Malaysia stands tall as a dynamic hub for manufacturing, boasting a rich tapestry of industries that fuel its economic engine. In this article, we delve into the realm of Malaysian manufacturers, exploring their diverse contributions, innovative practices, and the factors driving their success on both local and global fronts.

Understanding Malaysia’s Manufacturing Landscape

It is strongly stated that all these Manufacturing Company in Malaysia does play a major role in regulating the business and economic sectors of the country. There are several manufacturing companies based in Malaysia each of which comprises machineries, robotics, specialized computers and us the humans that all work in an organized manner to create a certain product.

All these Manufacturing Company in Malaysia mainly uses three ingredients to rule out their Malaysia business strategy or simply to make a finished good. These three different ingredients are components, parts or raw materials. These finished products or goods can either be sold directly to the consumers or to other manufacturing company in Malaysia who will use these products to create another product. The work process ran in most manufacturing company in Malaysia is by an assembly line.

An assembly line is simply a process where a product is assembled in a certain sequence from one particular work station to another. Such companies prefer these working manners all throughout the industry because the finished good can be manufactured and assemble quicker with less manual labor. Some of the manufacturing companies in Malaysia refer the manufacturing process ran in their industry as fabrication.

All these Manufacturing Company in Malaysia usually have to deal with various laws, permits and regulatory facts, if compared to any other business industries, originated within the country.

Top 10 Manufacturing Companies in Malaysia

Here are top-rated Malaysia manufacturers you can rely as sourcing business partner.

1. Intel Malaysia

A global technology company that manufactures microprocessors and semiconductor chips.

2. Proton Holdings Berhad

Proton Holding’s national automobile manufacturer, producing a range of cars and automotive parts.

3. Top Glove Corporation Berhad

The world’s largest manufacturer of gloves, specializing in rubber gloves for medical and industrial use.

4. Panasonic Malaysia

A subsidiary of Panasonic Corporation, involved in the manufacturing of electronics, home appliances, and automotive components.

5. Petronas Chemicals Group Berhad

A chemical manufacturing company that produces petrochemical products such as olefins, fertilizers, and methanol.

6. Nestlé Malaysia Berhad

A leading food and beverage company that manufactures and distributes a wide range of products, including coffee, dairy products, and confectionery.

7. Samsung Electronics

A subsidiary of Samsung Electronics, involved in the manufacturing of consumer electronics, including televisions, mobile devices, and home appliances.

8. Hino Motors Manufacturing Malaysia

A subsidiary of Hino Motors, manufacturing commercial vehicles such as trucks and buses.

9. Coca-Cola Bottlers Malaysia

A beverage manufacturing company producing and distributing a wide range of soft drinks and non-alcoholic beverages.

10. Western Digital Malaysia

A global leader in data storage solutions, manufacturing hard drives and solid-state drives for various applications.

How To Find a Malaysia Manufacturers for a Product Supply

Manufacturers can make your product ideas a reality. Follow these six steps to find the best Malaysia manufacturers for your business.

1. Research Your Options

Finding the right manufacturer for your product is crucial to your success. Manufacturers can play a role in determining your product’s cost, quality, packaging, and shipping. You can use this following tools to help you find manufacturers:

Google

To find manufacturers near your location, do a Google search for “manufacturers near me.” Check out their websites, customer reviews, and product specialties. 

Many manufacturers’ websites are old, sparse on information, and have poor search engine optimization. This means you may have to use a variety of search terms to find what you’re looking for. For example, words such as “wholesale,” “manufacturing,” “supplier,” and “distributor” may be used interchangeably, so you should search for all of them.

Make yourself familiar with Google’s advanced search features to improve the quality of your results.

Referrals

Some of the best leads can come from referrals. Ask your professional networks if they have manufacturer recommendations or if they know someone who might. Look for individuals who’ve found success in an area you’d like to pursue and see if they’re willing to share their contacts. Join Facebook groups and other online ecommerce communities to see if there are helpful reviews.

Even if a manufacturer isn’t the right fit for you, ask them if they can point you in the right direction. Being in the industry means they’ll likely have contacts to refer you to that could be better fits.

Alibaba

Alibaba connects you with manufacturers from China. It’s a popular marketplace to find existing products, but you can also use Alibaba to connect with manufacturers to create custom products. Search for the products you’re looking for and browse through the various manufacturers.

It’s easy to safely buy from Alibaba. The marketplace lets you vet manufacturers upfront to get the best products at a fair price. When researching manufacturers on Alibaba, make sure they have the following qualifications:

• Gold supplier, which means they pay for their Alibaba membership.
• Verified, which means a third-party evaluation services company or Alibaba has visited their manufacturing facility.
• Trade assurance, a free service that protects your orders from payment to delivery. 

You can continue to search by applying filters. You can sort by certifications (such as SA8000, which ensures humane working conditions) to find a manufacturer that aligns with your business values.

You can also make sure your manufacturer is not a trading company. A trading company is a liaison and won’t be able to produce your products.

2. Conduct Outreach and Collect Information

Once you’ve got a few manufacturers on your radar, you’ll want to get quotes. Aim to get a minimum of three quotes to compare options. For local manufacturers, you can also reach out to organize a tour of their facility or a visit to their office.

