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Business Business Profile Malaysia has come a long way since gaining independence in 1957, with the country’s economy rapidly transformed from a largely rural-based system into a progressive urban-based economy. The main industries today are petroleum oil production, forestry, manufacturing and palm oil production. Palm oil expected to generate up to 40% more export revenue in 2003 than it did in 2002 and Malaysia the world’s largest producer. The tourism and hi-tech industries have also come to the fore over the last decade. The 1997 recession hit Malaysia hard and many sectors of the economy are still recovering. As the national currency (the Ringgit) devalued, GNP fell to around - 7%. In Kuala Lumpur, major transport developments like the Express Rail Link (ERL), Sentral Station and the Monorail were put on hold. Astute fiscal management has brought the country back on track, quicker than many analysts expected. Although the economy is not expected to experience the same high levels of growth as it did in the heady pre-1997 days, it has weathered the storm and now seems to be working to more stable and realistic targets. A more holistic approach to the economy and a committed government National Economic Recovery Plan have paid dividends, with the World Bank expecting an increased level of GDP at 5% for 2003, up from the end of 2002’s anticipated 3.5%. Industry continues to be the main employer in Kuala Lumpur and the city’s unemployment rate at 3.8% in August 2002 is much the same as the country’s, which stood at 4% in August 2002. The massive Multimedia Super Corridor (MSC) development – part of Prime Minister Dr Mahathir Mohamad’s Vision 2020 – continues amid a series of delays and downsizing. Managed by the government-appointed Multimedia Development Corporation (website: www.mdc.com.my), this project’s ambitious goals are to attract the world’s leading multimedia organisations to a 15-kilometre wide and 50-kilometre long Multimedia Super Corridor, stretching from Kuala Lumpur City Centre to Kuala Lumpur International Airport. This would effectively place Malaysia and indeed the city at the forefront of technological excellence, innovation and research. The worldwide downturn in the technology industry has left the MSC’s future uncertain, with many analysts suggesting a delayed implementation of the 20-year plan at best and a considerable downscaling at worst. One current economic problem is the fallout from the October 2002 Bali bombings, which impacted upon Malaysia’s increasingly important tourist industry. Much depends on what happens next and if there are any more attacks in the region at a time when Malaysia had been very successful in attracting new business and investing heavily on promotion. With Prime Minister Dr Mahathir Mohamad also on the cusp of retirement, much of Malaysia and KL’s future economic fortunes will depend on the new balance of power and whether anyone can fill the big boots of the man who has led the country for so long. The main business district in Kuala Lumpur is KLCC, which stands for Kuala Lumpur City Centre. The area around KLCC and Jalan Bukit Bintang, where many of the expensive five-star hotels and shopping malls are located, is collectively called ‘The Golden Triangle’. Petronas is the biggest company in the country, concentrating mainly in oil and related industries but increasingly diversifying into other sectors. Big domestic players are Bank Negara and Maybank in finance, and Gamuda, Ekovest and YTL in construction. Major international companies with a presence in Kuala Lumpur include Nestle, Carlsberg and Guinness. Business Etiquette All business meetings, however informal, would be conducted at the office or in neutral venues such as restaurants. Business office hours are usually 0900-1700 Monday to Friday, although government departments tend to close earlier. Despite the high humidity levels, suit and tie is the norm for men and smart dress for women, although concessions are usually made for visiting foreign businesspeople unused to the tropical conditions. English is the main business language in Kuala Lumpur, with most businesspeople (at all levels and in all sizes of company) at least competent in English. Any attempts to use a few Bahasa Malaysian conversational words are greatly appreciated and can break the ice quickly. One key aspect to remember is that it is considered inappropriate to use the left hand for handshakes or handing over documents, as this is traditionally used for cleaning after toilet use. Business cards are also an essential prerequisite to any business meeting, no matter how informal, and should be handed over with both hands. Malaysians are quite conservative when it comes to business and clients are not often invited home. As Malaysia is a Muslim country many local businessmen and women will not drink alcohol during lunch or dinner meetings. However, it is acceptable for non-Muslims to do so, in moderation. It is also important for visitors to be careful when choosing gifts, as obvious things like alcohol are a definite non-starter and less obvious gifts like watches, associated with death by many ethnic Chinese, might also offend. |
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