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 partnering with a local distributor or agent is the most effective first step in entering the market. A local distributor typically manages customs clearance, works with established wholesalers and retailers, markets directly to major corporations or the government, and provides after-sales support. Service exporters also benefit from having a local partner.

In sectors not dominated by the government, exporters should choose agents or distributors based on factors such as technical capability and product knowledge. Having a local presence or representative is often critical in this relationship-driven market.
 

Malaysian Government Procurement

Sales to the Government of Malaysia (GOM), Government-Linked Companies (GLCs), or entities in priority sectors tend to favor local agents and/or joint venture partners classified as Bumiputra companies. “Bumiputra” means “sons of the soil” and refers to groups whose presence in Malaysia predates colonialism.  This includes ethic Malays as well as certain indigenous communities in both Peninsular Malaysia and East Malaysia (Borneo)  Under the Companies Act 1965, a Bumiputra company is defined as meeting the following criteria:
•    A minimum paid-up capital of RM25,000
•    100% Bumiputra ownership of shares
•    At least 51% of the board of directors are Bumiputra
•    At least 51% of managerial and professional staff are Bumiputra
•    At least 51% of support staff are Bumiputra

Technology Development 

The GOM and GLCs encourage technology transfer in priority sectors through offset arrangements and other mechanisms.  Such offsets may be a requirement at certain thresholds that vary by sector according to the Industrial Collaboration Program (ICT) program. These conditions favor U.S. firms with a demonstrated long-term commitment to the Malaysian market. For strategic or large-scale opportunities, U.S. companies are generally more competitive when they establish a local office, hire Malaysian staff, and offer training programs.

Firms are also expected to undertake local assembly or production, or to engage in frequent visits to maintain relationships and visibility in the market.

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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