Creative Industries Malaysia: A Growing Force in Southeast Asia

Global Development Malaysia at Red Yellow Blue (RYB)

Creative industries in Malaysia are a vibrant and expanding sector, contributing significantly to the nation’s cultural identity and economic development. With a rich heritage and diverse cultural influences, Malaysia has positioned itself as a regional hub for creativity, innovation, and cultural expression.

Economic Contribution

The creative industries are a growing contributor to Malaysia’s economy. In 2022, the cultural and creative sectors were estimated to contribute approximately 2% of Malaysia’s GDP, with potential for further growth as the government continues to invest in digital transformation and cultural initiatives.

Government Support and Policies

Malaysia’s government actively supports the creative industries through various policies and initiatives:

• CENDANA (Cultural Economy Development Agency): Established to develop the arts and culture sector, CENDANA provides funding, training, and platforms for artists and creators.
• FINAS (National Film Development Corporation Malaysia): Supports local filmmakers with grants, incentives, and international promotion.
• MyCreative Ventures: A government investment arm that funds creative businesses, from fashion to digital content, to stimulate industry growth.

Trends and Opportunities

The creative industries in Malaysia are evolving rapidly, with several key trends emerging:

• Digitalization: The shift to digital platforms, accelerated by the pandemic, has opened new opportunities for Malaysian creators in e-commerce, streaming, and online content.
• Islamic Creative Economy: Malaysia is leveraging its position as a leader in the halal economy to develop Islamic-themed creative content, from fashion to films.
• Sustainability: Eco-friendly practices in design, fashion, and art are gaining traction, reflecting global trends toward sustainability.

Challenges

Despite its potential, Malaysia’s creative industries face challenges such as limited funding, lack of infrastructure in rural areas, and the need for greater global exposure. Addressing these issues will be key to sustaining growth and competitiveness.

Malaysia’s creative industries are a testament to the nation’s cultural richness and innovative spirit. With strong government support, a diverse talent pool, and growing global interest, Malaysia is poised to become a major player in the global creative economy, blending tradition with modernity to tell its unique story.

Population: 34,564,810
Capital: Kuala Lumpur
Internet country code: .my

Economy

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB’s Economic Transformation Program is a series of projects and policy measures intended to accelerate the country’s economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy’s dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports – particularly of electronics, oil and gas, and palm oil – remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia’s exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.