As the world continues to evolve post-pandemic, businesses are consistently seeking new markets to explore. Germany has been Malaysia’s largest trading partner within the European Union since 2000, investing close to 13.86 billion euros, while Malaysia has been Germany’s largest trading partner among ASEAN countries with over 700 German companies in the country. With Malaysia’s optimism in achieving further economic growth in the coming years, it begs the question – what makes Malaysia an appealing investment destination in Southeast Asia?
Location, location, location!
In the past few years, Southeast Asia’s economic growth has been expanding rapidly making global businesses keen on exploring new business opportunities in the region. Malaysia’s central position among the Association of Southeast Asian Nations (ASEAN) provides easy and quick access to over 600 million people in the region.
Business-friendly environment
Malaysia has introduced various incentives to boost and attract foreign investments including tax breaks, grants, and job incentives for expatriates. The Malaysian Investment Development Authority (MIDA) can help foreign businesses with navigating an unknown market if needed. Amongst 190 economies worldwide, Malaysia is ranked 12th according to the World Bank’s Ease of Doing Business.
Infrastructure and technology
As Malaysia is a developing country that has grown substantially in the past decade or so, it is no surprise that Malaysia is becoming a preferred destination for leading technology industries and growing data centres and servers globally. Malaysia is continuing to invest heavily in digital infrastructures.
Malaysia’s well-connected transportation network, international airports and seaports connectivity to global trade routes makes it easy for companies to run their businesses seamlessly, both domestically and internationally.
Diverse, Skilled Workforce
With an estimated 34 million people in Malaysia, the country is a melting pot of various ethnic groups living together in harmony. There is a huge talent pool within reach for any business operation needs.
Communication barrier is not a concern in Malaysia as much of the workforce and population speak English as it is taught in schools as a second language.
Cost Competitiveness
With the Euro being roughly five times stronger than the Malaysian currency, Malaysia is a cost effective destination for business expansions or investments. In comparison, the Euro is a mere 0.5 times stronger than the Singaporean dollar – an immediate neighbour of Malaysia.
Many international companies in Malaysia have continued to practice work from home or remote working post-pandemic leading to a further reduction in operating costs as smaller rental spaces or even virtual offices are viable options. This allows businesses to have an overseas presence without having to physically relocate.
In summary, Malaysia is a compelling choice amongst the Southeast Asian countries for investors or businesses looking to expand with its strategic location, business-friendly policies, well-developed infrastructures, skilled bilingual workforce, and cost effectiveness.
Melchers In Malaysia
Melchers Malaysia has been conducting trading activities in the country since 1958. With two offices located in Kuala Lumpur and Penang, Melchers Malaysia provides a range of products and services and is an authorised distributor of certain brands, and even has a calibration centre of its own.
