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Malaysia
Introduction
●Malaysia is a Southeast Asian country consists of 13 states and 3 federal
territories.
●Capital of Malaysia is Kualalampur.
●Has a landmass of 330,802 Sq kilometers.
●Currency of Malaysia is Ringgit
●Population is over 30 million
●Official language is Malay
●Malaysia has a newly Industrialized Market Economy
2
Why to invest in
Malaysia
 Robust Economy
 Significant Natural Resources
 Supportive government
 Educated Workforce
 Developed Infrastructure
3
What is the Risk of
investing in Malaysia
Let’s find out more…
1
“ lack of transparency in rules and
regulations;
Powerful Government;
Organized Crime;
Bribery and Corruption of
government officials ;
& Terrorism Threat
5
Culture of Malaysia
Malay the national language of Malaysia, Arabic, Sanskrit,
Tamil, Persian, Portuguese, Dutch, and some Chinese
dialects.
6
Language
Traditional
Dress
Malay women wear the Baju Kurung
Malay men wear the Baju melayu with
a Songkok on the head
7
Nasi Lemak is the national dish.
Banana leaf, nasi dagang, bakuteh, sang
har noodles, charsiew rice etc.
Cuisine
Hari Raya Aidil Fitri/ Eid al-Fitr
Chinese New Year
Deepavali
Wesak
8
Traditional Festival &
Celebrations
Holidays
Hari Merdeka;
Labor Day;
The King’s Birthday;
Malaysia Day.
The famous sports are
Sepak Takraw and
Badminton
9
Sports
Traditional
Music & Dance
 Nobat and gamelan are the most
traditional orchestra music.
 Joget is the most popular traditional
dance.
 Silat, Chinese dance etc also popular
dance in Malaysia.
10
Economic Integration
Economic Integration is an agreement among countries in a
geographic region to reduce and ultimately remove, tariff and
non tariff barriers to the free flow of goods or services and factors
of production among each others
11
Malaysia is a member of ASEAN. Its goal is to integrate and develop the
economy of the member countries and promote unity among them. As
a member of ASEAN Malaysia have a good relation with all the other
member nations.
Non-ASEAN
12
India
Pakistan
USA
Australia
Bangladesh
Some non ASEAN Members
have better relation than
ASEAN members with
Malaysia
Main Exports of
Malaysia
13
 Plastics
 Animal/ vegetable fat
 Rubber
 Wood
Main Imports of
Malaysia
 Electrical machineries
 Vehicles
 Mineral fuels
 Iron , metal
 Organic Chemicals
Key local companies
AirAsia is a leading low-cost airline service
across ASEAN which has been awarded by
Skytrax as the World’s Best Low Cost
Airline for 2009 to 2016. AirAsia Group
operates scheduled domestic and
international flights to more than 165
destinations spanning 25 countries.
14
Key local companies
Axiata Group is a telecommunications company with extensive
operations in Asia. Axiata’s primary business is in investment holding
and the provision of telecommunication .Axiata has controlling
interests in mobile operators in Malaysia, Indonesia, Sri Lanka,
Bangladesh, Cambodia and recently Nepal with significant strategic
stakes.
PETRONAS is a Malaysian oil and gas company wholly owned by the
Government of Malaysia. PETRONAS is transformed rapidly into a global
company with oil explorations and business joint ventures with
overseas partners. Over the years of effort, it has become a fully-
integrated oil and gas corporation with operations in more than 30
countries worldwide.
15
16
Key local companies
Maybank Malayan Banking is a leading financial service provider in Malaysia
with over 1,750 branches and offices in 17 countries to serve over 18 million
customers. Maybank's network spans across all 10 ASEAN nations as well as
key Asian countries and global financial centers.
Tenaga Nasional Berhad is the only electric utility company in Malaysia and
also the largest publicly-listed power company in Southeast Asia .it's core
activities are in the generation, transmission and distribution of electricity.
