Why Malaysia is the Best Manufacturing Alternative to China: Avoid Tariffs with SMT, Injection Molding and Box-build Assembly

In today’s global manufacturing landscape, businesses are actively seeking alternatives to traditional manufacturing hubs to mitigate tariff impacts and diversify supply chains.

Malaysia has emerged as a compelling destination, offering robust capabilities in electronics manufacturing, Electronics Manufacturing Services (EMS), Surface Mount Technology (SMT), injection molding, and box-build assembly contract manufacturing.

Companies like Vohrum are leading the charge, positioning Malaysia as a strategic alternative to China, Mexico, and Canada.

Malaysia’s Manufacturing Prowess

Malaysia’s industrial zones, such as the Bayan Lepas Free Industrial Zone in Penang, have earned the moniker “Silicon Valley of the East” due to their concentration of high-tech firms. Established in 1972, this zone hosts over 300 multinational corporations, including industry giants like AMD, Bosch, HP Inc., Intel, Motorola, Osram, and Renesas.

The state’s manufacturing sector contributed nearly 47% of Penang’s GDP as of 2023, with integrated circuitry accounting for more than 44% of total exports. This robust ecosystem underscores Malaysia’s capability to support complex manufacturing needs.

Vohrum: Leading the Charge

Amid this thriving environment, Vohrum has established itself as a leader in electronics manufacturing, specializing in SMT, injection molding and box-build assembly. Further to that, companies with sheet metal fabrication, metal stamping, wire-harness, aluminium die-casting and rubber components, are all within close proximity and partnerships with Vohrum.

By leveraging Malaysia’s strategic advantages, Vohrum offers clients a competitive edge in quality, efficiency, and cost-effectiveness.

Navigating Tariffs with HS Code Expertise

Understanding and utilizing Harmonized System (HS) Codes is crucial for managing tariffs effectively. These standardized codes classify traded products and determine applicable duties. Malaysia’s adherence to international trade agreements and its strategic use of HS Codes enable businesses to optimize tariff obligations.

Vohrum’s expertise in this area ensures that clients benefit from favorable trade terms, enhancing profitability and market competitiveness.

A Strategic Alternative to Traditional Manufacturing Hubs without high tariffs

Malaysia’s stable socio-economic environment and neutral stance in global trade tensions make it an attractive alternative.

Furthermore, Malaysia’s commitment to becoming a semiconductor manufacturing hub is evident, with significant investments from global firms like Intel and Infineon. This positions the country to meet the growing demands of industries reliant on advanced electronics manufacturing.

Contact us today to discuss how we can help you manufacture your products!