Guide to doing business with Malaysia

Guide to doing business with Malaysia 

For centuries, Malaysia has been a hub of trade and business activities. In the early years, exporters in Malaysia used to trade porcelain and spices with the Europeans. Today, Malaysia boasts of healthy business relations with virtually every country in the world.

New enterprises will find it relatively easy to do business with Malaysia, with the the country’s government proactively promoting and encouraging foreign investment. Some of the business sectors which companies and new businesses will potentially find profitable to invest in include:

• Manufacturing enterprises including electronics and machinery. (Manufactured goods form a driving force of the Malaysian economy)
• Tin, rubber, palm oil, tropical hardwoods, cocoa and pepper (all of which are worth being exported)
• Natural gas and petroleum (reserves in Malaysia making the country a good market for petrochemical investors).

Before conducting any business activity in Malaysia, it is advisable to establish a relationship with a local counterpart. There are import duties that are levied on CIF and cost insurance as well as a sales tax, which is charged based on the CIF and the import duty. These duties range from 0% to 30%. Luxury goods like processed food, high-value food products and alcohol have higher import duties.

Malaysia’s capital city, Kuala Lumpur, is the country’s business and financial centre; in addition to being the most industrialized and fastest growing region in terms of economic growth for the country. If you are setting up a local office in Malaysia, it is best to establish it in the city’s capital. More about Freight to Malaysia...

Learn also about doing business in Egypt.

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