Doing Business with Malaysia

Exporting to Malaysia involves several steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Malaysia’s import regulations and standards for your product.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Malaysia.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company. Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Submit all required documentation to the Royal Malaysian Customs Department.

6. Understand Duties and Taxes

   • Familiarize yourself with any applicable import duties and taxes in Malaysia.

7. Distribution and Sales

   • Establish distribution channels within Malaysia.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Royal Malaysian Customs Department
  • Website: Royal Malaysian Customs
• Malaysia External Trade Development Corporation (MATRADE)
  • Website: MATRADE

Importing goods into Malaysia involves several steps. Here’s a comprehensive guide:

1. Register as an Importer

   • Ensure your business is registered in Malaysia and compliant with local regulations.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code for your products to identify applicable duties and taxes.

3. Check Import Regulations

   • Ensure compliance with specific standards and obtain necessary permits or certifications for your goods.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.

6. Customs Declaration

   • Submit all required documentation to the Royal Malaysian Customs Department.
   • Work with a customs broker if necessary to facilitate the process.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and taxes through the customs system.

8. Receive Your Goods

   • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

• Royal Malaysian Customs Department
  • Website: Royal Malaysian Customs
• Malaysia External Trade Development Corporation (MATRADE)
  • Website: MATRADE

Incorporating a company in Malaysia involves several steps. Here’s a comprehensive guide:

1. Choose a Company Type

   • Decide on the legal structure (e.g., Private Limited Company, Public Limited Company).

2. Reserve a Company Name

   • Check and reserve the desired company name with the Companies Commission of Malaysia (SSM).

3. Prepare Incorporation Documents

   • Prepare the Memorandum and Articles of Association and other necessary documents.

4. Submit Registration Application

   • File the application with SSM, including all required documents.

5. Pay Registration Fees

   • Fees vary depending on company type and capital. Check with SSM for the latest rates.

6. Register for Taxes

   • Obtain a tax identification number from the Inland Revenue Board of Malaysia (LHDN).

7. Open a Bank Account

   • Open a corporate bank account in the company’s name.

8. Obtain Business Licenses

   • Apply for any necessary business licenses specific to your industry.

Key Contacts

• Companies Commission of Malaysia (SSM)
  • Website: SSM
• Inland Revenue Board of Malaysia (LHDN)
  • Website: LHDN

Setting up a manufacturing plant in Malaysia involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze demand, competition, and location advantages in Malaysia.

2. Choose a Suitable Location

   • Consider available infrastructure, proximity to resources, and zoning regulations.

3. Incorporate Your Company

   • Register your business with the Companies Commission of Malaysia (SSM).

4. Obtain Necessary Permits and Licenses

   • Apply for industrial and environmental permits from relevant authorities.

5. Secure Financing

   • Explore options through banks or investment partners.

6. Design and Construct the Facility

   • Hire architects and contractors for design and construction.
   • Ensure compliance with local building codes and safety regulations.

7. Install Equipment and Machinery

   • Purchase and set up machinery necessary for production.
   • Ensure safety and operational standards are met.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Malaysian Investment Development Authority (MIDA)
  • Website: MIDA
• Companies Commission of Malaysia (SSM)
  • Website: SSM

Registering a trademark in Malaysia involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered.

2. Prepare Your Application

   • Include the trademark design, classification of goods/services, and applicant details.

3. Submit the Application

   • File your application with the Intellectual Property Corporation of Malaysia (MyIPO).

4. Pay the Application Fee

   • Fees vary based on the type and number of classes. Check the MyIPO website for current fees.

5. Examination Process

   • The application undergoes examination for compliance and potential conflicts.

6. Publication and Opposition

   • If approved, the trademark is published for opposition. A period is given for third parties to oppose.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered, and you receive a Certificate of Registration.

8. Maintain and Renew the Trademark

   • Trademarks need periodic renewal to maintain protection.

Key Contacts

• Intellectual Property Corporation of Malaysia (MyIPO)
  • Website: MyIPO

Resolving commercial disputes in Malaysia involves several steps. Here’s a guide on the process:

1. Attempt Negotiation

   • Start by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions. This is often quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution. Both parties must agree to this method.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit with the Malaysian Courts. Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Malaysian Judiciary
  • Website: Malaysian Judiciary
• Malaysian Bar Council
  • Website: Malaysian Bar

When considering doing business in Malaysia, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: Malay is the official language; English is widely used in business.
• Business Etiquette: Building relationships and trust is important. Punctuality is valued.

Political Factors

• Government Structure: Federal parliamentary constitutional monarchy. Generally stable with clear business regulations.
• Regulations: Business-friendly environment, but understanding local laws is crucial.

Economic Factors

• Economic Stability: Malaysia has a diverse economy with strengths in manufacturing, services, and agriculture.
• Corporate Tax Rate: 24%.

Foreign Exchange

• Currency: Malaysian Ringgit (MYR).
• Exchange Rate: Subject to fluctuations; currency risk management is advisable.

Rule of Law

• Legal Framework: Strong legal system with clear enforcement of contracts and property rights.
• Judiciary: Independent judiciary with a focus on transparency and efficiency.

Business Environment

• Infrastructure: Well-developed infrastructure with modern transportation and communication systems.
• Workforce: Educated and multilingual workforce, though skill levels vary by industry.

Key Resources

• Malaysian Investment Development Authority (MIDA)
  • Website: MIDA
• Malaysia External Trade Development Corporation (MATRADE)
  • Website: MATRADE