Malaysia

Overview

Malaysia’s economy is growing steadily. The United States is Malaysia’s second largest importer. Malaysia has a population of approximately 22.2 million people with more than 36% who are at least 15 years old. These fairly young adults are likely to be engaged in future businesses. Malaysia also has a high demand in new technology making new technological developments attractive.

Opportunities

Electronic products
Semiconductors
Software
New technological developments
Telecommunications
Metal products
Transport equipment
Machinery
Textiles
Apparels
Food
Live animals
Chemicals
Health services
Retail outlets

Marketing Tips

Be sure to conduct a market survey before starting a new business.
Regular visits by the importing party are important to establish strong relationships.
A local agent or joint venture partnership is required when selling to the government.
Direct involvement by the importing party, especially top management, is recommended for large contracts.
Establishing a local office is the key to a business’s success.

Business Culture

Honesty, openness, and reliability are good traits to have when negotiating deals.
Most businesses operate 7 hours a day Monday – Thursday, 6 hours on Fridays, and half a day on Saturday mornings.
Majority of Malaysia’s population are Muslims and they don’t like alcohol served during business meetings.
Malaysian’s only do business with people they know and like, so a strong relationship is important.
The negotiation process in Malaysia is slower, so you will need to be patient.
Malaysians prefer businesses that show signs of long-term commitment.

Dos

Be sure to include your education, professional qualifications, and business title in your business card.
Always accept other’s business cards with two hands.
Be sure to remain calm under any circumstances.
Handshakes are usually 10-12 seconds and you must use both hands.
Only shake a Malaysian woman’s hand if she volunteers first, otherwise a nod and smile will work.
Ask to be excused followed by a small bow.

Don’ts

Do not write on other people’s business cards.
On receiving business cards, don’t immediately put them away; take a second to look at them instead.
Do not smoke or wear sunglasses when talking to elders.
Do not show anger (this means you have no control and you gain no respect or trust).

Legal System

Malaysia’s legal system is based on the British Common Laws. This makes it easier for U.S companies to establish a business because they are more familiar with the British Common Laws than any other legal system.