Malaysia is a multi-ethnic, multi-cultural and multi-lingual society. It is a relatively open, state-oriented and newly industrialized market economy. Although the economy has traditionally been commodity based, services have gradually become the single largest component of its economic activity.
Malaysia today is one of the world’s top locations for offshore manufacturing and service based operations as encouraged by the government’s pro-business environment. Over 5,000 multinational corporations from more than 50 countries have invested in Malaysia and continued to show their support and confidence in the country’s potential as an ideal investment location through their numerous expansions and diversifications over the years, particularly in high technology and knowledge-based projects.
Malaysia’s political, social and economic stability, prudent and pragmatic investor friendly business policies, cost-productive workforce, a well developed infrastructure comparable to that of any western country and a host of other amenities that makes this country an enticing place for investors.
Thanks to the strong regulatory environment, investors are assured of good protection in the summer. Once again, Malaysia ranks within the top five in the world in this category. Foreign investments are welcomed especially in areas like manufacturing particularly in high end technology, solar technology, bio-technology industries and in the development of information technology through the establishment of the Multimedia Super Corridor.
Key points for foreign investors to consider when looking at Malaysia as an ideal place for investment include:
• Growth potential in the industrial and services sectors;
• Gateway to the ASEAN market and Muslim world;
• Easy accessibility – through air and sea;
• Youthful, productive and educated workforce;
• Attractive incentive package for foreign investors;
• Liberal, pragmatic and pro-business conducive government policies.
• Various flexible forms of business set-ups;
• Tax-free zones and growth corridors; and
• Labuan International Business and Financial Centre.
All of the above pertinent points are elaborated in this guide.