Malaysia Marketing Environment

MALAYSIA Political Factors Generally, Malaysian Politic is stable and the governments are not only promoting foreign ownership of property, but they are also focusing heavily in promoting property ownership by nationals.

Until today, property prices in Malaysia are still very low and have shown significant growth in recent years with even higher growth estimated in years to come. Early in 2007, Malaysian Prime Minister Abdullah Ahmad Badawi announced the removal of Capital Gains Tax on property sales after the 31st of March 2007, yet another reason to invest.

Inflation in Malaysia is historically very low, below 2% for several years with the recent increase in petroleum products worldwide helping to raise inflation to almost 4%. The governments stepped in and are now ensuring that inflation does not rise any further by restricting the price increase on petroleum products. Economic Factors Analysis of the 2008 budget sees the economy in the long term being driven by the private sector, with important steps being implemented to reduce the cost of doing business, promoting national and foreign investment and promoting competitiveness. Several steps are being taken to improve the country’s competitiveness, including the introduction of a new business traveler visa as well as multiple entry visas for Chinese and Indian nationals which are likely to increase the demand for transitory residences (rental properties).

Additionally, RM 858 million (€ 177 million or just under £ 124 million GBP) has been allocated to the Tourism sector with the goal of improving and diversifying the tourist attractions and upgrading tourist facilities. A Tourism Infrastructure Fund of RM 200 million has been created to further promote tourism activities in Sabah and Sarawak, the two Malaysian states which make up Malaysian Borneo.

The cost of living in Malaysia is still very low in comparison to western cities. For example, student rent can cost anywhere between RM 300 (€...