International Business, Thailand malaysia Country Comparision

1. SHUBHAM AGARWAL(01)
MANSI MAHAJANI(26)
POOJA DHINGRA(37)
INTERNATIONAL BUSINESS –
COUNTRY COMPARISON
THAILAND AND MALAYSIA

2. Country Profile
Thailand
Capital – Bangkok
Major Language –
Thai
Major Religion –
Buddhism
Currency – Baht
Life Expectancy -
71(M), 78(W)
Malaysia
Capital – Kuala
Lumpur
Major Language –
Malay
Major Religion –
Islam
Currency –
Ringgit
Life Expectancy -
73(M), 77(W)

3. Thailand
South-eastern
Asia, bordering
the Andaman
Sea and the
Gulf of
Thailand,
southeast of
Burma
Malaysia
Malaysia
borders Brunei, Ind
onesia and Thailand
by land and the
Philippines, Singapo
re and Vietnam by
sea.
Geographical Location
Thailand & Malaysia
Tropical; rainy, warm,
cloudy.
Climate
(UTC + 7:00) (UTC + 8:00)
Currently, local time in Kuala Lumpur is 1
hour ahead of Bangkok

4. Natural Resources
5673
2742
0
1000
2000
3000
4000
5000
6000
Thailand Malaysia
Coastline (in Km)
513
329
510
328
2.23
1.19
0
200
400
600
800
1000
1200
Thailand Malaysia
Water
Land
Total
Country Size (s.q km)
Thailand
Tin, rubber,
natural gas,
tungsten,
tantalum, timber,
lead, fish,
gypsum, lignite,
fluorite, arable
land.
Malaysia
Tin, petroleum,
timber, copper,
iron ore, natural
gas, bauxite.

5. History
During the late
18th and 19th
centuries
• Colonial Rule of Great Britain
1942-1945
• Colonial rule of Japan
1948
• Federation of Malay was
formed
1963
• Malaysia was formed
14th Century -
1939
• Was known as Siam
1932
• Establishment of a constitutional
monarchy- Thailand
1939-1945
• Formed an alliance with Japan in
world war II
1954
• Became a US treaty ally

6. Government
Type :
Constitutional Monarchy Constitutional Monarchy
Judicial System: Civil Law system with
common law influences
Mixed legal system of English common
law, Islamic law and customary law.
Chief of State:
King PHUMIPHON
Adunyadet, also spelled
BHUMIBOL Adulyadej
King Tuanku ABDUL HALIM
Mu'adzam Shah, he is the final
arbiter on the appointment of the
prime minister
Head of
government
Prime Minister Gen.
PRAYUT Chan-ocha (since
25 August 2014)
Prime Minister Mohamed
NAJIB bin Abdul Najib
Razak
Cabinet Council of Ministers
nominated by the prime
minister, appointed by the
king.
Cabinet appointed by the prime
minister from among members of
Parliament with the consent of the
king
Political and
legal system

7. Intellectual and
property rights
•The central intellectual property and
International trade court is responsible for
criminal & civil cases relating to violations
of trademarks, copyrights, and patent law.
•Thailand has three major laws dealing with
intellectual property:
Patent Act, trademark Act and the
Copyright Act.
•The patent Act adopted the internationally
recognized rules, like those of the Paris
convention, TRIPS, and trade in counterfeit
goods.
•Trademark legislation provides protection
for international brands registered in
Thailand and protects Thai brands
registered abroad.
•The intellectual property corporation of
Malaysia manages and regulates the
relevant laws, while intellectual property
court and national intellectual property
policy to solve the cases.
•Malaysia has three major laws dealing
with intellectual property:
The intellectual property corporation of
Malaysia, patents Act , copyright act.
•Malaysia is a member of the World
intellectual property organization (WIPO)
and Paris convention and also TRIPS.
•In this regard, Malaysia has strong laws
with adequate civil and criminal penalties
and takes a proactive approach to
enforcement.

