malaysia business envuronment

7/30/2019 Malaysia business envuronment

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Group profileName Roll NoArif Hasan 31

Pooja Borua 33

Farzana Kabir 34

Rahitha Kazal 35

Hazera Akter 37

MD. Abdur Rahim 38Nahid Mia 39

Noman Hasan 40


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Location

Malay Peninsula in southeastAsia

Population

28 Million (Approximately)

Total area

127,316 sq. mi (329,750 sq. km)

Language

Malay, English, Chinese dialects.

***Achieve independence from

United kingdom some part in

1957 & rest of the others in 1963.

Currency

Ringgit (MYR)

Prime Minister

Dato' Sri Mohd. Najib (Since 2009 )

Main industriesRubber , oil palm processing &

manufacturing, Electronics, Light

manufacturing, Tin mining and

smelting, Timber processing;

Agriculture processing, Petroleum

production and refining & Tourism.


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History of Malaysia A geographically truncated Malaysia emerged out of

the territories colonized by Britain in the late nineteenth

and early twentieth centuries.

Britain was attracted to the Malay peninsula by its vast

reserves of tin, and later found that the rich soil was

also highly productive for growing rubber trees.

Malaysia was established in September 1963 through

the union of the Independent Federation of Malay.

The theme of Malaysian is One Malaysiawhich indicates the Malaysian as number one.


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King of Malaysia

Tuanku Abdul Halim He is the 14th Yang di-Pertuan Agong of Malaysia.

Tuanku Abdul Halim is the first Yang di-Pertuan

Agong to reign twice. He is also the oldest to

ascend the throne

He start in December 13, 2011for a five year term

following a rotation system practiced by the

Rulers.

The king embodies Malaysia's heritage as a

collection of Muslim kingdoms and also serves as

titular head of the armed forces and keeper of the

official religion, Islam.

www.kingmalaysia.info


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The Captain of Malaysia

Dr. Mahathir bin Mohammad Mahathir became the Prime Minister of Malaysia on 16

July 1981.

He was the nation's first Prime Minister that came from

a modest social background, whereas the first threeprime ministers were members of the royal or elite

families.

Mahathir was widely known as an outspoken critic of

"Western-style globalization."

After 22 years in office, Mahathir retired on 31October 2003, making him one of Asia's longest-

serving political leaders.


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Culture of Malaysia

Within Malaysian society there is a Malay culture, a Chinese culture, anIndian culture, a Eurasian culture, along with the cultures of the indigenousgroups of the peninsula and north Borneo.

The important social distinction is between Malayand non-Malay.

The national culture must be based on the indigenous Malay culture, wherethe Malay elite that dominates the countrys politics.

Thomas Williamson (www,advameg.inc.)

Values & Attitude:

Gifts are not usually exchanged as they may be perceived as a bribe.

Apart from using right hand, gifts must be properly wrapped, are wrapped incheerful colors like pink, red etc. Never wrap gifts in black, white or blue.

In Malaysia, asking people about their weight, income and marital status iscommon & is viewed as an acceptable approach to initial conversations.


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Local Customs: Whenever meet an older person or a woman, greet with a slender bow.

Introduce the ladies first and then move on to introduce men.

For enter, leave a place or pass by someone, show a moderate bow, which gives

the expression of "excuse me."

One should not touch otherpeoples top portion of the head.

Malays do not appreciate display of affection in public places.

Touching someone from the opposite gender is also avoidable.

Malaysians are pretty relaxed.

Malay people like to eat with their hands. The practice is also followed in the

restaurants.

www.asiarooms.com/local-customs-and-traditions-in-malaysia.html


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Superstitions Pointing at a rainbow will make your finger drop off.

A girl who sings in the kitchen is fated to marry an old man.

If cats are allowed to jump over a corpse it will sit up as a ghoul, and many others.

www.kwintessential.co.

Names The Chinese Malaysian traditionally have 3 names. The surname (family name) is first

and is followed by two personal names.

Malays do not have surnames. Instead, men add their father's name to their own name

with the term "bin" (meaning sonof) and women use the term "binte .

