INTRODUCTION

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of
raw materials into an emerging multi-sector economy. After coming to office in 2003, former
Prime Minister ABDULLAH tried to move the economy farther up the value-added production
chain by attracting investments in high technology industries, medical technology, and
pharmaceuticals, an effort that continues under current Prime Minister NAJIB. The NAJIB
administration also is continuing efforts to boost domestic demand and to wean the economy off
of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a
significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher
world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with
strained government finances, has forced Kuala Lumpur to reduce government subsidies. The
government is also trying to lessen its dependence on state oil producer Petronas, which supplies
40% of government revenue. The central bank maintains healthy foreign exchange reserves and
its well-developed regulatory regime have limited Malaysia's exposure to riskier financial
instruments and the global financial crisis. Nevertheless, decreasing worldwide demand for
consumer goods hurt Malaysia's exports and economic growth in 2009, although both began
showing signs of recovery late in the year. In June 2010 NAJIB will introduce the Tenth
Malaysia Plan, outlining new reforms. NAJIB already has introduced several reforms in the
services sector in a bid to attract direct foreign investment, which has stagnated in recent years.

Since it became independent, Malaysia's economic record has been one of Asia's best. Real gross
domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005. Performance
peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid
growth averaging almost 8% annually. High levels of foreign and domestic investment played a
significant role as the economy diversified and modernized. Once heavily dependent on primary
products such as rubber and tin, Malaysia today is a middle-income country with a multi-sector
economy based on services and manufacturing. Malaysia is one of the world's largest exporters
of semiconductor devices, electrical goods, and information and communication technology
(ICT) products.
The government continues to actively manage the economy. Malaysia's New Economic Policy
(NEP), first established in 1971, was a 10-year plan that sought to rectify a situation whereby
ethnic Malays and indigenous peoples (“bumiputera”), who comprised nearly 60% of the
population, held less than 3% of the nation’s wealth. Policy makers implemented a complex
network of racial preferences intended to promote the acquisition of economic assets by
bumiputera. In 1981 when the racial preferences were set to expire, the government extended the
NEP for another 10 years, stating that its goals had not been achieved. The policies again were
extended in 1991 and in 2001. The Malaysian Government plans to release a new economic
model in 2010 which will modify and in some cases eliminate NEP measures in an effort to
stimulate higher levels of investment and GDP growth over the next decade.

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial
crisis, which affected countries throughout the region, including South Korea, Indonesia, and
Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a
return to recession in 2001 when its economy was negatively impacted by the bursting of the dot-
com bubble (which hurt the ICT sector) and slow growth or recession in many of its important
export markets. The global financial crisis threw Malaysia into recession again in 2009, and the
government expects a contraction in GDP of around 3% for the year. Economists expect
Malaysia to return to a positive growth path in 2010

In July 2005, the government removed the 7-year-old peg linking the ringgit's value to the U.S.
dollar at an exchange rate of RM 3.8/U.S. $1.0. The dollar peg was replaced by a managed float
against an undisclosed basket of currencies. The new exchange rate policy was designed to keep
the ringgit more broadly stable and to avoid uncertain currency swings which could harm
exports.

The Malaysian financial system exhibited noteworthy resilience to the 2008 global financial
crisis. Malaysian banks are well capitalized and have no measurable exposure to the U.S. sub-
prime market. The central bank maintains a conservative regulatory environment, having
prohibited some of the riskier assets in vogue elsewhere. However, decreasing demand in the
U.S. and elsewhere is taking a toll on Malaysian exports, resulting in negative GDP growth for
2009 with recovery expected in 2010.

Emergence of the Nation

The name Malaysia comes from an old term for the entire Malay archipelago. A geographically
truncated Malaysia emerged out of the territories colonized by Britain in the late nineteenth and
early twentieth centuries. Britain was attracted to the Malay peninsula by its vast reserves of tin,
and later found that the rich soil was also highly productive for growing rubber trees. Together
the cosmopolitan hub of British interests was Singapore, the central port and center of
publishing, commerce, education, and administration. The growth of the Federation of Malaya
was formed, which gained independence in 1957. In 1963, with the addition of Singapore and the
north Borneo territories, this federation became Malaysia. Difficulties of integrating the
predominately Chinese population of Singapore into Malaysia remained, and under Malaysian
directive Singapore became an independent republic in 1965.

POPULATION

Total: 25,715,819

Growth Rates: 1.723%

No of Live Births: 5.02 deaths/1,000 population

Birth Rates: 22.24 births/1,000 population

Distribution of population

Age:
0-14 years: 31.4% (male 4,153,621/female 3,914,962)
15-64 years: 63.6% (male 8,210,373/female 8,143,043)
65 years and over: 5% (male 569,245/female 724,575) (2009 EST.)

Median age

Total: 24.9 years

male: 24.3 years
female: 25.6 years (2009 EST.)

Sex:

at birth: 1.07 male(s)/female

under 15 years: 1.06 male(s)/female
15-64 years: 1.01 male(s)/female
65 years and over: 0.79 male(s)/female
total population: 1.01 male(s)/female (2009 est.)

Family types

Domestic Unit.

Malaysian households have undergone a tremendous transformation following the changes in the
economy. The shift from agricultural commodities to industrial production has made it difficult
for extended families to live together. Yet as family mobility expands, as a result of modern
schedules, efforts to maintain kin ties also increase. Improved telecommunications keep distant
kin in contact, as does the efficient transportation network.

Kin Groups.

The crucial kin distinctions in Malaysian culture are between ethnic groups, which tend to limit
intermarriage. Among the majority of Malays, kin groups are more horizontal than vertical,
meaning that siblings are more important than ancestors. Those considered Malay make
appropriate marriage partners; non-Malays do not. Greater flexibility in kinship practices also
appears among immigrant groups amid the fresh possibilities created by diasporic life. A striking
example is the Baba community, Chinese who immigrated prior to British rule and intermarried
with locals, developing their own hybrid language and cultural style. These dynamics point to the
varied kinship arrangements possible between the different ethnic communities in Malaysian
society.

Geographic areas

Located between 2 and 7 degrees north of the Equator, Peninsula Malaysia is separated from the
states of Sabah and Sarawak by the South China Sea. To the north of Peninsula Malaysia is
Thailand while its southern neighbor is Singapore. Sabah and Sarawak are bounded by Indonesia
while Sarawak also shares a border with Brunei.

AREA:
329,758 sq km. POPULATION 22 million. CAPITAL Kuala Lumpur.

Migration rates and patterns:

0 migrant(s)/1,000 population (2000 EST.)

It does not reflect net flow of an unknown number of illegal immigrants from other countries in
the region

Ethnic groups:

59% Malay and other indigenous, 32% Chinese and 9% Indian.

ECONOMIC STATISTICS AND ACTIVITIES

Total:

The Gross Domestic Product (GDP) in Malaysia contracted at an annual rate of 2.60 percent in
the last quarter. Malaysia Gross Domestic Product is worth 192 billion dollars or 0.31% of the
world economy, according to the World Bank. Malaysia is a rapidly developing economy in
Asia.

Rate of growth: -2.60%

Personal income per capita: $15,300.

