Malaysia
One investment in technology has been our stepping-stone to four global markets.
Market Essentials ”A major exporter of manufactured goods, especially electrical and electronic products, but rich also in commodities such as palm oil and rubber, Malaysia absorbs well over £1 billion annually of British goods and services.” Boyd McCleary, CVO British High Commissioner to Malaysia
The investment we have made in developing and perfecting
markets – civil aerospace, marine, energy and defence. Today we
world-leading engine technologies has established Rolls-Royce
have 54,000 gas turbines in service around the world, delivering
as a landmark for outstanding performance and reliability. Our
reliable, innovative power solutions to a growing and diverse
advanced engine technology and unparalleled service standards
customer base. Rolls-Royce, our investment in technology is our
have enabled us to take giant strides in four expanding, global
stepping-stone to the future. Trusted to deliver excellence
THE BRITISH MALAYSIAN SOCIETY
www.rolls-royce.com
B RITISH M ALAYSIAN C HAMBER of C OMMERCE
Malaysia
Malaysia
Introduction
Malaysia
Useful Contacts
Foreword by the British High Commissioner to Malaysia I am delighted to contribute to this Market Essentials folder on Malaysia. It shows very clearly why Malaysia is a good country in which to do business. Many UK companies are already present in the market making good profits, both here and in the wider region. I hope the information given here will convince you that you should follow their example.
Boyd McCleary, CVO
Britain has a long history of trade with Malaysia. Almost two hundred years prior to the formation of modern Malaysia in 1963, Britain established a presence on the Malay Peninsula, a vital stopping-off point on the trade routes between China, India and Europe. Malaysia today is again at the heart of Asia’s booming trade. A major exporter of manufactured goods, especially electrical and electronic products, but rich also in commodities such as palm oil and rubber, Malaysia absorbs well over £1 billion annually of British goods and services. British companies have invested over £20 billion here in the past 30 years. Their presence is particularly strong in the financial sector, in oil and gas and in the retail and hotel sectors. HSBC, Standard Chartered, Prudential, Shell, BP, Hanson, GlaxoSmithKline, and Jardines are major and longstanding investors. Successful newcomers include Dyson and Tesco. But many smaller companies have also done well. Educational ties are strong. Thousands of Malaysian students study each year in the UK and tens of thousands more study for UK qualifications in Malaysia. And
opportunities within the educational sector continue to grow as the Malaysian Government seeks to make Malaysia a regional centre of educational excellence. With legal and educational systems based on UK models, strong infrastructure, and a vigorously growing economy, plus a Government keen to attract investment, Malaysia offers an excellent environment in which to do business and one in which UK companies are welcome. We in the British High Commission are here to help you realise the opportunities that Malaysia offers. Please do not hesitate to contact my UK Trade & Investment team here in Kuala Lumpur, or their counterparts in London, to obtain their advice on how to develop your business in Malaysia. We will be stepping up our efforts to help UK companies into the Malaysian market in 2007. We are planning a busy year of events to help Malaysia celebrate its 50th year of Independence. Please contact my First Secretary for Trade and Investment, Eamonn Staunton on + 60 3 2170 2232 for further information.
Malaysia is among the world’s top 20 trading nations. Its stable political environment, strong economic fundamentals, low inflation and interest rates, and skilled labour force, make it an attractive location for business and investment.
UK TRADE & INVESTMENT Kingsgate House 66-74 Victoria Street London SW1E 6SW Contact: Paul Bathgate Tel: 020 7215 4246 Email: paul.bathgate@uktradeinvest.gov.uk Web: www.uktradeinvest.gov.uk
MALAYSIAN HIGH COMMISSION 45 Belgrave Square London SW1X 8QT Tel: 020 7235 8033 Fax: 020 7235 5161 Email: mwlondon@btinternet.com
BRITISH MALAYSIAN CHAMBER OF COMMERCE c/o British High Commission 185 Jalan Ampang 50450 Kuala Lumpur Malaysia Tel: + 60 3 2163 1784 / 1786 Fax: + 60 3 2163 1781 Web: www.bmcc.org.my
BRITISH HIGH COMMISSION 185 Jalan Ampang 50450 Kuala Lumpur Malaysia Contact: Eamonn Staunton Deputy Director for Trade & Investment Tel: + 60 3 2170 2232 Fax: + 60 3 2170 2285 Email: eamonn.staunton@fco.gov.uk Web: www.britishhighcommission.gov.uk
MALAYSIAN TRADE COMMISSION 17 Curzon Street London W1Y 7FE Tel: 020 7499 5255 Fax: 020 7499 4597 Email: matrade@dircon.co.uk
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA) 12th Floor, Block 4, Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur Malaysia Tel: + 60 3 2267 3633 Fax: + 60 3 2274 8507 Web: www.mida.gov.my
ASIA HOUSE 63 New Cavendish Street London W1G 7LP Tel: 020 7307 5454 Fax: 020 7307 5459 Email: enquiries@asiahouse.co.uk Web: www.asiahouse.org
OVERSEAS MALAYSIAN EXECUTIVE CLUB (OMEC) St Alphage House Fore Street London EC2Y 5DH Contact: Dato' John Lim, Chairman Tel: 020 7216 4606 Fax: 020 7638 2159 Email: j.lim@uhy-uk.com Web: www.my-omec.com
THE BRITISH MALAYSIAN SOCIETY (address and fax as above) Contact: Dato' Neville Green, Chairman Tel: 020 7307 5438 Email: info@thebritishmalaysiansociety.org Web: www.thebritishmalaysiansociety.org
MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY C-8-8, 8th Floor, Block C Plaza Mont’ Kiara 2 Jalan Kiara, Mont’ Kiara 50480 Kuala Lumpur Malaysia Tel: + 60 3 6201 7708 Fax: + 60 3 6201 7705 / 06 Email: micci@micci.com Web: www.micci.com
Dato’ Abed Aziz bin Mohammed
The enhancement of British Malaysian relations with the aim of promoting close business, educational, and cultural links between Britain and Malaysia Prominent role in UK-Malaysia relations 100 Corporate and Individual members Wide range of corporate, educational, and cultural events
Excellent networking opportunities
I am delighted to introduce this first Market Essentials folder on Malaysia. I hope that it serves as a useful reference for foreign investors and the business community.
The Malaysian Government continues to ensure that the country’s competitiveness is maintained in the increasingly borderless world. It has always emphasised the importance of good governance and transparency. Various measures have been implemented to improve public service by reducing bureaucracy and cutting red-tape.
A membership society that strives for:
An opportunity for exchanges between the many Malaysians living in the UK and the local community
Introduction by the Malaysian High Commissioner to the UK
Malaysia is among the world’s top 20 trading nations. Its stable political environment, strong economic fundamentals, low inflation and interest rates, and skilled labour force make it an attractive location for business and investment. Malaysia’s liberal trade and investment promotion policies have attracted global players.
THE BRITISH MALAYSIAN SOCIETY
For further information please contact:
to ensure sufficient human capital for the country’s future development. In addition, Malaysia is fully committed to exploring new sources of economic growth, including the modernisation of agriculture, the harvesting of our rich biodiversity through the use of bio-technology, as well as through developing value-added services, such as business process outsourcing and Islamic financial services.
