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CORONA VIRUS – The situation in Malaysia

1. General situation

In response to the COVID-19 pandemic, the Malaysian government reviewed the implemented measures, i.e. Movement Control Order (MCO), based on the country’s pandemic situation from time to time. As of 31st March 2021, Malaysia recorded 345,500 total COVID-19 cases, of which 14,604 hospitalised, 329,624 recovered and 1,272 deaths. The Malaysian government implemented the Conditional Movement Control Order (CMCO) in Kuala Lumpur, Selangor, Johor, Penang and Kelantan; and  Recovery Movement Control Order (RMCO) in other 8 states until 14th April 2021. All the key economic sectors have reopened, with strict adherence to SOP (Standard Operating Procedure). Interstate travel remains banned nationwide.  

The country border remains closed and only travellers with approval from relevant agencies are allowed to enter. On 12th January 2021, Malaysia’s King Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah announced a State of Emergency nationwide from 12th January 2021 to 1st August 2021 to contain further spread of the COVID-19 pandemic. Prime Minister Tan Sri Muhyiddin Yassin explained that under the proclamation of a State of Emergency, the government would continue to function and economic activities will operate as usual but subject to SOPs.

Prime Minister Tan Sri Muhyiddin Yassin highly emphasised that Malaysia is open for business and welcomes business travellers to do business in Malaysia. The government will remain committed to the 6-Phase Economic Recovery Plan (6Rs) in place since last year for economic recovery. The government has established the One Stop Centre (OSC) dedicated to supporting Malaysia’s economic recovery and growth while balancing public health and livelihoods and strengthening its position as a competitive and preferred investment destination in Asia.

2. Preventive measures

​To effectively control the current COVID-19 situation, the Malaysian government has implemented different Movement Control Order (MCO) levels, ranging from high-risk areas to low-risk areas: Movement Control Order, Recovery MCO and Conditional MCO. Enhanced MCO and Targeted Enhanced MCO are enforced to a smaller area with many COVID-19 cases i.e. residential complex or office building.

  • Phase 1 - Movement Control Order 1.0 (MCO 1.0) from 18th March 2020 till 3rd May 2020
  • Phase 2 - Conditional Movement Control Order (CMCO) from 4th May 2020 till 9th June 2020
  • Phase 3 - Recovery Movement Control Order (RMCO) from 10th June till 31st December 2020
  • Phase 4 – CMCO in the areas with high COVID-19 cases from 14th December 2020 till 31st  December 2020
  • Phase 5 – RMCO nationwide from 1st January 2021 till 31st March 2021
  • Phase 6 - Movement Control Order 2.0 (MCO 2.0) from  13th January 2021 till 4th March 2020;
  • Current Measure - (CMCO) in Kuala Lumpur, Selangor, Johor, Penang and Kelantan; and  Recovery Movement Control Order (RMCO) in other 8 states until 14th April 2021.

Conditional Movement Control Order (CMCO) Regulations (As At 11th March 2021):

  1. Interstate travel remains banned nationwide.
  2. Formal and informal events, including celebrations, social gatherings, banquets, religious ceremonies, face-to-face meetings and more, are now allowed but limited to 50% capacity of the venue.
  3. All social and businesses are allowed to operate from 6am to 12am.
  4. Dining in restaurants is allowed and adherence to SOP.
  5. The private sector is based on 30% for the management team and the employer sets the number of operating/support employees.

Recovery Movement Control Order (RMCO) Regulations (As At 11th March 2021):

  • Interstate travel remains banned nationwide.
  • Formal and informal events, including celebrations, social gatherings, banquets, religious ceremonies, face-to-face meetings and more, are now allowed but limited to 50% capacity of the venue.
  • Dining in restaurants is allowed and adherence to SOP.
  • All social and businesses are allowed to operate from 6am to midnight.
  • Any activities that require crowds to gather in numbers detrimental to safe social distancing and other measures required by the Director-General of Health as part of Malaysia’s effort to contain COVID-19.