Average family income: Lowest 10%: 2.6%

: Highest 10%: 28.5%

Political system
Malaysia's government is nominally headed by the king whose position rotates among the nine
hereditary Malay rulers every five years. The king selects the prime minister from the leading
coalition in parliament, a body which is further Beginning in the 1970s. Since independence
Malaysian national elections have been won by a coalition of ethnic-based political parties.
Known first as the Alliance, and, following the 1969 unrest, as the National Front, this coalition
is itself dominated by the United Malays National Organization (UMNO), a party composed of
Malay moderates. UMNO rule is aided by the gerrymandered parliamentary districts that over-
represent rural Malay constituencies. The UMNO president has always become Malaysia's prime
minister, so the two thousand delegates at the biannual UMNO General Assembly are the real
electoral force in the country, choosing the party leadership that in turn leads the country.

Legal system

Malaysia has a unified judicial system, and all courts take cognizance of both federal and state
laws. The legal system is founded on British common law. Most cases come before magistrates
and sessions courts. Religious courts decide questions of Islamic law and custom. The Federal
Court, the highest court in Malaysia, reviews decisions referred from the High Court of
Peninsular Malaysia, the High Court of Sabah and Sarawak, and subordinate courts. The
judiciary has traditionally functioned with a high degree of independence. Most civil and
criminal cases are fair and open. The accused must be brought before a judge within 24 hours of
arrest. Defendants have the right to counsel and to bail. Strict rules of evidence apply in court
and appeal is available to higher courts. Criminal defendants may also appeal for clemency to the
paramount ruler or to the local state ruler. Severe penalties, including the death penalty, are
imposed for drug-related offenses.

High courts have jurisdiction over all serious criminal cases and most civil cases. The sessions
courts hear the cases involving landlord-tenant disputes and car accidents. Magistrates' courts
hear criminal cases in which the maximum sentence does not exceed 12 months. The Court of
Appeals has jurisdiction over high court and sessions court decisions.

Trade

Malaysia's prominent place in the global economy as one of the world's twenty largest trading
nations is an important part of its identity as a society. Primary trading partners include Japan,
Singapore, and the United States, with Malaysia importing industrial components and exporting
finished products. Palm oil, rubber, tropical hardwoods, and petroleum products are important
commodities.

SOCIAL S TRATIFICATION

Classes and Castes. Class position in Malaysia depends on a combination of political

connections, specialized skills, ability in English, and family money. The Malaysian elite, trained
in overseas universities, is highly cosmopolitan and continues to grow in dominance as
Malaysia's middle class expands. Even with the substantial stratification of society by ethnicity,
similar class experiences in business and lifestyle are bridging old barriers.

Symbols of Social Stratification. In Malaysia's market economy, consumption provides the

primary symbols of stratification. Newly wealthy Malaysians learn how to consume by following
the lead of the Malay royalty and the prosperous business families of Chinese descent. A mobile
phone, gold jewelry, and fashionable clothing all indicate one's high rank in the Malaysian social
order. Given the striking mobility of Malaysian society, one's vehicle marks class position even
more than home ownership. Most Malaysians can distinguish the difference between makes of
cars, and access to at least a motor scooter is a requirement for participation in contemporary
Malaysian social life. Kuala Lumpur has more motor vehicles than people. Skin color, often
indicative of less or more time working in the hot tropical sun, further marks class position.
Distinct class differences also appear in speech. Knowledge of English is vital to elevated class
status, and a person's fluency in that language indexes their social background.

Minerals of Malaysia

Until the late 1970s, Malaysia was the world's premier producer of tin, supplying some 40
per cent of the world's tin. In the 80’s due to the exhaustion of tin and a fall in tin prices,
Malaysia was no longer a premier tin producer. However, bauxite and copper continued to
contribute to the mining sector in the early 1970s. Malaysia no longer produces copper and
silver (as a byproduct of copper mining) because the country’s only copper mine the
Mamut Mine near Ranau, Sabah, ceased operations in October 1999. As much as 70 per
cent of the industry remained under foreign control. This was a legacy of the British
colonial era; many British firms, which had arrived in the 19th century to exploit
Malaysian mineral resources, had not departed yet.

Malaysia is endowed with over 33 different mineral types, comprising metallic, non-
metallic and energy minerals, worth several billion dollars in economic potential. However,
despite the continuing good global demand and high prices for most metals and minerals in
recent years the country’s mineral resource industry continues to remain sluggish.  There
was generally a lack of exploration, mine development and capacity expansion in the local
industry thus providing the great opportunity to those who seek to venture into this area. 

The metallic mineral sub-sector produce minerals such as tin, gold, bauxite, iron-ore,
ilmenite and other associated minerals as by-products of tin and gold mining such as
zircon, monazite, rutile, struverite and silver. The non-metallic or industrial mineral sub-
sector produce limestone, clays, kaolin, silica, sand and gravel, aggregates, feldspar and
mica.  Only coal is produced in the energy mineral sub-sector.
 
The Malaysian mineral industry has undoubtedly been a major contributor towards the
economic, social and industrial development of the country. The value of minerals produced in
Malaysia in 2007 was RM2.53 billion, an increase of 15 per cent from RM2.20 billion produced
in 2006. The non-metallic sector remained the mainstay of the country’s mineral resource
industry. It continued to provide the dominant share in the overall mineral production. This
sector registered a production value of RM1.95 billion in 2007. The production value for the
metallic and energy mineral sectors in 2007 were RM0.46 billion and RM0.12 billion,
respectively.

The mineral resource industry in Malaysia is fairly labor-intensive. Direct workers

employed at end 2007 are estimated at some 43,000.  In addition, there are a large number
of indirect workers employed by contractors engaged in mining activities.

Production of mineral fuels includes coal, natural gas and crude petroleum. Production of
processed mineral products includes cement, LNG, nitrogen fertilizer materials (ammonia and
urea), refined petroleum products, crude steel, titanium dioxide pigment, and refined tin.
Malaysia has large resources of tin and such tin-associated minerals as ilmenite, monazite and
struverite, which is a columbium (niobium)-tantalum-bearing mineral.

Malaysia’s tin reserves ranked as the world’s third largest.. Among the identified mineral
resources, a greater portion of reserves of barite, bauxite, bentonite, clays, copper, gold, iron ore,
limestone, silica, and tin and its associated minerals have already been developed and exploited.

Malaysia is the world top ten producers for refined tin, rare earths and mined tin. The mining
sector, which continued to play an important role in supplying basic raw materials to the
construction and manufacturing sectors for Malaysia’s economic development, remained
important to the country’s economy. According to the Malaysian Department of Statistics, the
mining sector contributed 6.3% to Malaysia’s GDP compared with 5.9% in 2006.
Resources of Malaysia

Malaysia’s mineral resource industry consists of a sector of coal, ferrous and nonferrous metals
mining, a sector of ferrous and nonferrous metals processing, and a sector of industrial minerals
extraction and processing. Most mining and mineral-processing businesses incorporated in
Malaysia are privately owned or a joint venture with State-owned Company.

It has different energy minerals, non metallic minerals and metallic minerals like coal, bauxite,
gold, llmenite, iron ore tin, aggregates, clay, feldspar, kaolin, lime stone, mica, sand and gravel,
and silica sand.

Housing

If you travel through the country, you will see a lot of Malaysian houses and villages. These
villages are called "kampongs" in Bahasa Malaysia. Notice that they are built with stilts below
and they have large windows. This is mainly to keep the building cool and the stilts elevate the
building to keep them away from floods. 

Kampong houses are detached houses and they usually have no fences around them The
traditional Malaysian house serves the housing needs of the majority of people living in rural
areas of Malaysia. It was evolved by the Malays over the generations, and adapted to their own
needs, culture, and environment. Basically a timber house with a post and lintel structure raised
on stilts, with wooden, bamboo, or thatched walls and a thatched roof, the house is designed to
suit the tropical climate. 

