Malaysia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in malaysia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Entry Strategy
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Distributors and Agents 

Most exporters to Malaysia find that using a local distributor or agent is the best first step for entering the market. A local distributor is typically responsible for handling customs clearance, dealing with established wholesalers/retailers, marketing the product directly to major corporations or the government, and handling after-sales service. Exporters of services generally also benefit from working with a local partner. 

In sectors that are not government-dominated, exporters should select companies, agents, or distributors based on competitive considerations such as technical capacity or product knowledge. Having a local presence or agent can positively influence the outcome in this relationship-oriented market.

 Malaysian Government Procurement

Sales to the Government of Malaysia (GOM), Government Linked Companies (GLC), or procurements in priority sectors favor local agents and/or joint venture partners classified as Bumiputra companies. The term Bumiputra refers to individuals who are ethnically Malay. A Bumiputra company is defined as a company that fulfills the following criteria, as established under the Companies Act 1965:

· Upfront capital of at least RM25,000 

· Shareholders are 100 percent Bumiputra 

· Board of Directors are at least 51 percent Bumiputra 

· Managerial and professional staff are at least 51 percent Bumiputra 

· Supporting staff are at least 51 percent Bumiputra.

Technology Development 

The GOM and GLCs make use of offsets and other measures to encourage technology transfer, particularly in priority sectors. The GOM and GLCs also look favorably on U.S. companies with a long-term presence in the local market. Therefore, in strategic or large-scale market entry, U.S. companies typically find they are treated more favorably when they are willing to establish a local office, hire Malaysians, and provide training opportunities. Companies are also expected to undertake some local assembly or production or plan regular and frequent trips to maintain relationships and presence. 

U.S. Government Support

U.S. Department of Agriculture

The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) provides equivalent-level trade services at no cost for U.S. companies interested in exporting agricultural, fishery, and forestry products to Malaysia through their Office of Agricultural Affairs. The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies.

U.S. Department of Commerce 

The United States and Foreign Commercial Service (US&FCS) of the U.S. Department of Commerce (DOC) offers customized solutions to help U.S. companies, including small- and medium-sized enterprises, succeed in the Malaysian market. USFCS can assist U.S. companies in developing comprehensive market-entry or expansion plans, learn about export-and-customs-related requirements, obtain export financing, and identify potential partners, agents, and distributors through business matchmaking programs, trade shows, and trade missions led by senior U.S. government officials. For U.S. companies that purchase our Gold Key Service, USFCS can facilitate one-on-one meetings with pre-screened buyers, potential customers or end-users, experienced professional services providers, and key government officials. With these tools, explained in greater detail in this Country Commercial Guide (CCG), U.S. companies will be better positioned to take advantage of opportunities in the Malaysian market.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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