Asia and Oceania

Malaysia
Last reviewed: 13 May 2009

Country information

See entire profile

TRADE AND INVESTMENT

Trade and Investment with the UK

The UK is Malaysia’s largest market in Europe (discounting the Netherlands, whose figures are inflated by transit traffic through Rotterdam), while Malaysia is the UK’s second largest market for goods in South East Asia, after Singapore. The UK has traditionally run a roughly two-to-one deficit in goods trade. However, trade in services is also significant, close to £700 million, with a healthy UK surplus of some £250 million. Taking that together with other invisible flows such as profits from British foreign direct investment, the UK's current account with Malaysia is roughly in balance. In 2007 UK exports to Malaysia increased to £954 million, whereas Malaysia’s exports to the UK fell to £1.7 billion. The busiest and most important sectors for UK Trade & Investment (UKTI) in Malaysia are education, oil and gas, and defence. Other priority sectors include Aerospace (civil), Engineering (priority for South East Asia), Environment, Financial & Business Related Services, Life Sciences and ICT.

Traditionally, Britain has been a leading investor in Malaysia, with estimated cumulative investments of over £20 billion over the last 30 years. Malaysia’s rapid development, strategic location and political and social stability have continued to make it an attractive place for British investment. So has the development of projects such as the Multimedia Super Corridor (MSC) and Iskandar Malaysia in Johor. The continuing development - and gradual liberalisation of the local services sector - should help Malaysia maintain this position in the future.

18 Malaysian companies are listed on the London Stock Exchange; four are listed on the main board and 14 are listed on the Alternative Investment Market (AIM).

Malaysian inward investment in the UK is substantial and growing. It includes: YTL's ownership of Wessex Water (£1.2 billion); Proton's ownership of Lotus; MUI's ownership of Laura Ashley and the Corus hotel chain. The Tun Razak Research Centre, a unit of the Malaysian Rubber Board located in Hertfordshire, is one of the world’s leading rubber research and development establishments. Genting, Malaysia’s international gaming company, acquired Stanley Leisure in 2006 for £700 million and has a 10% stake in the Rank Group. Malaysian companies are also majority share holders of well known UK brands including Crabtree and Evelyn and Costains.

Trade & Investment Country Profile: Malaysia