Crossroads 2018

Page 78

INDONESIA

The government is committed to nation building and has outlined the following projects as key to this goal: • Nine domestic projects in health, education, tourism, software and communication infrastructure with allocated budget of RM6.7 billion by Khazanah Bhd (Malaysia’s sovereign wealth fund).

PHILIPPINES

• 175,000 units of PR1MA homes, to be sold at 20 percent below market price

• Paid-up capital of at least RM25,000 • Shareholders are 100 percent Bumiputra

• 100,000 units of PPA1M houses to be built and completed by 2018, (priced between RM90, 000RM300,000).

• Board of Directors are at least 51 percent Bumiputra

• 22,300 units of condominium

THAILAND

THAILAND

• Established under the Companies Act, 1965

PHILIPPIINES

• Managerial and Professional Staff are at least 51 percent Bumiputra

• 9,800 units of terrace houses • National flood forecasting and warning program,

• Supporting Staff are at least 51 percent Bumiputra

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VIETNAM

VIETNAM

Government of Malaysia’s affordable housing:

MALAYSIA

MALAYSIA

• Clean portable water treatment plant estimated budget of RM877 million earmarked.

LAOS

• Increase Internet speed in rural areas from 5Mbps to 20Mbps with an allocation of RM1.2 billion by the Malaysian Communications and Multimedia Commission (MCMC).

INDONESIA

LAOS

MARKET ENTRY STRATEGY Most exporters find that using a local distributor or agent is the best first step for entering the Malaysian market. A local distributor is typically responsible for handling customs clearance, dealing with established wholesalers/retailers, marketing the product directly to major corporations or the government, and handling after-sales service. Exporters of services generally also benefit from using of local partner.   Sales to the Government of Malaysia, Government Linked Companies (GLC), or for procurement in priority sectors favor local agents and/or a joint venture partners that are classified as a Bumiputra (Malay) company. The term Bumiputra refers to individuals who are ethnically Malay. A Bumiputra company is defined as a company that fulfills the following criteria:

CAMBODIA

CAMBODIA

• Upgrade of Sarawak interior roads

Please see Leading Sector chapter for more specific information on market opportunities.

The Malaysian government and GLCs make use of offsets and other measures to encourage technology transfer, particularly in the priority sectors procurements. The Government of Malaysia and GLCs also look favorably on U.S. companies that have a long-term presence in the local market. Therefore for strategic or large-scale market entry, U.S. companies typically find they are treated more favorably when they are willing to establish a local office, hire Malaysians, engage in training, undertake some amount of local assembly or production, or at least plan regular and frequent trips to maintain relationships and presence.   In sectors that are not government dominated, companies, agents, or distributors should be selected based on competitive considerations (e.g. technical grounds or product knowledge). Since the Malaysian market is a very relationshiporiented market, having a local presence or local agent can influence the final outcome.

BURMA

• Toll-free Pan Borneo Highway to be completed by 2021 with cost estimation of RM16.6 billion. • Proposed LRT service from Kuching-Samarahan Serian in Sarawak

develop National Earthquake and Tsunami Sub-Centre in Sabah with an estimated cost of RM60 million.

BRUNEI

BRUNEI

• High Speed Rail between Malaysia and Singapore

BURMA

SINGAPORE

MALAYSIA

SINGAPORE

DOING BUSINESS IN MALAYSIA

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