8. Foreign
Investment
•Thailand actively promotes foreign
investment that contributes to the
development of skills, technology, and
sustainable development.
•The Foreign Business Act is the main law
defining foreign ownership. The law
restricts access to certain businesses such
as transport, retail and wholesale and
services; for reasons of security, cultural
heritage or perceived competitive
disadvantage.
•The Board of investment (BOI) , which
operates under the directives of the Office
of the Prime Minister, is the principal govt.
agency for encouraging investment in the
country.
•The Malaysian govt encourages foreign
investment, by liberalizing services sub-
sectors and allowing foreign equity
participation, and expected to 128 sub-
sectors by end of 2015.
•A national committee for approval of
investments in the service sector has
been established to facilitate
investments.
•Incentives like pioneer status, special
investment capital allowances, tax
reductions, access to govt-sponsored
industrial estates and concessional loans
are also given to the foreign investors.

9. Business
Etiquettes
Relationships:
Most business are owned and controlled by people of Chinese descend, hence are
most comfortable doing business with people they know and respect. New
business relationships, especially with foreigners develop slowly . Establishing a
good personal relationship is the key to a successful business relation.
Initial Contact:
The first time contact with company is best done by formal letter. It is acceptable to
shake hands during meetings, but with a lighter touch and not with women unless
they initiate. Business cards are exchanged and one should use both the hands to
give and receive cards.
Taboos:
Friday is a particularly religious day of the week in Malaysia and business meeting
should not be arranged on Fridays.
Business should not be conducted during Ramzan. Pork and alcohol are also taboos
for Malaysian.

10. Current Economic Situation
2nd Largest Economy in the
ASEAN Bloc
3th Largest Economy in the
ASEAN Bloc
52.70
%
36.80
%
10.50
%
Thailand
Service
Industry
Agriculture
56.10%34.80%
9.10%
Malaysia
Service
Industry
Agriculture
GDP Sectoral Breakup GDP Sectoral Breakup

11. Trade Policy
Similarities
• Both nations are a member of the world trade organization(WTO) and also follow a liberal trade
regime.
• Both the nations fall under the category of the investment-driven economy, i.e. both compete
based on creating a good business environment for the investment , with main objectives as to
increase the local rivalry, opening the market, creating advanced infrastructure.
• Both are a member of 10 nation ASEAN bloc, hence are committed to the ASEAN common
effective preferential tariffs(CEPT), thus all industrial products are subject to import duties of 0% -
5% only.
• Both have signed an agreement with China to establish the China – ASEAN free trade agreement
(CAFTA), under which over 90% of the products traded is tariff- free.
• Both the nations have signed a Comprehensive Double Taxation Agreement (CDTA) with
Hongkong.

12. Top MNEs

13. Top MNEs

14. Malaysia’s Economic Development Journey

15. 64
20
34
64
32
45
100
26
50
36
41
57
0
20
40
60
80
100
120
Power Distance Individualism Masculinity Uncertainty
Avoidance
Long Term
Orientation
Indulgence
Hofstede’s Framework
Thailand Malaysia
Sources: http://geert-hofstede.com/countries.html

16. THAILAND MALAYSIA
POWER DISTANCE HIGH HIGH
INDIVIDUALISM COLLECTIVIST COLLECTIVIST
MASCULINITY FEMININE -
UNCERTAINTY AVOIDANCE HIGH LOW
LONG TERM ORIENTATION LOW LOW
INDULGENCE - HIGH

17. China
($30.9B)
United
States
($25.8B)
Japan
($21.8B)
Malaysia
($12.4B)
Hong Kong
($11.9B)
Integrated
Circuits
($32.8B)
Refined
Petroleum
($29.1B)
Petroleum
Gas
($20.7B)
Palm Oil
($13.3B)
Crude
Petroleum
($10.8B)
Thailand Malaysia
Top
Exports
During the last five years the exports of
Malaysia have increased at an annualized
rate of 4.2%
During the last five years the exports of
Thailand have increased at an
annualized rate of 4.6%
Sources:http://atlas.media.mit.edu/en/

18. Computers
($18.2B)
Delivery
Trucks
($11.1B)
Refined
Petroleum
($10.2B)
Rubber
($8.47B)
Integrated
Circuits
($8.33B)
Singapore
($37B)
China
($33.4B)
Japan
($27.8B)
United
States ($23.
7B)
Indonesia
($12.7B)
Thailand Malaysia
Top Export
Destinations
Sources:http://atlas.media.mit.edu/en/

