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Background of the Malaysia Malaysia, an ethnically and religiously diverse constitutional monarchy, became independent in 1957 and has

been ruled continuously by the United Malays National Organization. Huge electoral inroads made in March 2008 by the opposition coalition, led by the Peoples Justice Party, were largely the result of popular dissatisfaction with pro-Malay affirmative action programs and corruption. In 2011 and 2012, the government cracked down heavily on peaceful protests by civil society groups calling for electoral reform. Malaysia has slowly liberalized its economy, but government ownership remains prevalent in such key sectors as banking, media, automobiles, and airlines. Malaysia is a leading exporter of electronics and information technology products, and its industries range from agricultural goods to automobiles. Despite the challenging global economic environment, the Malaysian economy has recorded growth rates averaging about 4.5 percent per year over the past five years. Pressing ahead with its Economic Transformation Program, the government has undertaken structural reforms to enhance the entrepreneurial environment and legal transparency. Management of public finance has been relatively prudent, with gradual reductions in various government subsidies in recent years. Despite on going reform efforts, Malaysias overall economic freedom continues to be constrained by institutional shortcomings that damage prospects for more vibrant long-term economic expansion. The countrys perceived level of corruption has increased, and there is no sign of effective anti-corruption measures, The judicial system remains vulnerable to political interference. Demographic data of Malaysia The population of Malaysia stands at over 28 million in 2012. The proportion of the population of Malaysia below the age of 15 years is 27.0 per cent compared with 27.1 per cent in 2011. In contrast, the proportion of working age population (15 to 64 years) increased to 70.1 per cent from 69.1 per cent. The proportion of population aged 65 years and over also increased to 5.1 per cent as compared with 5.9 per cent in 2011. Consequently, the median age is 27.1 years in 2012.From this, male is 26.9 years while the female is 27.3 years.

Malaysia's population comprises many ethnic groups, with the Malays at around 50.4% making up the majority and other indigenous groups in Sabah and Sarawak at 11% around of the population. By constitutional definition, Malays are Muslims who practice Malay customs and culture. Around 23.7% of the population is of Chinese descent, while Malaysians of Indian descent comprises approximately 7.1% of the population. Indians began migrating to Malaysia in the early 19th century. Other Malaysians also include those whose origin, can be traced to the Middle East, Thailand and Indonesia. Europeans and Eurasians mainly include British who settled in Malaysia since colonial times. The population distribution is highly uneven, with some 20 million residents concentrated on the Malay Peninsula, while East Malaysia is relatively less populated. GDP of Malaysia The Gross Domestic Product (GDP) in Malaysia was worth 303.53 billion US dollars in 2012. The GDP value of Malaysia represents 0.49 percent of the world economy. GDP in Malaysia is reported by the The World Bank Group. From 1960 until 2012, Malaysia GDP averaged 65.6 USD Billion reaching an all time high of 303.5 USD Billion in December of 2012 and a record low of 2.4 USD Billion in December of 1961. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. GDP GROWTH RATE The Gross Domestic Product (GDP) in Malaysia expanded 1.40 percent in the second quarter of 2013 over the previous quarter. GDP Growth Rate in Malaysia is reported by the Department of Statistics Malaysia. From 2000 until 2013, Malaysia GDP Growth Rate averaged 1.3 Percent reaching an all time high of 5.9 Percent in September of 2009 and a record low of -7.6 Percent in March of 2009. Malaysia is a rapidly developing economy in Asia. Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant driver of the economy.

Analysis of Malaysia based on Hofstedes Cultural Typology Power distance-High This refers to the degree of inequality that exists and is accepted among people with and without power. A high PD score indicates that society accepts an unequal distribution of power, and that people understand "their place" in the system. Low PD means that power is shared and well dispersed. It also means that society members view themselves as equals. Malaysia scores very high on this dimension (score of 104) which means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organisation is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. Challenges to the leadership are not well-received. Individualism-Low The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether peoples self-image is defined in terms of I or We. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to in groups that take care of them in exchange for loyalty. Malaysia, with a score of 26, it is implied that collectivism is more manifested than individualism in its culture. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word collectivism in this sense has no political meaning: it refers to the group, not to the state.

