Living in Malaysia
Business and Investment - Malaysia
Malaysia is a business friendly country and Malaysian Government has taken initiatives to make investment in the country much simpler. Malaysia has plenty of skilled and talented foreign and local workforce who are suitable for any kind of services. Malaysia also has a very stable political environment and also Malaysia maintain excellent relationship with it’s neighbor countries. Malaysia has played a huge role in promoting the cooperation between ASEAN and China.
Malaysia has played an important role in strengthening and promoting the cooperation between China and ASEAN. China has been Malaysia's largest trading partner for 7 consecutive years while Malaysia has become China's largest trading partner among ASEAN countries. Bilateral trade for two consecutive years has reached $100 billion, whereas in 2014 bilateral trade has amounted to $102.02 billion. Malaysia has become an attractive business destination for setting up regional bases among the ASEAN countries due to its government stability, peaceful environment and wide resources. Malay, English and Mandarin are widely used in Malaysia, facilitating the investor's communication with local personnel and suppliers.
- Non-Metallic Mineral Industry
- Textiles and Textile Product
- Basic Metal Products
- Electrical and Electronic
- Engineering Support
- Food and Sustainable Resources
- Machinery and Equipment
- Medical Devices
- Clean Technology & Environment
- Education & Industrial Training Services
- Healthcare Sector
- Regional Establishment & Supply Chain Management
- Oil and Gas
The Malaysian Investment Development Authority aka MIDA is the government's main agency for the promotion of the manufacturing and services sectors in Malaysia. MIDA promotes and assists companies which plan to invest and participate in the manufacturing and services sectors. MIDA also helps and simplifies investors’ implementation of their projects. MIDA provides a wide range of services to its clients. The services range from offering information on the opportunities for investmentsto helping companies which are looking for joint venture partners.
Function of MIDA
You will find many function of MIDA in the following:
- One of the main function of MIDA is to endorse and promote foreign and local investments in the manufacturing and services sectors.
- MIDA also took part in the planning for industrial development in Malaysia
- It also play a significant role in recommending policies and strategies on industrial advancement and growth to the Ministry of International Trade and Industry.
- MIDA assess applications for manufacturing licenses and expatriate posts; tax inducements for manufacturing activities. MIDA function also include valuating duty exemptions on raw materials and components and duty exemptions on machinery and equipment for agricultural sector and selected services sector. MIDA also measures various steps that related to tourism, R&D, training institutions and software development in industrial and manufacturing sectors.
- MIDA handles the Issuance of confirmation letter for the application of import duty. It also has the authority to decide which sales on equipment, gear, replacement and spare parts, consumables, prime movers and container trailers for manufactures in the principal customs area (PCA) get the tax exemption. As of May 2, 2014 MIDA also watches over companies which are engaged in a hotel business and haulage operators under the self-declaration mechanism.
- MIDA offers support in various forms like giving direct consultation and co-operation with relevant authorities at both the federal and state levels so that the companies and the investors can implement and run their project efficiently and profitably.
- MIDA facilitates the exchange of information and co-ordination among institutions engaged in or connected with industrial development.
- Senior representatives from key agencies, like Ministry of Human Resources, Department of Environment, Immigration Department, Royal Customs Malaysia, Telekom Malaysia Berhadand Tenaga Nasional Berhad, are posted at MIDA's headquarters in Kuala Lumpur and these representatives are ready to advise investors on latest government policies and procedures on Business and Investment. MIDA’s headquarters are really an ideal place for businessmen and investors looking to invest in Malaysia.
The Pay Off
Rental yields in Malaysia is among the top gross in Asia and the yield rate is fairly stable so you can expect a fair income from your investment. You can expect return from renting or reselling the estate you invested in. Reselling your property is dependent on few factors like location of your place, condition of your real estates, overall social and economic growth of the states. If all the things are in top conditions, you can hope for a higher price for your resell.
If you want make a quick return of your investment you need to assess the strength and weaknesses of the location or the uniqueness of the property. The short term quick return doesn’t mean you can make a fortune in a few months of your buy it’ll take at least a few years to make to make a profit. It is also important to remember no business is risk free especially those are target a quick short term return. So it’s always a good idea to buy new properties from big developers as will reduce the risk. Rent out property at first is always a good idea as it it will allow you cash flow while you can look for a buyer who can pay you handsomely for your property.
Type of Properties to Invest
Most foreigners and expatriates are always looking to rent high-rise loft in central business district like Kuala Lumpur City Centre and Most Kiara. So demand for land in these area is quite high as the rental yield from these real estates are generally 2 to 3 times higher than other landed apartment. Malaysia offers many kinds of residential property like terrace, bungalows, and apartments to condominium. Tourists, international student and local also look for high valued rental. Overall, investing in real estate in Malaysia is a good business decision.