Country Risk Analysis for Malaysia

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To establish a business in another country, you need to analyse different aspects of the country such as culture, economy, politics, demographic data, and financial. All this is to be able to learn more about the country and to find out if it is risky or safe enough.

During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British ruled territories on the Malay Peninsula formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore and the East Malaysian states of Sabah and Sarawak on the northern coast of Borneo joined the Federation. In the first several years of the country's history, many things happened such as the Indonesian efforts to control Malaysia, Philippine's claim to Sabah, and Singapore's secession from the Federation in 1965.

During the 22 year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials, to expansion in manufacturing, services, and tourism. Since its independence, Malaysia has known a strong and fast economic growth compared to some other countries in the area. Malaysia has 2 main regions separated by the South China Sea. This Peninsula has a central position in the trades between Asia and the Middle East.

Malaysia has come a long way since gaining independence in 1957: from living standards and access to education and health care to sanitation, infrastructure, and economic diversification, significant strides have been achieved toward an advanced economy status in a relatively short time.


Malaysia is well known as a country that has achieved industrialization at a faster pace than its neighbors in South East Asia. Although blessed with rich natural resources and primary products, its...
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