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Malaysia is a country on the move, from a country dependent on agriculture and primary commodities, Malaysia has today become an export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries.

Malaysia, strategically located in the heart of South East Asia, offers a cost-competitive location for investors intending to set up offshore operations for the manufacture of advanced technological products for regional and international markets.  Supported by a market-oriented economy and pro-business Government policies, Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. Malaysia’s key strengths include well-developed infrastructure and productive workforce. A politically stable country with a well-developed legal system, Malaysia also provides attractive incentives for investors.

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Government policies that maintain a business environment with opportunities for growth and profits have made Malaysia an attractive manufacturing and export base in the region. The private sector in Malaysia has become partners with the public sector in achieving the nation’s development objectives.  A major factor that has attracted investors to Malaysia is the government’s commitment to maintain a business environment that provides companies with the opportunities for growth and profits. This commitment is seen in the government’s constant efforts to obtain feedback from the business community through channels of consultation such as regular government-private sector dialogues. These allow the various business communities to air their views and to contribute towards the formulation of government policies which concern them.


The Guide to Malaysia

The Guide to Malaysia by MDBC member Leisure Guide Publishing.


Since June 2003, foreign investors can hold 100% of the equity in all investments in new projects, as well as investments in expansion/diversification projects by existing companies irrespective of the level of exports and without excluding any product or activity.


Foreign companies in the manufacturing sector are allowed to employ expatriates where certain skills not available in Malaysia. A company with foreign paid-up capital of US$2 million and above will be allowed up to 10 expatriate posts, including five key posts, that is, posts that are permanently filled by foreigners.


Education is a growing industry where Malaysia is gaining acceptance as a reputable study destination in the region. The education sector offers a variety of higher educational programmes as well as professional and specialised skill courses that are competitively priced and of excellent quality. Underlying this is the current trend of setting up branch campuses in Malaysia by reputable universities from the UK and Australia. Furthermore, various universities from the UK, USA, Canada, Australia, France, Germany and New Zealand are offering twinning, franchised and external degree programmes in partnership with Malaysian educational institutions.


Technological advancement has become an integral part of Malaysia’s growth as an industrialised nation. With the help of technology, Malaysia is steadfast in providing for the modern day requirements of investor companies based in the country. Malaysia is one of the most technologically developed countries amongst industrialising nations in the ASEAN region. The nation’s persistent drive to engage modern technologies proves to be a great advantage to manufacturers in Malaysia.


Infrastructure in Malaysia is designed to serve the business community; it is one of the best in Asia. Telecommunications network served by digital and fibre optic technology, five international airports (all with air-cargo facilities), well-maintained highways and seven international seaports make Malaysia an ideal springboard to the Asia-Pacific market.  Industries in Malaysia are predominantly located in over 500 industrial estates and Free Zones developed throughout the country. These zones are categorised as export processing zones, which cater to the requirements of export-oriented industries. There are also specialised parks that have been developed to cater to the needs of specific industries.


Malaysia offers investors a wide spectrum of investment opportunities. The technologically-inclined economy of Malaysia is proven through the country’s involvement in advanced electronics manufacturing, R&D, biotechnology, photonics, logistics, design, innovation and a highly automated manufacturing sector, to name a few. The Government’s objective is also to make Malaysia a hub for other value chain activities, such as R&D, design and development (D&D), procurement, logistics, distribution and marketing, business support services and shared services.  The conducive business environment in Malaysia has made the country one of the world’s top investment destinations for offshore manufacturing operations. Malaysia has to date attracted more than 5,000 foreign companies from more than 40 countries to establish their operations in the country. Many of them have also expanded and diversified their operations in the country, reflecting their confidence in Malaysia as a site for their business ventures.


Industrial relations in the country are harmonious with minimal trade disputes that result in strikes. Malaysia’s labour laws safeguard the interests and spell out the rights and responsibilities of employers and employees, thus providing a legal framework for the orderly conduct of industrial relations in the country.


PEMUDAH:  PEMUDAH is a public private sector initiative which aims to simplify business operations in Malaysia by improving government services.
For more information, please visit www.pemudah.gov.my.

TALENTCORP:  Talent Corporation Malaysia was established to drive initiatives towards catalysing talent for the Economic Transformation Programme, as talent is a key enabler for Malaysia to successfully drive this transformation.  To meet the demands of industries involved in the economic transformation, TalentCorp drives initiatives around three supply segments:
a) Optimising Malaysians Talents at home,
b) Connecting with Malaysians abroad to facilitate their return,
c) Facilitating Foreign Talent to work and live in Malaysia on a longer-term basis, through the Residence Pass – Talent.
For more information, please visit www.talentcorp.com.my.

AGENSI INOVASI MALAYSIA: Agensi Inovasi Malaysia (AIM, the Malaysian Innovation Agency) is a statutory body with the primary purpose of being the driving force behind Malaysia’s push towards establishing an “innovation economy” and the country’s inspiration of achieving a high-income nation status.  AIM’s goals that provide the foundation for the innovation blueprint are to bring about holistic societal well-being through the cultivation of the innovation eco-system, and to drive the national innovation agenda to generate new-wave wealth.
For more information, please visit www.innovation.my.