Well-known as a key nation in global trade, Malaysia is the sixth-largest economy in the Association of Southeast Asian Nations (ASEAN) and is among Sweden’s largest trading partners in Southeast Asia.
This report presents the 2025 edition of our Business Climate Survey of Swedish companies
operating in Malaysia. The overall economic outlook is optimistic, and confidence in the market is particularly strong, with 67 per cent of the respondents reporting profitability and 71 per cent expecting industry turnover to increase.
After a 12-year hiatus, negotiations for the Malaysia-European Union Free Trade Agreement (MEUFTA) recently resumed. Meanwhile, as part of efforts to improve the country’s competitiveness, the Malaysian government has adopted policy frameworks that are committed to nurturing high-value and innovation-driven sectors. These and similar developments create opportunities for the unique solutions, products, and expertise of Swedish businesses, which can be leveraged to strengthen their global supply chains, increase investment flows, and boost exports.
The ‘Swedish brand’ remains crucial for the success of companies operating in Malaysia, particularly small-sized companies and those new to the market. Respondents report that Sweden’s brand identity is associated with innovation, equality and sustainability, and many Swedish companies in Malaysia leverage this positive perception in their marketing, product design, or manufacturing strategies.
Malaysia has set ambitious targets to address climate change and promote sustainability, with the notable goal of achieving carbon neutrality by 2050. This unlocks new sustainability opportunities across key industries, such as renewable energy development, energy efficiency, sustainable infrastructure, and more.
Want to read a full overview of the survey results with detailed analysis? Download the report today.
ABOUT THE SURVEY
The Business Climate Survey is a joint initiative by Team Sweden members – who include Business Sweden, the Embassy of Sweden and the Swedish Chamber of Commerce – to capture Swedish companies’ views on the current business climate and future expectations in markets around the world. This year’s Business Climate Survey for Malaysia was conducted with the participation of 45 Swedish companies active in the Malaysian market. The respondents represent a diverse set of companies in size, industry and market experience.
We would like to thank all companies that participated in this Business Climate Survey and shared their views and perspectives on the local market conditions here in Malaysia. Team Sweden is proud to continue fostering strong bilateral relations between Sweden and Malaysia and supporting Swedish companies in fulfilling their potential in Malaysia.
