The ASEAN market is Malaysia’s largest trading partner. Malaysia is the perfect choice for foreign businesses to expand into Southeast Asia. The laws are business-friendly. Besides, there are many reasons to consider Malaysia as the gateway for foreign businesses to the ASEAN market.
In Malaysia, foreign businesses can get access to a market of over 680 million people. With facilities like strong trade agreements, investor-friendly policies, and standard infrastructure, this is definitely the best destination for foreign businesses. To be more specific, we have done comprehensive research on that. We have found 4 top reasons based on our research.
Top 4 Reasons Why Malaysia is the Gateway for Foreign Businesses to the ASEAN Market
Reason 1: Opportunity For Digital Technology Reason 2: Scope Of Utilizing Renewable EnergyReason 3: Work In Halal MarketsReason 4: Strong Infrastructure Of Malaysia
- Reason 1: Opportunity For Digital Technology
In the last few years, the growth of digital technology has been significant compared to other business sectors. The market of digital technology is also expanding in Asian countries. From that perspective, Malaysia could be the best gateway for foreign businesses focusing on digital technology. The infrastructure of Malaysia is strong enough to adapt to the latest technology.
Malaysia’s internet penetration rate stood at 97.4%, with 33.59 million internet users by the end of 2024. So, it could be a smart move to think about company registration in Malaysia. Related to this sector, you can think about starting e-commerce, fintech, and digital services. It will give you the chance to be a contributor to this high-potential business sector.
- Reason 2: Scope Of Utilizing Renewable Energy
Most of the developed countries are focusing on utilizing renewable energy. But the scope is not available for all countries. Thankfully, Malaysia has the facilities to utilize green technology and renewable energy. In fact, the Malaysian government is encouraging businesses to use renewable energy. They are working on solar, biomass, and energy efficiency technologies.
Malaysia is expected to achieve 18.2% renewable energy capacity by 2025 and 36.4% by 2035. Undoubtedly, this is a big reason why Malaysia is the gateway for foreign businesses to the ASEAN market. In Malaysia, you are going to get the advantage of using solar panels for production and manufacturing. Thinking about how to open a company in Malaysia for foreigners? Get assistance from SFM Consulting Firm.
- Reason 3: Work In Halal Markets
The market size of halal products is continuously expanding. Being a Muslim country, Malaysia is a global leader in that sector. More than 90% of Malaysian companies hold halal certifications according to the guidelines set by the Department of Islamic Development Malaysia (JAKIM). The demand for halal-certified products is getting high in non-Muslim countries as well as in Muslim populations.
As most of the companies follows halal standards, it will be easier to obtain and maintain halal certifications for your business. The supply chain, raw material sellers, and other food manufacturers follow the halal guidelines. You can export products to Indonesia, Brunei, and other Middle-East countries. Apart from the food industries, you can apply it to cosmetics, personal care, and consumer goods.
- Reason 4: Strong Infrastructure Of Malaysia
Malaysia is considered one of the strongest Infrastructures among Asian countries. There are notable developments in roads, bridges, and residential areas. That makes Malaysia a great destination for foreign business in the ASEAN Market. Lots of mega-projects are still ongoing related to the infrastructure. By starting your business in Malaysia, you can benefit from real estate development.
Their construction industry expanded by 15% in real terms in 2024. It was driven by increased public and private investments in the infrastructure sectors. This factor has also contributed to improved external demand. The conditions are perfect to get the strategic advantage by capitalizing on its Infrastructure development process. For example, IJM Corporation and Sunway Construction are actively involved in mega real estate projects.
Sum Up
Considering the above facilities, all of us would agree that Malaysia is the ultimate gateway for foreign businesses to the ASEAN market. The business environment in Malaysia is ideal for any foreign business. The best part is the opportunity for continuous growth. If you are thinking about starting your business in Malaysia? You can contact SFM Consulting Firm for any sort of business registration consultancy in Malaysia. This is the best time to start.
FAQ
- Why is Malaysia good for international business?
The geographical location of Malaysia is perfect from a business perspective. It is located in a convenient part of southeast Asia. The economic growth is sustainable with a business-friendly environment. There are excellent facilities for foreign investors. That’s why Malaysia is good for international business.
- What is the role of Malaysia in ASEAN?
Malaysia is a founding member of ASEAN. Their influence is high as an Economic hub. Malaysia promotes regionalism in Southeast Asia by participating in ASEAN’s development. They take the leadership position in facilitating cooperation among member states.
- What is the role of ASEAN in international business?
In international businesses, ASEAN promotes the role of mutual assistance for social, cultural, economic, and technical sectors. They support member countries by providing different business facilities. Also, they play an important role by providing training and research facilities.
- Why is Malaysia attractive to foreign investors?
The infrastructure of Malaysia is business-friendly. There is enough opportunity for investment and manpower. Tax and other business registration procedures are convenient for foreigners. Alongside those, Malaysia is globally accessible. That’s why Malaysia is an attractive destination to foreign investors.
- Is Malaysia a good country to start a business?
Considering facilities like a cost-competitive environment, sustainable infrastructure, economic growth, and skilled manpower, Malaysia is definitely a good country to start a business. You will find here every expected business-related facility.
Sources
https://datareportal.com/reports/digital-2024-malaysia
https://www.businesswire.com/news/home/20250206243227/en/Malaysia-Construction-Industry-Report-2024-Output-Grew-by-15-in-Real-terms-in-2024-Fueled-by-Increased-PPI-in-Energy-and-Infrastructure-Improvement-in-External-Demand—Forecast-to-2028—ResearchAndMarkets.com
Content Is Written By: Mia Biajid – Business & Finance Content Writer
Mia Biajid is a professional content writer with six years of experience in writing informative content in the business sector. He has a deep understanding of market trends, entrepreneurship, and financial strategies. Mia specializes in delivering insightful articles that help businesses to grow. His expertise covers business development, investment insights, and corporate strategies. Having that much experience makes him a trusted voice in the business industry.
Reviewer:
Article Reviewed By
Md Forhad Hossain
(BA-Hons, MBA, LL.B, LL.M)
Meet Md. Forhad Hossain – is an expert in company registration with over 14 years of experience. He has helped more than 400 businesses in Malaysia and over 7,000 clients from around the world start their journey successfully.
Forhad is passionate about making business registration simple and stress-free. His knowledge and dedication have earned him the trust of entrepreneurs worldwide.
If you’re looking for someone to guide you, Md. Forhad Hossain is the name you can Rely on.
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