19. Crude
Petroleum
($34.1B)
Gold ($15B)
Integrated
Circuits
($7.76B)
Vehicle
Parts ($7.62
B)
Petroleum
Gas
($6.32B).
Refined
Petroleum
($22.5B)
Integrated
Circuits ($18.5B)
Crude Petroleum
($6.85B)
Planes,
Helicopters,
and/or Spacecraft
($4.21B)
Refined
Copper ($3.84B)
Thailand Malaysia
Top
Imports
During the last five years the imports of
Malaysia have increased at an annualized
rate of 6.7%
During the last five years the imports of
Thailand have increased at an annualized
rate of 7%
Sources:http://atlas.media.mit.edu/en/

20. Japan ($38.1B) China ($36.7B)
United Arab
Emirates
($15.6B)
United
States ($12.9B)
Malaysia
($12.4B)
China
($35.7B)
Singapore
($25.2B)
Japan
($15.5B)
Thailand
($12.4B)
United States
($12B)
Thailand Malaysia
Top Import
Origins
Sources:http://atlas.media.mit.edu/en/

21. 23
29
4
20
34
12
0
5
10
15
20
25
30
35
40
Exports Rank Economic Complexity Rank Balance of payments
Trade(2013)
Thailand Malaysia
Sources: http://data.worldbank.org/indicator/

22. 5.5194
67.7
373.8
10.993
29.9
326.9
0
50
100
150
200
250
300
350
400
GDP per capita (US $ Thousand)Population (US $ Million)GDP (US $Billion )
Economic Indicators(2014)
Thailand Malaysia
Sources:http://data.worldbank.org/indicator/

23. 224.8
200.2
32.96
6.88
234
209
3.27
67.7
0
50
100
150
200
250
Exports (US $ Billion )Imports (US $ Billion )Exchange rateTrade Balance(US $
Billion)
Chart Title
Thailand Malaysia
Sources: http://data.worldbank.org/indicator/

24. -2
0
2
4
6
2006 2007 2008 2009 2010 2011 2012 2013 2014
Inflation
Thailand Malaysia
Global
Financial
Crisis
Sources: http://data.worldbank.org/indicator/

25. 5.1 5
2.4
-2.3
7.8
0.1
6.5
2.9
0.7
5.6
6.3
4.8
-1.5
7.4
5.2
5.6
4.7
6
-3
-1
1
3
5
7
9
2006 2007 2008 2009 2010 2011 2012 2013 2014
GDP Growth Rate
Thailand Malaysia
Floods
Military
Rule
Global
Financial
Crisis

26. 0
2
4
2006 2007 2008 2009 2010 2011 2012 2013
Unemployment
Thailand Malaysia
Sources: http://data.worldbank.org/indicator/

27. 0.00
5000000000.00
10000000000.00
15000000000.00
20000000000.00
2006 2007 2008 2009 2010 2011 2012 2013 2014
FDI
Thailand MalaysiaForeign direct investment(US$)
Malaysia 11582675744.3(2013)
Thailand 14305004117.9(2013)
12819692074.1(2014)
Floods
Sources: http://data.worldbank.org/indicator/

28. 89
62
0
10
20
30
40
50
60
70
80
90
100
HDI Rank
HDI
Thailand Malaysia
Based on the HDI in 2014
Very high human development 0.890
High human development 0.735
Medium human development 0.614
Low human development 0.493
Thailand: 0.722
Malaysia: 0.773
Source:
http://hdr.undp.org/en/content/human-development-index-hdi-table

29. 49
28
6.8
32
18
4 4.6
18
0
10
20
30
40
50
60
Ease of doing
business(2014)
Day for Registration of
new businesses(2014)
Lending rates in
%(2014)
Global competitiveness
rank(2015-16)
Chart Title
Thailand Malaysia
http://data.worldbank.org/indicator/
http://reports.weforum.org/global-competitiveness-report-2015-2016/economies/
Sources: