Amanda Siddharta
Research expert covering Malaysia
Textile and apparel industry in Malaysia - statistics & facts
Malaysia is well known for its luxurious “songket” and “tenun,” intricate hand-woven local textiles often worn on special occasions. Yet, textiles are more than a celebrated cultural heritage; the textile and apparel industry is an important contributor to Malaysia’s thriving manufacturing industry. In 2023, the textile and wearing apparel industry contributed around 5.3 billion Malaysian ringgit to the country’s gross domestic product.
Meanwhile, the sales value of manufactured textiles and apparel increased by around 1.3 billion Malaysian ringgit from 2023 to 2024. Despite a robust sales performance, Malaysia is currently facing increased competition from its neighboring countries, which could pose a challenge for the industry.
Malaysia also hopes to attract more investments in this sector. In 2023, the textile and apparel industry secured around 1.3 billion Malaysian ringgit in both foreign and domestic investments, an increase of nearly one billion Malaysian ringgit compared to the investment value of textile manufacturing in the previous year. Should the current initiative manage to improve investment in this sector, it would, in turn, increase the number of new jobs.
Meanwhile, the value of textile exports from Malaysia amounted to around 6.8 billion Malaysian ringgit in 2023, marking a decrease from 2022. Malaysia has strong competitors in Southeast Asia, especially Vietnam and Indonesia. These two countries have a cheaper and larger labor force, allowing them to manufacture more at much lower costs. Malaysia’s textile and apparel manufacturers are trying to overcome this challenge by investing more in automation to improve efficiency. Along with the government’s initiatives, these efforts could give Malaysia an advantage and help expand its textile and apparel industry.
Meanwhile, the sales value of manufactured textiles and apparel increased by around 1.3 billion Malaysian ringgit from 2023 to 2024. Despite a robust sales performance, Malaysia is currently facing increased competition from its neighboring countries, which could pose a challenge for the industry.
Source of jobs and foreign direct investment
The textile and manufacturing industry in Malaysia employed around 265,000 people in 2024. This number is expected to increase, especially with the government’s New Industrial Master Plan (NIMP) 2030, launched in September 2023. This initiative was aimed at fostering growth in Malaysia’s industrial landscape and named 21 key sectors as the focus, including textiles and apparel.Malaysia also hopes to attract more investments in this sector. In 2023, the textile and apparel industry secured around 1.3 billion Malaysian ringgit in both foreign and domestic investments, an increase of nearly one billion Malaysian ringgit compared to the investment value of textile manufacturing in the previous year. Should the current initiative manage to improve investment in this sector, it would, in turn, increase the number of new jobs.
Leading apparel importer and competition in ASEAN
Although Malaysia manufactures textiles and wearing apparel, the country is also one of the biggest import markets, especially for clothing and accessories. In 2022, Malaysia imported non-knitted clothing and knitted apparel with a total value of more than two billion U.S. dollars, the second highest among Southeast Asian countries. Around 53 percent of textile and apparel imports to the country originated from China.Meanwhile, the value of textile exports from Malaysia amounted to around 6.8 billion Malaysian ringgit in 2023, marking a decrease from 2022. Malaysia has strong competitors in Southeast Asia, especially Vietnam and Indonesia. These two countries have a cheaper and larger labor force, allowing them to manufacture more at much lower costs. Malaysia’s textile and apparel manufacturers are trying to overcome this challenge by investing more in automation to improve efficiency. Along with the government’s initiatives, these efforts could give Malaysia an advantage and help expand its textile and apparel industry.