Enhanced Movement Control Order (EMCO) and Targeted Enhanced Movement Control Order (TEMCO) Regulations (As At 7th December 2020):

  1. All social activities are prohibited. Screening, testing and quarantine (up to 28 days) are mandatory for all areas’ residents.
  2. Movement in and out of premises or areas is prohibited, similar to the stay-at-home-order.
  3. Only those providing essential services are allowed in, while only the head of a family can venture outside to buy food or household goods.

Administrative Enhanced Movement Control Order (AEMCO) and (As At 7th December 2020):

  1. Residents in areas placed under the order are allowed to move within and travel out of the designated location, subject to clearance by officials stationed there.
  2. Screening and testing are mandatory for all residents of the areas.
  3. Food and essential services can operate normally.

For more information, please refer to http://covid-19.moh.gov.my/faqsop/sop-pkp-pemulihan.

  • Penalties

According to the Emergency (Prevention and Control of Infectious Diseases) (Amendment) Ordinance 2021, effective from 11th March 2021, any individuals who violate SOPs stipulated for the prevention and control of the COVID-19 pandemic can be fined up to RM10,000. Companies or corporations that violate the SOPs can be fined up to RM50,000.

  • Foreign Travel Restrictions  

International travel is still not permitted as Malaysian borders remain closed. Since last year, Malaysia is in the early stage of discussions with 6 “Green” countries that it would like to open its borders to post-COVID-19. However, the plan is likely to be postponed due to the current spike of COVID-19 cases.

Malaysia and Singapore’s borders have reopened for the selected travellers under the Reciprocal Green Lane (RGL) and the Periodic Commuting Arrangement (PCA) travel schemes. RGL is for essential business and official matters, while PCA is for Malaysian and Singaporean citizens holding long-term immigration passes to return home periodically for a short break. However, the Singapore Government announced the suspension of RGL for 3 months starting on 1st February 2021.

All foreign travellers to Malaysia are subject to relevant authorities’ approval. On 10th September 2020, the Malaysian government announces a Temporary Entry Ban of citizens from 23 countries until further notice, namely the United States, Brazil, India, Russia, Peru, Columbia, South Africa, Mexico, Spain, Argentina, Chile, Iran, Bangladesh, United Kingdom, Saudi Arabia, Pakistan, France, Turkey, Italy, Germany, Iraq, the Philippines and Indonesia. Certain groups of travellers are allowed to make a one-way journey into Malaysia with approval from relevant Malaysian authorities:

  1. Residence Pass-Talent (RP-T) and their dependant/s
  2. Employment Pass (Category EP I, II and III)
  3. Professional Visit Pass (PVP)
  4. Dependant Pass to expatriate for all categories
  5. Long Term Social Visit Pass (LT-SVP) to expatriate for all categories
  6. Foreign Maid to expatriate for all categories

The Malaysian government is very open to business and welcomes the entry of business travellers amid the pandemic. The government established the One Stop Centre (OSC) in October 2020, which aims to expedite business travellers’ business entry to Malaysia. The government has also created a Safe Travel Portal containing information and advisory services to facilitate business travellers’ entry into Malaysia, effective from 3rd March 2021. Both Short- and Long-Term business travellers may apply for entry permission via https://safetravel.mida.gov.my. Short-Term business travellers refer to those who are not holding any passes and intend to stay in Malaysia for 14 days or less. Long Term business travellers refer to those who have valid passes and intend to stay in Malaysia for over 14 days.

For more information, please refer to the links below:

Safe Travel Malaysia

One Stop Centre – Safe Travel Malaysia (mida.gov.my)

For more information, please refer to the link below:

rT-PCR COVID-19 Test

Prior to entering Malaysia, the applicant is ENCOURAGED to undergo rT-PCR COVID-19 Test abroad within 3 days and must be medically confirmed to be tested negative for COVID-19. All entries into Malaysia are COMPULSORY to undergo (another) health screening at the Point of Entry (POE) - the entries shall bear rT-PCR COVID-19 test and the costs. For those transit in less than 24 hours at KLIA and continuing their journey to Sabah, Sarawak and Labuan will have to do RTK Ag test. Entries will be direct to the hospital if entries exhibit severe symptoms of COVID-19.