Ventilation and solar-control devices, and low thermal capacity building materials are part of the
building heritage. House construction is highly systematized, like a modern prefabrication
system, but with a much higher degree of flexibility and variation. The house components are
made on the ground and later assembled on the building site. A very sophisticated addition
system, which allows the house to grow with the needs of the user, is an advantage for the poor
because it allow them to invest and build gradually rather than shouldering one huge initial
financial burden. 
The traditional Malaysian housing process is highly autonomous, largely controlled by the user.
Guided by building tradition and the village carpenter, the owner-builder designs a house that is
uniquely suited to the family's socioeconomic and cultural situation. Not only does the traditional
approach foster a better match of house to user, it keeps the cost down by eliminating the need
for professional intermediaries such as architects or developers. 

Self-help and cooperative labour are the resources upon which the owner-builder relies. The
traditional Malaysian house has an open interior, promoting good cross ventilation and lighting
and allowing the space to be used for many purposes depending on the season, occasion, or time
of day. 

Since most activities take place on the floor, the need for furniture is minimal; bedding materials
and sleeping mats are rolled up and stored during the day to eliminate the need for separate
living and sleeping quarters. Interior spaces are defined, not by partitions or walls, but rather by
changes in floor level; they may be respected or ignored, allowing the house to accommodate
larger numbers of people than usual during, for example, feasts. 

Thus the traditional Malaysian house exhibits greater versatility and more efficient use of space
than does the modern house, where spaces are limited to the specific use determined by furniture
and partitions. The traditional Malaysian house has, over the years, evolved a very efficient
addition system that grows according to the needs of its users. The core unit, or the ibu rumah, is
the basic living unit for the small or poor family. The kitchen and toilet are often located on the
exterior. From the ibu rumah, many additions can be made as the family grows bigger or as it
acquires the means to build a bigger house. 

Additions are usually done in the spare time available during the agricultural or fishing off-
seasons. Building a traditional house is a continual process, often taking months or even years to
complete, with the pace of work and quality of construction controlled by the user. The basic
addition possibilities are classified into three different types, but there are infinite variations in
sizes and heights, and various combinations of types and quality according to the needs of the
user.
The most common houseform is the bumbung panjang, characterised by a long gable roof. The
bumbung panjang houses are the oldest identified in Peninsular Malaysia, many of them being
over a hundred years old and still in good condition.

The bumbung panjang is the simplest of the four houseforms. It has a simple gable roof,
supported by kingposts. The most common roofing material used for the bumbung panjang is the
attap (a thatch made from nipah and other palm trees found in the local natural vegetation).

The simple bumbung panjang roof-form is most efficient in its ventilation properties. Its simple
funnel shape, the use of ventilation grilles at its gable ends (tebar layar), and the use of
ventilation joints allow good ventilation of the roof, space which cools the house effectively. The
roof is simple and easy to construct, and this partly explains the popularity of this houseform
among the poorer villagers and those who build houses themselves. The bumbung panjang, due
to its simplicity, is a very efficient roof-form for making additions to the house. The bumbung
lima, bumbung limas and bumbung perak are all houseforms which are not indigenous but
developed through foreign influence. The bumbung lima and bumbung perak houses are believed
to have been influenced by colonial Dutch and British houseforms. The bumbung lima house has
a hipped roof, the bumbung perak house has a gambrel roof and the bumbung limas house has a
pyramidal roof. Of these three foreign houseforms used in Malaysian houses, the bumbungperak
houseform (also called bumbungpotongan Belanda [Dutch-type] roof in the East Coast) is the
most popular.

Housing considerations are primarily based on location. Prices and amenities (transport, dining,
entertainment, medical, education etc) tend to vary based on this as well. Just like anywhere else
in the world the closer the property is to urban centers the higher the prices are likely to be, this
is naturally offset by the convenience and facilities that these up-market properties are likely to
offer. Prices also tend to fluctuate and you would be well advised to seek the services of a
reputable and professional real-estate agency in whichever location you are considering settling
in.

If at all possible try to get references from any contacts or friends already working and living in
your desired location with regard to this, indeed if possible try getting references from your
employer as there are many less scrupulous real-estate agents who will not hesitate to take
advantage of an expatriate who is not well informed of the situation.

Property in Malaysia can still be construed as being cheap, and choices are still quite good,
generally apartments, houses (linked, semi-detached, bungalows) and condominiums are of good
quality. Make absolutely sure that you review the tenancy agreement if you are renting a semi or
fully furnished property to make sure everything is in order before signing anything. If you plan
to be in Malaysia in the long term purchasing property may be a profitable option.

Surface transportation

Like any other country with a colonial past, Transportation in Malaysia started
to develop during its phase of British colonial rule. Today Malaysia boasts of
one of the finest transportation networks in Asia. The country boasts of high
quality road and railway network. Malaysia's road network is among the finest
in Asia covering 63,445 km. The main highway of the country covers a
distance over 800 km reaching the Thai border from Singapore. The network of
roads in Peninsular Malaysia is of high quality, however, the road system in
Sabah and Sarawak is not as developed as the other parts of the country.

Malaysia also boasts of six international world class airports. Official Airline
of Malaysia is Malaysia Airlines, providing international and domestic air
service and there are also two more carriers offering domestic and regional
flights.

The railway system of the country is state-run, but then the railway network
covers only West Malaysia. The railway network covers a total distance of
1798 km of track.

Another mode of transport is extremely popular in Malaysia; within the cities

you can avail Light Rail Transit (LRT). It is a boon to the crowded cities of the
country as it reduces the traffic load, is safe, comfortable and reliable.
Modes:

By Road:

If you're looking for a cheap mode to get around, buses make the best deal. In big cities, you can
find air-conditioned buses that are little expensive than non-ac ones. However, the latter one is
easily available in small towns around the country. Interstate buses usually have fixed rates,
while intrastate buses charge fares according to the distance covered. In cities, taxis are generally
metered but drivers don't use the meters frequently and charge high rates. If traveling by taxis,
prefer settling a price prior to getting in, though a surcharge of 50% is levied between midnight
and 6am. In small towns, taxis usually charge a fixed rate.

By Rail:

In Peninsular (or west) Malaysia, Malayan Railways or Keretapi Tanah Melayu Berhad (KTM)
connects all the major cities and towns. You can choose from the First, Second or Economy
Class and travel comfortably in air-conditioned coaches. In the first and second class coaches,
sleeping berths are granted to the passengers. Each express service has a restaurant coach that
serves local and continental cuisine. For traveling by rail, tickets can be purchased 60 days in
advance from the date of journey. Children below four can travel free, while those who are above
four and under twelve are charged half the adult fare. Foreign tourists can also take 30-day or
10day tourist Railpass which offers unlimited travel on KTM for the mentioned period.

By Sea:

Penang, Port Klang, Kuantan, Kuching and Kota Kinabalu are some of the ports that offer entry
into Malaysia. Between Penang and Butterworth, coastal ferries sail often transporting
passengers and vehicles from the mainland to the island. Besides, numerous ferry/ boat services
can be availed for mainland-to-island and island-to-island travel around the nation. For getting
around in Sabah and Sarawak, fast boats and small river crafts work great to reach isolated
settlements. Local tour agents can also make available sea-cruises and river-cruises.

