Malaysia Ranked as World’s Best Manufacturing Destination

More evidence of global manufacturing trends moving away from China

Global property agents Cushman & Wakefield have ranked Malaysia as the world’s top manufacturing location in their 2014 Manufacturing Index. Based upon assessments in the costs and risks categories, and being one of the least expensive locations within the index, Malaysia emerged as the world’s preferred destination, followed by Taiwan, South Korea and Thailand, placing second, third and fourth respectively. China placed fifth, falling behind due to rising costs and a weak score in the risk category. Elsewhere in Asia, Indonesia placed 8th, Japan 19th, and India 24th.

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The study focuses on three key areas – the costs of conducting business; the risks facing each country, such as economic and weather concerns; and the conditions of operation, such as the country’s labor pool and business environment. With these general criteria in mind, the index assesses each of the 30 countries included in the study to create a composite index designed to compare the best markets for manufacturing activity.

Cushman & Wakefield’s Executive Managing Director for Asia Pacific, Corporate Occupier & Investor Services, Richard Middleton, said, “Asia Pacific continues to be at the forefront of the global manufacturing sector – and this is highlighted by the top five countries in the index all being located in the region. Furthermore, locations such as Vietnam and the Philippines are also anticipated to emerge over the next few years as notable manufacturing destinations.”

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Chris Devonshire-Ellis of Dezan Shira & Associates comments, “It is notable that the top five positions in the index are dominated by countries from Asia Pacific. This report is further evidence of the shift in global manufacturing from China and dispersing now throughout Asia and is a growing trend. Asia is becoming increasingly attractive as infrastructure improves and China operational costs increase in tandem. The rise of ASEAN countries, such as Malaysia, to now be offering good quality facilities, stability and reasonable tax rates is starting to have a profound effect on the global supply chain. A large share of products made for global consumption – even those destined for the China market – will be manufactured in Asia.”

Chris Devonshire-Ellis is the Founding Partner of Dezan Shira & Associates – a specialist foreign direct investment practice providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam, in addition to alliances in Indonesia, Malaysia, Philippines and Thailand, as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email asia@dezshira.com, visit www.dezshira.com, or download our brochure.

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