Selamat Datang Malaysia ! A tropical paradise endowed with breathtaking natural beauty, exotic cultures and friendly people. A destination that offers so much to see, do and experience.

Malaysia has a rich history dating back to the 13th century. It was founded in the 13th century by a Sumatran prince. In 1819 British administration established a trading post. The British administration in Malaya lasted 138 years. Malaysia got its independence in 1957.

Beginning: Malaysia was formed in The Federation of Malaysia comprises Peninsular Malaysia and the states of Sabah and Sarawak on the island of Borneo. In the north of Peninsula Malaysia is Thailand while its southern neighbor is Singapore. Sabah and Sarawak are bounded by Indonesia while Sarawak also shares a border with Brunei. Ethnic Groups: 59% Malay and other indigenous, 32% Chinese and 9% Indian. Languages: Malay (official), English, Chinese dialects, Mandarin, Hakka dialects, Cantonese, Tamil and numerous tribal languages. Malaysia is a modern country where English is widely spoken. Religion: Islam is the official religion but all other religions are practiced freely. Muslim (primarily Malays), Buddhism (Chinese), Hindu (Indian), Christianity. Goverment: Parliamentary democracy with a bicameral legislative system. The Head of State is the Yang Di-Pertuan Agong and the Head of Government is the Prime Minister.

Population Population (In Million)

Today, Malaysia has one of the best airports, highways and telecommunication systems in Asia. The literacy rate is above 90% and poverty level is negligible. With a highly educated workforce and modern infrastructure, it has and can attract large foreign investment in the manufacturing and technological sections.

People & Culture: Malaysia has a combined population of over 26 million people. The multi-cultural and multi-racial population consists of Malays, Chinese, Indians and numerous natives. It is common to see temples, mosques and churches located in close proximity.

Some common customs, courtesies and practices are : Handshakes generally suffice when greeting someone. Muslim ladies may greet with a nod of her head and smile. The right hand is always used when giving and receiving objects. Pointing is normally done using the thumb as using the forefinger is considered rude. Traditional greeting of "salam" resembles a handshake Shoes must be removed when entering a Mosque or an Indian temple. It is also customary to remove one’s shoes when entering a Malaysian home.

Balance Of Payment Economic Profile & Analysis

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Political and legal analysis Government type Federal parliamentary democracy with a constitutional monarch. Subdivisions The Malaysian legal system

Political Conditions Political movements in Malaysia were organized along regional and ethnic groups

The Election Process: General elections, which must be called every five years, have been held since Political Stability: Malaysia travel is safe and tourists will not feel in anyway threatened. Malaysians are generally friendly.

Malaysia - Judicial system: The legal system is founded on British common law. Religious courts decide questions of Islamic law and custom. The Federal Court, the highest court in Malaysia Malaysian law: The Malaysian legal system is based on English common law. The Federal Court of Malaysia is the highest judicial authority and the final court of appeal in Malaysia.

Trade marks and patent Patent : Malaysia provides adequate protection in the field of industrial property for local and foreign investors. Patent protection in Malaysia is governed by the Patents Act 1983 and the Patents Regulations Trade mark : Trade mark protection in Malaysia is governed by the Trade Marks Act 1976 and the Trade Marks Regulations The Act modeled along the Acts of some of the industrialized countries provides effective and adequate protection for registered trade marks in Malaysia.

Publicly Owned Companies Bursa Malaysia – Market Capitalization MYR700 billion (US$189 billion) Publicly Traded Companies

Major Industries Peninsular Malaysia - rubber and palm oil processing and manufacturing, light manufacturing industry, electronics, tin mining and smelting, logging and processing timber Sabah - Palm oil farming, tourism, petroleum production, and logging. Sarawak- agriculture processing, petroleum production and refining, logging

Agriculture in Malaysia Palm Oil Natural Rubber Cocoa Pepper Pineapple Tobacco

Manufacturing in Malaysia Refined Petroleum Products Electronic Valves, Tubes, and other Electronic Components Processing and preservation of meat, fish, fruits, Vegetables, oils and fats Office, Accounting and Computing Machineries Basic Chemicals

Tourism million tourists in 2009!! Total Revenue- RM 52 Billion (USD 15.3 Billion)

Natural Resources Petroleum Tin Forestry

Tax Rates Income Tax Rate(NRI)27% Corporate Tax Rate25% Sales Tax / VAT Rate5% Sales Tax5 - 10% Service Tax5%.

Major Export (RM Million) Jan-DecJanuary 2009 p 2010 Natural Rubber4, Palm Oil & Palm Oil-Based Products50,728 3,755 5,056 Crude Petroleum25,360 1,806 2,447 Petroleum Products19, ,581 Liqufied Natural Gas31,195 4,181 3,400 Timber & Timber Based Products [5]19,411 1,377 1,706 Electrical & Electronic Products [5]227,778 13,733 21,372 Articles of Apparel & Clothing Accessories [5]11, ,007 Other Manufactured Goods and Articles [5]75,958 5,098 7,302

PEST Analysis Political Factors – Parliamentary form of government with an elected constitutional monarchy. – Lesser restriction on immigration – A fairly new country formed in 1957 Economic Factors – Regional economic giant – High Government spending – Very low inflation and unemployment rate – Survived the recent economic crisis well

Socio-Cultural Factors – Mixture of Chinese, Indians and Malays – High literacy rates – Variety of religions with a Muslim majority Technological – Good National and International lines – A variety of TV and radio stations – ISPs and good airports

Doing Business in Malaysia World Bank rates Malaysia in terms of: Ease of doing business – 23 rd Getting Credit – NO. 1 Protecting Investors – 4 th Paying Taxes – 24 th Trading Across Borders – 35 th

Why Malaysia? Asian economic powerhouse Easy access to funding Investment well protected Low barriers to trade on most products Lower cultural barrier due to same majority religion Availability of both cheaper and yet more skilled labor force

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