Doing business in Malaysia

In many ways, Malaysia is an ideal platform for expansion in Asia. The country has developed into a prime location for investment, offshore production and service-based operations. Entrepreneurs who have already spread their wings here are excited about the unique combination of factors that makes Malaysia so attractive. Multinational high-tech companies have incorporated the country in their Global Value Chain. An average ROI of 17 percent brings Malaysia at number 11 of the 20 economies with the highest profitability in foreign direct investment.
Economic resilience
The strategic location of Malaysia, its good infrastructure, skilled labour, political stability and relatively low cost structure all contribute to a competitive investment climate. Malaysia itself is an important and growing market for high-end products. The huge potential is stimulated by the continued commitment of the government to develop the country into an entrepreneurial, innovation-driven and knowledge-based economy.
Supportive government policies
The Malaysian government has been successful conducting pro-business policies for many years. Investors are supported by tax incentives and a well-developed financial sector. Problems are usually quickly resolved, both by the federal and state governments and the local authorities. The liberal policies are sustained in good and bad times, stimulate investment and have led to economic successes.
Well-educated workforce
The labour force is multilingual and speaks English fluently. Employees are generally well-trained and productive, open to new ideas and always willing to improve. The Malaysian workforce compares with the best in the world and comprises highly qualified, professional and dedicated staff.
Developed infrastructure
Over the past few decades, Malaysia's infrastructure has developed into an efficient logistics network. Well-maintained sea and air connections give multinational companies the ability to produce in Malaysia and deliver in other parts of the world. Adequate road and rail links provide easy access to other parts of Southeast Asia.
Dynamic business environment
The attractive tax environment allows many companies to deliver competitively priced high-quality products. The supply chain of supporting industries employs world-class manufacturing standards and thus contributes to the dynamic business environment that made Malaysia into a favourite Asian investment destination.
Quality of life
In addition to the business benefits, Malaysia has much more to offer. Visitors and expats praise the quality of life in the country, the natural and cultural diversity. Malaysia and Singapore, in all their ethnic and religious diversity, are a beacon of stability in the region. Malaysians are often described as friendly and hospitable, modest and helpful.

Interesting facts:
  • Malaysia is currently the 24th trading nation in the world
  • Foreigners are allowed 100 percent shareholdership in any manufacturing and certain service industries
  • Malaysian law protects investors and intellectual property
  • Multinational companies from over 60 countries have invested in over 6,000 projects in Malaysia
  • Dutch direct investment in Malaysia between 2007 and 2013 came to over 2.5 billion euros
  • Goods produced in Malaysia constitute nearly 85 percent of total exports
  • According to AT Kearney's FDI Confidence Index, Malaysia is among the 10 most attractive countries for foreign investors
  • The IMD World Competitiveness Yearbook 2012 puts Malaysia at number 14 on the list of most competitive economies
  • The World Bank's Doing Business Report 2014 puts Malaysia at number 6 when it comes to ease of doing business