Newsletter: May 2006  

Malaysia Cotton Use Improves,
Apparel Soars, Exports Improve

The entire textile sector drew investors in 27 new projects in 2005, with foreign investment from Singapore, Taiwan, Hong Kong, India and Sweden; the largest investment was in apparel followed by industrial textiles.

Total textile and apparel production is expanding--first quarter output was up sharply.  January output expanded 7.9 percent from the previous year and was followed by a 19.4 percent surge in February.  The driver is both domestic sales and exports.  January textile, apparel and footwear exports expanded 7.5 percent to RM916.6 million and were followed by a 10.9 percent expansion in February to RM809.1 million.  Cumulative January through February exports were up 9.1 percent.

January through February exports to the U.S. market expanded 13.7 percent to 57.39 million square meters.  The growth is both in apparel and MMF non-apparel products.

The consumption of cotton appears to be improving, led by an increase in cotton fabric output, which is being absorbed by soaring apparel output.  Cotton fabric output fell 10.2 percent in 2005 but is now rebounding.  January through February cotton fabric output posted 13.2 percent year-on-year growth, reaching 26.139 million square meters.

In the apparel sector, output experienced 35.9 percent growth in 2005 to 70.193 million pieces.  This has been followed by January through February 2006 cumulative expansion in output of 46.6 percent, reaching 13.444 million pieces.  Malaysia has proven successful in boosting its apparel exports to the Islamic markets; exports to Turkey, Syria, Egypt, Pakistan and the United Arab Emirates are rapidly expanding.

Back to Index of May 2006