Selamat Datang Malaysia! A tropical

paradise endowed with breathtaking natural beauty,

exotic cultures and friendly people. A destination that

offers so much to see, do and experience.

Malaysia has a rich history

dating back to the 13th century. It

was founded in the 13th century by a

Sumatran prince.

In 1819 British administration

established a trading post. The

British administration in Malaya

lasted 138 years.

Malaysia got its

independence in 1957.

Beginning: Malaysia was formed in 1963. The Federation of

Malaysia comprises Peninsular Malaysia and the states of Sabah

and Sarawak on the island of Borneo. In the north of Peninsula

Malaysia is Thailand while its southern neighbor is Singapore.

Sabah and Sarawak are bounded by Indonesia while Sarawak also

shares a border with Brunei.

Ethnic Groups: 59% Malay and other indigenous, 32% Chinese and

9% Indian.

Languages: Malay (official), English, Chinese dialects, Mandarin,

Hakka dialects, Cantonese, Tamil and numerous tribal languages.

Malaysia is a modern country where English is widely spoken.

Religion: Islam is the official religion but all other religions are

practiced freely. Muslim (primarily Malays), Buddhism (Chinese),

Hindu (Indian), Christianity.

Goverment: Parliamentary democracy with a bicameral legislative

system. The Head of State is the Yang Di-Pertuan Agong and the

Head of Government is the Prime Minister.

Population 2007 2008 2009

Population (In Million) 27.17 27.73 28.31

Today, Malaysia has one of the best airports, highways and

telecommunication systems in Asia.

The literacy rate is above 90% and poverty level is negligible.

With a highly educated workforce and modern infrastructure,

it has and can attract large foreign investment in the

manufacturing and technological sections.

People & Culture:

Malaysia has a combined population of over 26 million people. The multi-

cultural and multi-racial population consists of Malays, Chinese, Indians

and numerous natives. It is common to see temples, mosques and

churches located in close proximity.

Some common customs, courtesies and

practices are: Handshakes generally suffice when greeting someone. Muslim ladies

may

greet with a nod of her head and smile.

The right hand is always used when giving and receiving objects.

Pointing is normally done using the thumb as using the forefinger is considered rude.

Traditional greeting of "salam" resembles a handshake

Shoes must be removed when entering a Mosque or an Indian temple. It is also customary to remove one’s shoes when entering a Malaysian home.

Balance Of Payment

Economic Profile & Analysis

GDP

Interest Rate

Inflation Rate

Stock Market Index

Political and legal analysis

• Government type Federal parliamentary democracy with a constitutional monarch.

• Subdivisions

• The Malaysian legal system

Political Conditions

• Political movements in Malaysia were organized along regional and ethnic groups

The Election Process: General elections, which must be called every five years, have been held since 1957.

Political Stability: Malaysia travel is safe and tourists will not feel in anyway threatened. Malaysians are generally friendly.

• Malaysia - Judicial system: The legal system is founded on British common law. Religious courts decide questions of Islamic law and custom. The Federal Court, the highest court in Malaysia

• Malaysian law: The Malaysian legal system is based on English common law. The Federal Court of Malaysia is the highest judicial authority and the final court of appeal in Malaysia.

Trade marks and patent

• Patent: Malaysia provides adequate protection in the

field of industrial property for local and foreign investors.

Patent protection in Malaysia is governed by the Patents

Act 1983 and the Patents Regulations 1986.

• Trade mark: Trade mark protection in Malaysia is

governed by the Trade Marks Act 1976 and the Trade

Marks Regulations 1997. The Act modeled along the Acts

of some of the industrialized countries provides effective

and adequate protection for registered trade marks in

Malaysia.

Publicly Owned Companies

• Bursa Malaysia – Market Capitalization MYR700 billion (US$189 billion).

• 1204 Publicly Traded Companies

Major Industries• Peninsular Malaysia

- rubber and palm oil processing and manufacturing, light manufacturing industry, electronics, tin mining and smelting, logging and processing timber

• Sabah - Palm oil farming, tourism, petroleum production, and logging.

• Sarawak-agriculture processing, petroleum production and refining, logging

Agriculture in Malaysia

• Palm Oil• Natural Rubber• Cocoa• Pepper• Pineapple • Tobacco

Manufacturing in Malaysia

• Refined Petroleum Products

• Electronic Valves, Tubes, and other Electronic Components

• Processing and preservation of meat, fish, fruits,

• Vegetables, oils and fats• Office, Accounting and

Computing Machineries• Basic Chemicals

Tourism• 23.65 million tourists in 2009!!

• Total Revenue- RM 52 Billion (USD 15.3 Billion)

Natural Resources

Petroleum

Tin

Forestry

Tax Rates

• Income Tax Rate(NRI) 27%

• Corporate Tax Rate 25%

• Sales Tax / VAT Rate 5%

• Sales Tax 5 - 10%

• Service Tax 5%.

Major Export(RM Million)

Jan-Dec January

2009p 2009p 2010

Natural Rubber 4,460 293 621

Palm Oil & Palm Oil-Based Products 50,728 3,755 5,056

Crude Petroleum 25,360 1,806 2,447

Petroleum Products 19,400 959 1,581

Liqufied Natural Gas 31,195 4,181 3,400

Timber & Timber Based Products [5] 19,411 1,377 1,706

Electrical & Electronic Products [5] 227,778 13,733 21,372

Articles of Apparel & Clothing Accessories [5] 11,003 978 1,007

Other Manufactured Goods and Articles [5] 75,958   5,098 7,302

PEST Analysis

• Political Factors– Parliamentary form of government with

an elected constitutional monarchy.– Lesser restriction on immigration– A fairly new country formed in 1957

• Economic Factors– Regional economic giant– High Government spending– Very low inflation and unemployment rate– Survived the recent economic crisis well

• Socio-Cultural Factors–Mixture of Chinese, Indians and

Malays–High literacy rates– Variety of religions with a Muslim

majority

• Technological– Good National and International

lines– A variety of TV and radio stations– ISPs and good airports

Doing Business in Malaysia

World Bank rates Malaysia in terms of:• Ease of doing business – 23rd

• Getting Credit – NO. 1

• Protecting Investors – 4th

• Paying Taxes – 24th

• Trading Across Borders – 35th

Why Malaysia?

• Asian economic powerhouse• Easy access to funding• Investment well protected • Low barriers to trade on most

products• Lower cultural barrier due to

same majority religion• Availability of both cheaper and

yet more skilled labor force

THANK YOU