Key Resources
Malaysia is rich in renewable, non-renewable natural resources and
tourism resources. Malaysia most valuable mineral resources are:
Non-renewable natural resources:
 Petroleum oil: Malaysia is blessed with massive deposit of oil and
is one of the largest non-opec oil exporters in the world. Malaysia
is 4th largest reserves in asia-pacific. Net income from petroleum
oil is US$5.28 Billion in 2016.
 Natural gas: Malaysia is 3rd natural gas reserve holder in the asia-
pacific. Malaysia hold 83trilion cubic feet of proven natural gas
reserves as of January 2014.
17
Key Resources
Renewable natural resources:
 Palm oil: Malaysia is the largest exporter of palm oil in the world.
Malaysian scientists are developing efficient way of converting palm
oil into ethanol. There are 2,86,000 acres of palm tress.
 Rubber: Malaysia 3rd largest rubber producer in the world. Close to
28million rubber are produced in 2013.
 Timber: a lot of trees-teak, sandalwood, ebony and ironwood are
most vauable timber products in Malaysia. Malaysia ears 17.92% of
the tota export which is come from timber product in 2016.
18
Key Resources
Tourism resources:
Malaysia is ranked 9th in the world for tourist arrivals. In 2017, Malaysia’s
ranks 25th out of 141 countries. Which was the 5th best in asia. In 2016
Malaysia recorded 26,757,392, tourists arrivals which is greater than 4%
greater than 2015. Malaysian economy is depended in tourism resources.
The main destination and attraction of Malaysia is-
 Putrajaya
 Petaling jaya
 Getting highlands
 Leaning tower
 Cameron highlands
19
Key Resources
Beaches and island:
 Labuan
 Langwaki
 Pangkor
 Maria island
 Penang island
 Mabul
 Tiamon island
The have many national parks and nature reserves. And other famous
places for visiting for tourist is Aquria KLCC, A.Famosa resort, Bario etc.
20
Geographic Location
Malaysia
21
Geographical location of Malaysia
Malaysia is located in the southeast of the Asian continent;
therefore this region is often referred to as Southeast Asia.
There are over 28 million inhabitants in the country (January
2012). Malaysia consists out two parts: Peninsular Malaysia,
located between Thailand in the north and Singapore in the
south, and the two provinces Sabah and Sarawak, located on
Borneo.
22
Geographical Advantages
Malaysia has always benefited from its geographical
location. Peninsular Malaysia is one of the most important
shipping lane. Malaysia leveraged its strategic location to
become one of the largest producers and exporters of Tin,
Rubber and Palm oil. Malaysia has been able to transform
its economy from overdependence on raw materials and
agriculture to a relatively high-tech, competitive nation.
23
According to the 2016
Corruption Perceptions Index
reported by Transparency
International Malaysia is the
55 least corrupt Nation out of
176 countries. It also scored
49 points out of 100 on the
2016 Corruption Perceptions
Index. Reaching an all-time
high of 55 Points in 2011 and
a record low of 44 Points in
2007.
24
Corruption
Perception
Index
Corruption Perceptions Index VS FDI
Due to increase in corruption FDI decrease in past few years. (right)
25
From this chart we can see that corruption in Malaysia increased during
the heavy foreign direct investment. (left)
Reason Behind Lower CPI
 Due in large part to a lack of transparency, accountability, and
media freedom.
 Corrupted government as well as with the corrupted officials.
 By competition among agencies for control over business and FDI
has created overlapping of jurisdictions and bureaucratic
procedures and approvals that in turn create opportunities for
corruption.
 Inadequate systems for holding officials accountable for their
actions.
 Lack of rules and regulations.
