Leading the Way with Our Prestigious Country
With an average economic growth between 5 to 10 % over the last twenty years, Malaysia certainly offers good employment opportunities. If you are keen on exploring the Far East and some challenging work opportunities, here is your destination. Absolutely, all foreigners willing to work in Malaysia are required to apply for a work permit. The logical procedure is that the work permit application is to be made before entering Malaysia but most of the nationalities can also apply for it while having already entered the country with a visit pass (depending on your nationality, you will need or not a visa before entering Malaysia as a visitor, however, foreigners who are resident of the Commonwealth countries are exempted from visa application). Located in the heart of South East Asia. The country consists of two separate landmasses that are separated by the South China Sea. Peninsular Malaysia or better known as West Malaysia is bordered by Thailand in the North and Singapore in the South. East Malaysia comprises of the states of Sabah and Sarawak that stretches along the northern region of Borneo. Malaysia consists of 13 states and the Federal Territories of Kuala Lumpur and Putrajaya and Labuan which is an island off the coast of Sabah over in East Malaysia.
Constitutional monarchy which nominally headed by paramount ruler and a bicameral Parliament consisting of a nonelected upper house and an elected lower house. All Peninsular Malaysian states have hereditary rulers except Melaka and Pulau Pinang (Penang). Those two states along with Sabah and Sarawak in East Malaysia have governors appointed by government. Powers of state governments are limited by federal constitution, under terms of federation, Sabah and Sarawak retain certain constitutional prerogatives. Sabah holds 20 seats in House of Representatives and will hold 25 seats after the next election. Sarawak holds 28 seats in House of Representatives. **Essential Phone Numbers (click here to view the list)
Real GDP growth forecast of 5.3% in 2008 (2007: 6.3%). Commodity-related sectors i.e. agriculture, mining and resource-based manufacturing (e.g. metals) to be the bright spots in the economy amid continued firm commodity prices especially CPO, crude petroleum, natural gas and steel that boost production and investment. Tentatively, real GDP growth forecast of 5.1% in 2009.
Pick up in inflation rate to 3.7% in 2008 (Jun: 7.7%) from 2% in 2007, mainly on higher prices for food and non-alcoholic beverages (FNAB) and the fuel hike, following rise in the global prices of food commodities and higher crude oil price. Inflation rate expected to average at 5.7% this year with monthly inflation rate jumping to 7.5%-8% in Jun-Dec 2008. For 2009, inflation expected at 5.5%
The benchmark Overnight Policy Rate (OPR) has remained stable at 3.5% since April 2006. OPR is expected to remain stable at 3.5% for 2008 to support economic growth via “accommodative” monetary policy amid somewhat “restrictive” fiscal policy right now given the cuts in subsidies, windfall taxes, Government austerity drives as well as delays, review and cancellations of Government-funded infrastructure and investment projects.
Rallied to RM3.131 on 23 April 2008 from RM3.307 at end-2007, then retreated to RM3.2747 on 15 May, and currently hovers in RM3.20-RM3.27 range. Target for ringgit to average at RM3.15 for year ending 30 June 2009 which will partially curb inflationary pressures.
Crude oil price spiked to US$145 a barrel for the first time in July. Strong demand, especially from non-OECD, tight supplies and speculation will continue to pressure oil markets. The EIA has forecast: average of US$127 pb in 2008, 76% compared to a 9.2% rise in 2007 to US$72. YTD average price is US$114, therefore average for remainder of year is US$144 and is expected to trend down to an average of US$133 in 2009.
Palm Oil. A windfall tax on oil palm companies, effective from 1 July 2008, (15% tax on revenue above RM2,000 for plantations in Peninsular Malaysia and 7.5% for East Malaysia). With strong margins, plantation owners will be able to absorb the fuel hike in their transportation and other charges. Strong demand for palm oil will be contributed both by edible oil and as well as for bio fuel. Rubber. Rubber product manufacturers will pass down the escalating fuel cost to consumers when government retracts its fuel subsidy. For certain industry such as medical, security, food and beverages usage of gloves are necessities in their daily work requirement. However concerns arise on the sustainability of rubber supply due to conversion to other corporations. Timber. Logging activities in the wood and wood products industry will be adversely by the fuel price hike, leading to a hike in export costs for wood products. To remain competitive, manufacturers are gradually switching from hardwood and rubber wood timber species as their raw materials to imported sawn timber like oak and pine in order to produce high and good quality furniture.