By Air:

Traveling by air is really convenient way to cover long distances is less time. Tourists from all
over the world get down at Kuala Lumpur International Airport (KLIA) that is connected to
nearly all cities and towns in Malaysia, including Sabah and Sarawak. Besides the KLIA, there
are numerous airports which connect each by regular flights. These airports have latest facilities
and provide good services to the passengers, moving either way. Malaysia Airlines (MAS), the
national carrier, offers not only international flights, but also domestic flights. Some of the other
domestic airlines are Air Asia, Transmile Air and Berjaya Air.

General transportation:

The country has a well-developed and efficient pubic transportation system served by buses,
taxis and trains. In Kuala Lumpur. the Putra and STAR Light Rail Transit (LRT), KL Monorail
and KTM Komuter trains provide regular and hassle-free accessibility within the city as well as
to several outlying towns. The KL Sentral Station, situated 1.5km from the city centre, is a
modern transportation hub which various modes of transportation converge at. Car rental
agencies can be found in most cities around the country.

Taxis:

In Kuala Lumpur, taxi fares are based on a metered rate and are available 24 hours a day. The
flag-off rate is RM2.00 and 10 cents is charged for every subsequent 150 metres. Extra charges
apply for services after midnight or for services booked by phone.

Passengers have the right to object if the taxi driver stops to pick up other passengers along the
way. Outside the city, as well as in other parts of Malaysia, taxis operate on a fixed rate
depending on the distance. Airport limousine taxis (budget or premier) at the KLIA operate using
a prepaid coupon system and visitors are required to make their payment at the counter.
 Buses:

In Kuala Lumpur, bus services such as Rapid KL. City Liner and Metrobus ply a network of
routes. Feeder buses are available from LRT stations to designated surrounding areas. There is
also an airport coach service which connects KLIA to the Jalan Duta Bus Terminal and Chan
Sow Lin LRT Station in Kuala Lumpur.

Passengers to the Low-Cost Carrier Terminal (LCCT) in KIIA can board the Skybus Shuttle
from KI Sentral Station. Feeder buses to LCD are available from various other spots in the city.
Express air-conditioned buses are available to all states in Peninsular Malaysia. The main
terminals in Kuala Wmpur are Puduraya Bus Station, Hentian Putra, Pekeliling Station and
Hentian Duta. Tickets must be purchased early during festive seasons. Visitors are advised to
carry adequate small change before boarding buses and taxis.

KTM Rail Service

The Keretapi Tanah Melayu (KTM) or Malayan Railway offers a well-connected rail network to
all states in Peninsular Malaysia as well as neighbouring countries. Tickets can be purchased at
KL Sentral.

KLIA Ekspres and KLIA Transit

The KLIA Ekspres and KLIA Transit are the fastest modes of transport that ply between the
Kuala Lumpur International Airport (KLIA) in Sepang and the city. A non-stop 28-minute ride
on the KLIA Ekspres will connect you from the airport to the KI City Air Terminal (KLCAT) at
the KL Central Station. This state-of-the-art transportation hub offers flight and baggage check in
services for Malaysia Airlines, Cathay Pacific and Royal Brunei Airlines. The KLIA Transit
makes three intermediate stops en route to the airport and its journey takes 36 minutes.
Malaysia Inflation Rate
The inflation rate in Malaysia was last reported at 1.90 percent in July of 2010. From 2005 until
2010, the average inflation rate in Malaysia was 2.77 percent reaching an historical high of 8.50
percent in July of 2008 and a record low of -2.40 percent in July of 2009. Inflation rate refers to a
general rise in prices measured against a standard level of purchasing power. The most well
known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator,
which measures inflation in the whole of the domestic economy.

Country Interest Growth Inflation Jobless Current Exchange

Rate Rate Rate Rate Account Rate

Malaysia 2.75% -2.60% 1.90% 3.70% 30449 3.1820

MEDIA IN MALAYSIA

The media of Malaysia include television, radio, newspapers, and web-based media such as
bloggers. Many media outlets are either owned directly by the government of Malaysia (e.g.
Bernama) or owned by component parties of the Barisan Nasional coalition government (e.g. the
Media Prima group, which is owned by the United Malays National Organization).

News paper:

There are over 30 newspapers and tabloids published mainly in Malay, English, Chinese and
Tamil. The most prominent newspapers include The Star, New Straits Times, theSun, Berita
Harian, Utusan Malaysia, Sin Chew Jit Poh and Nanyang Siang Pau.

Television and radio:

State-owned RTM operates two free-to-air terrestrial local television channels licensed to
broadcast in Malaysia, as well as 32 radio channels nationwide. Meanwhile, Media Prima is the
parent company of four television channels and two radio channels.

Number of daily newspapers: 31

Total circulation: 2,191,000

Circulation per 1000: 130

Number of nondaily newspapers: 1

Total circulation: 17000

Circulation per 1000: 1

Total newspaper ad receipts: 1,765(ringgit millions)

As % of all ad expenditures; 58.60

Number of television stations: 27

Number of television sets: 10,800,000

Television set per 1000: 485.9

Number of satellite subscribers: 525,000

Satellite subscribers per 1000: 23.6

Number of radio stations: 92

Number of radio receivers: 10,900,000

Radio receivers per 1000:90.3

Number of individuals with computers: 2,400,000

Computers per 1000: 108

Number of individuals with internet access: 3,700,000

Internet access per 1000: 166.4

Percentages of advertisement costs:

About Tata Nano

Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1- lakh i.e.
approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile
company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s
car “which is affordable by almost everybody. Tata Nano was first launched in India on 1st April
2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge
buzz all over India. Within the first two days of lunching, it has received 5500 booking. The
figures keep increasing every day since the launching.
What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with
superficial parts and change the materials wherever possible without compromising the safety
and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and
same gas emission as a scooter.

There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano
LX. However, due to hot weather in Malaysia, only Nano CX is brought to Malaysia and is being
sold here. The selling price of Nano CX in Malaysia is RM 13,704 per unit. It is estimated that
gross profit for the first year would yield xxx, second year xxx and third year xxx. Estimated
monthly instalment payment is xxx for seven years period. With this price, the target market is
very wide which includes those with income RM 2000 per month, students, female workers and
scooters’ riders.
Tata Motors Limited is India’s largest automobile company, with revenues of Rs. 35651.48
crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the compact, midsize car and
utility vehicle segments. The company is the world’s fourth largest truck manufacturer, and the
world’s second largest bus manufacturer. In March 2008, Tata Motors acquired Ford’s UK based
car brands Jaguar and Land Rover (BBC News, 2008).
According to Ratan Naval Tata (Chairman of Tata Group), the need for an innovation like Nano
has got to do something for the people of India and transport. Unavailability and poor quality of
mass transport is a common problem in India. In a two wheeler, father driving with elder child
standing in front and wife behind holding a baby is norm in this country. Thus, this is a relatively
an unsafe mode of transporting a family. Thus, with this in mind Tata Nano was created as a
safer form of transport. As one of its objectives is to become an Indian business conglomerate
operating in many countries, Tata Nano is introduced in Malaysia.