Quarantine Information

On 18th September 2020, the National Disaster Management Agency (NADMA) has decided that all foreign nationals, including Malaysian permanent residents, are subjected to bear the full quarantine cost without any Malaysian government subsidies amounting to RM4,700, effective from 24th September 2020. Credit card usage is encouraged and any balance will refund upon checkout.

People with Disabilities (OKU cardholders from the Welfare Department of Malaysia) are exempted from Quarantine payment. Reciprocal Green Lane (RGL) and Periodic Commuting Arrangement (PCA) pass holders, including diplomats, allow home quarantine. Person Under Surveillance (PUS) must strictly abide by the Home Surveillance Order (HSO) rules. Psychiatric patients, private hospital patients and women with above 38 weeks’ pregnancy can apply for home quarantine upon returning from abroad.

On 12th January 2020, the Malaysian Ministry of Health (MOH) announced that Level 1 and Level 2 COVID-19 patients would undergo treatment, home quarantine for 10 days and a screening test on day 10, while being monitored strictly by health workers. However, the home quarantine order will depend on the house’s size and the number of occupants. Patients with symptoms would be treated in hospitals.

MOH also has established 213 COVID-19 Assessment Centres (CAC) nationwide to determine which patients can go for home quarantine. Generally, each district will have at least one CAC, depending on the number of patients. The CAC will also determine if a patient needs treatment in the quarantine/treatment centres or hospitals.

For more information, please refer to the link below: Guidelines Entry And Quarantine Process Person Under Surveillance (Pus) Arriving From Abroad (24th July 2020)

MySejahtera Application

All Malaysians and foreigners who wish to return to Malaysia are COMPULSORY to download and install the MySejahtera application on their mobile phones. MySejahtera is an application developed by the Malaysian government to assist in managing the COVID-19 pandemic in the country. It allows users to perform health assessments and also monitor their health progress throughout the COVID-19 pandemic. MySejahtera enables the Ministry of Health (MOH) to monitor users’ health conditions and take immediate actions to provide the treatments required. Please go to the link below to download the application:  https://mysejahtera.malaysia.gov.my/

3. Exit strategy

The control of the COVID-19 pandemic in Malaysia is still tightened as well as other actions are taken following the WHO exit strategy. However, according to the Director-General of Health Malaysia, Dr. Noor Hisham Abdullah said Malaysia is not poised to enter COVID-19 “Exit Strategy Phase”.

As of February 2021, Malaysia has secured 66.7million vaccines covering 109.65% of its population. Vaccines are sourcing from 5 manufacturers: Pfizer, AstraZeneca, Sinovac, CanSinoBIO and Sputnik V. The COVID-19 vaccination is voluntary and will be provided free of charge to all Malaysia citizens and non-citizens. The age limit is 18 years and above (will be reviewed from time to time). Malaysian government aims to achieve at least 80% of Malaysia’s adult population receive vaccines by February 2022 to reduce infections, hospitalisations and death. The National COVID-19 Immunisation Programme will be implemented in 3 phases, starting from 24th February 2021:

  • First-Phase (500,000 people): Frontliners including personnel in public and private healthcare, essential services and defence services. Take place from February 2020 to April 2021.
  • Second-Phase (9.4 million people): The rest of the frontliners, elderly people aged 65 and above, high-risk groups with chronic diseases such as heart disease, diabetes, obesity, high blood pressure and people with disabilities. Take place from April until August 2021.
  • Third-Phase (Over 13.7 million people): Residents (citizens & non-citizens) aged 18 and above with priority given to the red zone, yellow zone, then green zone. Take place from May 2021 until February 2022.

Vaccination registration and appointments can be made via MySejahtera and official websites.

