Importance of Malaysia in International Business
Malaysia has been leading in the aspect of earning revenues through international trade in the last 3 decades. Through the creation of a positive and prospering business environment, Malaysia has opened doors to export import oriented industries and developing strong relationships with private businesses and also SMEs. One of the biggest trading partner of Malaysia is United States. The export of Malaysia largely consists of Electrical goods and appliances. Malaysia has the third largest economy in Southeast Asia and also resides at the 6th spot regarding the ease of doing business in the country.
Malaysia has been striving to provide better regulatory services and standardized business starting procedures for new businesses to arrive in the country. The world economic forum also ranked Malaysia at the 20th in being the most competitive in the world. These factors impact the economic condition of Malaysia and promote international business ties and further growth in business sector. Many leading brands being sold in United States originate in Malaysia. Contrary to that, people of Malaysia have a huge liking towards foreign brands. Malaysia has Islamic banking and their interrelated trading laws promote investment and trade with other Islamic countries. (Jayaraman, 2014)
The location of Malaysia is right at the Centre of Southeast Asia. The land mass of Malaysia can be divided into two partitions that are the East Malaysian provinces: Sabah and Sarawak and the Peninsular Malaysia. 80% of the peninsular Malaysia is covered by regions of rainforests and swamps. There are certain mountain ranges located in the northern part of Malaysia which also contain coastal plains in the vicinity. The two partitions of Malaysia are separated from each other due to the presence of the South China Sea.
The 40% of the total landmass is covered by the peninsular Malaysia. The regions of Sabah and Sarawak contain dense jungle along with the presence of large rivers. The natives of Malaysia use the river networks to travel from one place to other. The forests of Malaysia are extremely rich with forest cover and wildlife as 60% of Malaysia can be considered as rainforest area with a large and diverse array of species of vegetation and wildlife. Due to the presence of rainforests, the weather in Malaysia remains hot and humid throughout the year. As the amount of humidity in Malaysia reaches to about 90% which results in frequent rainfall throughout the year. (abc Malaysia, 2015)
Key Economic and Political Events
• Stock Freeze occurred in Malaysian Stock Market in the year 1999 which led to many stocks which the shareholders could not sell.
• In 1952, the Malaysian Chinese Association and Malaysian Indian Congress became incorporated through the actions of UMNO which resulted into the formation of an Alliance.
• In 1975, The industrial coordination act was passed in Malaysia which made the companies bigger than 2500000 RM to register for industrial licenses.
• Mahathir introduced the vision 2020 for developing Malaysia on the path of being a developed economy. (Ritchie, 2003)
Dimensions that Malaysia competes on internationally
In the year of 2013, Malaysia exported a very high amount of Liquified Natural gas to other countries, making it the second highest exporter in the world next to Qatar. In the south east of the Asian continent, it is second highest oil and natural gas producing countries. Among the Asian and Pacific countries, it has fourth highest oil reserves. Malaysia has a very little reserve of biofuels, but it ranks among top countries that provide palm oil which is used to produce biofuels. So we can say that it competes with other countries with oil and natural gas sector (EIA, 2014).
In the year of 2014, the population of Malaysia was 30,267,367 which increased from 29,791,949 in the year of 2013. Out of the total population in 2014, 50.7% of the population consisted of males and rest 49.3% consisted of females (World Population Review, 2014).
Malaysian is the official language in Malaysia. This language is similar of the Malay language as it is a standardized version of Malay language (My Government, 2015).
The constitution of Malaysia was formed in the year 1957. The type of government in the country is a constitutional monarchy. There are three branches of government in the country. First of all there is a bicameral legislative branch or the Parliament which is at the top of the three branches. The middle layer is called the House of Representatives or Dewan Rakyat and the bottom branch is called the Senate or the Dewan Negara. The executive branch is run by the Prime minister of the country, the Cabinet ministers and the judicial branch (Global Edge, 2015).
Najid Razak is currently serving as the prime minister of Malaysia since 3rd April, 2009. He is the sixth prime minister of the country (My Government, 2015). The major products imported from Malaysia are Refined Petroleum, Petroleum Gas, and Palm oil and the major product exported from the country are Integrated Circuits, Crude Petroleum, and Office Machine parts. The major exporting destination of the country for trade are Singapore, Japan, and China and the major importing destination of the country for trade are China, Singapore and Japan (Atlas Media, 2015). Malaysia follows a multicultural society. Apart from Malays in the highest number, there is a high population of the Chinese as well as of the Indians (Kwintessential, 2015).
abc Malaysia. (2015). Topography. Retrieved from www.abcmalaysia.com: http://www.abcmalaysia.com/topography.htm
Atlas Media. (2015). Malaysia. Retrieved April 17, 2015, from atlas.media.mit.edu: https://atlas.media.mit.edu/en/profile/country/mys/
EIA. (2014). Malaysia. U.S. Energy Information Administration.
Global Edge. (2015). Malaysia: Government. Retrieved April 17, 2015, from globaledge.msu.edu: http://globaledge.msu.edu/countries/malaysia/government
Jayaraman, P. (2014, 9 15). Malaysia will continue to improve to attract international business communities here. Retrieved from www.thesundaily.my: http://www.thesundaily.my/news/1169328
Kwintessential. (2015). Malaysia – Language, Culture, Customs and Etiquette. Retrieved April 17, 2015, from kwintessential.co.uk: http://www.kwintessential.co.uk/resources/global-etiquette/malaysia.html
My Government. (2015). About Malaysia. Retrieved April 17, 2015, from malaysia.gov.my: https://www.malaysia.gov.my/en/about-malaysia?subCatId=3208956&type=2&categoryId=3208945
Ritchie, B. K. (2003). Politics and Economic Reform in Malaysia. East Lansing,: William Davidson Institute.
World Population Review. (2014). worldpopulationreview.com. Retrieved April 17, 2015, from Malaysia Population 2014: http://worldpopulationreview.com/countries/malaysia-population/