PRODUCT FEATURES
Product review
There are three variants in the Nano range: Nano, Nano CX and Nano LX. Only the Nano CX
variant would be introduced in the Malaysia Market for the first stage. Tata Nano LX will
introduce in the Malaysia Market during the following year. The car has achieved its low price
by minimizing costs on unnecessary “luxuries”, the basic Nano comes without front and rear fog
lights, without a heater or air conditioning, without anti-lock brakes, only one single windscreen
wiper, manually operated windows, manual steering with no air bags, tiny 12” wheels, plastic
body parts joined with adhesive instead of more conventional metal and welding and a two
cylinder 623 cc engine that provides a massive maximum speed of 65 mph (around 105 km/h).
Among the features of the car are-

Stylish and comfortable

The People’s Car, designed with a family in mind, has a roomy passenger compartment with
generous leg space and head room. It can comfortably sit four persons. Four doors with high
seating position make ingress and egress easy.
Yet with a length of 3.1 meters, width of 1.5 meters and a height of 1.6 meters, with adequate
ground clearance, it can effortlessly man oeuvre on busy roads in cities as well as in rural areas.
Its mono-volume design, with wheels at the corners and the power train at the rear, enables it to
uniquely combine both space and maneuverability, which will set a benchmark among small cars
Fuel-efficient engine
The People’s Car has a rear-wheel drive, all aluminum, two-cylinder, 523 cc, 33 PS, multi point
fuel injection petrol engine. This is the first time that a two-cylinder gasoline engine is being
used in a car with a single balancer shaft. The lean design strategy has helped minimize weight,
which helps maximize performance per unit of energy consumed and delivers high fuel
efficiency. Performance is controlled by a specially designed electronic engine management
system.

Meets all safety requirements

The People’s Car’s safety performance exceeds current regulatory requirements. With an all
sheet-metal body, it has a strong passenger compartment, with safety features such a s crumple
zones, intrusion-resistant doors, seats belts, strong seats and anchorages, and the rear tailgate
glass bonded to the body. Tubeless tyres further enhance safety.
Environment-friendly
The People’s Car’s tailpipe emission performance exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in
Malaysia today. The high efficiency also ensures that the car has low carbon dioxide emissions,
thereby providing the twin benefits of an affordable transportation solution with a low carbon
footprint.

THE MARKET
Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its
two factories i.e. in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four
distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and
Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order
can be made vide these distribution centres or its web site.
It is estimated that Malaysia has more than 5 million motorcycles on the road, compared to over
4 million motorcars(ICE, 2001).The majority of motorcycle buyers or users does not own a car
and belong to the lower and middle-income group. A significantly larger percentage of
motorcycle users in Malaysia are male. The company is targeting lower income group with
family, first-time buyers of car (fresh Graduates) and motorcycle owners.

POSITIONING
Tata Nano will position itself as the world cheapest car and yet does not compromise the quality,
safety and environment. This positioning will be achieved by leveraging Tata Nano’s
competitive edge: industries experience from the parent company Tata Motor who has been in
vehicles industries (commercial, passengers & utilities) since 1945. Tata motor has good
supplier- manufacturer relationship with more than 100 components.

COMPETITOR REVIEW
The main competitors are Proton, Perodua, Toyota and Honda.
BRANDING
Brands identify the source or maker of a product and allow consumers – either individuals or
organizations to assign responsibility for its performance to a particular manufacturer or
distributor. Branding is endowing products and services with the power of a brand. It’s all about
creating differences between products. For branding strategies to be successful and brand value
to be created, consumers must be convinced there are meaningful differences among brands in
the product or service category. In Tata Nano’s case, the branding strategy used is corporate
name combined with individual product names. This company’s name legitimizes and the
individual name individualizes the new product

Product Strategy
The Tata Nano CX, including all the features described in the earlier Product Review section,
will be sold with a three-year warranty or 100,000km warranty, whichever comes first. We will
introduce the Tata Nano LX during the following year, after we have established our Tata brand.
The brand and logo will be displayed on the car as well as in all marketing campaigns.

Pricing Strategies
The Cost price is an estimated USD2, 420 or equivalent to RM8,954, which includes import tax,
duties excise , sales tax, shipment costs and assembly cost . The selling price for the Malaysian
market is RM13, 704.00, which is inclusive of standard accessories, but exclude road tax
(RM70.00), registration fees (RM150.00), number plate (RM50.00) and ownership endorsement
fee (RM50.00), sales tax (RM1370.40) which amounted to RM320.00. The On-The-Road price
will be RM15797.40.These prices reflect a strategy of taking a share from established
competitors, such as Perodua’ s model of Kancil and Viva.

Setting the price – selecting price objectives

Tata Nano Malaysia (TNM) has set major three objectives in its effort to position itself in the
Malaysia Automotive market. The objectives are: Survival, maximum current profit and
maximum market share.
a. Survival
Intense competition from Malaysia’s second car manufacturer, Perodua for a share of the
automotive market segment for the below 1,000 cc category will spur TNM to ensure that the car
price covers variable costs and some fixed costs. In this case, survival is a short term objective as
in the long run, TNM will add value such as added safety features to the Nano range.
b. Maximum current profit
TNM has set a price that will maximize current profits, cash flow and return on investment, after
taking into consideration the demand and costs involved. As this category of small foreign cars
segment has not been really tested by other manufacturers, therefore the demand is rather
difficult to estimate but TNM is confident of a good response towards its entry into the
Malaysian market.

c. Maximum Market Share

For the Malaysian market, TNM will implement the market-penetration pricing, which is to set a
low price for a new car in order to attract a large number of buyers and a large market share. This
will be done by achieving high sales volume, which will results in falling costs, allowing the
company to cut its price even further. We are positive enough that the Malaysia car market is
highly price sensitive, as a low price produces more market growth. TNM is also confident that
production and distribution costs will fall as sales volume increases and the low price of Nano
cars will help to keep out competition and maintain its low-price position. The low-price entry
will provide Malaysians consumers with a viable alternative to Perodua –Malaysia second
National car. Further liberalization is expected as Malaysia implements the ASEAN Free Trade
Area agreement, which commits the Malaysia Government to scrap foreign car taxes.

PROMOTION STRATEGIES
Objectives of Promotion Strategies
Before determine the promotion strategies, we need to very clear about what are the objectives
we need to achieve. We know as above, our missions are to promote Tata nano in Malaysia and
increase the sales quarterly. Tata Nano is very new for Malaysian; they feel fresh with this new
brand and concept of this car. Tata Nano will get into Malaysia market in July 2009. So first of
the objective for promotion strategies are aims to create brand awareness and concept/knowledge
of this new car – Tata Nano. This is the cheapest car in the world and burst into the worldwide
market in the short time. But still is the new brand for the Malaysians, so we do the
advertisement and organize the event or campaign in sufficient detail to establish the good brand
attitudes. Brand awareness is important to provide a foundation for brand equity. After that, our
second objective is knowledge and persuasive. We aim to create liking, preference, conviction,
and purchase of a Tata Nano car. We can do the comparison with other cars which are higher
purchase price and this price is not every people will be affordable especially lower income
families and students. Beside that we will convince current purchasers that we will give the
potential customer to enjoying the good experience with Tata Nano by give try to drive the Tata
Nano before buying the car. And also will provide them warranty to the Tata Nano. We will
organize all the promotion strategies with lower cost to maintain the lower purchase price for the
Tata Nano in Malaysia.