Vaccinations will be carried out at 605 Vaccination Administration Centres (VACs) which have been identified by MOH. A total of 275,851 individuals have been vaccinated in Phase 1 of the National Covid-19 Immunisation Programme as of 12th March 2021.

The Malaysian government has signed Terms Sheet agreements with Pharmaniaga and Solution Biologics Sdn. Bhd. to carry out the ‘fill and finish’ manufacturing process locally, which will accelerate vaccine deployment. The government is also in talks with the Russian Government about R&D and manufacturing of the Sputnik V vaccine in Malaysia to increase the COVID-19 vaccine doses amount that can be used in Malaysia and the region.

For more information, please refer to National_COVID-19_Immunisation_Programme and Jawatankuasa Khas Jaminan Akses Bekalan Vaksin COVID-19 (JKJAV).

4. Economy

a. Economic impact

Malaysian Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz mentioned that the second Movement Control Order (MCO 2.0) costs Malaysia’s economy worth MYR700 million daily which shows a relatively large rate of decline compared to 2020 with MYR2.4 billion daily. According to the Malaysian Ministry of Finance, Malaysia’s gross domestic product (GDP) is expected to contract by 4.5% in 2020 and expected to regain its growth in 2021 of 6.5% to 7.5%. The implementation and subsequent extension of the Movement Control Order (MCO) have greatly affected Malaysia’s economic performance:

  • The broad-based travel restrictions and travel risk aversion have affected all tourism-related sectors.
  • Global supply chain disruptions pressured the production and trade activities of the manufacturing sector. The cumulative losses incurred by the Electrical and Electronics (E&E) sector are estimated at MYR 7.28 billion of GDP, while the impact on exports is estimated at MYR 29.12 billion.
  • The decline in private consumption and investment due to reduced household spending.
  • Heightened financial market volatility due to ongoing external uncertainties may lead to tighter domestic financial market conditions.
  • According to the Department of Statistics Malaysia (DOSM), as of 1st May 2020, 67.8% of the total 4,094 Malaysian companies responded that no sales/revenue during the MCO period. The companies’ main challenges are the financial source for salary and rental payment and low customer flow.
  • The unemployment rate rose to 4,9% in January 2021.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz mentioned that the online sales of fast-moving consumer goods growing rapidly by 40% due to the pandemic. Malaysian consumer behaviour has possibly changed due to the COVID-19 pandemic and making the new normal permanent, such as become more comfortable buying online and cashless/ contactless payment transactions. Postal and Courier Services are recognised as one of the sectors least impacted by the COVID-19 pandemic.

Apart from the pandemic, the domestic economy will also be affected by the sharp decline and volatile shifts in crude oil prices and continued supply disruption in the commodities sector due to unfavourable weather conditions, continued maintenance works and to a certain extent, reduced operating capacity due to the MCO.

b. Trade barriers

There are no new trade barriers added at this time.

As gazetted in the Control of Supplies (Prohibition on Export) (Amendment) Regulations 2020, the Malaysian government has banned exports of Face Masks as listed below:

  • Face Mask (Surgical/Medical) 1 Ply (Ear Loop)
  • Face Mask (Surgical/Medical) 2 Ply (Ear Loop)
  • Face Mask (Surgical/Medical) 3 Ply (Ear Loop/ Head Loop/Head Tie-On)
  • Face Mask (Surgical/Medical) N95

A letter of approval issued by the Controller of Supplies, Ministry of Domestic Trade and Consumer Affairs under the Control of Supplies Act 1961 is required for any export of prohibited goods.

