Malaysia holds one of the biggest economies of South East Asia. With its aptitude for global reach and fast paced development, Malaysia is easily set to gain even more economic power. But what is the secret to Malaysia’s prowess? It would be best to touch lightly on the history of Malaysia first to find out.
Malaysia was declared its own country in 1965. This was following its independence from British occupation in 1957 and the subsequent expulsion of Singapore from the united states of Malaysia in 1963.
As such, the economy of the country has been through turbulent times to reach the peak it has today. However, serious efforts were made in the 1990s. Thus, allowing the current economic boom to occur. Moreover, the government of Malaysia openly encourages foreign investment. As such, registering in Malaysia for companies have been made easier than ever. Furthermore, Malaysia is part of several economic unions:
- APEC (Asia-Pacific Economic Cooperation)
- ASEAN (Association of Southeast Asian Nations)
- IOR-ARC (Indian-Ocean Rim Association)
- WTO (World Trade Organization)
By being a member of the organizations listed above, the Malaysian economy is given more reach to improve. But where does most of Malaysia’s profit come from? Experts point to the country’s booming export climate. With a value of $263 billion, Malaysia is quite industrious. Their main export partners are China, Singapore, Hong Kong, The United States, Thailand and Japan. In turn, their main import partners are China, Japan, South Korea, Singapore, The United States, Indonesia and Thailand. Most of Malaysia’s economic details are summarized below:
Key details regarding the current Malaysian economy
- Malaysia is placed at number 22 on a global scale in terms of economic freedom. This is due to their economic score of 74
- Malaysia’s current GDP is valued at $354.348 billion. This high value places it as having the 35th highest GDP in the world.
- In turn, Malaysia has a GDP per capita value of $10901. This makes it place at number 63 out of a census of 180 countries.
- Malaysia’s has a very high standard of living. With a human development index of 0.802, this is expected to rise in the coming years.
- As such, the rate of unemployment in the country has been positively affected, where it stands at a mere 3.4%
- The value of Malaysian imports as of 2017 stands at $197 billion
- In turn, the value of Malaysian exports as of 2017 stands at $263 billion
- This left them with a positive trade balance of $66.4 billion
- As such their current account balance is $9.296 billion
- Registering a business in Malaysia has the option of being done online. Moreover, minimal funds are required. As such, making it quite simple to do so.
As mentioned above, Malaysia’s economic power can be quoted to stemming from its export industry.
Main export products of Malaysia
In 2017, Malaysia’s exports reached a peak value of $263 billion, this number continued to increase in 2018. Malaysia’s main exports products are the following:
- Electrical machinery and other electrical equipment:
Valued at $83 billion, making it contribute to (33.6% of total exports)
- Mineral fuels (inclusive of oil):
Valued at $38.4 billion, making it contribute to 15.5% of total exports
- Machinery and other technological equipment (inclusive of computers):
Valued at $25.4 billion, making it contribute to 10.3% of total exports
- Fats (of both animal and vegetable origins), oils, waxes:
Valued at $12.1 billion, making it contribute to 4.9% of total exports
- Optical, technical, medical equipment:
Valued at $9.4 billion, making it contribute to 3.8% of total exports
- Plastics and other plastic products:
Valued at $9.4 billion, making it contribute to 3.8% of total exports
- Rubber and other rubber products:
Valued at $7.5 billion, making it contribute to 3% of total exports
- Organic chemicals:
Valued at $4.9 billion, making it contribute to 2% of total exports
- Other chemical products:
Valued at $4.4 billion, making it contribute to 1.8% of total exports
- Aluminum:
Valued at $3.9 billion, making it contribute to 1.6% of total exports
Main import products of Malaysia
Malaysia’s main import products are the following:
- Electrical machinery and other electrical equipment:
Valued at US$60.7 billion, making it contribute to 27.9% of total imports
- Mineral fuels inclusive of oil:
Valued at $31.4 billion, making it contribute to 14.4%
- Machinery inclusive of computers:
Valued at $23.1 billion, making it contribute to 10.6% of total imports
- Plastics and other plastic products:
Valued at $8.8 billion, making it contribute to 4% of total imports
- Iron and steel:
Valued at $6.6 billion, making it contribute to 3% of total imports
- Vehicles and other motor parts:
Valued at $6.3 billion, making it contribute to 2.9% of total imports
- Optical, technical, medical equipment and apparatus:
Valued at $5.5 billion, making it contribute to 2.5% of total imports
- Gems, and other precious metals:
Valued at $4.7 billion, making it contribute to 2.2% of total imports
- Organic chemicals and their compounds:
Valued at $4.5 billion, making it contribute to 2% of total imports
- Aircraft and spacecraft:
Valued at $4 billion, making it contribute to 1.8% of total imports
Related Article: Requirement of Export Import License in Malaysia for business
Noted: This point only for export import business registration in Malaysia
Therefore, if you are a foreign national interested in registering in a company in Malaysia, you may take note of the industries mentioned above. By having your business activities relate to them, you may find your company succeeding in the Malaysian economic climate.
Other reasons to consider Malaysia to register your business are the following:
- Diversity
Malaysia is extremely diverse in terms of ethnicity, race and religion. As such, even as a foreign individual, you would not stand out nor be ostracized.
- Ease of communicating
Although Bahasa Malaysia is the official language of the country, English is still used by most of the country. Moreover, English is recognized as the official language of trade.
- Ease of registering business
As the government of Malaysia has made strides to increase foreign investment, the registration process is easy. Moreover, it can be done online or in person, at your discretion. Furthermore, 100% foreign ownership of business is allowed.