The Business Environment

International corporations are comfortable doing business in Malaysia’s comprehensive and well-developed business infrastructure where English is widely used.  Legal and accounting practices in Malaysia are derived from the British system and would be acceptable to most companies doing international business.

The government’s Malaysia Incorporated approach provides effective channels of consultation between the public and private sectors.  This can be seen in the many business organisations in Malaysia which have regular dialogues with the government – the Malaysian Business council, the Malaysia International Chamber of Commerce and Industry, the Federation of Malaysian Manufacturers and the National Chamber of Commerce and Industry, besides various foreign business associations.  Newcomers to Malaysia will be able to get assistance from these business associations.

A. Banking And Finance

Banking hours (except for the states of Kedah, Kelantan and Trengganu) are from 10 am to 4 pm Monday to Friday, and 9:30 am to 11:30 am on Saturday except for the first Saturday of each month when banks are closed.  In Kedah, Kelantan and Trengganu, banks are closed on Friday and operate from 9:30 am to 11:30 am on Thursday, except for the first Thursday of each month when banks are closed.  All commercial banks are authorised foreign exchange dealers, and licensed moneychangers are found in urban centres, key entry/exit points and shopping complexes.  Foreign currency and travellers’ cheques can also be exchanged at major hotels.

A well-developed financial and banking sector has also enhanced Malaysia’s position as a prime investment location and a dynamic export base in Asia.

Sophisticated financial facilities are available through 37 domestic and foreign commercial banks (with a nation-wide network of 1,340 branches), industrial finance institutions, merchant banks, finance companies and discount houses as well as other financial institutions.  There are also about 37 representative offices of foreign banks in Malaysia.

In 1990, to complement the existing financial system in Kuala Lumpur, an international offshore financial centre (IOFC) was established in the federal territory of Labuan, off the north-west coast of Borneo.  Labuan aims to be a major centre for offshore banking, insurance and trust activities in Asia-Pacific region.

B. The Capital Market

The Kuala Lumpur Stock Exchange (KLSE) has evolved into one of the world’s foremost emerging markets, supported by rapid economic growth, strong company profitability and marked increases in foreign capital inflows.  The US-based International Finance Corporation has rated the KLSE as one of the top five among the world’s emerging markets in terms of market capitalisation.

The Kuala Lumpur Commodity Exchange continues to introduce new measures to increase the volume of trade and liquidity of its existing futures contracts.  It is today the largest commodity futures exchange in the ASEAN region.

C. Investment Opportunities

In industries, Malaysia offers manufacturers competitive edge in various sectors.  These include:

·         Resource-based industries i.e. industries which utilise Malaysia’s abundant resources such as rubber, palm oil, timber, tin, oil and gas, cocoa, silica sand and clay, to manufacture high value-added products, especially those for export markets

·         Electronic components such as chip, capacitors, chip resistors, digital tape/disk mechanisms, micro motors, switches, optical pick-up units, printed circuit boards, magnetic heads, lead frames, connectors and cathode ray tubes

·         Audio-visual products such as audio, TV and video equipment, telephone sets. Computers and computer peripherals, telecommunications equipments, CAD/CAM equipment, robotics and office equipment.

·         Industrial machinery and parts, machine tools and related engineering industries

·         Ancillary and supporting industries supplying parts and components, which provide the important linkages that support the established larger industries

·         Precision products such as medical instruments, musical instruments, photographic and optical goods, watches and clocks

·         Agro-based industries such as the cultivation and processing of fruits, vegetables, livestock and aquatic products.

Manufacturers will find that most of the inputs and services they require are available in Malaysia, while production equipment is increasingly being manufactured within the country.

D. Quality Of Life 

Malaysia offers very comfortable living conditions.  The country’s cultural heritage is truly varied and very open towards foreign cultures, making Malaysia among the most delightful and hospitable places in the world to wok and live in.

For expatriates, Malaysia is at once a home-away-from-home, as well as a fascinating adventure.  Comfortable housing: gracious bungalows and elegant condominiums.  American and British-style international schools, Japanese, Taiwanese and German schools for their children.  Excellent recreational and sports facilities.   Churches, mosques and temples.  Supermarkets, departmental stores and boutiques.  Museums, art galleries, theatres, discos and an overwhelming diversity of restaurants.

The pulse of urban life in Malaysia has an allure of its own – be t in the nation’s bustling capital city of Kuala Lumpur, or the other cities and major towns of Penang, Ipoh, Melaka, Johor Bahru, Kuching and Kota Kinabalu.  A cosmopolitan air of sophistication exists side by side with an exotic atmosphere that is inherently Malaysian.

For those drawn to nature, Malaysia has an almost limitless number of options.  Hill resorts, national parks, island getaways, sandy beaches and warm tropical waters offer adventure to outdoor enthusiasts all the year round.  Malaysia’s rain forests are among the oldest in the world and never cease to delight jungle trackers and nature lovers.