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All admires and praises are solely due to Almighty ALLAH, the merciful, the omnipotent opt-
for giving who made my assignment works possible.
We sincerely feel it, a proud privilege to express heartfelt gratitude and profound indebtedness
to my reverend supervisor Rasul Ahmed Chowdhury, Lecturer, Department of Business
Administration, Manarat International University(MIU), for his scholarly, supervision,
instruction, valuable suggestion, encouragement, inspiration, untiring help, unprecedented
patience, sympathy during the whole period of assignment works and critical review of this
assignment. We shall be remaining ever grateful to my most respected teacher.
Finally not least but last my gratitude extended to all of our colleagues for their sincere
Co-operation.
EXECUTIVE SUMMERY
Introduction
Objective
Methodology
Discussion
Malaysia Geography
Culture of Malaysia
Economy of Malaysia
Decision
Conclusion
Bibliography
Introduction
A company must devise market entry strategies, in order to enter and survive in today’s highly
competitive markets. Market entry strategies are not easy to devise without the expert
knowledge of competitive market conditions, market trends, customer behavior and level of
satisfaction, etc. Market research consultancy has been helping a large number of foreign
companies of various sectors in making grand and striking entry into the ever-refining Indian
market, by dint of its expedient market entry strategies devised very sedulously and
scrupulously.
Since it became independent; Malaysia's economic record has been one of Asia's best. Real
gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005.alaysia
is one of the very few countries expecting growth this year, amidst the changing global
economic climate, making it a very attractive destination. In addition to its strong economic
standing,
The Malaysia’s economy is expected to witness promising grow thin in 2010. According to the
Malaysia Statistics Authority, the economy of Malaysia has achieved a remarkable growth in
various economic activities, The Malaysian Government plans to release a new economic
model in 2010 which will modify and in some cases eliminate NEP measures in an effort to
stimulate higher levels of investment and GDP growth over
.the next decade.
Objective
In this assignment there are some objectives. The objectives are:
Discussion
A beverage company of Bangladesh wants to entry International market in Malaysia. . But the
board of directors of Beverage Company is facing difficulty as to their entry strategy into the
Beverage industry outside Bangladesh. For that there has to consider all possible entry
strategies. There are some options as a way of entry into the Beverage industry:
• Franchising
• Licensing
• Strategic Alliance
• Foreign Direct Investment
Malaysia Geography
Located in Southeastern Asia, Malaysia is an island nation that forms a part of the Malaysian
Peninsula. Bordered by Thailand, Indonesia and Brunei, the geography of Malaysia is divided
into two major parts – Peninsular Malaysia and East Malaysia. The South China Sea and the
Straits of Malacca are the other two prominent features of Malaysian geography.
The nation has a total area of 329,750 sq. kms. Out of this, 328,550 sq. kms is land and the rest
is water, as per Malaysia’s geography. The Malaysian coastline extends to 4,675 kilometers.
Out of this 2,068 kms are in Peninsular Malaysia, and the rest are in East Malaysia.
The highest point in Malaysia is Mount Kinabalu (4,095 m), located in the state of Sabah. The
lowest point lies in the Indian Ocean. Tin, timber, copper, iron ore and natural gas have always
been the main natural resources here, according to the geography of Malaysia.
Air pollution formed by industrial waste and vehicular emissions have created a lot of
environmental problems in Malaysia. The country also faces severe deforestation and water
pollution problems. Landslides and flooding have been the natural causes of worry for
environmentalists in Malaysia.
The climate of Malaysia is extremely pleasant all through the year. It remains tropical from
April to October. This is definitely the best time to visit Malaysia.
Culture of Malaysia
Malaysia is one of the colorful countries of South Asia, which is renowned for its diverse
culture and is fast becoming one of the hottest tourist destinations of South Asia. The country
comprises of thirteen states and two geographical regions that is separated by the South China
Sea. Culture of Malaysia is eclectic; the country boasts of a heterogeneous society. Apart from
the indigenous people of Malaysia, the country also boasts of citizens, of Indian and Chinese
origin. Thus the culture of the country was considerably influenced by the Indian and Chinese
culture. The Malaysian culture was further influenced by European, Arab and Persian culture.