26
FDI Inflow
Still there is FDI inflow in Malaysia due to
 Strategic location
 Political stability
 Ease of starting business
 Comparative tax rate
 Business friendly
 Wealth of natural resource
 Access to credit
 A flourishing domestic market
 Strong investor protection
 Multi-cultural and multi-lingual population
 Efficient business environment
F
Thank You

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International Business & Malaysia

  • 2. Introduction ●Malaysia is a Southeast Asian country consists of 13 states and 3 federal territories. ●Capital of Malaysia is Kualalampur. ●Has a landmass of 330,802 Sq kilometers. ●Currency of Malaysia is Ringgit ●Population is over 30 million ●Official language is Malay ●Malaysia has a newly Industrialized Market Economy 2
  • 3. Why to invest in Malaysia  Robust Economy  Significant Natural Resources  Supportive government  Educated Workforce  Developed Infrastructure 3
  • 4. What is the Risk of investing in Malaysia Let’s find out more… 1
  • 5. “ lack of transparency in rules and regulations; Powerful Government; Organized Crime; Bribery and Corruption of government officials ; & Terrorism Threat 5
  • 6. Culture of Malaysia Malay the national language of Malaysia, Arabic, Sanskrit, Tamil, Persian, Portuguese, Dutch, and some Chinese dialects. 6 Language
  • 7. Traditional Dress Malay women wear the Baju Kurung Malay men wear the Baju melayu with a Songkok on the head 7
  • 8. Nasi Lemak is the national dish. Banana leaf, nasi dagang, bakuteh, sang har noodles, charsiew rice etc. Cuisine Hari Raya Aidil Fitri/ Eid al-Fitr Chinese New Year Deepavali Wesak 8 Traditional Festival & Celebrations
  • 9. Holidays Hari Merdeka; Labor Day; The King’s Birthday; Malaysia Day. The famous sports are Sepak Takraw and Badminton 9 Sports
  • 10. Traditional Music & Dance  Nobat and gamelan are the most traditional orchestra music.  Joget is the most popular traditional dance.  Silat, Chinese dance etc also popular dance in Malaysia. 10
  • 11. Economic Integration Economic Integration is an agreement among countries in a geographic region to reduce and ultimately remove, tariff and non tariff barriers to the free flow of goods or services and factors of production among each others 11 Malaysia is a member of ASEAN. Its goal is to integrate and develop the economy of the member countries and promote unity among them. As a member of ASEAN Malaysia have a good relation with all the other member nations.
  • 12. Non-ASEAN 12 India Pakistan USA Australia Bangladesh Some non ASEAN Members have better relation than ASEAN members with Malaysia
  • 13. Main Exports of Malaysia 13  Plastics  Animal/ vegetable fat  Rubber  Wood Main Imports of Malaysia  Electrical machineries  Vehicles  Mineral fuels  Iron , metal  Organic Chemicals
  • 14. Key local companies AirAsia is a leading low-cost airline service across ASEAN which has been awarded by Skytrax as the World’s Best Low Cost Airline for 2009 to 2016. AirAsia Group operates scheduled domestic and international flights to more than 165 destinations spanning 25 countries. 14
  • 15. Key local companies Axiata Group is a telecommunications company with extensive operations in Asia. Axiata’s primary business is in investment holding and the provision of telecommunication .Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia and recently Nepal with significant strategic stakes. PETRONAS is a Malaysian oil and gas company wholly owned by the Government of Malaysia. PETRONAS is transformed rapidly into a global company with oil explorations and business joint ventures with overseas partners. Over the years of effort, it has become a fully- integrated oil and gas corporation with operations in more than 30 countries worldwide. 15
  • 16. 16 Key local companies Maybank Malayan Banking is a leading financial service provider in Malaysia with over 1,750 branches and offices in 17 countries to serve over 18 million customers. Maybank's network spans across all 10 ASEAN nations as well as key Asian countries and global financial centers. Tenaga Nasional Berhad is the only electric utility company in Malaysia and also the largest publicly-listed power company in Southeast Asia .it's core activities are in the generation, transmission and distribution of electricity.
