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Doing Business in Malaysia

In: Business and Management

Submitted By laubene
Words 498
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Trading environment is by nature government implication of the host country in the trade relationship with the hosted company; It can be positive and facilitate commerce with encouraging and low tariff and non-tariff barriers, as well as liberalization. Also, the financial environment is the business by which money is transferred among business, government and people and is function of financial and currency stability which are closely link to consumption and inflation which support your market size. It has an impact on currencies, exchange rate and it is supported by organizations such as WTO, or IMF. Finally, geography is the easiness of using resources by some geographical evidence of the country, as well as population, is a market size and a element to take into account when targeting and assessing its potential.
In Malaysia, trading environment is pressing and leads for the company as a strong barrier for trade because of tariff and non-tariff barriers (para-tariff measure, price control…) of the intended business, and of strong inflows due to a large-scale policy easing, that tend to financial instability, increased exchange rates and asset prices in the host country. Likewise, the financial environment is slightly deteriorating. Depreciation of the currency would tackle external competitiveness, and therefore decrease standards of living of the citizen (rakyat) resulting in paying higher import prices for a product. But it is not the only factor, and as a consequence, the volatility of the ringgit and tight credit conditions, raise inflation is inevitably (3,5% in March 2014, against 1,8% in July). Rising cost of living and deterioration of the standard of living and income will thus, come along with rising unemployment and a slight change of consumption patterns.
Also, taking in consideration its population market could facilitate targeting and positioning. Finally, some geographic factors can also lead to ethical problems that changes your marketing approach because of ecological raising issues. In this issue lies another one; the population issue and geographical issue:

Furthermore, the government struggle to manage religious and ethnic relations because of differences and wealth gap. It is discriminatory; Foreign companies are granted with the same opportunities as local ones to compete, and many of the foreign enterprise are required required to take on a local partner before their bids will be considered. There is a greater participation of bumiputera (ethnic Malays) in the economy, reducing the outflow of foreign exchange, creating opportunities for local companies in the services sector transferring technology to local industries, and enhancing Malaysia’s export capabilities.
Finally the geographical factor is important with the rising concerns of global warming, ans sustainability problem. The need of reducting pollution and deforestation is important in Malaysia. Moreover, concerns have been raised that the drive towards further industrialisation could pose a serious threat to the environment.
Environmental campaigns expressed concerns for the Borneo rainforest with its palm oil plantations. Environmental activists have also objected to plans for a rare earths processing plant in the state of Pahang.…...

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