Promotion Tag line

‘Have Fun, Pay Less, get more with Tata Nano’
Why we establish this tag line? Because this is make all the Malaysian to easy to remembered
Tata Nano and feel happy all the ways with Tata Nano. Tata Nano is safety and you can travel
everywhere by Tata Nano with your family or friends with fun, but you just need to pay all of
this at lower price –Pay Less & Get More. Beside that we can enjoy special fun with Tata Nano;
our earth also will feel happy with Tata Nano because Tata Nano also is the environment friendly
car.
Advertising Program
We aims to inform Malaysians this is the cheapest car in the world and persuade Malaysians to
buy Tata Nano due to this car is safety, useful, all in good quality and also environment friendly
by developing an advertising program.
Online Advertisement
First step we start before lunching Tata Nano, we do the online advertisement. Tata Nano created
a Web site –www.tata nano.com – on March 2009 to better communicate with the customers. In
the Web site, we posted the photo categories and videos to provide customers the information
and special features of Tata Nano and bring them inside the company. In addition to photos and
videos, the web site links to recent news about Tata Nano and space for public feedback. Besides
that, Blogs have become an important outlet for word of mouth which are regularly updated
online diaries. Blogs is bringing together people with common interests. They vary wide and can
influence a vast audience due to many internet users have read Blogs. We can establish the blog
network and carefully monitoring to find out what's on people's minds especially the potential
customers. This is a cheapest and good way to build up brand awareness.

Television Advertisement
Television advertisement is very expensive but this is the most powerful to perform the Tata
Nano to the public by demonstrating Tata Nano attributes and persuasively explaining their
corresponding consumer benefits. By lower advertising budget, we cannot do the TV
advertisement in whole day, so we just choose the prime time (7pm – 11pm) to place the
advertisement. By properly designed and executed TV advertisement can improve brand equity
and affect sales and profits.

Radio Advertisement
Most of the Malaysians listen to the radio daily. Now days have many facilities such as MP3,
hand phone and so on, is convenience for the people to listen the radio anytime at anywhere, this
is a cheap and pervasive medium for us to create the brand awareness by repeatedly listen the
advertisement and the brand name. Advantages of the radio advertisement are flexibility, quick
response and also more effective media for reaching teens.
Newspaper Advertisement

Beside that the radio, most of the Malaysians also will saw a newspaper everyday. So this is
good market coverage. From here, Tata Nano can get the broad acceptance and good reputation
from Malaysians. Newspaper advertising is inexpensive.

Marketing Campaign

This Marketing campaign is base on every four month:

Marketing Campaign for July 2009 to October 2009
Tata Nano will lunch at Malaysia on July 2009. Launching program is very important for
positioning which is the act of designing Tata Nano and image to occupy Malaysia in the minds
of the target market. Launching program also is one of the promotion strategies to build
awareness, through launching at public center Tata Motor will introduce the Tata Nano to
market. In July and August, we focus on marketing campaign which will take place at all the
IPTA and IPTS which have organize the convocation, by providing product display and banner;
and the peoples can have the experience with Tata Nano by provide the opportunities to drive
Tata Nano around the campus. Theme for this campaign is 'Good future with Tata Nano'. Reason
for this marketing campaign is one of our targets are students such as fresh graduate who just get
the new job and also the international students. Fresh graduate need the transportation in their
working life but they can't afford to buy the too expensive car; international student just need the
car which is economy and using it in short period around 2-3years for their student life in
Malaysia. This is cheapest cost by event or campaign in the campus. In September and October,
Malaysians will celebrate two big festivals together; there are Hari Raya Puasa Aidifitri and
Deepavali. So we can focus on lower income group with family especially those are come from
Malay family or Indian family. Use the mail, telephone, fax, e- mail to communicate directly
with them. Base on historical, more of the Malay or Indian will Buy the car before festival. 'Raya
with Tata Nano' can be the theme for our campaign at this period, and promote them Tata Nano
is cheapest and safety.

Marketing Campaign for November 2009 to February 2009

In November and December, Malaysia have the Mega Sales due to Merry Christmas and New
Year in the end of the year at whole Malaysia so that have many people will go to shopping. We
can organize the event at shopping centers in Malaysia such as KLCC, Midvalley, and Berjaya.
Times Square and Sungai Wang by providing product display and banner.
On January and February, most of the employees in Malaysia will get the bonus in this period
so the purchasing power will increase. Beside that Chinese New Year is at February. Send the
brochures to the small and medium company or office and do the introduction or briefing to
them. Follow by mail, telephone, fax or e-mail to developing effective communication.
Marketing Campaign for March 2009 to June 2009
We will do the road show at every state (whole Malaysia). We can have the road show at the
center market such as all market at all the state. Have many people will go to market early
morning to buy the vegetable, take the breakfast or buy the necessary things. Most of them are
women or housewife who may be come from the lower or medium income family. Some of them
go to Pasar by motorcycle or by bus. There are our target markets. We can promote Tata Nano to
them such as, Tata Nano is the cheapest car in the world, Get the Tata Nano to be second car for
their family member especially for their children or elder parent, 'Easy life with Tata Nano'.
Housewife or mother can go to Pasar or anywhere by Tata Nano better than motorcycle or by bus
for complete their daily matter more effectively. When the women get the news, they will pass
this news to their friend immediately. This will help us to promote Tata Nano effectively in the
local society. At the road show, people also can get the experience with Tata Nano by have the
opportunities to drive the Tata Nano car before purchase it.

Channel of Distribution Strategies

Direct marketing channel (zero-level channel: manufacturer to customer)

We perform the Tata Nano in Malaysia by selling it directly to customers. Customers can deal
directly with our dealers and make the booking for Tata Nano by visit our sales office or at any
special event/campaign. Besides that, customers also can get the information or make the
booking via the telephone (1-800-88-nano) and through the Internet (www.tatanano.com). By
this way we can save more cost and maintain the cheapest purchasing price rather than through
retailers or resellers.

Physical flow

Tata motor at India-transporters warehouses-assembly workshop at Malaysia-customers from the

diagram, can know that Tata Nano will send the paths to the Malaysia after received the order
from the sales office. After that, we will assemble a car at the workshop. Finally, send to the
customers directly. From here, we can often provide faster delivery to customers because we are
closer to the customers.

Payment Flow

Tata motors at India-banks- sales office at Malaysia-banks- customers can paying bills by cash or
do the financing from bank. Customers pay less by this diagram due to not need to pay extra
commission to third party such as wholesalers or retailers. Tata Motor also can collect the
payment more efficient.

Information Flow
Tata motors at India-sales office at Malaysia-customer. Customers can get the information
directly from Tata Motor such as new product, price development and so on. Tata Motor can
more understanding customer's needs when receiving customers, response calls and mailings or
through internet blog. If customers have any need or complaint, we can satisfy them immediately
by deal with customers directly.

Promotion Flow

Tata motors at India-sales office at Malaysia-media-customer. Have two ways of promotion

flow, directly and indirectly. Directly is we'll organize the marketing campaign, event and road
show. By this way, we'll promote Tata Nano to target market by face by face and provide the
opportunities to them try to drive the Tata Nano. Indirect ways are we will do the advertisement
through media such as internet, TV, radio and also newspaper. By this promotion flow, Tata
Motor aims to create brand awareness and increase the sales in the Malaysia.

