Malaysia Lean Global Expansion

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Introduction

Malaysia is a diverse country located within Southeast Asia with a population of 32 million. Malaysia is one of Asia’s most emerging economies that couples a growing economy with quality government and financial controls. According to the World Bank, Malaysia is ranked 12th in Ease of Doing Business. Companies exploring a global expansion should consider Malaysia as a top choice for expansion.

Strategic Location

When considering an expansion to Southeast Asia, many companies view the entire region as the market opportunity as opposed to a single country. Through pursuing this strategy, companies must still carefully consider which country to establish as a primary hub. While Singapore has long been a popular destination, the small size, expensive cost of doing business and limited cross border learnings force decision makers to consider alternative options. Malaysia has a similar demographic makeup, strong financial institutions and modern infrastructure but with lower costs of operations. This makes Malaysia an ideal launching pad for the rest of Southeast Asia.

Common Law

Along with Singapore and India, Malaysia is a former British colony that preserved the foundations of common law. As a Muslim nation, Malaysia strikes a unique balance of Islamic law for civil context and common law for corporate. This framework provides companies expanding to Malaysia with a more streamlined landing pad as well as locals may be more accustomed to foreign standards. In comparison to its neighbors, Malaysia has a less cumbersome set of legal requirements for foreign companies expanding, including a paid up capital of 1 RM and fewer limits on industry.

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Investment Support

The Malaysian government is amongst the most proactive in the world with developing schemes to support the startup community. Government accelerator programs include Magic, Selangor Accelerator Programme, and Cyberview Living Lab. Investment programs include Dana Penjana Programme, Asiata Digital Innovation Fund, Cradle Fund, MDEC and MAVCAP. In addition to programs that support local companies, there are many local tax incentives, such as the Principal Hub Incentive, to attract global business.

Diverse Population

Malaysia is a Muslim majority population located in the heart of the diverse Southeast Asia. When doing business in Southeast Asia it is important to constantly be conscious of the variability across cultures. Locals who are accustomed to interacting and doing business across many languages, religions, ethnicities and cultures are a key differentiator. Malaysia is a melting pot of Malay, Chinese, Indian and more ethnicities. Access to diverse talent can be leveraged as a way to engage and understand perspective customers in a meaningful way.

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