Malaysia has a very robust economy and a pro-business supportive government that has made it an increasingly attractive investment destination for international investors.
Prime Minister Tun Dr. Mahathir Mohamad said Malaysia is business friendly and welcomes foreign direct investments (FDIs) from all over the world. However, he had a different definition of FDI compared with the previous government. “FDI means bringing in capital and technology and setting up plants in Malaysia and (bringing) employees up to the level of executives, with products being either for the Malaysian market or export.” He said in a recent video conference with The Wall Street Journal CEO Council meeting.
Malaysia has a highly educated workforce and developed infrastructure which has quietly transformed the Asia-Pacific country into an attractive investment destination for international investors around the world.
Malaysia’s strong manufacturing sector is now entering a more technologically advanced phase with automation and innovation as well as modern infrastructure makes it a suitable location to base the “revenue-making” operations.
Malaysia ranked 24th place, out of 190 countries in the World Bank’s Ease of Doing Business Report 2018. Kuala Lumpur has been ranked among the top cities with the best-integrated development in South-East Asia, second only to Singapore. Malaysia ranked 26th in The International Property Rights and 21st largest exporting country.
Malaysia’s USPs to attract FDI
Economic Strength
– Natural resources – oil, gas, tin, timber, palm oil, rubber
– Average GDP growth – 4.5% – 5.0%
-Gross National Savings – 37.95% of GNP
-Debt Service Ratio – 3.8%
-Unemployment Rate – 3.3%
-Inflation (CPI) – 2.0%
-Export of manufactured goods – 74.80% of total exports
Supportive Government Policies
– Pro-business policies
– Responsive government
– Liberal investment policies
– Attractive tax and other incentives
– Liberal exchange control regime
– Intellectual property protection
An Educated Workforce
– Talented, young, educated and productive workforce
– Multilingual workforce speaking of two or more languages, including English
– Comprehensive system of vocational and industrial training, including advanced skills training
– Harmonious industrial relations with minimal trade disputes
Developed Infrastructure
– Network of well-maintained highways and railways
– Well-equipped seaports and airports
– High quality telecommunications network and services
– Fully developed industrial parks, including free industrial zones, technology parks and Multimedia Super Corridor (MSC)
– Advanced MSC Malaysia Cybercities and Cybercentres
Vibrant Business Environment
– Market-oriented economy
– Well-developed financial and banking sector, including the Labuan International Financial Exchange
– Wide use of English, especially in business legal and accounting practice based on the British system
– Large local business community with a long history in international business links
– Large foreign business community in all business sectors with extensive trade links
Quality of Life
– Friendly and hospitable Malaysians
– Safe and comfortable living environment
– Excellent housing, modern amenities, good healthcare, and medical facilities
– Excellent educational institutions including international schools for expatriate children
– World-class recreational and sports facilities
-Excellent shopping with goods from all over the world