In addition to pricing information, you’ll want answers to the following questions:

• Can they accommodate custom orders?
  Assess if the manufacturer or equipment manufacturer can create the product you want. Do they have the skills and resources? Do they have automation features?
• What are shipping costs?
  Shipping makes up a massive portion of small business expenses. Learn a manufacturer’s shipping costs to determine how it’ll affect your bottom line.
• What are their minimum order quantities (MOQs)?
  Don’t lead with this question, because it might deter manufacturers from working with you. However, you’ll want to know the minimum amount of items you have to order before they start producing your product. This is often negotiable. 
• What is the cost per unit?
  While you’re negotiating MOQs, you’ll also want to negotiate cost per unit. The larger the order, the lower your cost per unit can be.
• What are their lead times?
  How long will it take to produce and ship items? You don’t want to work with manufacturers who take three months to deliver your products. If a product goes out of stock, you don’t want to leave customers waiting to receive their orders.
• Can they grant you exclusivity?
  If there’s tooling involved (i.e., you buying a tool for them to manufacture your product), make sure they aren’t allowing others to use it. You can also ask for territorial, market, or total exclusivity. Some service providers may even offer private label goods.
• Is the manufacturer sustainable and ethical?
  Find out about the factory conditions, and see how they impact the environment and those who work there.

Negotiating Minimum Order Quantities

If you’re looking for a Malaysia manufacturers for the first time, you’re going to quickly learn about MOQs. It’s not uncommon for a manufacturer to require a commitment to purchase hundreds or even thousands of units for your first order, depending on the product and manufacturer.

MOQs make it difficult when you have limited funds or want to start small and test the market before making larger purchases. MOQs are almost always negotiable.

Before you negotiate, understand why the manufacturers has imposed a minimum. Is it because there’s a lot of work upfront? Is it because they prefer to work with larger buyers? Understanding the reasons for the minimum will help you better understand their position and allow you to negotiate and propose the best counter offer.

Discussing Payment Terms

Many manufacturers will require new businesses to pay for a full order upfront. This is important to know, since inventory is a major cost for ecommerce businesses. You should also ask if they provide payment terms on future orders.

Manufacturers get bombarded with email quote requests all the time from flaky buyers, so it’s not unusual for manufacturers to ignore your request. Manufacturers’ lack of responsiveness is a common complaint from new ecommerce entrepreneurs.

So how do you ensure you’re not ignored? There are a few things you should do when you reach out to manufacturers for the first time:

• Focused emails. Your first email to a manufacturer should be clear and concise. Avoid telling too much about your story and background. The first email should purely assess potential fit at a high level. Focus on what manufacturers care about the most, like the details of what you’re trying to source. 
• Asking for what you need. Requests aren’t always easy for the manufacturers to satisfy. It’s important to ask about pricing for multiple quantities, but avoid asking for too much or too many quotes. Stick to what you absolutely need to know to assess fit between you and the manufacturer.
• Prepare. If you’re unsure about your request, consider giving the manufacturer a call or send a one-question email. For example, you might want to know the manufacturer’s minimum order because if you ask for a quote that’s well below their minimum order, you might not receive a response.

Many good manufacturing manufacturers will be open to negotiating payment terms. One payment strategy you could propose would be to pay for 50% upfront and 50% after you receive the shipment. This holds both parties responsible for the order and doesn’t leave too much risk on either side. 

Communicating with Manufacturers

Chances are you won’t use a manufacturing manager when starting your online business. You’ll have to communicate with manufacturers on your own. You can do this via phone, email, or text. When working with local manufacturers, you can also do in-person meetings.

Look for companies that are responsive and eager to work with you. If someone is slow to respond to emails and send samples, you may not want to trust them with your business.

3. Communicate Your Designs

Once you talk with a potential manufacturer, ask if they can create your design. Some manufacturers have a product development process with prototyping and 3D modeling—but it can get expensive. 

As an alternative, communicate your ideas with them through: 

• Sketches
• Instructions
• Reference photos

If they don’t do design, you can use Fiverr or Upwork to find freelancers to create drawings for you. Look to hire an expert with this field:

• Indstrustial designers
• Computer-aided design (CAD) experts
• Product designers 

Another option is finding a local designer. You can work with them to develop prototypes and custom molds. It could be more affordable than going through a manufacturer. 

4. Order Samples and Compare

Get samples to test before going into production. Once the sample is to your standard, you should date and sign the sample. Save one or two for yourself. These are called your control samples: forensic samples used to assure quality and get consistent consumer products.

For example, you open a package from a manufacturer and find your products’ colors are completely wrong. You can reference the control sample to indicate the products you received are not what was previously agreed upon.

5. Negotiate

Between the time you get a sample and when you place your order, it’s still possible to negotiate terms on payment or MOQ. When negotiating, put yourself in the manufacturer’s shoes. The goal isn’t to exploit your manufacturing partner to get the best price. It’s to work together so both parties profit and are happy. It’s the only way to build a long-term, healthy relationship. 

6. Place Your Order

After completing a quality control check to make sure every product meets your standards, you can place your order and get the production process started.

Simple Way to Find Great Malaysia Manufacturers

AsiaCommerce is ready to help you find the right manufacturer for your company. Our experienced team uses a wide range of qualitative and quantitative research methods, including surveys, focus groups, and interviews, to provide our clients with comprehensive insights and recommendations. We have channels to introduce you to our business partner in the manufacturer. We will support your company to initiate and expand to Indonesia market.If you’re interested in sourcing products or finding great manufacturers in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from initial market research to developing a customized market entry strategy, to ensure your success in Indonesia market.