The British Malaysian Society Asia House 63 New Cavendish Street London W1G 7LP Tel: 020 7307 5438 Fax: 020 7307 5459
Malaysia offers excellent commercial opportunities in all sectors. With a Government that is focused on policies that help business to capitalise on those opportunities, it is sure to remain a favourable destination for investment.
Malaysia also recognises the importance of an educated and skilled workforce. The scope of our education system, including vocational training, will continue to be upgraded
Email: info@thebritishmalaysiansociety.org Website: www.thebritishmalaysiansociety.org
© November 2006 - InterTrade Media Limited. All rights reserved.
Photos courtesy of: Tourism Malaysia and Dreamstime.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of InterTrade Media Limited. The views expressed in this publication are not necessarily those of the promoters involved. Whilst every effort has been made to ensure that the information in this publication is accurate, InterTrade Media Limited cannot accept any liability for loss or damage arising from facts, errors or omissions. Readers should undertake the usual commercial checks before entering into business arrangements. InterTrade Media Limited UK, Tel: + 44 161 613 5872, Fax: + 44 161 333 5353, E-mail: info@intertrademedia.com
Malaysia
One investment in technology has been our stepping-stone to four global markets.
Market Essentials ”A major exporter of manufactured goods, especially electrical and electronic products, but rich also in commodities such as palm oil and rubber, Malaysia absorbs well over £1 billion annually of British goods and services.” Boyd McCleary, CVO British High Commissioner to Malaysia
The investment we have made in developing and perfecting
markets – civil aerospace, marine, energy and defence. Today we
world-leading engine technologies has established Rolls-Royce
have 54,000 gas turbines in service around the world, delivering
as a landmark for outstanding performance and reliability. Our
reliable, innovative power solutions to a growing and diverse
advanced engine technology and unparalleled service standards
customer base. Rolls-Royce, our investment in technology is our
have enabled us to take giant strides in four expanding, global
stepping-stone to the future. Trusted to deliver excellence
THE BRITISH MALAYSIAN SOCIETY
www.rolls-royce.com
B RITISH M ALAYSIAN C HAMBER of C OMMERCE
Malaysia
Malaysia
Introduction
Malaysia
Useful Contacts
Foreword by the British High Commissioner to Malaysia I am delighted to contribute to this Market Essentials folder on Malaysia. It shows very clearly why Malaysia is a good country in which to do business. Many UK companies are already present in the market making good profits, both here and in the wider region. I hope the information given here will convince you that you should follow their example.
Boyd McCleary, CVO
Britain has a long history of trade with Malaysia. Almost two hundred years prior to the formation of modern Malaysia in 1963, Britain established a presence on the Malay Peninsula, a vital stopping-off point on the trade routes between China, India and Europe. Malaysia today is again at the heart of Asia’s booming trade. A major exporter of manufactured goods, especially electrical and electronic products, but rich also in commodities such as palm oil and rubber, Malaysia absorbs well over £1 billion annually of British goods and services. British companies have invested over £20 billion here in the past 30 years. Their presence is particularly strong in the financial sector, in oil and gas and in the retail and hotel sectors. HSBC, Standard Chartered, Prudential, Shell, BP, Hanson, GlaxoSmithKline, and Jardines are major and longstanding investors. Successful newcomers include Dyson and Tesco. But many smaller companies have also done well. Educational ties are strong. Thousands of Malaysian students study each year in the UK and tens of thousands more study for UK qualifications in Malaysia. And
opportunities within the educational sector continue to grow as the Malaysian Government seeks to make Malaysia a regional centre of educational excellence. With legal and educational systems based on UK models, strong infrastructure, and a vigorously growing economy, plus a Government keen to attract investment, Malaysia offers an excellent environment in which to do business and one in which UK companies are welcome. We in the British High Commission are here to help you realise the opportunities that Malaysia offers. Please do not hesitate to contact my UK Trade & Investment team here in Kuala Lumpur, or their counterparts in London, to obtain their advice on how to develop your business in Malaysia. We will be stepping up our efforts to help UK companies into the Malaysian market in 2007. We are planning a busy year of events to help Malaysia celebrate its 50th year of Independence. Please contact my First Secretary for Trade and Investment, Eamonn Staunton on + 60 3 2170 2232 for further information.
Malaysia is among the world’s top 20 trading nations. Its stable political environment, strong economic fundamentals, low inflation and interest rates, and skilled labour force, make it an attractive location for business and investment.
UK TRADE & INVESTMENT Kingsgate House 66-74 Victoria Street London SW1E 6SW Contact: Paul Bathgate Tel: 020 7215 4246 Email: paul.bathgate@uktradeinvest.gov.uk Web: www.uktradeinvest.gov.uk
MALAYSIAN HIGH COMMISSION 45 Belgrave Square London SW1X 8QT Tel: 020 7235 8033 Fax: 020 7235 5161 Email: mwlondon@btinternet.com
BRITISH MALAYSIAN CHAMBER OF COMMERCE c/o British High Commission 185 Jalan Ampang 50450 Kuala Lumpur Malaysia Tel: + 60 3 2163 1784 / 1786 Fax: + 60 3 2163 1781 Web: www.bmcc.org.my
BRITISH HIGH COMMISSION 185 Jalan Ampang 50450 Kuala Lumpur Malaysia Contact: Eamonn Staunton Deputy Director for Trade & Investment Tel: + 60 3 2170 2232 Fax: + 60 3 2170 2285 Email: eamonn.staunton@fco.gov.uk Web: www.britishhighcommission.gov.uk
MALAYSIAN TRADE COMMISSION 17 Curzon Street London W1Y 7FE Tel: 020 7499 5255 Fax: 020 7499 4597 Email: matrade@dircon.co.uk
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA) 12th Floor, Block 4, Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur Malaysia Tel: + 60 3 2267 3633 Fax: + 60 3 2274 8507 Web: www.mida.gov.my
ASIA HOUSE 63 New Cavendish Street London W1G 7LP Tel: 020 7307 5454 Fax: 020 7307 5459 Email: enquiries@asiahouse.co.uk Web: www.asiahouse.org
OVERSEAS MALAYSIAN EXECUTIVE CLUB (OMEC) St Alphage House Fore Street London EC2Y 5DH Contact: Dato' John Lim, Chairman Tel: 020 7216 4606 Fax: 020 7638 2159 Email: j.lim@uhy-uk.com Web: www.my-omec.com
THE BRITISH MALAYSIAN SOCIETY (address and fax as above) Contact: Dato' Neville Green, Chairman Tel: 020 7307 5438 Email: info@thebritishmalaysiansociety.org Web: www.thebritishmalaysiansociety.org
MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY C-8-8, 8th Floor, Block C Plaza Mont’ Kiara 2 Jalan Kiara, Mont’ Kiara 50480 Kuala Lumpur Malaysia Tel: + 60 3 6201 7708 Fax: + 60 3 6201 7705 / 06 Email: micci@micci.com Web: www.micci.com
Dato’ Abed Aziz bin Mohammed
The enhancement of British Malaysian relations with the aim of promoting close business, educational, and cultural links between Britain and Malaysia Prominent role in UK-Malaysia relations 100 Corporate and Individual members Wide range of corporate, educational, and cultural events
Excellent networking opportunities
I am delighted to introduce this first Market Essentials folder on Malaysia. I hope that it serves as a useful reference for foreign investors and the business community.
