Malaysia business travel information

Doing business in Malaysia

Since it became independent, Malaysia’s economic record has been one of Asia’s best. Real gross domestic product (GDP) grew by an average of 6,5% per year from 1957 to 2005. Performance peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid growth averaging almost 8 percent per year. High levels of foreign and domestic investment played an important role as the economy diversified and modernized.

In the past the country was heavily dependent on primary products such as rubber and tin, but today Malaysia is a middle-income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world’s largest exporters of semiconductor devices, electrical goods, and information and communication technology (ICT) products.

The government continues to actively manage the economy. Malaysia’s New Economic Policy, first established in 1971, was a 10-year plan that sought to rectify a situation whereby ethnic Malays and indigenous peoples (“bumiputera”), who comprised almost 60 percent of the population, held less than 3% of the nation’s wealth. Policy makers implemented a complex network of racial preferences intended to promote the acquisition of economic assets by bumiputera. In 1981 when the racial preferences were set to expire, the government extended the this New Economic Policy for another 10 years, stating that its goals had not been achieved. The policies again were extended in 1991 and in 2001. The Malaysian Government plans to release a new economic model in 2010 which will modify and in some cases eliminate the policy measures in an effort to stimulate higher levels of investment and GDP growth over the next decade.

The Malaysian economy went into sharp recession in 1997/1998 during the Asian financial crisis, which affected countries throughout the region, including South Korea, Indonesia, and Thailand. Malaysia’s GDP decreased over 7% in 1998. Malaysia narrowly avoided a return to recession in 2001 when its economy was negatively impacted by the bursting of the dot-com bubble, which hurt the ICT sector, and slow growth or recession in many of its important export markets. The global financial crisis threw Malaysia into recession again in 2009. Economists expect Malaysia to return to a positive growth path in 2010.

In July 2005, the government removed the 7-year-old peg linking the ringgit’s value to the U.S. dollar at an exchange rate of RM 3.8/U.S. $1.0. The dollar peg was replaced by a managed float against an undisclosed basket of currencies. The new exchange rate policy was designed to keep the ringgit more broadly stable and to avoid uncertain currency swings which could harm exports.

The Malaysian financial system exhibited noteworthy resilience to the 2008 global financial crisis. Malaysian banks are well capitalized and the central bank maintains a conservative regulatory environment, having prohibited some of the riskier assets in vogue elsewhere. However, decreasing abroad is taking a toll on Malaysian exports, resulting in negative GDP growth for 2009 with recovery expected in 2010.

Product tip: Keep an eye on the size of your trolley Many luggage stores sell suitcases described as ’carry-on’, but these suitcases are sometimes larger than the size most airlines will accept. The safe maximum size is 114 cm, in the form of a 55 x 40 x 20 cm bag. Some airlines allow up to as much as 140 cm, but most do not. Not only do luggage stores and manufacturers seldom tell you if their bag is legally sized or not, but they also frequently mis-measure their bag. Their measurements generally are for the inside of the main compartment, and assume that any external pockets are of zero thickness, rather than stuffed full of things (which can easily add another inch or more) and ignore any external framing such as wheels and carry handle (which can also add another couple of inches).

In case of emergencies

Before you go on your business trip to , Malaysia you should always get a travel insurance with a complete coverage.

Make sure your health care insurance is sufficiently covered.
Maybe this is already covered in your regular health care insurance but often you will need to cover this with the travel insurance. Also a good travel insurance should cover the costs of travel for a relative in case of seriously illness or an accident.

The business trip travel insurance should also cover the costs of search, rescue and repatriation.
When you go on business trips on a regular basis, the easiest way to get insured is with an annual multi-trip insurance.

Keep in mind that you can also use this insurance for your pleasure trips so don`t forget to include to insure your leisure activities.

For all emergencies you can call 999. The worldwide emergency number for GSM mobile phones, 112 are redirected to the 999 call centre.

In case of a medical emergency you can contact the Damai Service Hospital:
No 109-119 1st Mile Jalan Ipoh
51200 Kuala Lumpur
Phone: 603 4043 5399
Emergency phone number: 603 4043 4900

Business etiquette and protocol

If your are planning a business trip to Malaysia it is a good idea to know at least a little about the culture and etiquette in Malaysia. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in Malaysia to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  Use formal names, professional and academic titles.
  Malaysians retain strong hierarchical relationships. The elderly are always treated with the utmost respect and courtesy.
  Malaysians are not direct, they prefer subtlety to directness. The word "no" is hardly ever used.
  Non-verbal messages are highly valued in communication.
  Never interrupt somebody.
  Dress formal and conservative.
  Malaysians mostly have a Chinese, Malyan or Indian cultural background. Try to find out the cultural background of your host in advance.
  


• Meetings and negotiations:
  When making appointments use the 24-hour clock time format to avoid misunderstandings.
  Be very punctual, if you suspect you will late, call and explain the situation.
  Never cancel a meeting at the last minute.
  Employees in multi-national companies may have adopted the western concept of shaking hands with everyone, however be carefull with shaking hands with a woman, choose to bow your head to be safe unless a hand is offered by the woman.
  Remain standing until invited to sit down or others do so.
  Some time is spent to getting to know you before the business conversation begins.
  Agenda’s are strictly followed.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate.
  Follow up a meeting with a letter or an e-mail with all agreements outlined.
  


• Table manners:
  If unsure on how to behave, mimic the behavior of others.
  Wait until you are appointed a seat.
  Avoid alcohol if possible, otherwise drink little. Malyans are muslim.
  Put a napkin on your lap, eat not too much but finish your plate.
  Keep your hands above the table when eating.
  After finishing your plate lay your knife and fork parallel on your plate with the handles to the right.
  Thank your host at the end of the meal.
  

Some phrases in Malay

Malay is a broadly spread language, of the Austronesian family, and the official language of Malaysia, Brunei, and Indonesia. It is one of four official languages of Singapore and a working language of East Timor, a consequence of over twenty years of Indonesian administration. It is spoken natively by 42 million people across the Malacca Strait, including the coasts of the Malay Peninsula of Malaysia and southern Thailand, Riau province, the eastern coast of Sumatra, and the Riau Islands in Indonesia, as has been established as a native language of Jakarta and of part of western coastal Sarawak and Kalimantan in Borneo. As a second language, it is spoken by an estimated 150 million, mostly knows as "Indonesian".

Although in business people speak English, some Malay phrases can always come in hand....

Welcome	Selamat datang
Hello	Assallamaleicum
Good morning	Selamat pagi
Good afternoon	Selamat tenga hari(12-2pm)
Good evening	Selamat petang(2-7pm)
Good night	Selamat malam(>7pm)
How are you?	Apa khabar?
I’m fine, thanks. And you?	Khabar baik, terima kasih. Awak pula bagaimana?
What’s your name?	Siapa nama anda?
My name is ...	Nama saya ...
Pleased to meet you	Selamat berkenalan
Goodbye	Selamat tinggal (you’re leaving)
Goodbye	Selamat jalan (you’re staying)
Bon appetit	Selamat menjamu selera!
Where’s the toilet?	Di mana tandas?
I don’t understand	Saya tidak faham
Please write that down	Tolong tuliskan perkataan ini
How do you say ... in Malay?	Bagaimana anda cakap .... dalam bahasa Melayu?
How much is this?	Berapa harganya ini?
Thank you	Terima kasih
You’re welcome	Sama-sama
Yes / No	Ya / Tidak