Doing business in Malaysia
Expats planning on doing business in Malaysia are strongly urged to research some of the cultural complexities associated 
with this ethnically diverse nation. Although the Malaysian business world has largely succeeded in establishing a unified ethos, it is important for expats to understand that they might deal with people from a broad range of backgrounds (Malay, Chinese and Indian being the most common) – and that their expectations and conduct might need to adjust accordingly, depending on who they're doing business with at the time.
Overall though, Malaysia is a diverse and welcoming society, accepting and friendly toward foreigners.
Malaysia is 21st (out of 183) in the World Bank's "Ease of Doing Business" rankings, particularly excelling in the criteria of 'getting credit' (where it is ranked first), and 'protecting investors' (where it is ranked 4th).
The defining characteristic of business culture in Malaysia is respect, and deference to authority. Moreover, authority figures are viewed as such, less because of the powerful positions they hold, and more because they possess the skills, wisdom and temperament to foster harmony and cooperation within their organisation.
Thus, while business structure in Malaysia remains hierarchical, teamwork and collaboration are encouraged, with all members of the organisation being valued. The Malaysian style of management, it follows, is less goal-driven, and more holistic, than in some western cultures – with managers taking a personal interest in the well-being of their employees.
Acting from a sense of duty is also important within the Malaysian workplace, and expats will be expected to work hard, without the promise of added incentives, or personal glory. Expats will be expected to derive pleasure from working within a team, and accomplishing communal goals.
Business etiquette in Malaysia is marked by sensitivity and diplomacy. The golden rule is never to cause another to 'lose face' in professional company – the wilful, or even careless, humiliation of even a subordinate, is considered malicious in the Malaysian business world. You should always endeavour to protect the pride and honour of your professional associates – if you have a strong disagreement to air, or a complaint to make, do it privately.
Business meetings in Malaysia usually convene on-time, but can be subject to a lot of 'small talk' and personal digressions. Don't get impatient – this is seen as an important function of meetings in Malaysia.
Business cards are usually exchanged upon meeting new associates. Give and receive cards in your right hand, supported by the left, and never fold or put away a card without looking at it first. Be sure to have your details printed in Chinese on the reverse side of your card while in Malaysia.
The dress code for business in Malaysia is typically western, with smart, formal clothes being worn. Men generally wear white shirts and ties (jackets to be worn to meetings); while women – since Malaysia is home to a large Muslim population – should dress more conservatively than they might be used to doing at home.
Starting a business in Malaysia is possible for expats, though it's not a particularly easy thing to do.
Business language: Officially, it remains Malay – however, English is widely spoken, and commonly used in most businesses
Hours of business: Generally, Monday to Friday, from 9am to 5pm
Dress: Conservative, formal, smart
Gifts: Sometimes, gifts are exchanged when meeting someone for the first time; however, it might be a better idea to receive a gift first, and then to reciprocate, rather than to be the one to initiate the gift-giving process. Always accept gifts in both hands, and do not open them in the presence of the person who gave them to you. When reciprocating with a gift, make sure that it's wrapped, and of about equal value to the gift that you first received.
Gender equality: Women are ostensibly viewed as equals in the Malaysian workplace, and can often rise to senior positions. Malaysia is, by all accounts, an easier place in which to do business for women than many other Asian nations
with this ethnically diverse nation. Although the Malaysian business world has largely succeeded in establishing a unified ethos, it is important for expats to understand that they might deal with people from a broad range of backgrounds (Malay, Chinese and Indian being the most common) – and that their expectations and conduct might need to adjust accordingly, depending on who they're doing business with at the time.Overall though, Malaysia is a diverse and welcoming society, accepting and friendly toward foreigners.
Malaysia is 21st (out of 183) in the World Bank's "Ease of Doing Business" rankings, particularly excelling in the criteria of 'getting credit' (where it is ranked first), and 'protecting investors' (where it is ranked 4th).
Business Culture in Malaysia
The defining characteristic of business culture in Malaysia is respect, and deference to authority. Moreover, authority figures are viewed as such, less because of the powerful positions they hold, and more because they possess the skills, wisdom and temperament to foster harmony and cooperation within their organisation.
Thus, while business structure in Malaysia remains hierarchical, teamwork and collaboration are encouraged, with all members of the organisation being valued. The Malaysian style of management, it follows, is less goal-driven, and more holistic, than in some western cultures – with managers taking a personal interest in the well-being of their employees.
Acting from a sense of duty is also important within the Malaysian workplace, and expats will be expected to work hard, without the promise of added incentives, or personal glory. Expats will be expected to derive pleasure from working within a team, and accomplishing communal goals.
Business etiquette in Malaysia is marked by sensitivity and diplomacy. The golden rule is never to cause another to 'lose face' in professional company – the wilful, or even careless, humiliation of even a subordinate, is considered malicious in the Malaysian business world. You should always endeavour to protect the pride and honour of your professional associates – if you have a strong disagreement to air, or a complaint to make, do it privately.
Business meetings in Malaysia usually convene on-time, but can be subject to a lot of 'small talk' and personal digressions. Don't get impatient – this is seen as an important function of meetings in Malaysia.
Business cards are usually exchanged upon meeting new associates. Give and receive cards in your right hand, supported by the left, and never fold or put away a card without looking at it first. Be sure to have your details printed in Chinese on the reverse side of your card while in Malaysia.
The dress code for business in Malaysia is typically western, with smart, formal clothes being worn. Men generally wear white shirts and ties (jackets to be worn to meetings); while women – since Malaysia is home to a large Muslim population – should dress more conservatively than they might be used to doing at home.
Starting a Business in Malaysia
Starting a business in Malaysia is possible for expats, though it's not a particularly easy thing to do.
Steps to register a business in Malaysia
- Fill out form 13A and submit it to the Companies Commission of Malaysia (CCM)
- Prepare company incorporation documents, and provide a statutory declaration of compliance (by the Companies Act of 1965)
- File documentation with the CCM and obtain stamps
- Create a company seal
- Procure statutory and shares certificates books
- Register with the Malaysian income tax department
- Register with the Employment Provident Fund (EPF)
- Register with the Social Security Organisation (SSO)
- Notify the director general of the Inland Revenue Board of the employment of workers
Doing business in Malaysia: Fast facts
Business language: Officially, it remains Malay – however, English is widely spoken, and commonly used in most businesses
Hours of business: Generally, Monday to Friday, from 9am to 5pm
Dress: Conservative, formal, smart
Gifts: Sometimes, gifts are exchanged when meeting someone for the first time; however, it might be a better idea to receive a gift first, and then to reciprocate, rather than to be the one to initiate the gift-giving process. Always accept gifts in both hands, and do not open them in the presence of the person who gave them to you. When reciprocating with a gift, make sure that it's wrapped, and of about equal value to the gift that you first received.
Gender equality: Women are ostensibly viewed as equals in the Malaysian workplace, and can often rise to senior positions. Malaysia is, by all accounts, an easier place in which to do business for women than many other Asian nations
Do's and don'ts of doing business in Malaysia
- DO - show respect and deference to authority figures
- DO - remain polite and respectful in all situations
- DO - relish the opportunity to work within a team, toward communal goals
- DO - keep an open mind, and be willing to learn from the new management styles you may encounter
- DON'T - be impatient or aggressive
- DON'T - be self-aggrandising or arrogant
