Introduction of Malaysia Market
1. Introduction of Malaysia Market
1.1 Malaysia Basic Facts
The Federation of Malaysia comprises of Peninsular Malaysia, and the states of Sabah and Sarawak on the island of Borneo.Situated between 2º and 7º to the North of the Equator line, Peninsular Malaysia is separated from Sabah and Sarawak by the South China Sea. In the northern part of Peninsular Malaysia lies Thailand, and in the south, neighbouring Singapore. Sabah and Sarawak are bounded by Indonesia while Sarawak also shares borders with Brunei.
Area and population
Malaysia comprised total area of 329,758 square km with total population of 27.17 million people.
Malays comprise 57% of the population, while the Chinese, Indian and Bumiputeras and other races make up the rest of the country’s population.
Language and Religions
(Bahasa Melayu)Malay is the national language in use, but English is widely spoken. The ethnic groups also converse in the various languages and dialects. Islam is the official religion of the country, but other religions are allowed and widely practiced.
Malaysia follows the bicameral legislative system, adopting a democratic parliamentary. The head of the country is the King or the Yang Di-Pertuan Agong, a position which is changed every five years among the Malay Sultanates. The head of government is the Prime Minister.
The country experiences tropical weather year-round. Temperatures are from 21ºC (70ºF) to 32ºC (90ºF). Higher elevations are much colder with temperatures between 15°C (59° F) to 25°C (77°F). Annual rainfall varies from 2,000mm to 2,500mm.
Manufacturing constitutes the largest single component of Malaysia’s economy. Tourism and primary commodities such as petroleum, palm oil, natural rubber and timber are major contributors to the economy.
The monetary unit of the country is Ringgit Malaysia and is written as RM. Foreign currencies can be exchanged at banks and money changers.
Most states: Monday- Friday: 9.30 am to 4.30 pm. Saturday & Sunday: Closed (Some banks and its branches are opened Saturdays). Kelantan & Terengganu: Sunday – Wednesday :9.30 am to 4.30 pm. Thursday :9.30 am to 4.00 pm. Friday/Saturday*/Public holiday: Closed.
1.2 Industry in Malaysia
The Ninth Malaysia Plan states the Government’s intention to focus its effort on developing the country’s agricultural sector. In a push to develop this sector as Malaysia’s third machine of economic growth, the Government is providing various forms of support and schemes in encouraging investments.
Biotechnology is the application of biological knowledge to the development of products that can improve various aspects of life such as health, food supply, environment and general well-being.
Examples of biotechnology application in the field of medicine include diagnosis of genetic diseases, and production of medicinal pharmaceutical preparations such as vaccines. Additionally, biotechnology can also be broadly applied in non-medical areas such as production of transgenic crops in the agriculture sector, and DNA fingerprinting for criminal investigation.
The Ninth Malaysian Plan states the Government’s intention to make Malaysia a biotechnology hub. In its quest to be a major biotech player in the region, the government launched the National Biotechnology Policy (NBP) in April 2005. This saw the creation of the Malaysia Biotech Corporation (MBC), a dedicated government agency to develop the industry.
The transformation of the biotechnology sector will be led by the Ministry of Agriculture and Agro-based Industry, the Ministry of International Trade and Industry , the Ministry of Health and the Ministry of Plantation, Industries and Commodities .
The chemical industry, which encompasses sub-sectors such as industrial chemical, petrochemical and pharmaceutical, is an important sector of the economy. The significance of this sector can be attributed to the high demand from the manufacturing industry.
The chemical industry is one of the areas of manufacturing that is vital for the country’s economic growth.
Ninth Malaysian Plan – Chapter 4 , emphasizes the importance of up scaling manufacturing and its related services.
The Government encourages participation in this industry by providing assistance and support to entrepreneurs and investors in all sub-sectors
The Commodities sector has historically been a major generator of economic activity. Despite the nation’s major transition from a largely agriculture-based to manufacturing economy in the early 1980s, commodities remain a major income earner.