Financial Plan
This section will offer the overview of Tata Nano related marketing activities. It is include, sale
forecast, expense forecast, break even analysis and how those relate to the market strategy.
Break even analysis

Break even analysis indicates that 3369 unit or $ 46,168,776 will be required in monthly sales
revenue to reach the break even point.
SALES OFFICE AT
TATA MOTORS AT INDIA CUSTOMER
MALAYSIA

TATA MOTORS SALES FORCE AT

AT INDIA MALAYSIA CUSTOMER MEDIA

Monthly unit break even 3369

Monthly sales break even $46,168,776

 Monthly unit production 6083

Average per unit revenue $13704

Average per unit variable cost $8,954

Average per unit fixed cost $2630.28

Estimated monthly fixed cost $16,000,000

Sales forecast
Sale was forecasted quarterly basis, with adjustment of seasonal factor. At Malaysia there are 3
main celebrations each year, which Aidil Fitri, Chinese New Year, and Deepavali, those factors
was used as seasonal factor. Since one of our target markets is fresh graduate student, graduation
month also was used as seasonal factor to adjust our forecasted sales. The sales were forecasted
to increase 10 percent annually.
Marketing Expense Forecast
Marketing expense forecast will be used as tool to keep the marketing department on target and
provide indicators when corrections are needed for the proper implementation of the marketing
plan. Expenses are tracked in major marketing categories of advertisement, marketing campaign,
direct marketing and other. Marketing are budgeted at approximately of 8 percent of total sales
for 3rdquarter of 2009, the marketing expense will be high during those quarter to penetrate
market and promoting our product so costumer will realize about existence of our new product.
For the next coming years the marketing expense will budgeted approximately 3-4 percent of
total sales.
Advertisement Expense:
3rd qtr 2009 4th qtr 2009 1st qtr 2010 2nd qtr 2010
Newspaper, Billboard and magazine 2000000 1500000 1200000 1200000
TV advertisement 5000000 4000000 3500000 3500000
Online advertisement 100000 100000 75000 75000
Radio advertisement 200000 200000 150000 150000
Marketing Campaign Expenses
Grand launching event 7000000
Graduation campaign 2000000
Hari Raya Aidil Fitri campaign 2000000
Dewali campaign 2000000
Christmas campaign 2000000
Chinese New year 2000000
Road show 3000000

DIRECT MARKETING 3RD QTR 2009 4TH QTR 2009 1ST QTR 2010 2ND QTR 2010

1-800 TOLL FREE 150000 100000 100000 100000

WEB SITE 500000 75000 75000 75000

PRINTED MATERIAL 1000000 800000 600000 600000

TOTAL 19,950,000 10,775,000 7,700,000 8,700,000

PERCENT OF SALES 8.09% 3.75 % 3.12% 3.97%

Business & Formal Occasions

 Business Cards
It is customary to exchange business cards with those in your business circle. Business
cards are usually given with both hands or with the left hand holding up the right one. It
is polite to spend some time studying the card.

 Dressing for Formal Occasions

 For men, business attire is commonly made up of dark pants or slacks, long-sleeved
shirts and tie. Suits are worn during presentations and formal meetings.

The attire for Malaysian women is more flexible and creative. Working women may
wear appropriate attire such as skirts, slacks or traditional costumes. Revealing attire is
discouraged. Batik attire is considered both appropriate and fashionable when attending
formal occasions. This unique and versatile Malaysian fabric features hand-pointed or
block motifs.
Business Dress

Doing business in Malaysia can be very rewarding and enjoyable. An understanding of Asian
customs and business practices will smooth the way to fruitful negotiations.

First Impressions

When conducting business in Malaysia, the first meeting is crucial to establishing relationships
and credibility. Asian cultures emphasise dress, gesture and language, so it is useful to develop a
basic knowledge of the culture you are dealing with. In more westernised countries like
Singapore and Hong Kong, it may be acceptable to use first names, but if in doubt, always opt
for the more formal mode of address.

Business Attire

For men, business attire is commonly made up of dark pants or slacks, long-sleeved shirts and
tie. Suits are worn during presentations and formal meetings.

The attire for Malaysian women is more flexible and creative. Working women may wear
appropriate attire such as skirts, slacks or traditional costumes. Revealing attire is discouraged.
Batik attire is considered both appropriate and fashionable when attending formal occasions. A
majority of Muslim women wear garments that fully cover their bodies. The usage of
headscarves (tudung) is also common. Visitors are encouraged to take note of local sensitivities
and dress modestly

Health care:
Insurance schemes are popular especially for foreign investors and expatriates. Most policies
offer very low rates with the widest selection of benefits possible in addition to the almost
nonexistent Malaysian tax.

Health care is also advantageous since the government is currently investing a lot in improving
facilities and services with the main objective of enforcing medical tourism. Public schools are
partly subsidized by the government while there are also private schools offering quality
education at higher tuition fees. Child care services are available in Kuala Lumpur while other
cities are also beginning to build more.

Malay Culture and Society

A Multi-Cultural Society

Malaysia is a multi-cultural society. The main ethnic groups are the native Malays as well as
large populations of Chinese, and Indians. When visiting the country it is clear that the
ethnicities retain their religions, customs and way of life. The most important festivals of each
group are public holidays.

Although growing up, children are educated in the same schools and will eventually work in the
same offices, few marry outside their own ethnicity. Families tend to socialise within their own
ethnic group – all part of retaining their individual traditions and lifestyles.

Despite the ethnic differences there are commonalities culturally speaking.

Group Orientation

The family is considered the centre of the social structure. As a result there is a great emphasis
on unity, loyalty and respect for the elderly. The family is the place where the individual can be
guaranteed both emotional and financial support. When one member of the family suffers a
financial setback, the rest of the family will contribute what they can to help out. Families tend to
be extended, although in the larger cities this will naturally differ.

The Concept of Face

Malays, Chinese and Indians all strive to maintain face and avoid shame both in public and
private. Face is a personal concept that embraces qualities such as a good name, good character,
and being held in esteem by one's peers. Face is considered a commodity that can be given, lost,
taken away, or earned. On top of this face also extends to the family, school, company, and even
the nation itself.

The desire to maintain face makes Malaysians strive for harmonious relationships.

Face can be lost by openly criticizing, insulting, or putting someone on the spot; doing
something that brings shame to the group; challenging someone in authority, especially if this is
done in public; showing anger at another person; refusing a request; not keeping a promise; or
disagreeing with someone publicly. Conversely, face can be saved by remaining calm and
courteous; discussing errors or transgressions in private; speaking about problems without
blaming anyone; using non-verbal communication to say "no"; and allowing the other person to
get out of the situation with their pride intact.

Gift Giving Etiquette

Here are some general gift giving etiquette guidelines:

Gift giving to Malays:

• If invited to someone's home for dinner, bring the hostess pastries or good quality chocolates.
• Never give alcohol.

• Do not give toy dogs or pigs to children.

• Do not give anything made of pigskin.

• Avoid white wrapping paper as it symbolizes death and mourning.

• Avoid yellow wrapping paper, as it is the color of royalty.

• If you give food, it must be “halal” (meaning permissible for Muslims).
• Offer gifts with the right hand only or both hands if the item is large.
• Gifts are generally not opened when received.

Gift giving to Chinese:

• If invited to someone's home, bring a small gift of fruit, sweets, or cakes, saying that it is for
the children.

• A gift is traditionally refused before it is accepted to demonstrate that the recipient is not
greedy.
• Do not give scissors, knives or other cutting utensils as they indicate a desire to sever the
relationship.
• Flowers do not make good gifts as they are given to the sick and are used at funerals.
• Do not wrap gifts in mourning colours - white, blue, or black.

• Wrap the gifts in happy colours - red, pink, or yellow.

• Elaborate gift - wrapping is imperative.

• Never wrap a gift for a baby or decorate the gift in any way with a stork, as birds are the
harbinger of death.

