Consulting support for digital marketing in Malaysia

I want to start marketing in Malaysia, but what should I do?"

Please read this article as it is intended for companies who are thinking of entering the Malaysian market.

Advantages of Doing Business in Malaysia

The advantages of doing business in Malaysia are manifold.

First, the Malaysian government is actively attracting foreign companies, and investment incentives and tax breaks are well-developed. In addition, Malaysia's geographical advantage as a production base is also significant. Located in the center of ASEAN, Malaysia has excellent access to the regional market.

Furthermore, according to Statistics Malaysia, the annual population growth rate for 2023 compared to the previous year is estimated to be 2.1%, bringing the total population to 33.4 million. And according to another study by Statistics Malaysia, median income increased by 2.5% per year in 2022 compared to 3.9% in 2019, while average income increased by 2.4% in 2022 compared to 4.2% in 2019.

Thus, it has a promising future as a huge consumer market. English is also prevalent as an official language, making it an excellent recruiting ground for global companies. In addition, Malaysia has traditionally had deep friendly relations with Japan, and is one of the most pro-Japan countries in the world. The business environment is well-developed, including for local companies, and Japanese companies are actively expanding their operations in Malaysia.

In addition, Malaysia is a multiculturally convivial society, and its diversity requires a good understanding of religious backgrounds, including Islam. As described above, Malaysia offers a wealth of advantages for business development, and a promising market is forming in a variety of fields, particularly in manufacturing and consumer-related industries.

Disadvantages of Doing Business in Malaysia

There are some disadvantages to doing business in Malaysia. The biggest disadvantage is the impact of the Bumiputra Policy, a preferential policy for Malay Muslims. This policy gives preference to Malay companies in some industries, and foreign companies may be restricted in their business activities.

In some cases, restrictions on foreign investment, particularly in the form of restrictions on foreign ownership of shares, have become a major barrier. In addition, since the majority of the Malay population is of Islamic faith, religious and cultural considerations are essential. Halal certification, for example, is mandatory in the food industry, and the process of obtaining such certification is costly and time-consuming. Religious holidays will also have an impact.

Furthermore, Malaysia is a nation of immigrants, and job hopping (repeated job changes for the purpose of improving skills and income) of talented people tends to be rampant. It is difficult to secure and retain quality human resources, which may lead to high human resource development costs.

In addition, the business environment is not without its challenges, such as complicated import/export procedures and underdeveloped infrastructure in some areas.

The Digital X for digital marketing consulting support in Malaysia

If you need digital marketing consulting services to enter the Malaysian market, please contact The Digital X.

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

Let us know what concerns you have and how we can help.

We look forward to hearing from you.