The Malaysian Government continues to ensure that the country’s competitiveness is maintained in the increasingly borderless world. It has always emphasised the importance of good governance and transparency. Various measures have been implemented to improve public service by reducing bureaucracy and cutting red-tape.
A membership society that strives for:
An opportunity for exchanges between the many Malaysians living in the UK and the local community
Introduction by the Malaysian High Commissioner to the UK
Malaysia is among the world’s top 20 trading nations. Its stable political environment, strong economic fundamentals, low inflation and interest rates, and skilled labour force make it an attractive location for business and investment. Malaysia’s liberal trade and investment promotion policies have attracted global players.
THE BRITISH MALAYSIAN SOCIETY
For further information please contact:
to ensure sufficient human capital for the country’s future development. In addition, Malaysia is fully committed to exploring new sources of economic growth, including the modernisation of agriculture, the harvesting of our rich biodiversity through the use of bio-technology, as well as through developing value-added services, such as business process outsourcing and Islamic financial services.
The British Malaysian Society Asia House 63 New Cavendish Street London W1G 7LP Tel: 020 7307 5438 Fax: 020 7307 5459
Malaysia offers excellent commercial opportunities in all sectors. With a Government that is focused on policies that help business to capitalise on those opportunities, it is sure to remain a favourable destination for investment.
Malaysia also recognises the importance of an educated and skilled workforce. The scope of our education system, including vocational training, will continue to be upgraded
Email: info@thebritishmalaysiansociety.org Website: www.thebritishmalaysiansociety.org
© November 2006 - InterTrade Media Limited. All rights reserved.
Photos courtesy of: Tourism Malaysia and Dreamstime.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of InterTrade Media Limited. The views expressed in this publication are not necessarily those of the promoters involved. Whilst every effort has been made to ensure that the information in this publication is accurate, InterTrade Media Limited cannot accept any liability for loss or damage arising from facts, errors or omissions. Readers should undertake the usual commercial checks before entering into business arrangements. InterTrade Media Limited UK, Tel: + 44 161 613 5872, Fax: + 44 161 333 5353, E-mail: info@intertrademedia.com
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Page 1
Malaysia
Introduction
Welcome Message by the Chairman of the British Malaysian Chamber of Commerce I am pleased to have this opportunity to introduce the British Malaysian Chamber of Commerce (BMCC) and recommend it as an excellent point of contact for companies arriving in Malaysia. The aim of the Chamber is to provide support to UK businesses operating in Malaysia and to facilitate a forum for Malaysian and British business people to get together for mutual benefit.
Datuk Peter Wentworth
It is a bilateral organisation, designed to promote and foster trade, services and investment between Britain and Malaysia and to provide a forum for the interchange of business views and experiences. Its major roles and activities comprise a mix of business and social functions, including lunches with high profile speakers, breakfast briefings on a wide variety of topics and various networking and social events, such as our annual golf scramble, bowling and the British Ball. Currently, we have around 300 members and membership is growing consistently. The BMCC also aims to create dialogue with other chambers in Malaysia for both business and social events and to offer the opportunity for our members to network with a broader audience.
The BMCC, in order to further dialogue with the Malaysian Government, has recently established a government and policies sub-committee. This has already embarked on several initiatives that will contribute to the BMCC being an effective voice for our members with regard to the Malaysian Government and its various ministries. In addition, the Chamber organises the annual JPA programme, which is a four-month development programme for Government officers. Up to 15 civil servants of middle seniority are taken into BMCC member companies for hands-on exposure to the private sector. It is widely recognised as a valuable programme. The BMCC also produces a bi-monthly magazine that covers a variety of themes over the year and includes interviews with many high level businessmen in Malaysia. The magazine is recognised as a key channel by which companies can reach their target markets.
Malaysians place great importance on the correct use of titles. Tunku or Tengku indicates hereditary royalty; Tun denotes membership of a high order of chivalry; Tan Sri an Datuk (or Datuk Seri or Dato’) indicate knighthood. Tuan or Encik is the equivalent of Mr, Puan of Mrs, Cik of Miss.
Comment by the Chief Executive of Asia House in London Asia House is honoured to be contributing to this Market Essentials folder on Malaysia. Asia House is the premier pan-Asian organisation in the UK, promoting a greater understanding of the rich and varied Asian cultures and economies. As a forum for the exchange of ideas and knowledge, it provides a bridge for cultural and business linkages and promotes understanding of the increasing importance of Asian economies within the global system. Based in London, Asia House fosters links with the Asian business and diplomatic communities.
Stefan Kosciuszko
Asia House works in close association with the Malaysian High Commission in London, MIDA, the Malaysian Trade Commission and the Foreign and Commonwealth Office; we have organised two keynote business events for Malaysian Prime Minister Badawi and Deputy Prime Minister Najib on recent visits to the UK, which were well attended by over 500 guests. Our mutual endeavours remain a dynamic and vital
avenue for the promotion of Malaysia’s business opportunities and vibrant cultural offerings. In a series of events throughout 2006/7, our exciting Connecting Cultures features: Malaysia Contemporary explores Malaysian fashion with Tom Abang Saufi; food with Chef Wan; the youthful Malaysian film industry, with screenings and lectures by up-and-coming directors; contemporary design; and theatre, showcasing the works of Malaysia’s top playwrights. Malaysia is endowed with a rich, colourful, fascinating culture and dynamic international business opportunities; the sheer popularity of our events is testament to this. This Market Essentials folder is an informative, accessible guide to the sectors, opportunities and industries in the region.
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Malaysia
Introduction Introducing The British Malaysian Society
The British Malaysian Society was founded in the early 1980's as a bilateral friendship organisation. It seeks to nurture and maintain an array of contacts and valuable friendships that have been forged with Malaysia and Malaysians by the British while doing business, working in and visiting the country. Members presently include a number of international corporations across a broad spectrum of the UK's academic and corporate influence. This membership nucleus with its important high level business relationships, together with a steadily growing number of individual members, all have a keen interest in maintaining existing links and establishing new ones with Malaysia and Malaysians.
Dato’ Neville Green, OBE, Chairman
The Society’s Steering Group, its Management and its Committees on such issues as Trade & Investment, Education & Culture meet regularly in London in pursuit of the Society’s objectives, in particular the promotion of British and Malaysian interests and the bilateral relationship. A new presence in Malaysia, called The BMS KL Panel, was launched in Kuala Lumpur on 16 September 2002 and includes individuals influential in Malaysia's business environment and with strong, long lasting connections with Britain.
If you have experience of visiting, living, or working in Malaysia, or perhaps a special interest in any aspect of Malaysian life - or you are a Malaysian living or working in Britain - you are encouraged to keep in touch, remain upto-date on Malaysian current affairs, by joining the Society and participating in its variety of activities. Membership is £35 per annum for individuals, £45 for couples, £5 for students, and £325 per annum for corporates - covering multiple membership within the same company/organisation. There is no entry fee. An application form can be downloaded from our website: www.thebritishmalaysiansociety.org We look forward to welcoming you!
Since independence in 1957, Malaysian GDP has grown by an average of 6.5% every year, one of the highest consistent growth rates in the world. Over the same period, GDP per head increased by an average of 7% per annum.