• It is best to give gifts in even numbers since odd numbers are unlucky.
• Gifts are generally not opened when received.

Gift giving to Indians:

• If you give flowers, avoid frangipani as they are used in funeral wreaths.

• Money should be given in odd numbers.

• Offer gifts with the right hand only or both hands if the item is large.

• Do not wrap gifts in white or black.

• Wrap gifts in red, yellow or green paper or other bright colors as these bring good fortune.
• Do not give leather products to a Hindu.

• Do not give alcohol unless you are certain the recipient drinks.

• Gifts are generally not opened when received.

Business Etiquette and Protocol in Malaysia

Meeting and Greeting

Within the business context most Malaysian businesspeople are culturally-savvy and
internationally exposes. Your experience may very well depend upon the ethnicity, age, sex and
status of the person you are meeting. The best approach is always friendly yet formal. A few tips
include: 

• Initial greetings should be formal and denote proper respect.

• If in a team, introduce the most important person first.

• Many Malays and Indians are uncomfortable shaking hands with a member of the opposite sex.

• Foreign men should always wait for a Malaysian woman to extend her hand. Foreign women
should also wait for a Malaysian man to extend his hand.

• To demonstrate respect Chinese may look downwards rather than at the person they are
meeting.
• It is important that professional titles (professor, doctor, engineer) and honorific titles are used
in business. Malays and Indians use titles with their first name while Chinese use titles with their
surname.

Business Card Etiquette

• Business cards are exchanged after the initial introductions.

• If you will be meeting Chinese, have one side of your card translated into Chinese, with the
Chinese characters printed in gold.

• If you will be meeting government officials, have one side of your card translated into Bahasa
Malaysia.
• Use two hands or the right hand only to exchange business cards.

• Examine any business card you receive before putting it in your business card case.
• The respect you show someone's business card is indicative of the respect you will show the
individual in business. Act accordingly.

• Never write on someone's card in their presence.

Communication

As an extension to the need to maintain harmonious relations, Malaysians rely on non-verbal

communication (i.e. facial expressions, tone of voice, body language, etc). Such a
communication style tends to be subtle, indirect and. Malays may hint at a point rather than
making a direct statement, since that might cause the other person to lose face. Rather than say
"no", they might say, "I will try", or "I’ll see what I can do". This allows the person making the
request and the person turning it down to save face and maintain harmony in their relationship.

If you are unsure about the affirmative response you received, you may want to continue the
discussion, re-phrasing the question in several different ways so that you may compare
responses. If the response was given because the Malaysian did not know how to respond in the
negative without causing offense, this may come out. Alternatively, they may have someone else
give you the bad news.

Silence is an important element of Malaysian communication. Pausing before responding to a

question indicates that they have given the question appropriate thought and considered their
response carefully. Many Malaysians do not understand the Western propensity to respond to a
question hastily and can consider such behaviour thoughtless and rude.
Malaysians may laugh at what may appear to outsiders as inappropriate moments. This device is
used to conceal uneasiness.

Do not show anger in public as it makes Malaysians uncomfortable and creates a feeling of
powerlessness. There is a greater chance of achieving a good outcome id you are calm, whereas
little is resolved by shouting.

Business Meetings

• It is a good idea for the most senior person on your team to enter first so that he or she is the
first to greet the most senior Malaysian.

• This gives face to both parties as it demonstrates respect towards the Malaysian and shows that
you respect hierarchy within your company.

• It is customary for leaders to sit opposite each other around the table.

• Many companies will have their team seated in descending rank, although this is not always the
case.
• Expect the most senior Malaysian to give a brief welcoming speech. You need not reciprocate.
• There will be a period of small talk, which will end when the most senior Malaysian is
comfortable moving to the business discussion.

• Meetings may be conducted or continue over lunch and dinner.

• Meetings, especially initial ones, are generally somewhat formal. Treat all Malaysian
participants with respect and be cautious not to lose your temper or appear irritated.
• At the first meeting between two companies, Malaysians will generally not get into in-depth
discussions. They prefer to use the first meeting as an opportunity to get to know the other side
and build a rapport, which is essential in this consensus-driven culture.
  Structure and hierarchy in Malaysian companies
o Regardless of the size or nature of the company, hierarchy is an integral part of
Malaysian business culture. Malaysian companies generally follow a vertical
hierarchical structure where authority is directed from the top.
o In keeping with Malaysian culture, titles and job descriptions play a significant
part in many Malaysian companies. They are important for employees in order to
emphasise the line of authority within the business.

 Working Relationships in Malaysia

o Malaysians’ respect for authority is evident in most business dealings. The
relationship between subordinates and their superiors for example is distinct and
highly official. Malaysians do not address their bosses by their first name, but use
titles such as “Mr” and “Madam” followed by their honorific form of address.
o Relationships between Malaysian business colleagues are based on mutual respect
and, as such, the same procedure used when addressing their superiors is also
applied with their Malaysian business colleagues.

Business practices in Malaysia

o When meeting your Malaysian counterparts for the first time, a firm handshake is
the standard form of greeting. However, you should only shake hands with a
Malaysian businesswoman if she initiates the gesture. Otherwise a nod or a single
bow is appropriate.
o With such an array of cultures in Malaysia addressing Malaysians properly can be
difficult. It is advised to find out in advance how you should address the person
you are to meet. Generally speaking, a Malay’s first name is individually given,
while the second and third name indicate those of the father and the grandfather.
In some cases the words “bin” (son) or “binti” (daughter) can be added after the
given name.
 o Gifts are not usually exchanged as they may be perceived as a bribe. However, in
the event that you are presented with a gift, it is customary to accept it with both
hands and wait until you have left your Malaysian colleagues before opening it.
Be sure to reciprocate with a gift of equal value in order to avoid loss of face.
o Business cards are customarily exchanged after an initial introduction in
Malaysia. Since a large proportion of Malaysian business people are Chinese, it
will be useful if your card is printed in both English and Chinese and that details
of your education, professional qualifications, and business title are included.
Cards should be presented and received with both hands, and time should always
be spent examining the information before placing it on the table or in a briefcase.

Malaysian business etiquette (Do's and Don'ts)

 DO be patient with your Malaysian counterparts during business negotiations. The

process is often a long and detailed one that should not be hastened.
 DO remain polite and demonstrate good etiquette at all times. Elderly Malaysian business
people for example should be treated with respect and always acknowledged before
younger members of the organisation. This is an essential part of achieving successful
business dealings in Malaysia.
 DO take time to establish productive business relationships with your Malaysian
colleagues. Initial meetings are generally orientated towards developing such
relationships and will be maintained throughout and beyond the negotiations. Without
them, your business plans may be fruitless.
 DON’T assume that a signed contract signifies a final agreement. It is common for
negotiations to continue after a contract has been signed.
 DON’T be surprised if your Malaysian counterparts ask what you may consider to be
personal questions. In Malaysia, asking people about their weight, income and marital
status for example, is not uncommon and is viewed as an acceptable approach to initial
conversations.
  DON’T enter into business with a Malaysian company without a letter of introduction
from a bank or mutual acquaintance. This will help your request for a future meeting, as
Malaysians prefer to conduct business with those they are familiar with.

conclusion

Bibliography
http://hrd.apec.org/index.php/Education_in_Malaysia

http://www.unicef.org/infobycountry/malaysia_statistics.html

http://www.ilo.org/public/english/region/asro/bangkok/skills-ap/skills/malaysia_literacy.htm