Malaysia

Malaysia
Slightly larger than New Mexico
Facts about Malaysia
Population : 23,522,482

Religious Make-Up : Malay (Muslims) 58%
Chinese 24%
Indian 8%
Others 10%

Natural Resources : Tin, Petroleum, Timber, Copper,
Iron ore, Natural gas, Bauxite

Unit of Currency : Ringgit Malaysia (RM)
*USD $1 = RM3.80 (pegged to the dollar)
More Facts.....
Malaysia is known for tourism, furniture manufacturing, food & etc…

Our current Prime Minister is Datuk Seri Abdullah Ahmad Badawi.
We have quite a number of political party such as Barisan Nasional(BN),
Democratic Action Party(DAP), Parti Islam Semalaysia(PAS) & etc…

Malaysia received its independence from the British on 31st August 1957.
Before that, it was called Malaya or Malayan Union. In 1511, the Portuguese
stepped foot in Malaysia due to the strategic location for trade between the
East and the West. The main port during the time was Malacca. Later on,
the British came and they were ‘chased’ out by the Japanese during WWII.
After WWII, the British came back and they remained until Malaysia received
its independence. Therefore, the British has a significant influence on Malaysia.
Our legal system is based on the common law inherited from the British.
Food & Fruits in Malaysia
Kuala Lumpur
Places of Interests
islands
Tioman Island
Langkawi Island
Redang Island
Others.....
Sabah & Sarwak
Genting Highland Resort
Cameron Highland
Globalization in Malaysia
Malaysia has one of the world`s most globalized economies, with its trade 2.8 times greater than its gross domestic product.

Malaysia`s export-led economic growth over the past two decades would not have been possible without the open markets resulting from The General Agreement on Tariffs and Trade (GATT) and The World Trade Organization (WTO) and Malaysia`s attractive foreign investment policies.

The GATT was designed to provide an international forum that encouraged free trade between member states by regulating and reducing tariffs on traded goods and by providing a common mechanism for resolving trade disputes.

The WTO is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

Malaysia’s Foreign Equity Policies


Equity Policy Applicable to New Investments, Expansion or Diversification
* Foreign equity participation in manufacturing projects has been governed by the level of exports. Effective from 31 July 1998, the Malaysian government has liberalised the equity policy for the manufacturing sector in respect of new investments, expansion or diversification as follows:
- Foreign investors can now hold 100% equity irrespective of the level of exports.
- This relaxation is applicable for all applications received from 31 July 1998 until 31 December 2000 to set up manufacturing projects with the exception of specific activities and products where Malaysian small and medium scale companies have the capabilities and expertise. These activities and products are paper packaging, plastic packaging (bottles, films, sheets and bags), plastic injection moulding components, metal stamping, metal fabrication and electroplating, wire harness, printing and steel service centers. For these activities and products, the prevailing specific equity guidelines are applicable
- All projects approved under this policy will not be required to restructure their equity after the period.
This policy will be reviewed after 31 December 2000.

Equity Policy Applicable to Existing Companies
* Companies which have been licensed before 31 July 1998 have to comply with the equity condition as stated in the license. However, for existing companies undertaking expansion or diversification, the equity policy as in 1.1 applies to the expansion and diversification projects.
The equity policy as in 1.1 also applies to the following companies:
- Companies previously exempted from the Manufacturing License but whose shareholders` funds have now reached RM 2.5 million or have engaged 75 or more full time employees; and
Existing licensed companies exempted from the equity condition which are required to inform the Ministry of International Trade and Industry (MITI) when their shareholders` funds reach RM 2.5 million.

Relaxation of Export Conditions for Existing Manufacturers
* To encourage greater levels of industrial linkages and domestic sales, the government has relaxed the export conditions imposed on manufacturing companies effective from 1 January 1998 to 31 December 2000.
* With this relaxation, all existing companies with export conditions can now apply to MITI for an approval to sell up to 50% of their output in the domestic market.
* The products which are eligible to be considered for increased domestic sales are as follows:
- All products with nil duty
- All products with import duty which are not available locally or in inadequate local supply
* The above temporary relaxation of export condition will not affect the current equity structure and incentives of existing companies
The relaxation is also extended to new companies approved before 31 July 1998 once they commence operation.

