In 2019, Malaysia gains the title of the best country in the world to invest or establish business. The study is based on 11 different factors, including the level of corruption, bureaucracy, infrastructure, investor protection, taxes, quality of life, workforce and technological preparation. This present article demonstrates the significant attractiveness of Malaysia for foreign investment and the area of business creations. Ensure you search for a register SSM Guide to get your business registered legally.
Growth of business creation in Malaysia
Additionally, this place is justified by the sustained and repeated efforts of the Malaysian government to develop an economy favoring innovation and new technologies. The government has invested in recent years in Research & Development or R&D, biotechnology, industrial automation, logistics, design, and innovation more generally. Then, the objective is to make Malaysia a hub bringing together various activities of the value chain.
This sustained effort on the part of the Malaysian government has been conclusive: Malaysia is becoming the most attractive country in the world to welcome investments and offshore operations. In 2019, it attracted more than 5,000 foreign companies from 40 different countries. Indeed, ideally located in the heart of Southeast Asia, Malaysia offers vast opportunities for investors and an environment favorable to foreign companies.
In comparing Malaysia and France, France takes 17th place. Even though it wins 82 points in terms of economic stability, Malaysia predominates with 76 points for the quality of the labor force and the market potential, in other words against 55 and 63 points. As a result, France country wins a total score of 78.2 while Malaysia takes 1st place with 85.8 points.
According to the ease of doing business index, Malaysia also ranks 2nd after Singapore as an ASEAN country with which it is easy to do business.
MEDEF International france-malaysia business council
The MEDEF, i.e. International France-Malaysia Business Council was created in the 20th century when the Asian genius already appeared in the regional landscape as a model to follow. The abbreviation MEDEF means in French language “Mouvement des entreprises de France”.
Besides, the board is in the present day, led by Mr. Jean-Marc CHERY, President and Chief Executive Officer or CEO of ST-Microelectronics group.
Passed from developing countries to developed countries in just 25 years, Malaysia attracts French companies by:
o its political stability,
o its strategic geographic position,
o the diversification of its economy,
o modern infrastructures,
o and, its openness to Foreign Direct Investments or FDIs and its young population.
Remind that the contemporary French companies have acquired solid positions, particularly in the energy, transport, health, food, environment and sustainable city sectors.
At the moment, the 4th power of ASEAN, Malaysia should be among the top 25 world economies in 2050. To achieve this, Malaysian Governments focus on the development of entrepreneurship, SMEs and innovation.
The ASEAN concept is based on economic cooperation on the Thai initiative: ASEAN liberalizes trade area, and it should serve to increase investment in the region and further liberalize the economies of member countries.
Monitoring and regular meetings of the Council and the missions carried out by MEDEF International
First, this is recognized and privileged framework in the Franco-Malaysian economic and commercial relationship, the meetings of the Council, organized regularly in France, and company missions in Malaysia:
- Allow direct contact between French companies, regularly and regularly with:
the Government and the main public decision-makers in the country,
administrative managers and public economic decision-makers with transversal and sectoral skills,
the Malaysian private sector.
- Offer companies keys to understanding and deciding for their activities, mainly on:
The business opportunities arising, in each sector, from market developments and executive priorities,
the business environment, the conditions of exercise and investment, access to public markets,
the funding and running local projects, forms of partnership and localization,
the structuring of sectors and activity sectors,
and about more generally elements of understanding the risks and opportunities linked to internal developments and the regional environment of the country.
- Amplify the sharing of experience between French companies of all sizes, active in Malaysia or the region, and promote the meeting of new partners in this market.
Focus on business development in Malaysian
Malaysian economic and business present a bright perspective, such as:
- Access to tax advantages, via government agencies, up to 50% less operating costs higher than Singapore.
- Strong development of the airport infrastructure and associated industrial zones, without comparison with other ASEAN countries.
Malaysia, therefore, appears to be a real regional base for a maintenance, development, or manufacturing center, mainly in industrial domain.