Introducing Malaysia When Malaysia was formed in 1963, it inherited an economy dominated by rubber and tin. Four decades on, it has made the remarkable transition from a low technology, commodity-based economy to an emerging multi-sector economy. Stable and fast growing, Malaysia is now one of South East Asia's most formidable commercial centres. Malaysia is abundantly endowed with natural resources, including rubber, palm oil, tin, timber, oil and gas. Wealth from these basic resources fuelled annual growth of 8% during the 1980s and 1990s. By 2005, manufacturing had grown from 13.9% of GDP in 1970 to 31.4%, while agriculture and mining - which together had accounted for 42.7% of GDP in 1970 – had dropped to 7.8% and 5.9% respectively. Like others in the region, Malaysia was hit hard by the 1997 Asian crisis, with the economy contracting by 6.8% in 1998. A policy mix of pegging the currency against the US dollar, exchange controls and deficit financing to boost domestic demand, coupled with strong IT exports, saw growth rebound. Just three years later, Malaysia was almost tipped into recession again when the global economic slowdown and IT sector slump slashed demand for Malaysia's exports. However, Government intervention, together with high international oil and commodity prices and the recovery of the international IT sector, helped the economy bounce back. In 2005, GNP per capita grew by 5.7%, despite caution in the business community around SARS and the war in Iraq. This upturn was fuelled primarily by the manufacturing sector - particularly electronics and chemicals. Today, Malaysia is one of the world's largest exporters of semiconductor devices and electrical goods and appliances and the Government has ambitious plans to make it a leading producer of high-tech products. This strategy is underpinned by the development of the Multimedia Super Corridor - Malaysia's answer to Silicon Valley. Kuching Waterfront
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Malaysia
Country Profile Geography Strategically positioned in the heart of South East Asia, Malaysia has two geographically distinct regions, separated by the South China Sea. Peninsular Malaysia is home to 11 of the country’s 13 states and two Federal Territories (Kuala Lumpur and Putrajaya). The other two states - Sabah and Sarawak - as well as the federal territory of Labuan, are in East Malaysia, on the north coast of the island of Borneo.
centre of the Federal Government of Malaysia. Putrajaya is set to become a model city with its sophisticated and up-to-date information network.
Peninsular Malaysia shares frontiers with Thailand to the north and Singapore and Indonesia to the south. Sabah and Sarawak border Kalimantan (the Indonesian part of Borneo) and Sarawak surrounds the tiny enclave of Brunei.
A tropical climate means temperatures constantly hover around 30°C (22°C in highland areas). Humidity is high year round, averaging about 80% annually. The major distinction in the seasons is marked by the arrival of the monsoon, which brings heavy and prolonged downpours to the east coast of Peninsular Malaysia, the north eastern part of Sabah and the western end of Sarawak, from November to February. The Peninsula's west coast experiences milder storms during April and May.
With a population of 25.7 million, the country’s rapidly growing capital Kuala Lumpur is on the west coast of Peninsular Malaysia. Around 25 kilometres away and within the Multimedia Super Corridor is Putrajaya, the new administrative
Terrain on Peninsular Malaysia ranges from mountainous areas along the spine of the peninsula to wide, fertile plains on the west coast and a narrow coastal plain on the east. East Malaysia is covered by dense jungle and river systems. More than 60% of the country is still rainforest.
Kuala Lumpur, meaning ‘muddy estuary’, started life as a mining settlement in the mid-1800s with the discovery of tin at the confluence of the Klang and Gombak rivers. Today, Kuala Lumpur leads the country's fast paced development in trade and commerce, banking and finance, manufacturing, transportation, IT and tourism. It also houses the world's tallest building, the 452m high Petronas Twin Towers.
SOUTH KOREA
MONGOLIA
CAMBODIA VIETNAM
Yellow Sea Gulf of Thailand
East China Sea
CHINA
PHILIPPINES
THAILAND
TAIWAN
South China Sea
Langkawi
BHUTAN
Kota Kinabalu Kedah Kelantan
BANGLADESH
Sabah
MYANMAR
South China Sea
LAOS
Bay of Bengal
PHILIPPINES
BRUNEI
Terengganu
Perak
MALAYSIA Pahang
VIETNAM
MALAYSIA
Kuala Lumpur Negeri Sembilan
THAILAND CAMBODIA
Sarawak
Malaka Johor Kuching
SINGAPORE
BRUNEI
MALAYSIA
MALAYSIA
SINGAPORE
INDONESIA
INDONESIA
INDONESIA
EAST TIMOR
INDONESIA
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Petrochemicals Petrochemicals
Community Community Services Motor Motor Oils Oils & & Lubricants Lubricants Turtle Sanctuary
Playing A Leading Role In Energy and Petrochemicals Energy and materials, used safely and efficiently, are essential to the prosperity and growth of every country and region in the world. Sustaining and enhancing our quality of life depends on them. BP’s role is to play a leading role in meeting these needs from oil, gas, solar power and petrochemicals without damaging the environment. But we do much more than that. BP markets a full range of lubricant services and customer solutions and is a market leader in lubricant products namely Castrol, Duckhams, Visco and Vistra. We are a major player in the petrochemical sector – producing Ethylene/Polyethylene and Acetic Acid in joint-venture plants in
Kertih and Purified Terephthalic Acid in Kuantan. These chemicals are used to make a diverse range of products such as food packaging, carrier bags, synthetic fibres, paints and medicines. A good business should be both competitively successful and a force for good. In BP, we have a commitment to make a real contribution to the communities in which we operate. Our programmes, which focus on the environment and science education, are carried out in partnership with government bodies, NGOs and the local community. In all its operations, BP seeks both to meet the highest standards in socially and environmentally responsible resource development and to be a catalyst for sustainable economic growth.
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Market Opportunities
Malaysia
Healthcare and Medical Market A fast growing population and an increasing number of elderly citizens have pushed healthcare to the top of the Malaysian Government’s agenda. The Ministry of Health is upgrading and restructuring various areas of the healthcare sector to cope with increasing demand. During the period of the Eighth Development Plan (2001 to 2005), 22 hospitals were built. The Government has committed a further RM10.28 billion of investment between 2006 and 2010. Meanwhile, private sector involvement in healthcare is increasing. Some of the plans for new hospitals that were put on hold during the Asian crisis are being revisited by the larger healthcare groups, creating opportunities for UK companies with expertise in construction, design and equipment supply. As part of its strategy for improving the overall efficiency of the healthcare sector, the Government is planning to move away from the public-private sector split in healthcare provision towards a system of national healthcare
insurance. Such a policy has been on the agenda for several years, but it is now being considered more seriously. The market for medical equipment and pharmaceuticals is estimated to be growing at around 15% each year and 85% of supplies are imported. This means growing opportunities for UK companies in the healthcare sector to supply medical products, equipment and services. The shortage of doctors and nurses is a serious problem in Malaysia. Both private and Government training institutions are keen to investigate partnership opportunities with UK educational establishments. A number of training institutes are being set up which are also seeking foreign affiliations, as well as programmes and trainers to tutor medical support staff. Malaysia also aims to become the global hub for telehealth services, products and education. Initiatives which harness multimedia and IT, such as electronic health records, tele-consultations and e-learning, aim to provide greater access to quality healthcare and reduce the national health bill.
