Market entry strategy for exports to Malaysia

If Malaysia is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in Malaysia

Malaysia has a population of about 33 million as of 2023. Known for its diverse culture, Malaysia is a melting pot of Malay, Chinese, Indian, and indigenous cultures.

Malaysia’s economy, with a GDP per capita around $11,400 USD in 2023, is well-diversified. Major sectors include manufacturing, especially electronics and automotive; palm oil and rubber production; and services, including tourism and finance.

The country’s main imports include electronics, machinery, petroleum products, plastics, and vehicles, supporting its diversified economy.

Ease of doing business in Malaysia

With a world ranking of 18 in the ease of doing business, international business in Malaysia is extremely friendly to every businessman who is willing to start their venture in this country. On the other hand, after the formal company set-up finding the right ways to organize distribution and approaching your clients may be challenging due to the different cultures within this country.

Business opportunities in Malaysia

The Malaysian government and industry put out investor friendly information and maintain a high level of transparency when it comes to informing investors of the benefits and risks associated with individual business sectors.With regularly organized trade fairs, the Malaysian government offers opportunities for international businesses to interact meaningfully and realize the rich potential offered by this business-friendly nation.

The following are the top import sectors in Malaysia:

Electronic equipment
Oil
Machinery
Plastics
Vehicles

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

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Entering the market in Malaysia in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.