The Mining sector recorded a growth of 3.7%, supported by the higher production of crude oil which increased by 8.6%. Meanwhile, the production of natural gas recovered from 2.2% contraction in 2007 to grow 0.8% in 2008. Mining sector forecast growth at 6.0% 2008 at from 3.2% in 2007. Offshore fabricators are main beneficiaries with players seeking new capacities and capabilities to move up the value chain. Oil and gas industry is expected to be least affected by the price increases. It would benefit from the higher capex due to the high crude oil prices. Natural gas account about 50-60% of fuel costs while coal contributes about 30 to 40%.
Growth forecast to moderate to 1.8% in 2008 forecast from 3.1% in 2007. Resource-based & domestic-oriented industries to register stronger growth. In domestic industries, construction-related products expected to do better with steel industry a promising sector. Iron and steel industry is expected to face medium impact due to the hike in fuel price. Plastic industry has over the last 12 months seen resins price rising about 40% because resins are by products of petroleum. The chemicals products expanded due to the strong global demand, especially for oleo chemical products. The impact on semiconductor industry would be medium as fuel contribution is minimal, given the many fact that semiconductor back end players generate low margins. Textiles and apparel impact would be on higher transportation costs. Major cost of furniture manufacturing involves electricity, gas and logistics, which are all inter-connected with the fuel price hike. Paper products prices are up 15% from rise up to 70% in production cost, squeezing profit margins of printing and publishing companies.
The Construction sector strengthened further by achieving a growth of 5.3% in 2008 as compared to 4.1% in the 2007. The increase in construction activity was boosted by Civil Engineering projects such as the construction of expressway, development of airfields, construction of power plants and other infrastructure activities by both private and government sectors. Construction sector forecast to grow 5.5% against 4.6% in 2007.
Services sector is the key driver and remain a strong growth at a still robust 7.7% in 2008 from 9.7% in 2007. Growth areas are in:
Supported by:
Airline industry is likely to be worst hit, as fuel cost comprised 40% to 60% of operation cost. Shipping companies that are involved in container and tanker shipping will be the most affected by bunker cost escalation. Bunker fuel account about 50 to 70% of fuel cost. Traveling, as lifestyle maintenance takes precedence over leisure spending. Consumers are likely to cut back on traveling and vacationing, which will have some impact on hotel occupancy. Bus operators would be forced to cut down on non-profitable routes if the government did not allow for a fare hike soon. They would also have to stop operating during non-peak hours. However, they are relieved by the recent news on the unlimited oil subsidy given by the government. Lorry transport fees expected to increase between 40% and 60%. Taxi operators using diesel will be impacted by the hike while the ones using NGV will not be impacted as the price remain unchanged.
Property market in 2007 through liberalization of property market measures would still have a some spillover effect on domestic buyers in middle to upper market segment in good locations.
Malaysia today is fast becoming the favored site of choice for the global business community seeking an ideal location for a regional services hub. Government policies that maintain a business environment with opportunities for growth and profits have made Malaysia an attractive manufacturing and export base in the region. The private sector in Malaysia has become partners with the public sector in achieving the nation's development objectives.
Foreign investors can hold 100% equity irrespective of their level of exports, with the exception of certain products or activities where domestic small and medium-scale companies have the capabilities.
Foreign companies are allowed to employ expatriates where certain skills not available in Malaysia. A company with foreign paid-up capital of US$2 million and above will be allowed five expatriate posts including key posts, that is, posts that are permanently filled by foreigners.
Malaysia's company tax rate is attractive at 28% and is applicable to both resident and non-resident companies. Malaysia also offers a wide range of tax incentives for manufacturing projects under the Promotion of Investments Act 1986 and the Income Tax Act 1967. The main incentives are the Pioneer Status, Investment Tax Allowance, Reinvestment Allowance, Incentives for High Technology Industries and Incentives for Strategic Projects.
Malaysia offers investors a young, educated and productive workforce at costs competitive with other countries in Asia. Backed by the government's continued support of human resource development in all sectors, the quality of Malaysia's workforce is one of the best in the region. Well-positioned on multiple levels of the value chain, Malaysia is home to a large pool of talented knowledge workers and experts. The salaries of Malaysian knowledge workers are competitive. The next 10 years will see a greater emphasis on human resource enhancement; skilled and knowledge workers being among the major pre-requisites to transform Malaysia from a production-based into a knowledge-based economy.