Indians do not use surnames. Instead, they place the initial of their father's name in front

of their own name.
http://www.kwintessential.co/http://www.kwintessential.co/


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Business Environment


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Communication: Bahasa Melayu is the official language of Malaysia. Although most

government officials speak English also.

English spoken in Malaysia often has unique pronunciations, syntax, and

grammar, which can lead to misunderstandings.

It is often good to spend time going through the social pleasantries beforediscussing any actual business issues

Malaysians prefer the words as less important and put attention on voice tone,

body language, eye-contact and facial expressions.

Suitable topics of conversation would be family, sport (especially soccer), yourimpressions of Malaysia, your organization, future plans etc. Topics to avoid

might be politics, religion and ethnic tensions in Malaysia.

Author: Jodie R. Gorrill, M.A. Intercultural Communication-www.communicaid.com


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Manners & Customs: Eye contact should be infrequent.

Avoid any physical contact with Malaysians except for handshakes.

When pointing at people or objects, use open hand or point with right thumb rather than

using index finger.

Malaysians generally expect foreign visitors to be punctual. Avoid being more than15 to

20 minutes late.

As a Muslim country Fridays are a particularly religious day of the week.

Malaysians do not address their bosses by their first name, but use titles such as Mr and

Madam followed by their honorific form of address.



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Business Card Etiquette: Business cards are exchanged after the initial introductions.

Use two hands or the right hand only to exchange business cards.

If you will be meeting Chinese, have one side of your card translated into Chinese, with the

Chinese characters printed in gold.

If you will be meeting government officials, have one side of your card translated into

Bahasa Melayu.

Never write on someone's card in their presence.

www.kwintessential.co.

Dress: Like in other Asian cultures, dress codes are somewhat relaxed in

Malaysia, and wearing a suit is not always required. The coloryellow is reserved for Malaysian royalty and should therefore

be avoided.

Baju kurung, Baju melayu, cheongsam or qipao, kebaya are the name of

Some traditional dresses.
http://www.kwintessential.co/http://www.google.com/imgres?imgurl=http://www.quintcareers.com/womens_suit4.jpg&imgrefurl=http://corporateappareltrends.com/blog/tag/company-clothing/&usg=__xN3gSIDfjIBNfLNIulfUS0lyQoo=&h=449&w=305&sz=53&hl=en&start=19&zoom=1&tbnid=HzDNxR1_OX339M:&tbnh=127&tbnw=86&prev=/images%3Fq%3Dcorporate%2Bdress%26um%3D1%26hl%3Den%26tbs%3Disch:1&um=1&itbs=1http://www.kwintessential.co/


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Banking Hours:Monday - Friday : 9.30am to 4.30pm.Saturday & Sunday : Closed (some bank branches, notably those located inshopping malls, open on weekends)

Government Agencies:Monday - Friday : 8.30am to 4.30pmSaturday & Sunday/Public Holiday : Closed

Post Office:Monday - Saturday : 8.30am to 6pm

Department Stores:Monday- Sunday: 10am to 10pm

Business Hours


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Women in Business Quite a few women can be found in leadership positions, and they generally

hold positions that are more influential and enjoy more respect than elsewhere.

Malay women may not shake hands with men. Women can of course shakehands with women. Men may also not shake hands with women and may bowinstead while placing their hand on their heart.

Visiting businesswomen should have few problems in the country as long as

they act professionally in business and social situations.

Lothar Katz-www.NegIntBiz.com


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Malaysian management practiceMalaysian organization follows hybrid management practice which is based on

group counseling and problem solving.

Malayan follows brotherly, caring, impact on term productivity and specified

style.

Coaching and counseling:Face to face. One on one ,time specification, self

esteem, frank to openness. Conflict management: Directness, confrontational, get it out in the open

,managed on the basis of logic- fact, and control the over competition.

Teambuilding: Role classification, problem solving work team, task

orientation build a work team.

Monitoring: task orientation, individual achievement, future based

monitoring.

Communication: face to face, direct to the point, open in the frank

assessment.


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Malaysian Business Etiquette(Do's and Don'ts)DO be patient with your Malaysian counterparts duringbusiness negotiations. The process is often a long anddetailed one that should not be hastened.

