‘SINGAPORE-BASED FIRMS KEEN TO INVEST IN MALAYSIA’
KUALA LUMPUR: Malaysia is a key investment destination for international companies based in Singapore.
According to a report by the Singapore Business Federation, Malaysia’s growing consumer market and relative ease of doing business were the factors for investors’ interest.
HSBC Malaysia commercial banking head Andrew Sill said in a statement yesterday the HSBC-commissioned report showed that many businesses were looking to double down on demographic dividend as Malaysia’s growing base was well-recognised by Singapore corporates.
“Beyond the consumer piece, Malaysia’s manufacturing is entering into the higher-end space of automation and innovation, developing more complex and diverse products,” he said.
The report, which sought the insights of 1,036 Singaporebased companies on their interest in Asean expansion, also highlighted that Malaysia was a favourite destination for internationally-oriented Singaporebased companies.
Eighty-six per cent of those surveyed were considered small and medium enterprises (SMEs), defined as those with annual turnover of S$100 million (RM299 million) or fewer than 200 workers.
“Increased trade and investment activity from Singapore is good news for Malaysia,” it said, adding that Singapore was Malaysia’s thirdlargest source of investment after China and Switzerland last year.
Eighty per cent of the respondents with Malaysian expansion cited potential customer demand, with 75 per cent highlighting the ease of building relationships, and 73 per cent referring to its overall investment climate.
The report indicated that most Singapore-based SMEs entering or expanding in Malaysia would have or were seeking an in-country relationship.
Malaysia has the highest penetration rate among the companies surveyed.
“Singapore-based SMEs can make a significant contribution to Malaysia’s economy as they look to expand beyond their domestic markets and can benefit from the cross-border activity that was previously seen as the domain of larger corporations,” said Sill.