Government and Politics: A constitutional elective monarchy, Malaysia elects a Head of State (Agong) every five years. King Syed Sirajuddin took office in 2002. Parliament consists of a non-elected upper house (Dewan Negara) and an elected lower house (Dewan Rakyat). The Prime Minister must be a member of the lower house. In 2003, Abdullah Ahmad Badawi succeeded Mahathir Mohamad as Prime Minister. In 2005, the ruling BN (Barisan Nasional) coalition was re-elected by a landslide.
Oil and Gas With the 24th largest crude oil reserves and the 13th largest gas reserves in the world, Malaysia is a major force in oil and gas. In 2005, the country’s natural gas reserves stood at 85.2 trillion cubic feet and its crude oil reserves at 5.3 billion barrels – enough for around 33 years and 19 years respectively at current consumption levels. While Malaysia is currently a net exporter of crude oil, it is expected to become a net importer in the next few years. Ownership of all Malaysia’s hydrocarbon resources is vested with Petronas, the Government-owned national oil company. Petronas is also tasked with developing and adding value to these resources. In the 1980s and 1990s, development centred on the downstream sector, with many large pipelines and petrochemical plants being built. Since 2003, the emphasis has shifted to upstream, with product optimisation, field developments and deepwater exploration becoming focus areas. The big five oil companies in Malaysia (Petronas, Exxon Mobil, Shell, Talisman Energy Malaysia and Murphy Oil) are investing heavily in drilling, exploration, field development and new platforms. This has opened up opportunities for UK companies with experience in advanced drilling technology, reservoir engineering, sub-sea engineering, design and maintenance services and equipment supply. Exploration and production have historically taken place off shore of East Malaysia and off the east coast of Peninsular Malaysia. It was only recently that deeper offshore areas were opened to exploration. 2002 saw a major deepwater discovery when Murphy Oil successfully drilled the Kikeh field, boosting reserves by an estimated 400 million barrels.
Redang Island
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Market Opportunities Mechanical, Electrical and Process Engineering Supporting Malaysia’s flourishing manufacturing industries is an attractive prospect for UK engineering companies. The largest contributor to Malaysia’s economy, manufacturing, accounts for 34% of GDP and 80% of export earnings. It includes industries such as textiles/clothing/footwear, electronics, chemicals, metal, wood products, transport equipment, rubber products, petroleum products, optical and scientific equipment, non-metallic mineral products, paper and pulp products, beverages, tobacco and food. With a relatively small domestic market, the economic health of manufacturing depends very much on export markets. Electronics account for about 70% of the total manufactured goods exported by the country. It’s not surprising, then, that Malaysia’s engineering sector consists mainly of manufacturing support industries. A large proportion of the requirement for machinery, equipment and parts is met by imports. It imports on average £5 billion worth of machinery and equipment each year, with machine tools and ancillary equipment accounting for 50% of total imports.
The manufacturing support industries offer a wealth of opportunities for British engineering companies. Local production of moulds and dies for the electronics and automotive industry only satisfies half of market demand, which means Malaysia must turn to overseas engineering companies to supply the deficit. Malaysia offers a good base for contract manufacturing of OEM products, especially metal fabrication works and plastic injection moulded products. Dyson, for example, contract manufactures its vacuum cleaners in Malaysia. The Government encourages production of machinery and equipment for agriculture, food and drink processing and packaging, materials handling, CNC machine tools and plastic injection moulding. In particular, it is seeking to encourage greater automation and computerisation of production processes. There is also potential for technology transfer from the UK.
The UK has strong commercial ties with Malaysia. It is Malaysia's 13th largest trading partner globally and third largest among EU member states. British investors include Tesco, which opened its first store in Malaysia in 2002; Debenhams and The University of Nottingham, which is building a Malaysian campus at a cost of some £12 million.
Power Malaysia has a total installed generating capacity of just over 19,000MW. The majority (around 17,320MW) is concentrated in Peninsular Malaysia, with the remainder split roughly between Sarawak and Sabah. Except for a brief lapse during the Asian crisis, demand for electricity has risen steadily since the late 1980s and it is predicted that it will increase by around 6.3% per annum between 2006 and 2010. Heavyweight investment in upgrading the existing transmission and distribution infrastructure and creating new generation, transmission and distribution capacity is expected to meet this demand. The principle challenges facing the Malaysian power industry are improving efficiency, making the cost of electricity competitive, bringing the quality of supply up to international standards and improving the standard of services. Renewable energy - in particular biomass - and energy efficiency will also become a major future focus. By 2010, Malaysia hopes that 5% of its electricity will be generated from renewable energy sources as part of its Small Renewable Energy Programme (SREP), designed to decrease reliance on natural gas. Plans to build two renewable energy plants are currently being implemented. Privatisation, which started in 1992, has partially transformed Malaysia’s electricity supply utilities from state-owned entities into investor-owned utilities. There are three main utilities which are part government and part privately owned: Tenaga Nasional Bhd (TNB) in Peninsular Malaysia, Sabah Electricity Sdn Bhd (SESB) in Sabah and Sarawak Electricity Supply Corporation (SESCo) in Sarawak. Petronas Twin Towers
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Market Opportunities Aerospace The aerospace sector has been identified as a key area of economic growth if Malaysia is to achieve the national aspiration of being a developed nation by 2020. The Malaysian aerospace industry consists of more than 130 public and private organisations of varying sizes and employs more than 50,000 people. The Government sees the sector’s development as a crucial tool in acquiring critical advanced technologies that can be applied to other industries. The Government’s commitment to developing the sector further is exemplified by the fact that the Malaysian Aerospace Council (MAC) is chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi.
The broad aerospace development strategy focuses on five key areas: -
parts and component manufacturing avionics and systems maintenance, repair and overhaul regional centre for aerospace training and education space infrastructure and applications
The Government has provided incentives to the private sector to establish ‘anchor’ companies in all five of these focus areas. In turn, these anchor companies are being encouraged to set up their own vendor development programmes for sub-contracting companies.
The MAC comprises representatives from leading aerospace companies and Government organisations. It meets every quarter to discuss strategies for developing the sector.
Malaysia is keen to promote the country as a ‘Halal Hub’ for exporting to Muslim countries. Halal is a food processing system based on the rules of Islam. The potential annual world market for halal products is US$560 million per year, to serve an estimated Muslim world population of 1.8 billion.
Food and Agriculture Malaysia has long been a net food importer and the amount it imports each year has been steadily increasing - a trend which the Government is keen to correct. The Ninth Development Plan identifies the agricultural sector as the third engine of growth and wealth creation, after manufacturing and services. The growth in food imports is indicative of changing food consumption patterns in Malaysia. There is a much greater interest in food safety, balanced diets and health, which has led to changes in consumer preferences and tastes. The general increase in disposable income has also contributed to changes in lifestyle and consumption patterns, with consumers willing to pay more for imported food and ingredients. In terms of plantation-based commodity agriculture, Malaysia is a major global player. It is the world’s largest exporter of palm oil and the third largest exporter of rubber. The country also has considerable plantationbased food production in products such as cocoa, pineapple and pepper. The Government’s strategy is to gradually shift the emphasis in agriculture from a commodity-based approach to a product-based approach which is more closely aligned with market demand and consumer preferences. At the same time, the Government wants to raise farmers’ and fishermen’s income through developing more large-scale commercial farms, intensive use of land and more productive crop clones. The Ministry of Agriculture’s target is to turn the present deficit in the annual food bill into a surplus of RM1.57 billion by 2010.
