World Country Guide

Business Profile

Economy
A fully fledged ‘tiger’ economy, from the 1970s onwards Malaysia grew rapidly at around 10 per cent annually. This extraordinary economic development had been achieved through the familiar East Asian combination of a strong state allied to unfettered capitalism. The government plays a central role in guiding the country’s economic progress – the New Development Policy was unveiled in 1991 as the country’s economic blueprint for the following 20 years. However, in 1997 the Asian financial crisis brought this process to a shuddering halt. Malaysia has recovered reasonably well since then, although the headlong pre-1997 expansion has been replaced by a more measured pace of growth of between 4 and 4.5 per cent per annum in 2002 and 2003. Inflation was a respectable 1.8 per cent in 2002 and Malaysia enjoys a substantial trade surplus ($18 billion in 2002). The government also took the key decision in September 1998 to fix the Malaysian currency, the ringgit, to the price of the US dollar. The manufacturing sector produces electronics, transport equipment, machinery steel and textiles. There are also reserves of oil and natural gas and mineral deposits of tin (of which it is a major producer), bauxite, copper, iron and gold. In the agricultural sector palm oil, of which Malaysia is the world’s leading producer, is a major export commodity. Timber production remains important although it has been limited by the introduction of conservation measures in the mid-1990s. Other cash crops include rubber (again, Malaysia is one of the world’s top producers), cocoa and pepper. Tourism dominates the service sector.
Malaysia’s largest single trading partners are the USA, Japan and Singapore, followed by the EU and China. Malaysia is a member of the Pacific Rim organisation APEC (Asia-Pacific Economic Forum), which is assuming an increasingly important role in the regional economy. The essential stability of Malaysia’s financial sector meant that although it suffered short-term damage, it was able to recover quickly. Over the last five years, Malaysia has averaged annual growth of 3 per cent.

Business
Suits or safari suits are acceptable for business meetings. Business visitors should remember that the Malay population is predominantly Muslim and religious customs should be respected and normal courtesies observed, eg appointments, punctuality and calling cards. Office hours: These vary between Peninsular Malaysia and East Malaysia. In general most offices are open by 0830 and close between 1600 and 1730. Almost all close for an hour between 1200 and 1400. Most close at 1200 Saturday.

Commercial Information
The following organisations can offer advice: Malaysian Trade Commission, 17 Curzon Street, London W1J 5HR, UK (tel: (020) 7499 5255; fax: (020) 7499 4597); or National Chamber of Commerce and Industry of Malaysia, 37 Jalan Kia Peng, 50450 Kuala Lumpur (tel: (3) 241 9600; fax: (3) 241 3775; e-mail: nccim@po.jaring.my); or Malaysian International Chamber of Commerce and Industry (MICCI), PO Box 12921, 50792 Kuala Lumpur (tel: (3) 6201 7708; fax: (3) 6201 7705; e-mail: micci@micci.com; website: www.micci.com); or Malaysian Industrial Development Authority (MIDA), Block 4, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur (tel: (3) 2267 3633; fax: (3) 2274 7970; e-mail: promotion@mida.gov.my; website: www.mida.gov.my).

Conferences/Conventions
Many conferences and conventions are held in Malaysia each year. Apart from the dedicated facilities at the Putra World Trade Centre in Kuala Lumpur, many hotels have facilities. Further information can be obtained from Tourism Malaysia, Convention Promotion Division (see Contact Addresses section).