Malaysia

2. Investment Environment

2.1.  Economic growth
According to the Malaysia Investment Development Authority (MIDA), in 2011 there was RM 148.6 billion of total approved investments in the manufacturing, services, and primary sectors which included 4,964 projects and generated 149,496 job opportunities. The total investments approved exceeded the average annual investment target set under the 10th Malaysia Plan by 29.2%.

 

Question: How many job opportunities can the MIDA generate?

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2.2.  Openness to investment and incentives
As the country’s attractiveness for lower-wage manufacturing diminishes, Malaysia encourages foreign direct investment, except in a few restricted sectors, and actively advertises itself globally to attract it. A number of incentives are available particularly for export-oriented high-tech industries and “back office” service operations, and it will also negotiate incentive packages for targeted industries. The top three countries investing in Malaysia are the United States, Japan and Hong Kong, and the United States had a US$ 3.8 billion investment in the manufacturing sector in 2010.

 

Question: How is Malaysia’s attractiveness diminishing? 

Question: What are the top three countries investing in Malaysia?

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2.3.  Banking and foreign exchange
Malaysia’s banking system is made up of commercial banks, investment banks, and Islamic banks. Bank Negara Malaysia is the country’s central bank, and it directly supervises commercial banks and finance companies. Islamic finance in Malaysia is controlled by robust regulatory, legal and Sharia governance frameworks. In general, there are no restrictions on the repatriation of capital, profit, dividends, interest and rental income by foreign investors if the payments are made in foreign currency.

 

Question: Which is Malaysia’s central bank?

Question: How is Islamic finance in Malaysia controlled?

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2.4.  Intellectual Property Protection
The Malaysian Intellectual Property Corporation (MIPC) at the Ministry of Domestic Trade and Consumer Affairs governs, administers and supervises all IP matters in Malaysia and offers IP protection for patents, trademarks, industrial designs, copyright, geographical indications and layout designs of integrated circuits. Malaysia conforms to the WTO’s TRIPS Agreement and is member of the World Intellectual Property Organization (WIPO) and part of the Paris Convention since 1990, the Berne Convention since 1988, and the Patent Cooperation Treaty since 2006.

 

Question: What does Malaysia conform to, in terms of Intellectual Property Corporation?

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2.5.  Labor
 Except for public servants and people employed in statutory bodies, the Employment Act of 1955 governs matters relating to employment in West Malaysia. Employment in East Malaysia comes under the Sabah and Sarawak Labor Ordinances. There are generally no statutory minimum wages, and benefits and related terms of employment are left to be agreed upon subject to the minimum Employment Act standards applicable.

 

Question: Which law governs matters relating to employment in West Malaysia?

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