New Central Market - Kota Bharu
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Education Malaysia is an important market for UK education and training, worth over £350 million per year. Currently, about 11,860 Malaysian students annually come to the UK to further their studies. An additional 20,000 Malaysians study on UK degree programmes delivered in Malaysia and up to 45,000 undertake UK professional qualifications. The excellence in British education and training is promoted aggressively, with an emphasis on its quality, affordability and the attractions of a UK lifestyle. The Malaysian Government spends around RM2 billion (£0.29 billion) annually on providing scholarships for Malaysians to study abroad. In a recent UN report, Malaysia was reported to have spent approximately 7.9% of its GDP on education and training since 2001, among the highest in developing countries.
needs an “education revolution” to realise its development aspirations. To achieve this, it plans to provide for 1.6 million places in higher education by 2010 and to ensure that 75% of lecturers at higher education institutions are qualified to PhD level. This translates to approximately 20,000 lecturers who will have to upgrade their qualifications. The importance the Government places on education is shown by the number of senior appointments with differing responsibilities for the sector. There are two ministers of education: one to oversee schools, matriculation, vocational and technical education, special education and Islamic education; and the other to oversee public and private higher education institutions. An education envoy, with ministerial status, is responsible for networking with foreign universities, as well as promoting Malaysia as a regional educational hub overseas, and the Ministry of Human Resources continues to oversee vocational skills development programmes, among other things.
The Government sees an educated and skilled workforce as the engine of Malaysia’s economic growth. The Prime Minister has said that the country
The earliest recorded Malay kingdoms grew from coastal ports established in the tenth century. These include Langkasuka and Lembah Bujang in the province of Kedah, Beruas and Gangga Negara in Perak and Pan Pan in Kelantan.
Communications Since the privatisation of the state-owned Telekom Malaysia in 1985, Malaysia’s telecommunication network has seen impressive expansion and upgrading. Malaysia is linked to the rest of the world through various fibre optic and satellite networks and there is an increasing demand for bandwidth and medium and high-end technologies. Broadband roll-out is now slowly accelerating, although penetration remains low. Malaysia’s first internet service provider, Jaring, was launched in 1991. Today, there are four internet service providers, five cellular service operators and five network service providers with a full range of local, domestic and international services, encompassing voice and data facilities. The telecommunications sector has undergone significant consolidation. Of the country’s original eight telecommunications companies only three remain, due to a wave of industry consolidation. The three major operators are Telekom Malaysia, Maxis and DiGi, with its foreign partner Deutsche Telekom. Telekom Malaysia, or TM as it is now called, still retains a near-monopoly of the country’s fixed-line network and its share of the mobile market has been growing rapidly since its acquisition in 2003 of Celcom Berhad, the country’s first and largest mobile telecommunications company. With over 14 million mobile subscribers in the country, the mobile phone has become the favourite way for Malaysians to communicate. The market is very dynamic with service providers competing fiercely for market share. Market consolidation has reduced not just the number of players but also duplication of resources. It has resulted in healthy competition and an overall decrease in call rates. Perhentian Island
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Construction The construction industry is one of Malaysia’s most important economic sectors, employing around 800,000 people, plus a considerable proportion of foreign labour. The sector has grown at around 3% per year on average over the past decade. However, 2004 and 2005 were difficult years, with minimal growth. In the Ninth Development Plan (2006 to 2010), the Government’s focus is on the development of infrastructure, hospitals and schools. In an effort to reduce the level of foreign labour in the industry, the Government is promoting a greater utilisation of industrialised building systems for public and private projects. The sector is quite tightly regulated. The main legislation governing the construction of buildings is the Uniform Building By-Law 1984, which is based predominantly on British Standards. The Construction Industry Development Board Act 1994 made it mandatory for all contractors and builders to be registered with the Board
before being allowed to build and construct in the country. Foreign contractors who are registered with the Board are allowed to construct and complete only the specific project they are registered for and registration expires once that project is completed. Similarly, the Architects Act 1967 and the Registration of Engineers Act 1967 provide for the temporary registration of foreign architects and engineers with the Board of Architects and Board of Engineers respectively. There are two standard contract types for building works, namely PAM (Association of Architects Malaysia) and CIDB (Construction Industry Development Board). The traditional client-consultant-contractor contract and the design and build (or turnkey) form of contract are both well established in the market. However, the concepts of design and build and operate (BO); build, operate and transfer (BOT); and build, own, operate and transfer (BOOT) are becoming increasingly popular for major national infrastructure projects. The Government has indicated that it may also consider public-private partnership arrangements for future projects.
Malaysia has a total population of 25.7 million, but it is very unevenly distributed across the country, with Western Malaysia being seven times more densely populated than eastern Malaysia.
Media and Creative Industries The popularity of new and digital media technology in Malaysia has transformed the way in which the media is viewed, practised and consumed.
Media and music from Hong Kong, Taiwan, Korea and more recently Japan, have a considerable influence among the ethnic Chinese that comprise a quarter of the population.
Ownership of televisions and radios has increased enormously, as have the circulations of newspapers and magazines.
Similarly, the 7% of the population who are ethnic Indians have a strong following for media from India.
Malaysians are more affluent than ever before and a higher proportion are exposed to foreign media. Consequently, expectations are considerably higher than ten or even five years ago, both in terms of quality and quantity.
Generally speaking, there is a move to encourage the production of more local content. The state-owned TV stations have awarded contracts to local drama producers to develop more programmes for the local market, with the aim of raising the standards of the industry.
There are currently 30 network radio stations in Malaysia, five television station operators and one subscription television station.
In terms of content, there is a strict code enshrined in the Malaysia Code of Advertising. The Ministry of Information does not allow any performance that could cause offence to consumers. It can require the withdrawal of anything deemed to contravene the code. There are also sensitivities around political and religious issues which may offend the susceptibilities of any section of the community. The Ministry has in the past banned songs, shows and films due to their content.
There is a certain amount of industry fragmentation due to the varied ethnic composition of the Malaysian population, which comprises a majority community of Malays, plus significant Chinese and Indian minorities, various non-Malay indigenous communities and other ethnic groups.
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Software and Computer Services Developing Malaysia’s ICT sector is a key Government policy. In particular, efforts are being made to increase the supply of qualified labour, through the more intensive computerisation of schools, an increase in the number of ICT and ICT-related higher education courses and by offering incentives to private sector companies to improve their employees’ ICT skills. Electronic learning or e-learning is becoming more widely used, but it has yet to play as big a role as the Government would like. Despite official encouragement, local corporations are not yet convinced of the benefits of incorporating e-learning into their employee training or learning programmes.
As the Malaysian Government pushes on with the country’s rapid economic development, further software and computer service-related opportunities are anticipated in particular sectors of industry. These include: - banking and finance: increased competition and provision of value-added services such as online banking. - telecommunications: greater penetration of mobile and broadband services, leading to more maintenance and network management services. - distribution: more demand for business-to-business support management systems and e-procurement services. - healthcare: expansion of healthcare sector in general, leading to more demand for ICT systems, infrastructure and maintenance.
Contributory factors are believed to include the lack of a lifelong learning culture and inadequate supporting infrastructure such as high bandwidth connections. Other factors include language barriers and a lack of financial incentives to encourage the setting up of e-learning facilities.