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c. Measures for economic relaunch

a. Malaysian Budget 2021

Budget 2021 themed “Stand United, We Shall Prevail”, with the allocation of MYR322.5 billion expenditure to revive the economy and help Malaysians weather the COVID-19 pandemic. The 2021 Budget has three key areas of focus: ensuring the wellbeing of the people, business continuity, and resilience of the economy. 73.30% of the total budget is allocated for Operating Expenditure, 21.40% for Development Expenditure and a special allocation of 5.30% for the COVID-19 fund. Budget 2021 extends the support provided in the earlier announced economic stimulus packages. Key highlights of Budget 2021:

  • Tax Incentive for Global Trading Centre: 10% income tax rate for a period of 5 years and renewable for another 5 years.
  • Extension of Principal Hub Incentive: Extended for another 2 years to 31st December 2022.
  • Relocation Incentives for Selected Services Sector: Income tax rate of 1% to 10% for 10 years for a new company, and 10% for 10 years for existing company with new service segment.
  • Relocation Incentives for Manufacturing Sector: Extended for another 1 year to 31st December 2022. Income tax rate of 0% for 10 or 15 years for new companies, or 100% investment tax allowance for 5 years for existing companies.
  • Tax Incentive for Manufacturers of Industrialised Building System (IBS) Components: Extended for another 5 years to 31st December 2025. Investment tax allowance of 60% on qualifying capital expenditure incurred within 5 years to be set off against 70% of statutory income.
  • Tax Incentives for Bionexus status company, Economic corridor developments, MRO activities for aerospace, and Building and repair of ships: Extended for another 2 years.
  • Tax Incentives for Manufacturers of Pharmaceutical Products including Vaccines: 0% to 10% income tax rate for the first 10 years and 10% for the subsequent 10 years.

For more information, please refer to: https://www.treasury.gov.my/index-en.html  

b. National Economic Recovery Plan – PENJANA (Pelan Jana Semula Ekonomi Negara)

The Malaysian government plans to revive the economic activities by formulating a comprehensive Short, Medium and Long-term Economic Recovery Plan, which will complement the various announced economic stimulus packages. On 5th June 2020, Malaysian Prime Minister Tan Sri Muhyiddin Yassin announced the Short-term National Economic Recovery Plan – PENJANA (Pelan Jana Semula Ekonomi Negara). Malaysia is currently in the 4th Phase: Recovery, under the 6-Phase Plan (6Rs): Resolve, Resilience, Restart, Recovery, Revitalise and Reform. PENJANA has 40 initiatives worth MYR35 billion, focusing on 3 key thrusts - Empower People, Propel Businesses and Stimulate the Economy. PENJANA has stimulated Malaysia’s economy through the Wage Subsidy Program 1.0, benefitting over 322,177 employers and 2.64 million employees.

For more information, please refer to: 

c. Kita Prihatin Economic Stimulus Package

On 23rd September 2020, Malaysian Prime Minister Muhyiddin Yassin announced that the government is rolling out the Kita Prihatin Economic Stimulus Package, a special initiative to help micro-entrepreneurs, the country’s workforce and those from the lower- and middle-income groups. Under the Kita Prihatin Package, the government allocated  MYR600 million for the Special Prihatin Grant to benefit 200,000 micro-entrepreneurs in Malaysia, additional MYR155 million for the Prihatin Special Grant 2.0, MYR2.4 billion for Wage Subsidy Programme 2.0 and MYR7 billion for the Bantuan Prihatin Nasional (BPN) 2.0 – cash aid for the eligible Malaysians. As of 26th February 2021, MYR808.31 has been channelled to 66,591 employers and maintain jobs for 554,876 employees under the Wage Subsidy Programme 2.0. 

For more information, please refer to: https://www.treasury.gov.my/index.php/kitaprihatin2020.html

d. Economic outlook

It is known that the COVID-19 pandemic has greatly impacted the Malaysian economy, more so, the global economies. Malaysian has been recognised as one of the most successful countries in handling the socio-economic impact of the COVID-19 pandemic. According to the Department of Statistics Malaysia (DOSM), Malaysia’s external trade is predicted to grow by 3.9%, with imports and exports of goods rose by  5.3% and 2.7% respectively. Malaysia’s GDP is expected to regain its growth in 2021 of 6.5% to 7.5%. According to the Economic Report 2020/2021, the Ministry of Finance (MoF) expects private consumption to grow by 7.1% in 2021.