Malaysia today is an excellent centre of education which has well-educated workforce skilled in technology. Education is accorded high priority in national development with about 15% of total public development expenditure allocated for this purpose under Malaysia's five-year development plans. The private sector has also set up educational institutions to supplement the government's efforts to generate a larger pool of professionals and semi-professionals. **International Schools in Malaysia (click here to view the list)
Human Resource Development Fund (HRDF) was launched by the government to encourage training, retraining and skills upgrading in the private sector. Manufacturers who contribute to this fund are eligible to apply for grants to defray or subsidize costs incurred in training their workers. The National Vocational Training Council under the Ministry of Human Resources coordinates the planning and development of a comprehensive system of vocational and industrial training programmes for all public training agencies. It also develops the National Occupational Skills Standards (NOSS) on a continuous basis. Besides, establishment of several advanced skills training institutes such as the German-Malaysian Institute, Malaysia France Institute, Japan Malaysia Technical Institute, British Malaysia Institute and Malaysian Spanish Institute.
Malaysia's labour laws safeguard the interests and spell out the rights and responsibilities of employers and employees, thus providing a legal framework for the orderly conduct of industrial relations in the country.
With open greens and wide living areas, residents enjoy the combined advantage of a high quality of life with low cost of living. Malaysia ranks ahead of its Asian counterparts. Advanced facilities besides political stability and a low crime rate form the backdrop for a safe cosmopolitan lifestyle.
Link major growth centres to seaports and airports throughout the peninsula and provide an efficient means of transportation for goods.
Industries in Malaysia are mainly located in over 200 industrial estates or parks, fully equipped with infrastructure facilities such as roads, electricity and water supplies, and telecommunications, are continuously being developed by state governments as well as private developers to meet demand. Specialized parks purposely to cater to the needs of specific industries. Examples of these parks are the Technology Park Malaysia in Bukit Jalil, Kuala Lumpur and the Kulim Hi-Tech Park in the northern state of Kedah which cater to technology-intensive industries and R&D activities.
Malaysia's telecommunications network has seen impressive expansion and upgrading during the past decade following the successful privatisation of its Telecommunications Department.
Malaysia has a multi-cultural and multi-religious population. Most Malaysians are multi-lingual, and most speak English and the national language Malay fluently. The Chinese and Indians are generally tri-lingual, speaking Malay, English and their mother tongue. The cultures of Malaysia are very unique and fantastic. Composed primarily of Malays, Chinese and Indians, Malaysian culture is best described as cosmopolitan. Even though their gone through to the development country but their culture and nature are still look after. So their unique culture not is forgotten from the other generation. Racial unity and interaction has formed a diverse and vibrant society that is exceptionally unique. Nowhere else in the world can one find three major races, other various smaller indigenous tribes sharing such an excellent relationship. This has been the main for Malaysia's political stability and growth.
A blend of different cultures which culminate into something unique, excellent and appealing to all. As with virtually every other country in the world, Malaysians tend to believe their food is the best. Food in Malaysia tends to be spicy, savory and smooth. Rice is the staple food in Malaysia, eaten by practically everyone. Malays and Indians tend to prefer more heavily spiced food compared to the Chinese. Each individual is restricted only by religious observances such as Halal foods for Muslims and abstinence from beef dishes for Hindus. Due to the fact that most major cities in Malaysia tend to be near the coast, fresh, bountiful and relatively inexpensive seafood are enjoyed by all. These are just a tiny sampling of the huge variety of dishes available locally, be aware that variations in the ingredients and preparation methods could occur from state to state and indeed from vendor to vendor. The most important thing to remember is to be open-minded and at least try before judging. Tiny sampling of the various foods one may come across in Malaysia such as nasi lemak, roti canai, char kway teow, satay, rojak, bak kut the etc.
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The Agriculture sector registered a 6.3% growth in 2008 compared to 4.7% in the last quarter of 2007. Growth for 2008 forecast 3.4% against 2.2% for 2007, primarily due to contribution from oil palm continued rising demand for agriculture commodities such as palm oil, coffee and rubber. Palm oil the main growth contributor in absolute terms but commodities like rubber and cocoa doing well. Livestock recovering from previous slump. Forestry and logging show sustained growth. Government is currently implementing various plans at nation’s level in order to achieve self-sufficiency in the agriculture commodities production. Sabah and Sarawak have been identified as the new states for intensive agriculture.
International ports - Penang Port, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port and Kemaman Port in Peninsular Malaysia and Bintulu Port in Sarawak. Port Klang's central location and the government's emphasis on making the port a national and regional hub. Port Klang's Westport has excellent deep water facilities which allow the world's largest ships to dock without any difficulty. Malaysia's newest port, the Port of Tanjung Pelepas (PTP), at the southern tip of Peninsular Malaysia. Another port, Kuantan Port on the east coast of Peninsular Malaysia. Besides the physical infrastructure being in place, the speedy clearance of cargo with the electronic transfer of documentation. 