Thrust One of the Ninth Malaysian Plan states the Government’s intention to grow the economy through the agricultural and commodities sector.
The Ninth Malaysian Plan – Chapter 3 stresses the importance of strengthening agriculture and agro-based industries for wealth creation.
The transformation of both, the agricultural and commodities sector will be led by the Ministry of Agriculture and Agro-based Industry , the Ministry of Health , the Ministry of Plantation Industries and Commodities , and the Ministry of Rural and Regional Development .
Adapting to changing world demand, the Malaysian commodity sector has also gone through transitions. Malaysia today focuses on oil palm, rubber, timber, tobacco, pepper and cocoa as its main commodities. Growth in these areas are supported by technology advancement.
5) Construction and Engineering
The building and construction industry encompasses housing, commercial, and infrastructure development. This sector comprises various fields including architecture, civil engineering, mechanical engineering, electrical engineering, quantity surveying, land surveying, building contracting, and landscaping, among others.
The Ninth Malaysian Plan – Chapter 18 that emphasizes the importance of improving the infrastructure, utilities and urban transport which is tied-in with the construction and engineering industry in Malaysia.
Infrastructure and utilities development will be undertaken through the coordinated efforts of several ministries and agencies. Road development will be undertaken by the Ministry of Works. Transport-related projects including road safety will be undertaken by the Ministry of Transport. The Ministry of Energy, Water and Communications will spearhead water supply and sewerage services development while the Ministry of Rural and Regional Development will undertake the development of rural roads.
Malaysia’s education sector comprises public and private schools as well as higher education institutions. Operations of all schools and institutions are governed by the Ministry of Higher Education , the Ministry of Education, and its agency, the Department of Private Education.
Thrust Two of the National Mission in the Ninth Malaysian Plan states the Government’s intentions to raise the capacity for knowledge and innovation and to nurture first class education.
The Ninth Malaysian Plan – Chapter 11 that emphasizes the importance of enhancing human development.
The Ninth Malaysian Plan – Chapter 12 that emphasizes the importance of harnessing science, technology and innovation.
Malaysia has many natural resources that can be tapped for the generation of energy. The objectives of the National Energy Policy is to provide the country with sufficient, guaranteed and affordable supply of energy,
The Ninth Malaysian Plan states that the energy sector’s role will be further enhanced as an enabler towards strengthening economic growth. In this regard, fuel sources will be further diversified through greater utilization of renewable energy.
Malaysians, as audiences, are increasingly discerning and appreciative of the arts and entertainment. Due to the growing demand for quality, the entertainment sector has grown into an industry that yields lucrative returns.
This industry consists of a number of sub-industries devoted to entertainment of the masses. Major sectors in the entertainment industry include film and television; music and radio; and entertainment outlets.
A strong and stable financial system is a prerequisite for a progressive, sustainable and balanced economy. There are a number of Government agencies and financial institutions that are instrumental in the development of the Malaysian financial industry.
The National Mission in the Ninth Malaysian Plan states the Government’s focus to create and maintain a vibrant financial services sector.
The Ministry of Finance, Bank Negara Malaysia and the Securities Commission will spearhead the development of the financial sector.
The healthcare sector is rapidly expanding due to the advancement of technology and the emergence of new challenges in the world of medicine. It is a continuous challenge for this sector to provide better service to the public.
Thrust Four of the Ninth Malaysian Plan states the Government’s intentions to improve the standard, quality and sustainability of life. Therefore, healthcare will be a main platform to reach this particular objective.
The Ministry of Health will continue to be the lead agency and the main provider of health care services for the nation.
11) Information and Communication Technology
Thrust One of the Ninth Malaysian Plan identifies the Information and Communications Technology (ICT) sector as one of the areas vital for Malaysia’s economic growth. This sector has become a very important industry due to its rapid growth and its role in stimulating expansion for other industries in Malaysia.
