A joined Research project with the "Vrije Universiteit Amsterdam", under Expats in Indonesia and Malaysia. Researching the problems that Expats under go when moving and living abroad.

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Website:www.solidbasics.com E-mail:Info@solidbasics.com Telephone: 0031 (0)50 210 3695 Fax: 0031 (0)50 210 3501 Address: Neutronstraat 2B
9743 AM Groningen The Netherlands. The Dutch Chambers of commerce: NL-02096460 B-01 BTW: 106155490
Summary:
Research institute:
Faculty of Economics, Vrije Univeriteit Amsterdam
www.vu.nl
Expatriate
Living Like a Pearl in the Orient?
The Question
During our research in Malaysia and Indonesia we have interviewed four types of parties to answer the following
research question:” what are the major challenges and pitfalls regarding expatriates in the Indonesian and
Malaysian?” To get and image as clear as possible we interviewed HRM managers, expatriates, competitors,
expatriate spouses.
Summary
We have seen that HRM departments have different strategies regarding the relocation process. A distinction can
be made between companies that have arranged nothing. These arrangements can be done both internally by the
HRM department or an expat coordinator or externally, by a relocation company such as Solidbasics
International. There are also companies who let their expatriates arrange everything themselves. We can also
make a distinction between multinational corporations (MNC’s) and small and medium enterprises (SME’s).
MNC’s often relocate several expatriates and it is an ongoing process, therefore they have this integrated as a
standardized process. SME’s generally have a smaller number of expatriates that are being relocated and often
lack a certain strategy.
The challenges for an expatriate in Malaysia and Indonesia are mainly the same. Malaysia, especially Kuala
Lumpur, is more developed as expatriate country and considered an attractive country o live in because of factors
such as luxury and the English language which is widely spoken. Malaysia is therefore often called ”expat country
for beginners” and the average time to get used to the new environment is approximately three months, whereas
this is six months for Indonesia due to aspects such as traffic and cleanliness. However, when the expatriate
finally has adapted to the Indonesian culture and lifestyle it is often harder to leave Indonesia at the end of the
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Website:www.solidbasics.com E-mail:Info@solidbasics.com Telephone: 0031 (0)50 210 3695 Fax: 0031 (0)50 210 3501 Address: Neutronstraat 2B
9743 AM Groningen The Netherlands. The Dutch Chambers of commerce: NL-02096460 B-01 BTW: 106155490
assignment than expatriates in Kuala Lumpur have difficulties to leave Malaysia. The expatriate markets in
Malaysia and Indonesia are somewhat different, but at the same time they are comparable, because many factors
for success or failure depend on personality and other non-country-related aspects.
One factor that influences the failure rate is the preparation. Although this sounds logical and should be done by
every expatriate, the assignment abroad is underestimated, especially the private part. Things like housing;
schools, healthcare and most important awareness of the cultural differences are not prepared well. Main factor
for failure is the adaptation of the spouse of the expatriate. On the expatriate side, business culture can be an
important factor for failure or success of the assignment. Furthermore we have seen other challenges like the
culture and language barriers, especially in Indonesia. Surprisingly the management of in-house staff, like a maid
or driver, appeared to be a great challenge for the expatriate family. Before arrival the wealth of having your own
staff is often and idealized image. Initially, many expatriate families however have difficulties to get used to the
infringement on their privacy. Lastly, the repatriation is an important factor to have in mind.
The repatriation phase is a phase where very few companies already focus on. The re-entry of the expatriate and
family to the home country appeared to be often even more difficult than the initial move to the foreign country.
The company in the home country should more profoundly support the expatriate both to the advantage of the
expatriate, family and the company. Approximately two third of the expatriates are leaving the company after the
re-entry which is a major loss of investment for the company. The average expatriate costs the company 1.5
times the usual costs for the employee. Having the expatriate leave within such a short time after the re-entry is a
loss of costs and the additional skills the expatriate developed.
The information about the research: Expatriate, Living Like a Pearl in the Orient? Done by the Vrije Universiteit
Amsterdam is available trough Solidbasics International.
Contact Information:
info@solidbasics.com
tel: 0031-(0)50-2103695
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