Malaysia’s Second Chance As Manufacturing And Supply Chain Hub In Asean

JLPW NEEDLAWYER BLOG

Weeks ago, I blogged about Malaysia as a Supply Chain Refuge And Investment Hub In Asean when the US China Trade War broke out: See https://jlpwneedlawyer.wordpress.com/2018/07/16/making-the-us-china-trade-war-work-for-the-new-malaysia-as-a-supply-chain-refuge-and-principal-investment-hub/

As the drums of trade war rolled on, international logistics players have since reported the relocation of production lines by their China based manufacturing clients to Vietnam, Malaysia and other parts of South East Asia. See https://www.forbes.com/sites/kenrapoza/2018/07/30/trade-war-casualties-factories-shifting-out-of-china/#40023b28103e

A few days ago, I caught up with clients in the furniture industry in Malaysia. Having done a number of furniture manufacturers’ IPOs in the past and assisted their expansion into Vietnam, the reports of what is happening on the ground took me by surprise.

The standard arguments about Vietnam and other emerging economies having lower minimum wage and other significant cost advantages over Malaysia are well reported and acknowledged.

The big surprise is the speed and scale of change resulting from the US China Trade War…

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