5.1 The Industry
5.1.1 Clothing & Apparel Industry
The growth of Malaysia's clothing and apparel
industry accelerated in the early 1970s, when the country was on the course of
export-oriented industrialization.
The industry was the seventh largest contributor to
total earnings from manufactured exports in 2006. Malaysian exports of clothing
and apparel have increased significantly over the years driven by a few factors.
5.1.2 Shape of the Industry
Strong external demands from Malaysia's major
markets particularly United States of America (USA) and European Union (EU).
Quality textiles and apparel through the use of quality certified production
processes. Over the past 10 years period (1996-2005), a total of RM4.9 billion
of the textile and apparel investments were approved, with nearly 83 per cent
of them were in the textiles sub-sector (Table 2). Foreign investments
accounted for almost 58 per cent and the majority was in textiles sub-sector.
Domestic investments dominated the apparel subsector, with a total amount of
RM572 million or about 67 per cent.
Malaysia Import &
Export Statistic (in brief) from Year 2003 - 2007
|
Export (RM)
|
Import (RM)
|
|||||
|
2004 (Total)
|
1,359,572,283.00
|
1,119,417,800.00
|
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|
Textiles
|
991,192,222.00
|
937,774,549.00
|
||||
|
Apparel
|
368,380,061.00
|
181,643,251.00
|
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|
Export (RM)
|
Import (RM)
|
|||||
|
2005 (Total)
|
1,480,271,157.00
|
1,176,459,587.00
|
||||
|
Textiles
|
1,139,552,438.00
|
987,226,492.00
|
||||
|
Apparel
|
340,718,719.00
|
189,233,095.00
|
||||
|
Export (RM)
|
Import (RM)
|
|||||
|
2006 (Total)
|
1,769,489,507.00
|
1,229,099,999.00
|
||||
|
Textiles
|
1,339,752,499.00
|
1,015,856,933.00
|
||||
|
Apparel
|
429,737,008.00
|
213,243,066.00
|
||||
|
Export (RM)
|
Import (RM)
|
|||||
|
2007 (Total)
|
1,803,086,509.00
|
1,329,946,553.00
|
||||
|
Textiles
|
1,363,665,692.00
|
1,095,516,594.00
|
||||
|
Apparel
|
439,420,817.00
|
234,429,959.00
|
5.1.3 Development of the Industry
The outlook of the Malaysian textile and apparel
industry is indeed challenging. With the
FTA, the industry foresees some 200 per cent
increase in exports to the US market;
otherwise, a marginal increase of 0 - 3 per cent or
perhaps contracted annual growth is
anticipated.
Local textile and apparel makers are fearful of the
exaggerated competition once the
quota imposed by United States on China’s textile
and apparel is completely removed in
2008. In addition, with more exporting countries to
enter into FTAs deal with the United
States in the future, the local textile and apparel
industry would lose its comparative
advantage, especially to the lower cost production
centres.
Malaysian contract manufacturers have maintained a
good reputation in terms of quality
and timely delivery for middle to up-market brands.
Almost 90 per cent of the apparel/
garments exports of the country are from contract
manufacturers. To move up the value
chain, the experienced apparel contract
manufacturers are advised to explore and
embark on own-design manufacturing (ODM), and
subsequently move further into
creating and developing their own indigenous brands.
A quality brand image is the asset
of a company that will ensure the products be
well-positioned in the market and keep the
price war irrelevant. Nevertheless, brand
development and promotion is not an easy
task. It requires serious commitment of the top
management in developing a comprehensive brand strategy for their products. The
apparel makers that are serious about developing own brand name should tap the
Brand Promotion Grant and work with agencies such as MATRADE that could provide
professional advice in brand building.
The Malaysian textile and apparel players should
also venture into high value
added products such as higher quality functional
fabrics (wrinkle-free, anti-bacteria,
ultraviolet protection, and fire resistant),
industrial textiles, and home textiles. Other
niche products to consider include high-end apparel,
bridal gowns and blazers, and
ethnic fabrics (batik and songket).
In addition, to encourage investments in the
textiles and apparel industry in the country,
several textile products/activities have been
gazetted as promoted products/activities
under the Promotion of Investment Act, 1986 and
could be considered for tax incentives
in the form of Pioneer Status or Investment Tax
Allowance. These products / activities
include natural or man-made fibres, yarn of natural
or man-made fibres, woven fabrics,
finished knitted fabrics, finishing of fabrics such
as bleaching, dyeing and printing,
knitwear, skiwear or winter outerwear, non-woven
products, elastic webbings and textile
hose piping.
5.2 The
Marketplace
5.2.1 Current Market Condition
The market place of clothing and apparel in Malaysia
is intensive competitive. Most of the international brand has established their
business and penetrate their brands and products into Malaysia’s market earlier
or recently.
Bukit Bintang is considered as the biggest fashion
market with several giant shopping centers that are vibrant and frequently
visited. Well-known and familiar fashion retailer such as MANGO, PADINI,
ESPRIT, TOPSHOP, TOPMAN, SUB, G2000, FOREVER 21, GAP, GIORDANO and ZARA can be
easily found in the area which is busy with consumer traffic.
Other than that, shopping complexes like Mid Valley
Megamall, One Utama, Sunway Pyramid, and The Gardens are great market place of
the industry.
Besides that, the growth of the big supermarket and
hypermarket such as PARKSON, AEON JUSCO, SOGO, CARREFOUR, TESCO help this
industry to boost up.
Those complex lots and stores are always mainly
occupied by fashion retailer and outlets. The places are consistently crowded
with people during weekends and holiday.
From observations on the situations, market of
clothing and apparel in Malaysia is seen with its great potentials.
5.2.2 Changes in the Market Place
Strong competitions in the market are leading to
more innovation and healthy growth of the industry. It is eventually
stimulating the market place and boosting the economy.
Although lower prices are resulted in competition,
there are still concerns and risks of facing low quality production, bad
shopping experience and poor customer services.
