Is Malaysia Good for Business?
There are many factors to consider before deciding whether Malaysia is good for business or not. Everything depends on things such as government policies, business environment, economic conditions, infrastructure, workforce, and other reasons as such. However, given that Malaysia has a steadily growing economy, diversity in its population, and actively growing foreign investments. It is among the best Asian countries to live and work in.
Many foreign companies also set up online businesses by availing Malay translation services for paperwork and website translations. Given that the country is multilingual, there is a good opportunity for online business rankings through language-based SEO.
Today we will discuss the pros and cons of setting up a business in Malaysia. This detailed analysis will help you make a more informed decision if you are considering Malaysia as a business destination.
Benefits of Setting Up Business in Malaysia
The government of Malaysia wants to attract foreign investments in the country. For that reason, they are consistently trying to create an environment that suits international investors.
Business Registration Ease
There are various policies launched by the government to ensure ease for businesses. The Companies Act of 2016, for instance, makes it cheaper and easier to register your business in Malaysia. You can start your company with one director and one shareholder. If, for instance, you had a slow year with no profits or little activity, you are eligible for exemption from audits. You can pass resolutions with ease, and are not required to hold general meetings.
Trained Work Force
The government understands that to attract more investment in the country, they need a better-skilled workforce. Hence, the government places an emphasis on education and training. Malaysia has many public training institutions, polytechnics, skill development centers, and more. This is being done to ensure current and future demands for skilled laborers are met.
Various Languages Spoken
Malaysia is a diverse country and with that comes diversity in language. The country is home to various languages, Malay or Bahasa Malaysia is their official language. However, English, Tamil, and Mandarin are also commonly spoken in Malaysia. School systems also promote multilingualism and youngsters are open to learning new languages. Moreover, Malay translation services are also affordable to avail.
Ideal Location
Malaysia is a member of ASEAN along with Singapore, Myanmar, Cambodia, Brunei, and Indonesia. Located in the Asia Pacific and with various ports, Malaysia enjoys a great location. The ASEAN countries are easily accessible for Malay businesses, and laws are also favorable for business. Which means that you have a population of nearly 700 million people to cater to. There are a wide variety of seaports, and sea route trading is easier for Malay businessmen.
Infrastructure
When you plan on doing business, especially if it involves logistics, then infrastructure is very important. Malaysia has very well-built road networks, public transportation, utilities, and telecommunications. Moreover, the transport networks are constantly growing. Seaports and sea travel is also highly accessible.
Economic Stability
The Malaysian economy is built on diverse businesses, and this makes it more stable. Looking at recent stats, the economy has enjoyed consistent growth in the past decade. Moreover, the government is always eager to attract foreign investment. The influx of dollars in the country ensures strength in local currency as well. Various economic sectors contribute significantly to the Malay economy, such as the tourism industry, manufacturing, and agriculture.
Challenges of Doing Business in Malaysia
There is no place on Earth that is perfect. While there are many advantages of doing business in Malaysia. There are also some challenges you should know about before making a final decision. Communication gaps can be covered by partnering up with a professional translation company. But there are some issues that need more careful attention.
Bureaucracy
Old habits die hard, and the case is similar for Malaysia’s bureaucracy. Though the government has taken many steps to remove the influence of individuals on national decisions. It can still take a long time to register your business in Malaysia at times. Plus, you may have to cozy up to certain decision-makers to expedite the process.
Corruption
Though this issue is dying down, we can still see the problem of bribery and delay in processing times. While this is a common issue in most countries, it can be difficult to navigate for some.
Skill Worker Shortage (Industry Based)
While the Malaysian government has made strides in improving the talent in the country. The poor immigration laws and mismanagement of resources do lead to a shortage of skilled workers. While this may not be a problem in most industries, it can still be problematic for some. You may need to hire from abroad and get them work visas. Which can again be a problematic or time-consuming process.
Conclusion
Well, there you have it. The good, the bad, and the normal of doing business in Malaysia. Remember, the ease of doing business in Malaysia ultimately comes down to your industry.
