The latest edition for 2024] Key Points for Successful Business Expansion into Malaysia

I want to start a business in Malaysia, but where do I start?"

For such people, this article explains the key points to successfully expand and do business in Malaysia.

Please read this article as it will be helpful for those companies who are thinking of entering the Malaysian market.

Key Points for Successful Business in Malaysia

Research the trend of the Malaysian economy

According to REUTERS, Malaysia's economic growth rate for 2023 was only 3.7% y/y, below the government's forecast of 4%. The high growth rate cannot be sustained due to global monetary tightening and geopolitical risks.

At the same time, however, the government has indicated that economic growth in 2024 will be supported by "firm domestic demand and a recovery in external demand. The Central Bank of Malaysia also seems to be analyzing that the slowdown in growth in the fourth quarter of last year was judged to be temporary, and that the underlying strength of the economy has been maintained.

Given this situation, Malaysia's economy is resilient despite the slowdown, and growth is likely to be expected in the medium to long term. However, downside risks to the global economy must also be kept in mind. Companies considering expansion into Malaysia must have a strategy that can flexibly respond to external risks while making the most of Malaysia's attractive domestic market and growth potential.

It is essential to constantly monitor the latest economic trends and accurately grasp opportunities and risks.

Understanding Malaysia's culture, values, and interests

To do business successfully in Malaysia, it is critical to understand and respond appropriately to the country's diverse religions and cultures. Malaysia is home to a variety of ethnic groups and religions, including Malay Muslims, Chinese Buddhists, and Indian Hindus.

Since their lifestyles and values differ based on their religions, consideration must be given to each of them. In particular, during the month of Ramadan (fasting month), eating, drinking, and some business activities are prohibited during the daytime. It is essential for foreign companies to take appropriate measures such as taking vacations and changing business hours.

Religious backgrounds are also strongly reflected in business practices. When making appointments with Malays, it is necessary to pay close attention to details such as avoiding prayer times. In addition, it is important to pay attention to family values that value relatives and the elderly, as well as a hierarchical culture that places importance on hierarchical relationships.

Thus, careful attention to and consideration of Malaysia's cultural and religious diversity will lead to building relationships of trust and business success in the country. Cross-cultural understanding and respect are of utmost importance.

Localize your marketing to suit Malaysia

Localization of digital marketing is an essential part of successfully entering and doing business in Malaysia. Malaysia is a multi-ethnic country with different languages, religions, and cultural backgrounds, so a single digital marketing strategy will not work.

A customized approach is required for each ethnic group, based on a thorough understanding of their preferences and values. For example, a website or social networking promotion that uses multiple languages, such as Malay, English, Chinese, and Tamil, is effective. It is also essential to consider reflecting ethnicity in the design and message content.

Furthermore, for Malays, who are predominantly Muslim, religious considerations are also essential, such as providing products that are legal under Islamic law (halal certification) and refraining from marketing during the month of Ramadan. In this way, meticulously localizing marketing to match the diversity of Malaysia will directly lead to increased awareness and brand loyalty.

Build a local network

One of the most important aspects of doing business successfully in Malaysia is building a local network. Malaysia is a networked society, and building relationships of trust is key to business success. In particular, having a thick pipeline of government officials and influencers will greatly help smooth business operations.

To this end, it is essential to proactively interact with local companies and communities and expand your network of contacts. Join industry associations and attend seminars and events to provide opportunities to meet the people involved.

Hiring local staff can also be a valuable source of information, which will help in marketing and developing sales channels. In addition, it is important not to neglect online local networking through social networking sites; gathering and disseminating information through social networking sites is an essential strategy.

If you want to do business successfully in Malaysia, please contact TheDigitalX!

If you want to succeed in the Malaysian market, please contact The Digital X for a consultation.

Our local native marketers and specialists in Japan will support you.

Please feel free to contact us with any questions or concerns you may have.

We look forward to hearing from you.