Malaysia

Malaysia has attracted to its shores numerous reputable multinational corporations and service providers. With a very strong demand for outsourcing services, the government has been supportive in the development of the country into a competitive location by providing incentives and programmes to improve skills sets to create an IT-ready services talent pool.

World class companies like DHL, HSBC, Intel, Motorola, Nokia and Unisys have set up regional and global operations in Malaysia. With the growth of the BPO and IT services, Malaysia’s IT services sales recorded reached US$1.6 billion and is projected to have even higher growth in the coming years.

IT services opportunities include: IT/technical training; systems integration and consultancy services; software/hardware development; data centre/storage; software outsourcing

There 2 potential market entry strategies to consider:

• Partnership, distributorship or joint venture agreements with a local company. Working with a local company for government or larger projects requires undertaking a pilot project to allow the purchasing government or organization the time to assess the suitability of the product or service offering in a local context and explore its potential

• Potential strategy to establish an in-market presence. This will build a greater understanding of the Malaysian market and develop and strengthen in-market relationships. This requires a larger capital outlay

The collapse in oil prices in 2014 has shaped the performance of world economy in 2015 including that of emerging economies like Malaysia whose  net exports (of oil and gas) declined last year. Malaysia turned to domestic demand which was the engine of moderate growth for Malaysia’s economy and which helped keep inflation rates down despite the depreciation of the ringgit.

One of the challenges of Malaysia’s economy now is to facilitate negotiations on the Trans-Pacific Partnership trade deal which it needs to attract foreign investments, particularly into Kuala Lumpur. The slow movement on finalizing the deal and the slow pace of completing the ASEAN Economic Community, have made some investors rethink their commitments to Malaysia, especially sincce Malaysia’s workforce is no longer competitive, in terms of labor costs, with that of neighboring nations like Vietnam or Bangladesh.

The IT market of Malaysia was also affected by the global challenges but the Malaysian IT market is projected to move to a stronger growth trajectory over the medium term, with a CAGR of 5.1% over 2016-2019 in local currency terms. In the hardware market, rising incomes and increased access to affordable data connectivity will boost consumer spending in volume terms and through an easing of price sensitivity. In the enterprise software and services market growth is expected to record bigger growth with cloud computing and  the adoption of Internet of Things application, identified as areas of outperformance. The IT sector projects that the majority of spending will continue to be derived from more traditional solutions that offer cost efficiencies that will enable local enterprises to respond to heightened competition across South East Asia.

Industry Developments and Projections

• Computer Hardware Sales: MYR9.8bn in 2016 to MYR10.8bn in 2019, a compound annual growth rate (CAGR) of 2.7%. Ringgit stabilization in 2016 and income growth over 2016-2019, will deepen the market, as well as offering vendors higher margin opportunities
• Software Sales: MYR4.5bn in 2016 to MYR5.7bn in 2019, a CAGR of 6.0%. Cloud computing software delivery has the potential to deepen the application market to Malaysian small- and medium-sized enterprises and accelerate market growth.
• IT Services Sales: MYR7.2bn in 2016 to MYR10.0bn in 2019, a CAGR of 7.7%. IT services spending forecast to outperform through wider adoption of outsourcing, cloud computing and Internet of Things applications by enterprises

Malaysia experiences rains all year round even during its dry season, because the peninsula is along the way of monsoon rains. The southwest monsoon runs from May-October, while the northeast runs from November-March.  In addition, the typhoon season from April-November brings inclement weather in Sabah and Sarawak.

The best time to visit the east coast would be in April or May-October when the weather is calm and clear of rains. From November-March, the part of the peninsula (Perhentian Islands) experience heavy rains and flash floods. Hotels and other accommodation are closed during this time.

The northern of the peninsula (Penang and Langkawi) experience heavy rains in September and October, affecting the diving business (in Langkawi) and should also  be avoided in January due to torrential rains is Sabah and Sarawak.

All government offices in all states are open five days a week, Mondays through Fridays and are closed weekends except in Kedah, Kelantan and Terengganu. Government offices in these 3 latter states operate from Sundays to Thursdays and are closed Fridays and Saturdays.

For public holidays such as festivals and special occasions that fall on a non-working day, the following day is declared a holiday

Business hours for government offices are as follows:

• Kuala Lumpur and Putrajaya : 8.00am to 5.3Opm, Monday to Friday
• In Kedah, Kelantan and Terengganu
  00am to 4.45pm (from Sundays to Wednesdays) and
  8.00am to 4.30pm (on Thursdays).
• all other states, working hours are from 8.00am to 5.00pm, Monday
  to Friday.

**A long lunch break is observed every Friday (12.15pm – 2.45pm) to allow Muslims to perform their prayers.

Banking
All states except Kedah. Kelantan and Terengganu opening hours are as follows;

Mondays to Thursdays:           9.15am – 4.30pm

Fridays                        :            9.15am – 4.00pm

Saturdays                   :            11.00am – 2.00pm (major branches only

Sundays                      :            Closed

Kedah, Kelantan and Terengganu opening hours are as follows;

Sundays to Wednesdays         :           915am – 430pm

Thursdays                                :           9.15am – 4.00pm

Fridays                                     :           Closed

**Most banks are closed on the first and third Saturdays of the month.

Malaysia Time (MYT) +0800 UTC UTC/GMT

Foreigners traveling to Malaysia are required to have the following: 1) valid passport; 2) valid visa; 3) valid return travel ticket; 4) sufficient funds; 5) not classified as a prohibited person; and ) completion of the arrival/departure card.

Visa which has been granted is not absolute guarantee that the holder will be allowed to enter Malaysia. The final decision lies with the Immigration Officer at the entry point.

Visa Application Requirements

Two copies of visa forms to be filled and signed;

• A valid travelling document with at leas 6 month validity;
• No Objection Letter from Company/Sponsors (for individuals/family members);
• A Copy of Labor Contract or Salary Certificate
• Two passport size photographs;
• Confirmed hotel booking;
• Confirmed return ticket;
• For Business visa, an Invitation Letter is required. For multiple entry business visa, an interview will be conducted;
• Photocopy of passport; and
• This constitutes minimum requirements – additional documents may be asked.

Processing Time:  two working days to process application.

Visa Fees:

Visa on Arrival

How to Apply:

• Confirmed return ticket
• Address in Malaysia

VOA Is Issued At The Following Entry Checkpoints:

Kuala Lumpur International Airport (KLIA), Sepang
Penang International Airport, Penang
Senai International Airport, Johor
Kuching International Airport, Sarawak
Kota Kinabalu International Airport, Sabah
Kompleks Sultan Abu Bakar (Second Link), Tanjung Kupang, Johor
Bangunan Sultan Iskandar, Bukit Chagar, Johor Bahru, Johor

Duration Of Stay : 14 days.

Fees : RM330.00

Curency: Malaysian Ringgit (MYR)

Exchange rate:1MYR= .25 US$(or 1USD=4.02 MYR).

Malaysia is a multi-cultural society composed of Malay people, Chinese, Indian and indigenous people. The official language is Malay but English is also widely spoken even on the streets.  A study showed that Malaysia has the highest English proficiency out of 13 other Asian countries, while globally, it ranked 11^th of 60 countries reviewed which has the English language as a second language (to include Scandinavian countries).