All manufacturing sectors are projected to experience slow or contract growth in 2020 before rebounding in 2021. The construction industry is one of the most impacted industries by the COVID-19 pandemic and expected to recover at an estimated growth rate of 13.9% in 2021. Gross export is forecasted to decline by 13.4% due to global restriction and supply chain disruptions and expected to rebound by 8.7% in 2021. Gross import trade is projected to decline by 11.9%, mainly due to lower imports of intermediate and capital goods, and is expected to rebound by 9.2% in 2021.

Due to the Movement Control Order imposed by the Malaysian government to contain the COVID-19 pandemic, most business sectors are not allowed to operate as usual or at full capacity. Over 66% of businesses experienced a drastic drop in demand that made it difficult to sustain a business due to the decline in private consumption. The Malaysian government has proactively taken many initiatives to stimulate and boost the economy and increase private consumption, such as the Prihatin Rakyat Economic Stimulus Packages and National Economic Recovery Plan etc.

DOSM noted that the first phase of the COVID-19 vaccination programme that was started on 24th February 2021 is projected to resolve the current health crisis and also Malaysia’s economic performance.

e. Short term opportunities

a. Manufacturing Sector

Malaysia has a well-established Manufacturing Sector but has too much reliance on the Oil and Gas Sector. Malaysia remains an attractive investment destination, with the availability of well-educated labour, investor-friendly policies and incentives, well-developed Infrastructure and preferred gateway to enter the ASEAN market. Malaysia’s technologically-inclined economy is proven by the country's involvement in advanced industries such as E&E manufacturing, R&D, biotechnology, photonics, logistics, design, innovation, automotive and others.

The COVID-19 pandemic has triggered the Malaysian Government’s actions in ensuring smooth supplies of medicine, food and other essential goods. This shows short and long-term opportunities for the Manufacturing sector, especially for the Medical & Health industry and the Food & Beverages industry. The Malaysian government announced many attractive tax incentives for the manufacturing sector, including:

  • Tax Incentive for Global Trading Centre: 10% income tax rate for a period of 5 years and renewable for another 5 years
  • Principal Hub Incentive
  • Relocation Incentives for Selected Services Sector: Income tax rate of 1% to 10% for 10 years for a new company, and 10% for 10 years for existing company with new service segment.
  • Relocation Incentives for Manufacturing Sector: Income tax rate of 0% for 10 or 15 years for new companies, or 100% investment tax allowance for 5 years for existing companies.
  • Tax Incentive for Manufacturers of Industrialised Building System (IBS) Components: Investment tax allowance of 60% on qualifying capital expenditure incurred within 5 years to be set off against 70% of statutory income.
  • Tax Incentives for Bionexus status company, Economic corridor developments, MRO activities for aerospace, and Building and repair of ships
  • Tax Incentives for Manufacturers of Pharmaceutical Products including Vaccines: 0% to 10% income tax rate for the first 10 years and 10% for the subsequent 10 years.

For more information, please refer to: https://www.mida.gov.my/home/

b. Manufacturing Sector - Electrical and Electronic Industry

The Electrical and Electronics (E&E) industry is poised to remain firm in 2020, despite the COVID-19 crisis, thanks to the Malaysian Government‘s proactive measures during the MCO period. According to Ms. Bee Bee Ng, President of SEMI Southeast Asia, Malaysian E&E landscape will remain robust in 2020, supported by the immense opportunities offered by the industry, especially with the rise in remote working, virtual learning and e-commerce. The increasing demand for smart manufacturing capabilities, automation and technological innovations would potentially stabilise the E&E industry.

Today, the Malaysian Investment Development Authority (MIDA) is looking into attracting investments in new and high technology areas post-COVID-19 supported by the well-developed infrastructure and numerous incentives for potential investors. MIDA is focusing on the companies from countries that are affected (by the trade war), to shift their operations to Malaysia and utilise Malaysia as a hub to penetrate the South-East Asian market.

c. Food Agriculture (Agri-food) Sector

The COVID-19 pandemic has triggered Malaysian Government actions to address food security issues, as the country is highly relying on the imports of F&B products, animal feeds for livestock and poultry sectors and raw materials for further food processing. The emphasis on food security has opened up promising opportunities in the Agri-food Sector for FDI, such as knowledge exchange and assistance in modernising the Agri-food Sector. This has sparked Malaysia to invest in the R&D of the Agri-food Sector to develop a food self-sufficient nation. The available opportunities including potential collaboration between Malaysian and Flemish companies in Agri-related knowledge transfer, adoption or selling of advanced technologies and machinery to modernise the Sector.

