Free industrial zone exports reach RM106.7 bil in 1H — Miti

KUALA LUMPUR (Aug 5): Malaysia’s Free Industrial Zones (FIZs) recorded exports worth RM106.7 billion in the first half of 2026 (1H 2026), reflecting continued strong growth momentum.

The Ministry of Investment, Trade and Industry (Miti) said exports through FIZs rose 9.3% in 2025 from RM172.3 billion recorded in the previous year.

“In terms of exports, based on data from the Customs Department, export value recorded by FIZs increased 22.7% from RM153.5 billion in 2021 to RM188.3 billion in 2025,” the ministry stated on the Parliament’s website on Tuesday.

The ministry was responding to Senator Rita Sarimah Anak Patrick Insol on whether the contribution of free zones over the past five years to the country’s exports, investments and employment had been satisfactory, and on the government’s measures to enhance industrial value-added activities instead of relying primarily on assembly operations and basic exports.

Miti said the contribution of free zones, particularly FIZs, over the past five years had been highly encouraging and they would continue to serve as a key catalyst for investment growth, exports and the creation of quality employment opportunities in Malaysia.

As an example, the ministry said the Bayan Lepas Free Industrial Zone has played a pivotal role in developing the electrical and electronics (E&E), semiconductor and medical devices industries.

“Between 2021 and 2025, Penang's exports expanded at an average annual rate of 13.5%. Between January and May 2026, the state’s exports surged 63.1% to RM349.35 billion, accounting for 44% of Malaysia’s total exports,” it said.

To date, Malaysia has 48 gazetted free zones regulated under the Free Zones Act 1990 (Act 438), comprising 27 Free Commercial Zones (FCZs) designated for trading activities and 21 Free Industrial Zones (FIZs) dedicated to manufacturing activities.

Meanwhile, Miti said although investment data are not categorised specifically by free zone classification, locations hosting major free zones, including Selangor, Johor, Penang and the Federal Territory of Kuala Lumpur, continue to attract the largest share of investments in the country.

“Between January and March 2026, a total of RM92.8 billion in investments involving 1,249 projects were approved, with the potential to create 50,226 jobs.

“The states recording the highest approved investments were also those with leading free zones, namely Selangor (RM33.5 billion), Johor (RM16.9 billion), the Federal Territory of Kuala Lumpur (RM16.9 billion) and Penang (RM6.2 billion),” it said.

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