The development of the ICT sector in Bridging the Digital Divide (BDD) will be led by the Ministry of Energy, Water and Communications, in collaboration with the Ministry of Rural and Regional Development and the Ministry of Education.
Malaysia’s manufacturing industry has been charting remarkable growth since the early 1980s when the country witnessed a transition from being a predominantly agricultural economy to one that was industrial-based.
The vast economic transition was undertaken based on the realization that the country needed to be less dependent on imports and instead bank on a technology-based sector to ensure the nation’s economic success.
Thrust One of the Ninth Malaysian Plan states the Government’s intention to focus continually on several areas including manufacturing.
The Ninth Malaysian Plan – Chapter 4, that emphasizes the importance of up scaling manufacturing and its related services.
The Ministry of International Trade and Industry (MITI) will continue to be the lead agency driving the expansion of manufacturing activities. These efforts will be complemented by other key ministries and agencies, including the Ministry of Entrepreneur and Cooperative Development, the Ministry of Science, Technology and Innovation, MIDA, MATRADE and SMIDEC.
Today, the manufacturing industry continues to develop rapidly and has since become an important catalyst to the country’s economic growth.
13) Small and Medium Industries
Small and Medium Industries (SMIs) consist of enterprises or companies that provide manufacturing services with individual annual sales turnover not exceeding RM25 million and individually employing not more than 150 full-time employees.
Thrust One of the Ninth Malaysian Plan states the Government’s intention to develop the economy through small and medium industries.
The Ninth Malaysian Plan – Chapter 4 that emphasizes the importance of up scaling manufacturing and related services.
There are various SMIs in Malaysia that are fully supported by the Government.
Malaysia has some of the most attractive holiday destinations in the world. Local and foreign tourists alike have contributed significantly to the development of tourism as a major contributor to the nation’s economy.
Thrust One of the Ninth Malaysian Plan states the Government’s intention to move the economy up the value chain through focusing on several areas, once of which includes tourism.
The tourism industry in Malaysia is an important foreign exchange earner, contributing to economic growth, attracting investments and providing employment. The focus of the government is to enhance the country’s position as a leading foreign tourist destination, while promoting domestic tourism. Opportunities abound for entrepreneurs, business owners and investors who support the government’s direction.
The Ministry of Tourism will take the lead in developing the industry. Tourism Malaysia , Malaysian Tourism Centre and Virtual Malaysia will, through a collaborative effort, market and promote the country’s diverse tourism products and services locally and abroad.
15) Trade and E-Commerce
Malaysia is among the world’s 20 largest trading countries. Malaysia’s active participation in trade stems from the contribution of various sectors i.e. agriculture, manufacturing, electronic and information technology.
Over the years, Malaysia’s trade has grown from an initial supply of agro, rubber, palm, and timber –based products to one that includes textile, automotive, electronics, information and communications technology, and petrochemical products.
This page provides information for investors and entrepreneurs in the trade sector.
Trade and e-commerce activities are identified as vital for Malaysia’s economic growth in the Ninth Malaysian Plan.
The Ninth Malaysian Plan – Chapter 9 that emphasizes the importance of a thriving distributive trade.
The Ministry of Domestic Trade and Consumer Affairs will continue to spearhead the development of the trade sector.
Malaysia’s vibrant economy and fast-moving lifestyle have resulted in an increase in the demand for transportation. The transportation industry includes the transportation of people and goods.
Thrust Four of the Ninth Malaysian Plan states the Government’s intentions to improve the standard and quality of life. The government undertakes to increase the efficiency and reliability of infrastructure facilities and services to support trade and business activities.
Infrastructure and utilities development will be undertaken through the coordinated efforts of relevant ministries and agencies. Road development will be undertaken by the Ministry of Works while transport-related projects including road safety will be undertaken by the Ministry of Transport.