Malaysia & Singapore rank as each other's 2nd biggest garment markets

Malaysia and Singapore share a strong trade partnership, especially in the textiles and garment industry. Singapore is the second-largest importer of Malaysian garments, while Malaysia is equally important as the second-largest market for Singaporean garment exports. In the first three quarters of 2023, Malaysia exported garments valued at $123.645 million to Singapore. Concurrently, Singapore exported garments worth $122.293 million to Malaysia. This trade data underscores the reciprocal dependence of both nations on each other for their garment and textile supplies. 

Both countries have agreed to jointly develop a Special Economic Zone (SEZ) in Johor, a southern state of Malaysia, with the aim of attracting investments and facilitating the free movement of goods and people. Malaysia's economy minister, Rafizi Ramli, and Singapore's trade and industry minister Gan Kim Yong recently signed a deal at a ceremony in Johor. This event took place in the presence of Malaysian Prime Minister Anwar Ibrahim and his Singaporean counterpart, Lee Hsien Loong. 

Malaysia's apparel exports reached $931.851 million from January to September 2023. Of this, exports to Singapore accounted for $123.645 million, representing 13.27 per cent of the total. Singapore was the second-largest market for Malaysian apparel exports, following the United States. The value of shipments to Singapore showed a significant increase of 24.06 per cent, rising from $99.667 million in the same period of 2022. The total trade between Malaysia and Singapore amounted to $141.590 million in the year 2022, as reported by Fibre2Fashion's market analysis tool TexPro. 

Similarly, Singapore's apparel exports totalled $919.427 million from January to September 2023, with exports to Malaysia amounting to $122.293 million. Malaysia ranked as the second-largest market for Singaporean apparel after Indonesia, accounting for 13.30 per cent of Singapore's total apparel exports. In 2022, Singapore's apparel shipments to Malaysia were valued at $166.424 million, marking a 22.17 per cent increase from the previous year, as per TexPro. 

Both countries enjoy a robust bilateral trade in fabric and other textile products. However, the overall value of this trade remains relatively modest. 

ALCHEMPro News Desk (KUL)