The Malaysian textile and clothing sector encompasses a broad range of activities including polymerisation and man-made fibre production, spinning, texturing, weaving, knitting, printing, dyeing,
finishing and garment making. Exports of textiles and clothing have increased significantly over the years. Between 2003 and 2005 shipments rose by 21% from US$2.24 bn to US$2.71 bn. Malaysia's well developed infrastructure and its favourable labour policies have helped the country to attract foreign investment. However, in 2005 the bulk of funding in the textile and garment sector came from domestic investors. Moreover, the textile and clothing sector accounts for only a small share of investment in the country as a whole. In 2005 a mere 1.2% of total domestic and foreign investment approved by the government was destined for the textile and apparel sector. In preparation for the elimination of quotas at the end of 2004, the government attempted to increase the sector's competitiveness by promoting measures to improve operational efficiency and productivity while placing more emphasis on research, development and quality enhancement. In response, manufacturers have invested in new technology, upgraded old machinery and trained workers in order to improve efficiency and quality and to reduce costs. The next stage in the sector's development is likely to be a focus on the establishment of its own identity by fostering its own brands. This process has already started but will be exceedingly expensive to fulfil as it will involve-among other things-high levels of advertising expenditure and more sophisticated distribution channels. | 
