentive, namely, the Automation Capital Allowance (Automation CA) with the objective to accelerate the shift of manufacturing and services sectors, from labour-intensive into high value added, knowledge-intensive and innovation-based industries.

To date, MIDA has received eight applications on textile projects under this new initiative.

         Source: MIDA

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