Doing Business in Malaysia

International Business with Malaysia

November 29, 2009

Prepared by Gary Head

Table of Contents

Introduction………………………………………………………………..1

Political System and Conditions

Culture Difference

Legal System

Economic Conditions

Summary of Barriers

Opportunities for Trade

Theory Application

Outlook and Conclusion

Introduction

Malaysia is on the Malay Peninsula in Southeast Asia. The nation also includes Sabah and Sarawak on the island of Borneo to the east. Malaysia is bordered by Borneo to it’s south and the South China Sea surrounding the east, west and northern areas. Its area is comparable to that of New Mexico. The majority of area of Malaysia is covered by forest, with a mountain range running the length of the peninsula.

The earliest history of Malaysia dates back to 2500 to 1500 BC. During this period those who lived along the coastal regions of Malaysia interacted with Chinese and Indian traders. These traders were the first to introduce Hinduism to the area. From the 9th to the 13th centuries AD, the early Buddhist Malay kingdom of Srivijaya, based at what is now Palembang, Sumatra, dominated much of the Malay peninsula. Conversion of the Malays to Islam, beginning in the early 14th century, accelerated with the rise of the state of Malacca under the rule of a Muslim prince, Parameswara Dewa Shek, in the 15th century. Malacca was a major regional commercial center, where Chinese, Arab, Malay, and Indian merchants traded precious goods. Drawn by this rich trade, a Portuguese fleet conquered Malacca in 1511, marking the beginning of European expansion in Southeast Asia. In 1641, in an attempt to capitalize on the riches produced in the area, the Dutch overturned the Portuguese rule in Malacca. In 1786, in order to prevent Malacca from falling into the hands of the French during the Napoleonic War, the British obtained the island of Penang and temporarily controlled Malacca with Dutch consent from that time until to 1818. The...