Masculinity / Femininity-Average A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field a value system that starts in school and continues throughout organisational behaviour. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine). At 50, Malaysia can be considered a masculine society highly success oriented and driven. In masculine countries, people live in order to work, managers are expected to be decisive, and the emphasis is on equity, competition and performance. Conflicts are resolved by fighting them out. A clear example of this dimension is seen around election time, with ferocious, no-holds barred battles between candidates. Uncertainty avoidance-Moderately-Low Uncertainty avoiding cultures try to reduce the chance of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth. Malaysia exhibits a moderately-low index (scores 36), which suggests that the society has a tolerance for uncertainty and ambiguity. The society might be relatively comfortable in unstructured situations which are novel, unknown, surprising, and different from usual. Long-Term Orientation The long term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with societys search for virtue, the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view.

In long term orientation, Malaysian follow their tradition from last century till now. Malaysian still maintain their tradition although their country on develop. Malaysia have many races such as Malay, Chinese, Indian, Kadazan , Orang Asli and others. These races have colorful tradition that they practice in their lifestyle. They full and rich in custom and tradition in term of wedding, music, dance, language, and others so it not a thing that we need to forget because this tradition had been practice from the long time ago.

SWOT analysis of the Malaysia STRENGTHS Increasing consumer consumption Efficient and educated work force OPPORTUNITIES Location Tax incentives STRENGTHS Increasing consumer consumption WEAKNESSES Slow negotiations Demanding employees THREATS Mature market Competition

Private consumption is increasingly becoming an important component of the Malaysian economy. It was the main driver of economic growth in this recent decade, expected to grow by 6.5%, underpinning our gross domestic product (GDP) growth forecast of 5% in 2013. As a result, the share of real private consumption in GDP increased steadily from 43.8% in 2000 to 53.5% in 2012.

Efficient and educated work force

Malaysia offers investors a young, educated and productive workforce at costs competitive with other countries in Asia. Backed by the government's continued support of human resource development in all sectors, the quality of Malaysia's workforce is one of the best in the region. Literacy levels are high at more than 94% and school leavers entering the job market have at least 11 years of basic education. In addition, labour productivity has grown steadily at more than 3.3% per annum over the last few years surpassing that of many developed countries.

WEAKNESSES Slow negotiations

Malaysians put much stress on face-saving during the negotiation process. Any showing of negative emotions such as displaying impatience, irritation or anger caused loss of face in eyes of Malaysians. They also emphasized harmony and relied on relationship to resolve business disagreements. So, Malaysians might take a longer time in signing a contract. OPPORTUNITIES Location

Malaysia, strategically located in the heart of South East Asia, offers a costcompetitive location for investors intending to set up offshore operations for the manufacture of advanced technological products for regional and international markets. Malaysia located at mid-way between rapidly growing Chinese and Indian markets. So, it supported by a market-oriented economy and pro-business Government policies, Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. Tax incentives

Malaysia's company tax rate is attractive at 27% and is applicable to both resident and non-resident companies. Malaysia also offers a wide range of tax incentives for manufacturing projects under the Promotion of Investments Act 1986 and the Income Tax Act 1967. The main incentives are the Pioneer Status, Investment Tax Allowance, Reinvestment Allowance, Incentives for High Technology Industries and Incentives for Strategic Projects and Incentives for the Setting-up of International/ Regional Service-based Operations. THREATS Mature market

Malaysia's market-oriented economy, supportive government policies and a large local business community that is ready to do business with international corporations have made Malaysia a highly competitive manufacturing and export base. In addition, Malaysia's rapid move towards the k-economy allows companies to do business in an environment that is geared towards information technology. This attractive more local and global marketer come to make investment in Malaysia. Malaysia become a mature market.

Appendices Demographic data of malaysia

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