It is a dream for many foreign entrepreneurs to invest in Malaysia. Its fastly growing economy attracts many business people from different countries. There are a few sectors growing nicely keeping pace with the business world. It could be confusing to choose which industry to invest in.
To make the decision easier for you, we are going to inform you of 5 top industries for foreign entrepreneurs to invest in Malaysia. We are going to present the latest and relevant data to make an informed decision. After exploring those industries, you should be able to make the right call.
5 Fastest Growing Sectors For Foreign Entrepreneurs To Invest In Malaysia
1. Technology and Digital Innovation
2. eCommerce Sector
3. Renewable Energy
4. Tourism and Hospitality
5. Food and Beverage Industry
1. Technology and Digital Innovation
We are living in the age of technology and innovation. The use of AI in the technology sector has made living more convenient than ever. Technology and Digital Innovation is one of the fastest-growing sectors in the world. If you are interested in company registration in Malaysia for foreigner, the technology sector could be a profitable choice for you.
In 2024, Malaysia’s digital economy reached a Gross Merchandise Value (GMV) of US$31 billion. The number is 16% more than the previous year. The sector is definitely growing rapidly. We can expect that the growth will continue in upcoming years as well. So, there is a huge possibility to make a decent profit from this sector.
2. eCommerce Sector
People are getting more used to online purchasing. Almost more than 80% of businesses have already shifted to the eCommerce model. The rest of the businesses are also gradually shifting towards online-based purchasing. Undoubtedly, eCommerce is one of the top industries in which foreign entrepreneurs can invest in Malaysia. In fact, you should consider this sector for business registration in Malaysia. Let me explain briefly why.
In 2024, Malaysia’s e-commerce market was valued at approximately $14.8 billion. Compared to 2023, this is around 11.18% growth. By the end of 2025, this is going to reach higher levels. Currently, there are 10 million online shoppers in Malaysia. As the number is continuously growing, you can expect to get a good return from your investment in the eCommerce sector.
3. Renewable Energy
The world is getting more reliant on electricity day by day. However, the demand for renewable energy is sky-high. Malaysia is also focusing on getting advanced in the renewable energy sector. That’s why this sector has a bright future. You can think about the renewable energy sector for company registration in Malaysia for foreigners.
Renewable energy is used for around 8% of Malaysia’s total energy consumption. The goal is to increase renewable energy composition to 70% of total generation capacity by 2050. According to the plan, the use of renewable energy is going to be more popular. The market volume is expected to reach 42.10 billion kWh by the end of 2029. So, investing in this sector could be a smart decision.
4. Tourism and Hospitality
Some people cannot understand the potentiality of the tourism sector in Malaysia. Few people who have the understanding of that are generating massive revenue from tourism and hospitality. Can you assume the market value of the tourism industry in Malaysia? This is way bigger than most of us would assume. Let me tell you the numbers.
According to the latest data from Tourism Malaysia, the Malaysian tourism market generated a total of RM 71.3 billion in tourist receipts in 2023. This data is based on 20,141,846 tourist arrivals. The ASEAN region is the main contributor to this sector. Governments are taking different steps to attract more tourists.
5. Food and Beverage Industry
The Food and Beverage Industry is such a sector that will never lose the demand. The food industry is considered an evergreen business industry for any country. Malaysia is no different. In fact, we can see significant growth in the food and beverage industry over the last few years. The Malaysian F&B industry recorded a revenue of RM 228.66 billion in 2023.
Many new companies are growing based on this sector. So, the competition is also high. If you can maintain quality with innovation, there is still huge potential to earn from this sector. The Malaysian foodservice market is projected to reach USD 14.75 billion in 2025. By investing in this sector, you can also be a part of that revenue. If you need any assistance with F&B business registration in Malaysia, SFM Consulting Firm will assist you with that.
Final Words
In Malaysia, you will get several opportunities as a foreign investor to invest in those growing industries. Before you make the final call, you need to have a proper plan. The business-friendly laws of Malaysia are suitable for foreign investors.
Thinking about growing your own business in Malaysia? This is the perfect time to start. You Can Also Start it with Low Cost To Open a Virtual office Malaysia. For any assistance or business registration-related queries, don’t hesitate to contact SFM Consulting Firm.
FAQ
Which industry is booming in Malaysia?
A. Currently, the healthcare and biotechnology industry is booming in Malaysia. From January to May 2024, Biotechnology and bio-based companies saw RM838 million in new investments and RM1.5 billion in revenue.
Who are the biggest foreign investors in Malaysia?
A. The United States, Singapore, Hong Kong, and Japan are the biggest foreign investors in Malaysia. Intel, Hewlett Packard, Bosch, Hitachi, Google, Microsoft, ByteDance, and YTL Corporation are the biggest investors as multinational companies.
How to invest in Malaysia for foreigners?
A. Foreigners can invest in Malaysia through the stock market, real estate, and mutual funds. Also, foreigners can start their own business in Malaysia. Malaysia is open for business.
What is the most profitable industry in Malaysia?
A.According to the current trend, the Information Technology (IT) sector is one of the most profitable industries in Malaysia. Giant companies like AWS and Google are investing billions in this sector.
What sector to invest in 2025 in Malaysia?
A. The property sector in Malaysia is growing rapidly. According to business experts, this is going to increase more by the end of 2025. So, you can consider investing in the property sector in Malaysia.