The Multimedia Super Corridor (MSC) is a dedicated high-tech business corridor, 15 km wide and 50 km long. It stretches from the Petronas Twin Towers in the north to Kuala Lumpur International Airport in the south. Since its conception in 1996, it has grown into a dynamic ICT hub, hosting more than 900 multinationals and Malaysian companies focused on the multimedia, technology and communications sectors.
Environment and Waste Management The Malaysian Government is publicly committed to improving the country’s environmental performance, but in reality progress so far has been limited. The necessary legislation is in place but a lack of experienced manpower is hindering further development. At present, some 4.6 million tonnes of waste is generated in Peninsular Malaysia every day. This is expected to almost double in the next ten years due to the growth of the urban population and upward consumption trends. It is estimated that about 76% of the waste generated is collected, with the remainder deposited in illegal dumps, drains, watercourses or rivers. Of the collected waste, less than 4% is recycled. The Government is aware that it needs to radically improve solid waste management practices. The current system of manual labour, waste collection trucks and open dumps for waste disposal suffers from a clear lack of modern equipment and environmental controls. According to statistics, available landfill sites will be 80% full by the end of 2006. In an attempt to counter this, the Government is promoting waste management proposals which include recycling campaigns and installation of incinerators. By recycling 22% of the 4.6 million tonnes of annual waste, it estimates that it can save RM88 million a year.
Kuala Lumpur
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Water The creation of a Ministry dedicated to the water sector in March 2004 – the Ministry of Energy, Water and Communications – should enable a more focused and streamlined management of Malaysia’s water and sewerage services. The country’s water industry has so far been able to keep pace with increasing domestic and industrial water demand. Indeed, for a developing country, Malaysia’s water coverage is remarkable: 92% of the population has access to potable water that meets international standards. However, recent studies have shown that the water industry, which is highly subsidised by the state governments, is facing three major problems:
There is a recognised need for increased investment and an upgrade of both the infrastructure and services to the consumer in order to address these challenges. One of the major problems faced by the federal government in developing the water sector is to clarify the difference in management responsibilities between the federal and state governments. The National Water Resources Council (NWRC) was established to try and achieve this. The objective of the NWRC is to manage national water resources in a more orderly and efficient manner and to ensure that the development of the industry is sustainable.
- high level of non-revenue water (NRW), which has a national average of 40%. The national objective is to reduce NRW to 30% by year 2010; - the deterioration of water quality in some areas; - irregularity of supply during the dry months in some areas.
Malaysia is a multi-religious society, but Islam is the official religion of the country. The four main religions are Islam (about 60% of the population), Buddhism (about 20%), Hinduism (13%), and Christianity (9%, mostly in East Malaysia).
Electronics and IT Hardware Malaysia's electronics industry is export-oriented and has historically been typified by low-value assembly and packaging operations. The Government recognises that improvements are urgently required in training and in terms of global competitiveness. The aim is to move the country’s electronics sector further up the value chain through a greater emphasis on technology, research and development (R&D) and highervalue products. It is encouraging the development of the wafer fabrication industry to complement existing strengths in electrical goods and electronic subsectors. The ultimate goal is to strengthen links within the industry through the development of precision components such as vacuum equipment, precision valves and enhanced R&D activity. In Penang, for example, home to over 150 electronic factories, the focus is on diversifying the investment base into leading-edge technology industries such as photonics. The lack of skilled resources is still a concern but one that can only be resolved by greater co-operation between industry and education, which the Government is encouraging, not to mention the considerable investments it is putting into ICT training and education in general.
(photographer: Stuart Corlett)
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Malaysia
Key Facts Official name: Persekutuan Tanah Malaysia (Federation of Malaysia).
Natural resources: tin, petroleum, timber, copper, iron ore, natural gas, bauxite.
Capital: Kuala Lumpur. Putrajaya is the administrative capital.
Top exports: electronics, electrical products, timber, palm oil and rubber, petroleum, LNG, textiles, pepper.
Population: 25.7 million. Area: 329,758 sq. km (127,320 sq. miles). Government: Constitutional elective monarchy.
Top imports: machinery, chemicals, manufactured goods, fuels, lubricants. Export partners: USA (19.6%), Singapore (15.7%), Japan (10.7%), China (6.5%), Hong Kong (6.5%), Thailand (4.4%).
Head of state: King Syed Sirajuddin. Prime minister: Abdullah Ahmad Badawi. Major political parties: United Malays National Organisation (UMNO), Democratic Action Party (DAP), Pan-Malaysian Islamic Party (PAS) and Parti Keadilan Rakyat (PKR). Religions: Islam (60%), Buddhism (20%), Hinduism (13%), Christianity (9%), Confucianism (3%), Animism and others (3%).
Import partners: Japan (17.3%), US (15.5%), Singapore (11.9%), China (8.8%), South Korea (5.5%), Taiwan (5%), Germany (4.7%), Thailand (4.6%). Weights and measures: The metric system is used although the imperial system is understood and may still be occasionally found. Currency: Ringgit Malaysia (RM). Exchange rate: RM3.8 = US$1 (pegged).
Languages: Bahasa Melayu is the official language. English is common in commerce and industry. In addition, Cantonese, Hokkien, Mandarin, Tamil and indigenous languages are spoken.
Gross National Income (GNI) per capita: US$4,470 (2004). Time: GMT plus eight hours.
Ethnic groups: Malay and other indigenous (52%), Chinese (24%), Indian (7%), others (17%).
International dialling code: 00 60.
Major cities: Kuala Lumpur, Kelang, George Town, Ipoh, Malacca, Johor Bahru, Kuching, Kota Kinabalu, Alor Setar, Shah Alam, Miri, Kota Bharu, Labuan, Negeri Sembilan, Kuantan, Kuala Terengganu
Hours of business: Mon–Thu: 0800-1800; Fri: 0800-1230, 1445–1800; Sat: 0800-1200; some variation in Johor, Kedah, Kelantan, Perlis and Terengganu.
Major trading partners: USA, Singapore, Japan and China.
Shops: 1000–2200 department stores and supermarkets; As well as Friday, the Muslim weekly holiday on Thursday afternoon is observed in the states of Johor, Kedah, Kelantan, Perlis and Terengganu. Other states have a Saturday to Sunday weekend.
Major industries: electronics, petroleum and LNG, chemicals, textiles, palm oil, timber.
Malaysia
Introduction
Malaysia
Useful Contacts
Foreword by the British High Commissioner to Malaysia I am delighted to contribute to this Market Essentials folder on Malaysia. It shows very clearly why Malaysia is a good country in which to do business. Many UK companies are already present in the market making good profits, both here and in the wider region. I hope the information given here will convince you that you should follow their example.
