Asia Manufacturing Index: Malaysia Places Second Among ASEAN Economies

Posted by Written by Ayman Falak Medina Reading Time: < 1 minute

The 2026 Asia Manufacturing Index published by Dezan Shira & Associates ranks Malaysia second overall among the 11 Asian economies included in the index. Among ASEAN economies, Malaysia is positioned ahead of Vietnam, Singapore, Thailand, Indonesia, and the Philippines based on the index’s final ranking.

The index presents manufacturing-related indicators grouped into seven pillars: economy, political risk, business environment, international trade, infrastructure, workforce, and innovation. Each pillar is shown as a relative ranking, with individual parameters displayed on a 0–100 scale.

In the economy pillar, Malaysia is ranked sixth. The table shows scores covering financial health, economic scale, economic growth, economic resilience, currency stability, manufacturing growth, and inflation.

In political risk, Malaysia is ranked fourth. The parameters displayed include institutional stability, corruption perception, and global peace.

In the business environment pillar, Malaysia is ranked tenth. The table lists foreign investment climate, capital requirements, setup efficiency, intellectual property protection, and industry restrictions as the underlying parameters.

In international trade, Malaysia is ranked fifth. The parameters shown include free trade agreement integration, logistics performance, goods trade balance, openness to goods trade, and domestic supply.

Infrastructure is shown as Malaysia’s highest-ranked pillar, where it places second overall. The table displays scores for electricity cost, electricity reliability, water cost, water availability, fuel cost, infrastructure investment, environmental performance, internet speed, and internet freedom.

In the workforce pillar, Malaysia is ranked fourth. The parameters listed include labor force size, labor force growth, demographic structure, education attainment, international mobility, labor productivity, labor cost, and English-speaking population.

In innovation, Malaysia is ranked tenth. The parameters shown include research and development, innovation output, and higher education.

Based on the index’s final composite ranking, Malaysia places second overall among the economies assessed.

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ASEAN Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Jakarta, Indonesia; Singapore; Hanoi, Ho Chi Minh City, and Da Nang in Vietnam; and Kuala Lumpur in Malaysia. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.

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