International Business : SPOTLIGHT ON MALAYSIA : When Doing Business There. . .
Malaysia is a country of rich cultural diversity, with many ethnic groups and a long history of trading with other cultures. Business relationships reflect this background. DO:
- Allow time for businesses to make decisions on your proposals. Malaysians tend to be cautious and want time to shop around.
- Expect most Malaysian workers to speak English. Most learn English from the first grade and the literacy rate is over 75%. However, correspondence with government departments should be in Bahasa Malaysia, the national language.
- Check ahead on how to address the person you are meeting, especially if it’s someone of royalty. Titles can be complicated, but it helps to use them correctly.
- Use taxis--they’re a lot cheaper than the ones in the United States. Rental cars tend to cost more, especially if you need an automatic transmission. If you choose to drive, note that vehicles drive on the left side of the road. Malaysia has in recent years greatly expanded and improved its highways and rail lines.
- Date documents the way Malaysians do to avoid confusion: day/month/year.
- Accommodate religious needs. Because Islam is the official religion, some Muslim employees observe prayers at set times of the day. One of them is around 7 p.m., so be prepared for a late dinner if you plan one. Also, it’s traditional for men to attend noon prayers on Fridays at mosques. Those usually last an hour.
- Hire local lawyers because Malaysian laws are based on the British system. Local lawyers would be more familiar with details like registering a local company and handling disputes.
- Use pay phones to make long distance calls. They’re found easily in major cities, and rates are comparable to the United States.
- Meet with government officials because they’re fairly accessible to foreign investors, and can provide networking opportunities.
DON’T
- Say no directly. It’s polite to listen to an entire proposal, think about it, and then excuse yourself from it. Expect the same from Malaysians--they may not say no right away, but that doesn’t mean they agree. Negative remarks are usually subtle.
- Make meal appointments with Muslims during the fasting month, known as Ramadan. Try to avoid ordering pork when dining with Muslims because it shows disrespect. Malaysian food can be extremely spicy, so tell your host if that’s a problem for you.
- Expect open arms when competing with the domestic market. Because the local market is relatively small, export-oriented products are preferred. Joint ventures are generally favored among local investors. The Malaysian government also provides tax incentives in certain areas.
- Just rely on a handshake. But when there is a problem with a contract, be flexible. Malaysians are often willing to make reasonable adjustments.
- Take legal action immediately when a business dispute occurs. That would shows a lack of respect. Try to resolve it, usually with a third party like another partner or manager. Only settle the situation in court if negotiations fail.
- Bank on similar banking hours as the U.S. The hours are shorter, from 10 a.m. to 3 p.m. However, most banks are open on Saturdays from 9:30 a.m. to 11:30 a.m.
- Be offended if a member of the opposite sex refuses to shake your hand. Muslims may be simply following religious rules.
- Bring in weapons, illegal drugs or pornographic material. There’s a death penalty for drugs.
- Insist on using pounds and gallons as measuring standards. Only the metric system is used.
Source: Iqbal Ismail, investment section, Consulate General of Malaysia
