Firstly, in response to the trend of various countries attracting localized development of manufacturing industry in recent years, Malaysia mainly adopts preferential policies of corporate income tax reduction and exemption to attract foreign investment. The central and local governments have their own division of labor. The preferential policies are mainly decided by the central government, and the local governments are mainly responsible for improving supporting policies such as land leveling and water and electricity access.
Secondly, in response to the issue of weakened comparative advantages in the development of domestic manufacturing industry that has been widely discussed in recent years, this article consciously compares the development environment of manufacturing industry between Malaysia and China. Among the enterprises surveyed, when the enterprise reaches its production capacity, the comprehensive cost has significantly decreased compared to the past few years, but is roughly slightly higher than that in China. The influencing factors mainly include three aspects, which are the relative efficiency of employees, the supporting industrial chain, and the business environment.
Thirdly, for some industrial chains, the United States has always used tariff adjustment as leverage to influence the location choices of Chinese companies' overseas layout. Once this region loses its relative advantage in tariffs, companies will be forced to relocate. The balanced form of Chinese enterprises' overseas layout is a matter of concern.