Boyd McCleary, CVO
Britain has a long history of trade with Malaysia. Almost two hundred years prior to the formation of modern Malaysia in 1963, Britain established a presence on the Malay Peninsula, a vital stopping-off point on the trade routes between China, India and Europe. Malaysia today is again at the heart of Asia’s booming trade. A major exporter of manufactured goods, especially electrical and electronic products, but rich also in commodities such as palm oil and rubber, Malaysia absorbs well over £1 billion annually of British goods and services. British companies have invested over £20 billion here in the past 30 years. Their presence is particularly strong in the financial sector, in oil and gas and in the retail and hotel sectors. HSBC, Standard Chartered, Prudential, Shell, BP, Hanson, GlaxoSmithKline, and Jardines are major and longstanding investors. Successful newcomers include Dyson and Tesco. But many smaller companies have also done well. Educational ties are strong. Thousands of Malaysian students study each year in the UK and tens of thousands more study for UK qualifications in Malaysia. And
opportunities within the educational sector continue to grow as the Malaysian Government seeks to make Malaysia a regional centre of educational excellence. With legal and educational systems based on UK models, strong infrastructure, and a vigorously growing economy, plus a Government keen to attract investment, Malaysia offers an excellent environment in which to do business and one in which UK companies are welcome. We in the British High Commission are here to help you realise the opportunities that Malaysia offers. Please do not hesitate to contact my UK Trade & Investment team here in Kuala Lumpur, or their counterparts in London, to obtain their advice on how to develop your business in Malaysia. We will be stepping up our efforts to help UK companies into the Malaysian market in 2007. We are planning a busy year of events to help Malaysia celebrate its 50th year of Independence. Please contact my First Secretary for Trade and Investment, Eamonn Staunton on + 60 3 2170 2232 for further information.
Malaysia is among the world’s top 20 trading nations. Its stable political environment, strong economic fundamentals, low inflation and interest rates, and skilled labour force, make it an attractive location for business and investment.
UK TRADE & INVESTMENT Kingsgate House 66-74 Victoria Street London SW1E 6SW Contact: Paul Bathgate Tel: 020 7215 4246 Email: paul.bathgate@uktradeinvest.gov.uk Web: www.uktradeinvest.gov.uk
MALAYSIAN HIGH COMMISSION 45 Belgrave Square London SW1X 8QT Tel: 020 7235 8033 Fax: 020 7235 5161 Email: mwlondon@btinternet.com
BRITISH MALAYSIAN CHAMBER OF COMMERCE c/o British High Commission 185 Jalan Ampang 50450 Kuala Lumpur Malaysia Tel: + 60 3 2163 1784 / 1786 Fax: + 60 3 2163 1781 Web: www.bmcc.org.my
BRITISH HIGH COMMISSION 185 Jalan Ampang 50450 Kuala Lumpur Malaysia Contact: Eamonn Staunton Deputy Director for Trade & Investment Tel: + 60 3 2170 2232 Fax: + 60 3 2170 2285 Email: eamonn.staunton@fco.gov.uk Web: www.britishhighcommission.gov.uk
MALAYSIAN TRADE COMMISSION 17 Curzon Street London W1Y 7FE Tel: 020 7499 5255 Fax: 020 7499 4597 Email: matrade@dircon.co.uk
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA) 12th Floor, Block 4, Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur Malaysia Tel: + 60 3 2267 3633 Fax: + 60 3 2274 8507 Web: www.mida.gov.my
ASIA HOUSE 63 New Cavendish Street London W1G 7LP Tel: 020 7307 5454 Fax: 020 7307 5459 Email: enquiries@asiahouse.co.uk Web: www.asiahouse.org
OVERSEAS MALAYSIAN EXECUTIVE CLUB (OMEC) St Alphage House Fore Street London EC2Y 5DH Contact: Dato' John Lim, Chairman Tel: 020 7216 4606 Fax: 020 7638 2159 Email: j.lim@uhy-uk.com Web: www.my-omec.com
THE BRITISH MALAYSIAN SOCIETY (address and fax as above) Contact: Dato' Neville Green, Chairman Tel: 020 7307 5438 Email: info@thebritishmalaysiansociety.org Web: www.thebritishmalaysiansociety.org
MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY C-8-8, 8th Floor, Block C Plaza Mont’ Kiara 2 Jalan Kiara, Mont’ Kiara 50480 Kuala Lumpur Malaysia Tel: + 60 3 6201 7708 Fax: + 60 3 6201 7705 / 06 Email: micci@micci.com Web: www.micci.com
Dato’ Abed Aziz bin Mohammed
The enhancement of British Malaysian relations with the aim of promoting close business, educational, and cultural links between Britain and Malaysia Prominent role in UK-Malaysia relations 100 Corporate and Individual members Wide range of corporate, educational, and cultural events
Excellent networking opportunities
I am delighted to introduce this first Market Essentials folder on Malaysia. I hope that it serves as a useful reference for foreign investors and the business community.
The Malaysian Government continues to ensure that the country’s competitiveness is maintained in the increasingly borderless world. It has always emphasised the importance of good governance and transparency. Various measures have been implemented to improve public service by reducing bureaucracy and cutting red-tape.
A membership society that strives for:
An opportunity for exchanges between the many Malaysians living in the UK and the local community
Introduction by the Malaysian High Commissioner to the UK
Malaysia is among the world’s top 20 trading nations. Its stable political environment, strong economic fundamentals, low inflation and interest rates, and skilled labour force make it an attractive location for business and investment. Malaysia’s liberal trade and investment promotion policies have attracted global players.
THE BRITISH MALAYSIAN SOCIETY
For further information please contact:
to ensure sufficient human capital for the country’s future development. In addition, Malaysia is fully committed to exploring new sources of economic growth, including the modernisation of agriculture, the harvesting of our rich biodiversity through the use of bio-technology, as well as through developing value-added services, such as business process outsourcing and Islamic financial services.
The British Malaysian Society Asia House 63 New Cavendish Street London W1G 7LP Tel: 020 7307 5438 Fax: 020 7307 5459
Malaysia offers excellent commercial opportunities in all sectors. With a Government that is focused on policies that help business to capitalise on those opportunities, it is sure to remain a favourable destination for investment.
Malaysia also recognises the importance of an educated and skilled workforce. The scope of our education system, including vocational training, will continue to be upgraded
Email: info@thebritishmalaysiansociety.org Website: www.thebritishmalaysiansociety.org
© November 2006 - InterTrade Media Limited. All rights reserved.
Photos courtesy of: Tourism Malaysia and Dreamstime.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of InterTrade Media Limited. The views expressed in this publication are not necessarily those of the promoters involved. Whilst every effort has been made to ensure that the information in this publication is accurate, InterTrade Media Limited cannot accept any liability for loss or damage arising from facts, errors or omissions. Readers should undertake the usual commercial checks before entering into business arrangements. InterTrade Media Limited UK, Tel: + 44 161 613 5872, Fax: + 44 161 333 5353, E-mail: info@intertrademedia.com
Malaysia
One investment in technology has been our stepping-stone to four global markets.
Market Essentials ”A major exporter of manufactured goods, especially electrical and electronic products, but rich also in commodities such as palm oil and rubber, Malaysia absorbs well over £1 billion annually of British goods and services.” Boyd McCleary, CVO British High Commissioner to Malaysia
The investment we have made in developing and perfecting
markets – civil aerospace, marine, energy and defence. Today we
world-leading engine technologies has established Rolls-Royce
have 54,000 gas turbines in service around the world, delivering
as a landmark for outstanding performance and reliability. Our
reliable, innovative power solutions to a growing and diverse
advanced engine technology and unparalleled service standards
customer base. Rolls-Royce, our investment in technology is our
have enabled us to take giant strides in four expanding, global
stepping-stone to the future. Trusted to deliver excellence
THE BRITISH MALAYSIAN SOCIETY
www.rolls-royce.com
B RITISH M ALAYSIAN C HAMBER of C OMMERCE
Malaysia