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Definition of Contract Manufacturing

Contract manufacturing occurs when a contract manufacturer engages in an agreement with another company to produce specific components or products over a predetermined period. A contract manufacturer may engage in a business deal with a company to manufacture parts, components, or entire products according to the company's specifications. The company uses the manufactured products in its manufacturing process or finalises its products. Contract manufacturers are frequently third-party organisations that specialise in subcontracting or selling their products to other businesses and government agencies. Therefore, if you are searching for a contract manufacturer in Asia, CINCARIA is your top choice. 

Benefits of Contract Manufacturing

  • Cost Reduction

Employing a contract manufacturer allows the company to save money on equipment costs. Fewer resources are required for large-scale equipment acquisition, maintenance, repair, and replacement. Also eliminated is the need to engage labour to manufacture components or products in-house. Occasionally, teams of manufacturers, experts, and researchers with complete salaries and benefits must be recruited, which adds up. Contract manufacturers have staff and apparatus for which the client is not financially responsible. In addition to the contract price, they must also pay any additional fees or costs. CINCARIA is a contract manufacturer with factories in Malaysia and China.

  • Prioritization of Resources

Contract manufacturing enables a company to conserve money and resources, which can then be redirected to other operations. A business could use the conserved capital to enhance its marketing strategies, employ personnel for different departments, and increase its sales efforts. When a contract manufacturer manufactures its products, a company can concentrate on its fundamental values and competencies.

  • Improved Manufacturing Time

When a company employs a contract manufacturer for only certain parts or components to supplement its production line, it can reduce its manufacturing time. This increases speed to market, which improves delivery time and customer service. 

  • Easier Market Entry

With the assistance of contract manufacturing, businesses can consistently produce high-quality goods. This will increase brand awareness and assure market recognition as a trustworthy distributor. Additionally, this can result in improved business relationships with potential collaborators and future contractors.

How to Choose the Right Contract Manufacturer 

You should always search for several essential qualities in a contract manufacturer. Understanding the hazards and benefits of outsourcing can make all the difference for a company's business and reputation.

  • Quality Facilities

When touring the facilities of a contract manufacturer, the location should be well-managed and sanitary. All machines and equipment must be well-maintained, the staff must be knowledgeable and experienced, and the production procedure must be structured and organised.

  • ISO-Certification

Pay attention to contract manufacturers that preserve ISO-certified manufacturing quality standards. The ISO 9001 standard was developed to outline the requirements for a company's quality management system. Generally, certified contractors provide their clients with higher-quality components, products, and materials. Our collaborative partnership with AMC has resulted in the establishment of AMC CINCARIA, an entity accredited with both ISO 9001 and ISO 13485 certifications. This assures you of our commitment to the highest standards of quality and compliance. Rest assured, your concerns are alleviated by our adherence to these internationally recognized benchmarks.

  • Communicative

CINCARIA believes that open communication with our business associates is essential to the success of any business arrangement. Additionally, weekly conference conversations and site visits are encouraged. In addition, we assign a dedicated team to manage your assignment. We are accustomed to communicating with our clients regarding the design, manufacturing process, and properties of the products we are commissioned to produce. We can react and respond rapidly to production demands with minimal friction or delay. 

  • Aware of the Market

Reputable contract manufacturers are aware of market developments and trends. They adapt when necessary in response to market changes. Their presence and participation in the sector generally set their brand in the market, creating a reputation where companies can feel confident investing.

CINCARIA SDN BHD has been a trusted Electronics & Mechanical Contract Manufacturing Services provider since 1997 (with clients worldwide, mainly from Europe, UK, Asia, US & Australia). Therefore, we are your preferred business partner for contract manufacturing. Together in partnership with the AMC Group of companies from Hong Kong and China we have a Joint Venture called AMC CINCARIA SDN. BHD., we are offering our existing and future customers even more as listed below:


  1. International raw material sourcing and procurement with an in-house team located in both Malaysia and China.

  2. Complete product manufacturing capability based upon Chinese Manufacturing Methodology for both our facilities located in Malaysia and China.

  3. Flexibility in manufacturing location based upon the same competitive cost as making it in China.

  4. In-house Research and Development capabilities with a key focus in Power related products and accessories.

Choose us to be your preferred Contract Manufacturer.

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