Acquisition, Mergers, and Takeovers
* The acquisition of assets or any interests, mergers or takeovers of companies and businesses are governed by the Foreign Investment Committee (FIC) Guidelines, 1974. The guidelines are as follows:
- against the existing pattern of ownership, the proposed acquisition of assets or any interests, mergers or takeovers should result directly or indirectly in a more balanced Malaysian participants in ownership and control.
- the proposed acquisition of assets or any interests, mergers or takeovers should lead directly or indirectly to net economic benefits in relation to such matters as the extent of Malaysian participation, particularly Bumiputra participation, ownership and management, income distribution, growth, employment, exports, quality, range of products and services, economic diversification, processing and upgrading of local raw materials, training efficiency and research and development.
- The proposed acquisition of assets or any interest, mergers or takeovers of companies and businesses should not have adverse consequences in terms of international policies in such matters as defense, environmental protection or regional development.
- The onus of proving that the proposed acquisition of assets or any interest, mergers or takeovers of companies and businesses is not against the objectives of the New Economic Policy is on the acquiring parties concerned.
* The above guidelines will be applied to the following:
- Any proposed acquisition by foreign interests of any substantial fixed assets in Malaysia.
- Any proposed acquisition of assets or any interests, mergers and takeovers of companies and businesses in Malaysia by any means, which will result in owner-ship or control passing to foreign interest.
- Any proposed acquisition of 15% or more of the voting power by any one foreign interests or associated group, or by foreign interests in the aggregate of 30% or more of the voting power of a Malaysian company or business.
- Control of Malaysian companies or businesses through any form of joint-venture agree-ment, manage-ment agree-ment and tech-nical assis-tance agree-ment or other arrangement.
- Any merger or takeover of any company or business in Malaysia whether by Malaysian or foreign interests.
Any other proposed acquisition of assets or interest exceeding in value of RM 5 million whether by Malaysian or foreign interests.


Source : http://www.aseansec.org/6527.htm
Example of Globalization and the Effects
MANJUNG COAL-FIRED POWER PLANT,  PERAK, MALAYSIA
The plant is sited on a man-made island off the coast of Perak, making coal imports easier.
The new plant is helping Malaysia to keep pace with its rapidly rising electricity demand.
A consortium formed by ABB Alstom Power Plants Ltd and Peremba Construction Sdn Bhd was selected as the engineering, procurement and construction (EPC) contractor for the project. ABB Alstom owns 75%, and the Malaysian Peremba owns the rest. Lekir Bulk Terminal Private Limited (LBT) built a terminal to offload the six million tonnes of coal the plant should use each year. Leighton designed and constructed the jetty.
Effects:

Create more job opportunities.
Growth of town.
Create businesses for locals.
More Economy Facts...
Industry: Types--electronics, electrical products, chemicals, food and beverages, metal and machine products, apparel.

Trade: Merchandise exports--$98.2 billion: electronics, electrical products, palm oil, petroleum, liquid natural gas, apparel, timber and logs, plywood and veneer, natural rubber. Malaysia is one of the world`s largest exporters of semiconductor devices--electrical goods, and appliances .

The Malaysian Government encourages Foreign Direct Investment (FDI), and the United States continues to be the largest investor in Malaysia. In 2000, the Malaysian Government approved U.S.$1.97 billion in new manufacturing investment by U.S. companies, with the bulk in the electronics and electrical sectors. The cumulative value of U.S. private investment in Malaysia exceeds $10 billion, 60% of which is in the oil and gas and petrochemical sectors with the rest in manufacturing, especially semiconductors and other electronic products.

The U.S. is currently Malaysia`s largest trading partner and largest investor. Malaysia possesses abundant resources and land, a well-educated work force, adequate infrastructure, a relatively stable political environment, and an effective legal system. Of particular interest to the Malaysian Government is the development of the Multimedia Super Corridor (MSC), Malaysia`s effort to create a Silicon Valley in Asia. Malaysia, a member of the World Trade Organization (WTO), has few restraints on trade goods. Its service sector, however, remains protected, particularly in financial services.

Business Cultures/Practices/Accommodations in Malaysia
Employment quotas
Friday prayers
Prayer rooms
Kosher/Halal signs
Moderate level of power distance
Collectivism
Trust/Relationship
Reward factors
Seniority
Performance
Occupation prestige
Motivation
Materialism
Leisure
Information processing
Monochronic
Polychronic
Whole then parts
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