DO remain polite and demonstrate good etiquette at alltimes. Elderly Malaysian business people for exampleshould be treated with respect and always acknowledged

before younger members of the organization. This is anessential part of achieving successful business dealings inMalaysia.

DO take time to establish productive business relationshipswith your Malaysian colleagues. Initial meetings are

generally orientated towards developing such relationshipsand will be maintained throughout and beyond thenegotiations. Without them, your business plans may befruitless.



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DONT assume that a signed contract signifies a finalagreement. It is common for negotiations to continue after acontract has been signed.

DONT be surprised if your Malaysian counterparts ask

what you may consider to be personal questions. InMalaysia, asking people about their weight, income andmarital status for example, is not uncommon and is viewedas an acceptable approach to initial conversations.

DONT enter into business with a Malaysian companywithout a letter of introduction from a bank or mutualacquaintance. This will help your request for a futuremeeting, as Malaysians prefer to conduct business withthose they are familiar with.


Malaysian Business Etiquette(Do's and Don'ts)


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Analysis Using Hofstedes Cultural Dimensions

There is a high correlation between the Muslim religion and the HofstedeDimensions of Power Distance (PDI) and Uncertainty Avoidance (UAI) scores.

When these two Dimensions are combined, it creates a situation where leadershave virtually ultimate power and authority, and the rules, laws and regulations

developed by those in power, reinforce their own leadership and control.

Power Distance Index (PDI)High

Individualism (IDV)Low

Masculinity (MAS) - AverageUncertainty Avoidance Index (UAI) - Moderately-Low

www.geert-hofstede.com/hofstede_malaysia
http://www.geert-hofstede.com/hofstede_malaysiahttp://www.geert-hofstede.com/hofstede_malaysiahttp://www.geert-hofstede.com/hofstede_malaysiahttp://www.geert-hofstede.com/hofstede_malaysia


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Malaysia scores very high on this dimension (score of 104) which means that peopleaccept a hierarchical order in which everybody has a place and which needs no further

justification.

Application: According to Hofstede's model, in a high PD country like Malaysia (104),

you would probably send reports only to top management and have closed door meetings

where only a select few, powerful leaders were in attendance.

Power Distance

Individualism versus CollectivismWith a score of 26 is a collectivistic society. This is manifest in a close long-term

commitment to the member group, be that a family, or extended relationships. Loyalty ina collectivist culture is paramount and overrides most other societal rules and regulations.

Such a society fosters strong relationships, where everyone takes responsibility for fellow

members of their group. Employer/employee relationships are perceived in moral terms.



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At 50, Malaysia can be considered a masculine society highly success oriented and

driven. In masculine countries, people live in order to work, managers are expectedto be decisive, and the emphasis is on equity, competition and performance. Conflicts

are resolved by fighting them out. A clear example of this dimension is seen around

election time, with ferocious, no-holds barred battles between candidates.

Masculinity

Uncertainty avoidanceMalaysia scores 36 on this dimension and thus has a low preference for avoiding

uncertainty. Low UAI societies maintain a more relaxed attitude in which practice

counts more than principles and deviance from the norm is more easily tolerated. In

societies exhibiting low UAI, people believe there should be no more rules than are

necessary and if they are ambiguous or do not work, they. Schedules are flexible.


***Long term orientation No score available for Malaysia on this dimension.


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Tourism is one of the major sources of income for Malaysia. Malaysia is one of themost pleasant, hassle-free countries to visit in southeast Asia.

Tourism in Malaysia, especially after 1990, continue to be popular.

Petronus Twin Tower has the 7th position among the top tourist spots in Asia.

Tourism in Malaysia


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Petronas Twin Tower

Tenghu tengha zaharah mosque

National Mosque

Batu-Feringgi

Kinabalu

LangkawiTaman Negara.

Perhentian Island. Awana skyway


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Tourist arrival & receipt to Malaysia

Source: www.corporatetourismmalatsia.comhttp://traveltips.usatoday.com/tourism-malaysia

Year Tourist Arrival Receipts (RM)

1998 5.5 Million 8.6 Billion








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malaysia business envuronment

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