Notice Board
MITI Report 2010 -
Performance of the Malaysian Textiles & Apparel Industry
Under the 2011 Budget, the Government has abolished import duties ranging from 5% to 30% on 328 products, of which 259 are related to apparel, shoes and headgears. The aim is to increase tourist spending in the country and promote Malaysia as a shopping haven in Asia to achieve the objectives of the NKEA.
The USA and Japan continue to be the major export destinations accounting for 26.6% of exports in this sector. Exports to the PRC, ROK, Germany and Turkey increased between 25.4% and 62.9%. Increase in consumer demand and higher quality of life were among the significant contributors to the increased demand in exports.
The price of cotton rose more than 100% due to speculation, hoarding and limited supply from the top producers in the world, namely Pakistan, which experiences natural disaster; and the PRC and India, both of which were subject to bad weather conditions. Cotton price is expected to remain high until August/September 2011.
Outlook
From 2006 to 2010, the average contribution of the textiles and apparel industry to total export of manufactured products was RM9.9 billion with an average total share of 1.6%. Although this sector is expected to face minimal decrease in total share of manufactured export in 2011, it is expected to continue as one of Malaysia’s top 10 manufacturing sector export earners due to increasing demand from the international market.
The Government is actively assisting the industry to be competitive and further penetrate the international market through FTAs. At the same time, Malaysian companies have to strive to create internationally-recognised brand names.
Trade Performance of the Manufacturing Sector
|
|
Year |
Exports RM bil. |
Share (%) |
Imports RM bil. |
Share (%) |
Annual Change (%) |
|
|
Exports |
Imports |
||||||
|
Textiles & Apparel |
2010 |
9.4 |
1.5 |
5.2 |
1.0 |
4.4 |
15.6 |
|
2009 |
9.0 |
1.6 |
4.5 |
1.0 |
|||
|
Selected Subsectors: |
|||||||
|
Textiles |
2010 |
5.8 |
1.2 |
4.1 |
0.9 |
13.6 |
18.8 |
|
2009 |
5.1 |
1.2 |
3.4 |
1.0 |
|||
|
Apparel |
2010 |
3.6 |
0.8 |
1.1 |
0.2 |
-7.7 |
4.8 |
|
2009 |
3.9 |
0.9 |
1.0 |
0.3 |
|||
Industrial Production Index (IPI), Sales and Employment
|
|
IPI (2005=100) |
Chg. (%) |
Sales (RM billion) |
Chg. (%) |
Employment (Persons) |
Chg. (%) |
|||
|
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
||||
|
Textiles & Apparel |
85.2 |
81.6 |
4.4 |
6.97 |
6.98 |
-0.2 |
44,014 |
47,390 |
-7.1 |
|
Selected Subsectors: |
|||||||||
|
Textiles |
83.2 |
79.6 |
4.5 |
4.5 |
4.3 |
4.8 |
15,320 |
16,605 |
-7.7 |
|
Apparel |
87.5 |
84.0 |
4.2 |
2.4 |
2.7 |
8.3 |
28,694 |
30,785 |
-6.8 |
2010 Approved Textiles & Textiles Products Manufacturing Projects
|
|
Total Capital Investment |
Foreign Investment |
Domestic Investment |
No. of Projects |
Employ-ment |
|
|
(in RM million) |
||||
|
New |
135.0 |
55.6 |
79.4 |
10 |
884 |
|
Expansion/ Diversification |
490.7 |
444.9 |
45.8 |
11 |
505 |
|
Total |
625.6 |
500.5 |
125.1 |
21 |
1,389 |
Top Five Destinations
|
Countries |
2010 |
2009 |
||
|
Value |
Share |
Value |
Share |
|
|
RM (Million) |
% |
RM (Million) |
% |
|
|
Total |
639,428.1 |
100.0 |
552,518.1 |
100.0 |
|
Manufactured Goods |
460,957.1 |
72.1 |
230,077.1 |
74.7 |
|
Total T & A Exports |
9,325.6 |
1.5 |
8,934.3 |
1.6 |
|
USA |
1,767.5 |
0.6 |
1,792.6 |
0.3 |
|
Japan |
713.3 |
0.1 |
721.9 |
0.1 |
|
Turkey |
596.3 |
0.1 |
399.7 |
0.1 |
|
China |
512.2 |
0.1 |
408.3 |
0.1 |
|
Singapore |
414.3 |
0.1 |
486.4 |
0.1 |
Top Five Suppliers
|
Countries |
2010 |
2009 |
||
|
Value |
Share |
Value |
Share |
|
|
RM (Million) |
% |
RM (Million) |
% |
|
|
Total |
529,194.6 |
100.0 |
434,669.8 |
100.0 |
|
Manufactured Goods |
430,491.4 |
81.3 |
358,953.4 |
82.6 |
|
Total T & A Imports |
5,156.9 |
0.97 |
4,464.7 |
1.02 |
|
China |
1,865.0 |
0.35 |
1,587.4 |
0.37 |
|
Taiwan |
481.7 |
0.09 |
427.8 |
0.1 |
|
Thailand |
450.3 |
0.09 |
378.3 |
0.09 |
|
Indonesia |
366.1 |
0.07 |
314.3 |
0.07 |
|
India |
213 |
0.04 |
130.9 |
0.03 |
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