Malaysia’s western part is located in the south of the Malacca Peninsula, and its eastern part is in the north of Kalimantan. The state is a federal constitutional monarchy. Economically, Malaysia is quite developed, and the living conditions of the population are favorable. The share of the middle class is high here, while the poor and the rich are relatively few. The principal sectors of the Malaysian economy are industry, agriculture, foreign trade, and tourism.
Malaysia in short Malaysia is a fairly developed country. Among the states of Southeast Asia, it is in third place in terms of economic volume, and in the world – the only 38th. Labor productivity is high here, and a large number of specialists have higher education. Annual GDP growth was 6.5%, which is a very high figure. In 2014, it was equal to $ 337 billion. Until the 80s of the 20th century, the extraction of raw materials and agriculture controlled the structure of the economy. Then industry began to grow rapidly. However, the country is still one of the main exporters of oil and other natural resources and agricultural products. The subsoil of this state contains approximately 4.3 billion barrels of proven oil reserves. Palm oil is produced in large quantities. Knowledge-intensive industries are also well developed. Malaysia manufactures and exports microelectronic and electrical products. It ranks first in the world in terms of the production of household air conditioners and electronic chips. The automotive industry is booming. Defense enterprises are actively developing.
Unlike neighboring states, Malaysia’s economy recovered quite quickly from the 1997 economic crisis.
The country’s industrial sector is well developed. This is due to the high share of science-intensive industries. At the same time, labor is cheaper here than in developed countries. Therefore, it is profitable for foreign companies to locate their production here. There are 12 Japanese and 20 American industrial corporations in Malaysia. Most of the industry is concentrated in the peninsular (western) part of the country. This is due to its transport capabilities and resource potential. The most important industries in Malaysia are the production of electronics, computers, and electrical appliances. The country is a leader in the production of microcircuits and household air conditioners. The enterprises of various international companies, including Intel, are concentrated here. The production of semiconductor products has been established. Of the traditional industries, the most developed are the production of steel, tin, and wood products. The automobile industry and light industry are well developed. A lot of liquefied gas (3rd place in the world), oil, and gas processing products are produced, and the production of rubber and natural rubber has been established. And also fertilizers, household pesticides, paints, and varnishes.
Foreign trade is of great importance in the economy of this state. Malaysia supplies the world markets with palm oil, oil, LPG, textiles, rubber, electronics, wood products, and timber. Plastics, steel, oil products, equipment, parts, chemicals, and machinery are imported into the country. Malaysia is part of the World Trade Organization, ASEAN, and APEC. The most important economic partner is the United States. Countries such as China, Singapore, Japan, Thailand, South Korea, and Indonesia are also essential. At present, China’s role in trade relations with Malaysia is even higher than that of the United States. In 2017, the country exported goods worth a total of $ 188 billion and imported goods worth $ 163 billion.
Company registration in Malaysia
Company registration in Malaysia offers many benefits for business owners. It is a popular choice among foreigners wishing to register. We will discuss the benefits and how to open a company in Malaysia. Company registration in Malaysia for a foreigner is also possible to own 100% of the company, depending on the industry.
First, let’s discuss why this has become such a commonplace to include. The benefits of establishing a corporation in Malaysia include the following:
- There is significant consumer demand in both local and overseas Asian markets and the Malaysian corporation owner benefits from easy access to this potential business.
- Start-up costs in Malaysia are relatively low compared to Singapore. Monthly office rent in Malaysia per square meter is four (4) times less than in Singapore. The wage rate in Malaysia is forty percent (40%) lower than in Singapore.
- Malaysia has sixty-eight double tax treaties, which means that corporations created in that jurisdiction will benefit from lower tax costs as a result.
- Withholding taxes are not levied on dividends received outside the jurisdiction.
- There are no business restrictions on the repatriation of capital, profits, dividends, and royalties for Malaysian corporations.
- Malaysia offers its corporations liberal government policies and offers many attractive incentives.