The PENJANA Short-term Economic Recovery Plan announced on 5th June 2020 has highlighted few supports for the Agriculture and Food sector, including:

  • Incentives to pioneer companies to train and educate the people to venture into agriculture and plantation.
  • Special Reinvestment Allowance for manufacturing and selected agriculture activity, from YA 2020 to YA 2021.
  • Micro Credit Financing for Agropreneurs under Agrobank (including commodity players) totalling RM350 million with an interest rate of 3.5%.

d. Drivers of the Logistics Sector

Malaysia has the 2nd highest E-Commerce penetration rate in the ASEAN region. During the COVID-19 pandemic, Malaysia’s E-Commerce Industry has expanded at a fast pace. The accelerated E-Commerce industry’s growth is mainly due to the increase in the number of online shoppers. The growth has also triggered the transformation of the Malaysian retailers’ business strategy toward E-Commerce and Internet-Of-Things (IoT). This has open opportunities for the main logistics drivers in the country such as Manufacturing, Pharmaceuticals, Food and Beverages, E-Commerce, and Third-Party Logistics sectors.

f. Long term opportunities

While Malaysia is concentrating on the immediate economic outcomes after COVID-19, TAPiO Management Advisory (a leading advisory company in Malaysia) has an alternative view that Malaysia should be seriously look into revamping future-ready sectors to stay competitive:

  • Diversify and modernise the Healthcare Sector by investing in the R&D Sector and establishing partnerships with key foreign stakeholders.  
  • Enhance the quality of Malaysia’s Education system.  Partnering with foreign higher education institutions to promote students’ international perspective.
  • Diversifying and modernise the sectors related to Food, Farming and Agriculture. To diversify from simply planting commodities to a new/existing commodity with wider job opportunities and downstream activities.
  • Diversify the Foreign Direct Investments (FDI) into the country, which is mainly contributed by the Oil and Gas Sector. This can be done by promoting innovative and advanced technologies in all existing or new industries.
  • Encourage foreign investors to establish or relocate subsidiary in/to Malaysia. Malaysia could take advantage of the current disruption in the global supply chain, as several Multinational Corporations are looking to relocate their companies from China.
  • Despite the current economic uncertainties, Malaysia is still firmly preparing to implement the National Fiberisation and Connectivity Plan (NFCP), which aims to improve the country’s digital connectivity by rolling out 5G in Q32020. Minister of Communications and Multimedia mentioned that reliable and affordable high-speed broadband connectivity is the key catalyst for bringing FDI into Malaysia’s digital economy. The NFCP is also expected to positively impact the Global Business Services (GBS) in Malaysia by empowering the employees to work from home.
  • In the COVID-19 aftermath, the Malaysian government is expected to improve the national competitiveness in FDI by introducing more investor-friendly policies and incentives.

5. Usefull links

6. Dossier coronavirus

Het coronavirus heeft een wereldwijde impact, niet alleen op de gezondheid maar ook op de economie. Ook uw export kan hiervan gevolgen of zelfs hinder ondervinden.

FIT monitort de risico's dagelijks en ons buitenlands netwerk informeert u over alle implicaties voor Vlaamse exporteurs op hun internationale activiteiten.

In het dossier Coronavirus vindt u een aantal nuttige tips, adviezen en inzichten in de economische impact van de verspreiding van het virus op internationaal ondernemen.

Met vragen over internationaal ondernemen in tijden van Corona, kan u terecht bij exportadvies-corona@fitagency.be.

6 april 2021