  • 17. Key Resources Malaysia is rich in renewable, non-renewable natural resources and tourism resources. Malaysia most valuable mineral resources are: Non-renewable natural resources:  Petroleum oil: Malaysia is blessed with massive deposit of oil and is one of the largest non-opec oil exporters in the world. Malaysia is 4th largest reserves in asia-pacific. Net income from petroleum oil is US$5.28 Billion in 2016.  Natural gas: Malaysia is 3rd natural gas reserve holder in the asia- pacific. Malaysia hold 83trilion cubic feet of proven natural gas reserves as of January 2014. 17
  • 18. Key Resources Renewable natural resources:  Palm oil: Malaysia is the largest exporter of palm oil in the world. Malaysian scientists are developing efficient way of converting palm oil into ethanol. There are 2,86,000 acres of palm tress.  Rubber: Malaysia 3rd largest rubber producer in the world. Close to 28million rubber are produced in 2013.  Timber: a lot of trees-teak, sandalwood, ebony and ironwood are most vauable timber products in Malaysia. Malaysia ears 17.92% of the tota export which is come from timber product in 2016. 18
  • 19. Key Resources Tourism resources: Malaysia is ranked 9th in the world for tourist arrivals. In 2017, Malaysia’s ranks 25th out of 141 countries. Which was the 5th best in asia. In 2016 Malaysia recorded 26,757,392, tourists arrivals which is greater than 4% greater than 2015. Malaysian economy is depended in tourism resources. The main destination and attraction of Malaysia is-  Putrajaya  Petaling jaya  Getting highlands  Leaning tower  Cameron highlands 19
  • 20. Key Resources Beaches and island:  Labuan  Langwaki  Pangkor  Maria island  Penang island  Mabul  Tiamon island The have many national parks and nature reserves. And other famous places for visiting for tourist is Aquria KLCC, A.Famosa resort, Bario etc. 20
  • 22. Geographical location of Malaysia Malaysia is located in the southeast of the Asian continent; therefore this region is often referred to as Southeast Asia. There are over 28 million inhabitants in the country (January 2012). Malaysia consists out two parts: Peninsular Malaysia, located between Thailand in the north and Singapore in the south, and the two provinces Sabah and Sarawak, located on Borneo. 22
  • 23. Geographical Advantages Malaysia has always benefited from its geographical location. Peninsular Malaysia is one of the most important shipping lane. Malaysia leveraged its strategic location to become one of the largest producers and exporters of Tin, Rubber and Palm oil. Malaysia has been able to transform its economy from overdependence on raw materials and agriculture to a relatively high-tech, competitive nation. 23
  • 24. According to the 2016 Corruption Perceptions Index reported by Transparency International Malaysia is the 55 least corrupt Nation out of 176 countries. It also scored 49 points out of 100 on the 2016 Corruption Perceptions Index. Reaching an all-time high of 55 Points in 2011 and a record low of 44 Points in 2007. 24 Corruption Perception Index
  • 25. Corruption Perceptions Index VS FDI Due to increase in corruption FDI decrease in past few years. (right) 25 From this chart we can see that corruption in Malaysia increased during the heavy foreign direct investment. (left)
  • 26. Reason Behind Lower CPI  Due in large part to a lack of transparency, accountability, and media freedom.  Corrupted government as well as with the corrupted officials.  By competition among agencies for control over business and FDI has created overlapping of jurisdictions and bureaucratic procedures and approvals that in turn create opportunities for corruption.  Inadequate systems for holding officials accountable for their actions.  Lack of rules and regulations. 26
  • 27. FDI Inflow Still there is FDI inflow in Malaysia due to  Strategic location  Political stability  Ease of starting business  Comparative tax rate  Business friendly  Wealth of natural resource  Access to credit  A flourishing domestic market  Strong investor protection  Multi-cultural and multi-lingual population  Efficient business environment F