Philippine-Malaysia Relations on Trade, Investment and Tourism
Trade & Investment
Update as of 26 April 2022
In 2021, Malaysia ranked as the Philippines’ top 10 export market. Philippine exports to Malaysia grew by 6.87% from US$1.77 B in 2020 to US$1.89 B in 2021. The Philippines' top exports to Malaysia are electronics, semiconductor devices, and natural rubber while the top imports from Malaysia are petroleum oils and petroleum products.
Philippine products and services for promotion to Malaysia are electronics, crude coconut oil, copper cathodes, motor vehicle, and parts, natural rubber, Information Technology Services, and Health Information Management Services.
Malaysia was the 15th source of approved investments in 2021, with a total of $10.31 Million. It is notable that from 2018 to 2020, IPA-approved investments were valued at US$ 1.66 billion.
Approved investments from Malaysia are spread across various sectors including manufacturing, administrative and support service activities, and real estate activities.
Priority sectors for investment promotion specific to Malaysia are manufacturing, agribusiness, service industry, infrastructure and property development, and energy especially renewable energy.
Several Philippine companies have established a substantial presence in Malaysia, including Aboitiz Equity Ventures, Inc., Pilmico International Pte Ltd, Ayala Land, Inc through MCT Berhad, Century Motolite Battery Sdn Bhd, Jollibee Foods Corporation, LBC Mabuhay Sdn Bhd, Petron Corporation, Philippine Airlines, PLDT Malaysia Sdn Bhd, San Miguel Yamamura Packaging & Printing Sdn Bhd and San Miguel Yamamura Plastics Films Sdn Bhd, United Laboratories through UNAM Pharmaceutical Sdn Bhd, and URC Snack Foods Sdn Bhd.
Over the recent years, there have been significant business deals between Philippine companies into Malaysian companies, such as:
· The takeover of Ayala Land, Inc. of MCT Berhad with the acquisition of 72.3% shares in February 2018
· 100% acquisition by Aboitiz Equity Ventures (AEV) of Gold Coin Management Holdings Limited in May 2019 (“Gold Coin, which is based in Singapore, is a major producer of animal feeds and operates 20 livestock and aqua feed mills across 11 countries in Asia”, including several facilities in Malaysia);
· Announcement of Jollibee Foods Corporation in July 2021 that it will open 120 stores in Malaysia over the next 10 years, including a joint venture to own and operate Jollibee stores in West Malaysia;
· Century Pacific Food Inc. signed a long-term contract in September 2021 as original equipment manufacturer (OEM) for Linaco Group worth more than US$ 50 million, for a line of coconut products.
Prominent Malaysian companies operating in the Philippines include Berjaya Corporation Berhad, CIMB Berhad, Edotco Berhad, Genting Group, GHL Systems Berhad, Leong Hup International Berhad, Maybank Berhad, Mr. DIY (Trading) Sdn Bhd, MTD Group / AlloyMTD Berhad, Muhibbah Engineering (M) Berhad, PERSTIMA Berhad, and Pestech International Berhad.
FOR MORE INFORMATION, PLEASE VISIT THIS: https://kualalumpurpe.dfa.gov.ph/index.php/en/embassy-services/trade-and-investments
According to Tourism Malaysia, the Philippines is Malaysia’s 9th largest tourist market, with 396,000 Filipino tourists visiting Malaysia in 2018.
Meanwhile, the Philippine Department of Tourism reported that 145,000 Malaysians visited the Philippines in 2018, making Malaysia the tenth major source of tourists for the Philippines.
Philippine Airlines, Cebu Pacific Air, AirAsia, and Malaysia Airlines operate direct flights daily between Manila and Kuala Lumpur. Cebu Pacific Air and AirAsia also operate direct flights between Cebu and Kota Kinabalu. In addition, Cebu Pacific flies between Manila and Kota Kinabalu.