Malaysia Business Environment

Topics: Malaysia, Investment, International trade Pages: 7 (1723 words) Published: October 31, 2010
Table of content

1. Executive Summary 2

2. Country profile- population, geography etc. 3

3. Economy 4

4. Political System 5

5. Legal and regulatory environment 6

6. Socio-cultural environment 6

7. Availability of resources 7

8. Concern for Ethics and social Responsibility 7

9. Conclusion and your recommendation 8

10. References 9

Executive Summary
This report indicates that Malaysia is an excellent destination to do business. Malaysia has a favourable demographic structure and geographically advantages. Meanwhile, the economy condition is stable at the moment. Malaysia government are welcoming foreign investment in Malaysia and establish legal requirement to guide and protect foreign investment. However, there are some concerns must take into consideration. Such as, Malaysia is a multicultural nation with complex religious, western company should consider the culture and social difference in Malaysia. High Technology Company should consider the Malaysia is in short of high skill labour in the labour market. Ethical issue remains in Malaysia.

Country profile
Malaysia located in the heart of Southeast Asia and divided by the South China Sea in to Peninsular Malaysia and East Malaysia. The proportion of Malaysia is 332,965 square kilometres (Malaysia: country profile, 2010). Peninsular Malaysia is boarded by Thailand and Singapore. The central region of Peninsular Malaysia is mountain range, and coastal plain are located on both side of the mountain range. On the west side of Peninsular Malaysia is boarded by Strait of Malacca, the world’s oldest and busiest shipping strait, which not only promoted the economic development of Malaysia, but also keep Malaysia in a very advantageous strategic position. East Malaysia is boarded by Brunei and Indonesia and consists of two states, Sabah and Sarawak. It covers with many rivers and rainforest. Malaysia is in the tropical climate zone and is hot and humid throughout the year

According to department of statistics Malaysia, the population in Malaysia is 28.25 million in 2010, increasing at 1.8% per annual. Malaysia is a cultural and ethnic diversified country. The four main ethnicity are Malay, Chinese, Bumiputera and Indian, Malays is the largest group which make up 51.1% of the population, Chinese represent 23.1% of the population, Bumiputera and Indian represent 12.2% and 7.0% of total population respectively.( future demographic: Malaysia, 2010). [pic]

Souce: department of statistics malaysia
Malaysia population age structure remains favorable today. In fact that, the falling birth rate and rising life expectancy will cause the population aging steadily (EIU ViewsWire, 2005). However, according to the department of statistics Malaysia, the 15-64 working age group represent 68.1% of total population in 2010 and older group (65+) remains at a low level. The official language of Malaysia is Malay and English. As a multicultural nation, Chinese Mandarin, Cantonese, Hakka, Hokkein and Indian are using cross the nation.

From 2004 to 2008, Malaysia GDP keeps a healthy average 6% growth rate. However, with a global economic recession in 2009, Malaysia had a negative 1.7 growth rate. But according to Euromonitor’ s forecast a real GDP of 5.7% is expected in 2010. The exchange rate is stable during the 2004-2009 period. In history, after the Asian economic crisis, the Malaysia government fixed it exchange rate at MYR 3.8 per U.S.D and implement a comprehensive capital control. However, the restrictions are narrowing and...
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