Malaysian clothing imports surged by 425 per cent in the seven years to 2017. Further import growth is likely as a result of increases in clothing sales in the domestic market -- in line with rising personal disposable incomes--as the government moves towards its goal of achieving high income status by 2020.

Another factor which is likely to contribute to growth in clothing industry is the age profile of the population which is young. The young tend to be much more fashion conscious than their elders and spend more money on clothing. One of the reasons for the surge in imports in recent years is the fact that clothing production has been rising at a much slower pace. This reflects a number of factors, including rising production costs, a general lack of skilled personnel, a high dependency on imported raw materials and, not least, competition from lower cost suppliers--especially those based in low cost producing countries in Asia. Exports have also been growing at a slower pace.

Further significant rise in clothing imports would provide opportunities for several of Malaysia’s key supplying countries. Among these are Cambodia, Indonesia, Thailand and Vietnam, which benefit from free trade with Malaysia through membership of the Association of Southeast Asian Nations (Asean).