Malaysia Economy and Business

• GDP: US$186 billion (2007).
• Main exports: Electrical equipment, petroleum, liquefied natural gas, wood and wood products and palm oil.
• Main imports: Electronics, machinery, petroleum products, plastics and vehicles.
• Main trade partners: USA, Japan, Singapore, China and Hong Kong.

A fully-fledged ‘tiger' economy, from the 1970s onwards Malaysia's GDP grew rapidly at around 10% annually. However, in 1997 the Asian financial crisis brought this process to a shuddering halt. Malaysia has recovered reasonably well since then, although the headlong pre-1997 expansion has been replaced by a more measured pace of growth of around 4 to 5.5% each year, reaching 6.3% in 2007. Inflation was around 3% in 2007.

Healthy foreign exchange reserves, low inflation and a small external debt are all strengths that make it unlikely that a financial crisis similar to 1997 will re-occur. The Ringgit/US Dollar peg was abolished in July 2005. This has not resulted in any major change to the exchange rate.

Malaysia is a member of the Pacific Rim organisation APEC (Asia-Pacific Economic Forum), which is assuming an increasingly important role in the regional economy.

Suits are acceptable for business meetings. Business visitors should remember that the Malay population is predominantly Muslim and religious customs should be respected and normal courtesies observed, eg appointments, punctuality and business cards. Present your business card with both hands.

Office hours: These vary between Peninsular Malaysia and East Malaysia. In general most private sector offices are open Mon-Fri 0900-1700 and Sat 0900-1300, but many private sector companies operate a five-day week.

Government office hours: 0830-1630.

Malaysia has rocketed up the international conventions league table in the past couple of years. The primary venue is the Kuala Lumpur Convention Centre, a large and very modern facility in the heart of the KLCC district (website: www.klccconventioncentre.com), which opened in 2005. Many hotels around the country also offer event facilities. Further information can be obtained from Tourism Malaysia, Convention Promotion Division (see Contact Addresses).

National Chamber of Commerce and Industry of Malaysia
6A, 6th Floor, Menara BGI, Plaza Berjaya, 12 Jalan Imbi, 55100 Kuala Lumpur.
Tel: (03) 2141 9600.
Website: www.nccim.org.my

Malaysian International Chamber of Commerce and Industry (MICCI)
PO Box 12921, 50792 Kuala Lumpur, Malaysia
Tel: (03) 6201 7708.
Website: www.micci.com

Malaysian Industrial Development Authority (MIDA)
Block 4, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur, Malaysia
Tel: (03) 2267 3633.
Website: www.mida.gov.my

Malaysian External Trade Development Corporation (MATRADE) in the UK
17 Curzon Street, London W1J 5HR, UK
Tel: (020) 7499 5255.
Website: www.matrade.gov.my