Malaysian manufacturing firms need New Product Development (NPD) methods as tools for boosting their ability to survive. The purpose of this study is to investigate NPD practices in Malaysia, especially practices for outsourcing NPD and organizing NPD. The objectives were achieved by using a mail survey addressing companies in the automotive, chemical, and electrical industries. The results of the survey indicate that the NPD practices used in Malaysian firms focus more on production cost and manufacturability, whereas the need for increased knowledge receives lower priority. The results also reveal a major difference in practice between locally owned firms and subsidiaries of multinational companies.