Malaysia’s manufacturing sector sees positive signs in 2025
Malaysia’s manufacturing sector is forecast to recover well in 2025 as global trade dynamics and geopolitical shifts influence market trends.
Malaysia’s manufacturing sector is forecast to recover well in 2025. Photo courtesy of thestar.com.my.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted a projected 4.7% growth rate for Malaysia’s manufacturing sector in 2025, supported by balanced contributions from export-oriented and domestic-oriented activities.
Sectors like power and electronics, particularly semiconductors, are expected to benefit from AI-driven demand for high-powered microchips, he said.
Despite external risks from geopolitical tensions and US policy shifts, Afzanizam noted that Malaysia’s domestic resilience remains a strong pillar for growth.
Policies such as the National Energy Transition Roadmap, the National Semiconductor Strategy and the 13th Malaysia Plan are expected to bolster the manufacturing ecosystem, he added.
Elaborating on AI-driven demand, president of the Federation of Malaysian Manufacturers Soh Thian Lai underscored the rise of AI and the surging demand for semiconductors as key drivers to drive significant growth in manufacturing industries, particularly in export-oriented sectors within developing economies.
This anticipated boom will not only reshape global supply chains but also bolster opportunities in logistics and advanced manufacturing, positioning semiconductor production as a critical growth engine in the year ahead, he said.
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