Kuala lumpur: 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.
According to BERNAMA News Agency, the Ministry of Investment, Trade and Industry (MITI) reported that exports through FIZs rose 9.3 percent in 2025 from RM172.3 billion recorded in the previous year. The ministry highlighted data from the Customs Department, indicating that the export value recorded by FIZs increased 22.7 percent from RM153.5 billion in 2021 to RM188.3 billion in 2025, as stated on the Parliament's website today.
The ministry's response came following an inquiry by Senator Rita Sarimah Anak Patrick Insol concerning the contribution of free zones to the country's exports, investments, and employment over the past five years. Additionally, the senator sought clarification on government measures to enhance industrial value-added activities beyond assembly operations and basic exports.
MITI affirmed that the contribution of free zones, particularly FIZs, has been highly encouraging, serving as a key catalyst for investment growth, exports, and the creation of quality employment opportunities in Malaysia. Notably, the Bayan Lepas Free Industrial Zone has significantly contributed to the development of the electrical and electronics, semiconductor, and medical devices industries.
The ministry pointed out that between 2021 and 2025, Penang's exports expanded at an average annual rate of 13.5 percent. From January to May 2026, the state's exports surged 63.1 percent to RM349.35 billion, accounting for 44 percent of Malaysia's total exports.
Presently, Malaysia boasts 48 gazetted free zones regulated under the Free Zones Act 1990 (Act 438), comprising 27 Free Commercial Zones designated for trading activities and 21 Free Industrial Zones dedicated to manufacturing activities.
Although investment data are not categorised specifically by free zone classification, MITI noted that 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. From January to 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).