The multiculturalism of the country is also the result of the fact that the Malaysia was a part of
the British Empire. The colonial hangover still continues in the country and English is the
favored language of the middle class and upper class. Overall the Culture of Malaysia can be
best described as an assorted culture that is rich in variety and truly global.
Malaysia with its multiculturalism is home to delightful festivals, celebrations and feasts all
round the year. Festivals in the country are either celebrated nationwide or at the state level.
For example Prophet Muhammad's Birthday and Chinese New Year is celebrated all
throughout the country whereas Deepavali is celebrated in West Malaysia.
As far as cultural activity is concerned, there is no dearth of cultural activity in the country and
the cultural scenario of the country is always bustling with activity. Malaysia is rich in art and
architecture; there are many art colleges and art galleries in the country boasting of avant-garde
paintings and sculptures. The country is also interspersed with numerous architectural marvels,
which are renowned in all over the world and are major tourist attractions of the country. Crafts
of Malaysia are also variegated and reflect multiculturalism of the country; some of the crafts
of the country are Batik, Songket, Woodcarving and Keris.
Malaysia also boasts of a local film industry and presently the country produces 15 films and
about 300-400 television dramas, serials, and other programs every year. The country is
scattered with 250 theaters and cineplexes exhibiting local but as well as international films. In
order to boost popularity, appreciation and film literacy the government of Malaysia also
organizes the annual National Film Festival. Malaysia's theater scenario is also progressing
rapidly and the plays of the country are traveling to the West and some of the plays have also
received critical appreciation.
Economy of Malaysia
Since it became independent, Malaysia's economic record has been one of Asia's best. Real
gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005.
Performance peaked in the early 1980s through the mid-1990s, as the economy experienced
sustained rapid growth averaging almost 8% annually. High levels of foreign and domestic
investment played a significant role as the economy diversified and modernized. Once heavily
dependent on primary products such as rubber and tin, Malaysia today is a middle-income
country with a multi-sector economy based on services and manufacturing. Malaysia is one of
the world's largest exporters of semiconductor devices, electrical goods, and information and
communication technology (ICT) products.
The government continues to actively manage the economy. Malaysia's New Economic Policy
(NEP), first established in 1971, was a 10-year plan that sought to rectify a situation whereby
ethnic Malays and indigenous peoples (“bumiputera”), who comprised nearly 60% of the
population, held less than 3% of the nation’s wealth. Policy makers implemented a complex
network of racial preferences intended to promote the acquisition of economic assets by
bumiputera. In 1981 when the racial preferences were set to expire, the government extended
the NEP for another 10 years, stating that its goals had not been achieved. The policies again
were extended in 1991 and in 2001. The Malaysian Government plans to release a new
economic model in 2010 which will modify and in some cases eliminate NEP measures in an
effort to stimulate higher levels of investment and GDP growth over the next decade.
The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial
crisis, which affected countries throughout the region, including South Korea, Indonesia, and
Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a
return to recession in 2001 when its economy was negatively impacted by the bursting of the
dot-com bubble (which hurt the ICT sector) and slow growth or recession in many of its
important export markets. The global financial crisis threw Malaysia into recession again in
2009, and the government expects a contraction in GDP of around 3% for the year. Economists
expect Malaysia to return to a positive growth path in 2010.
The Malaysian financial system exhibited noteworthy resilience to the 2008 global financial
crisis. Malaysian banks are well capitalized and have no measurable exposure to the U.S. sub-
prime market. The central bank maintains a conservative regulatory environment, having
prohibited some of the riskier assets in vogue elsewhere. However, decreasing demand in the
U.S. and elsewhere is taking a toll on Malaysian exports, resulting in negative GDP growth for
2009 with recovery expected in 2010.
In the years that followed, Malaysia undertook several initiatives that became integral parts of
its socioeconomic model. The New Economic Policy (NEP), launched in 1971, contained a
series of affirmative action policies designed to benefit Malays and certain indigenous groups
(together known as bumiputera or "sons of the soil"). The constitution was amended to limit
dissent against the specially-protected and sensitive portions of the constitution pertaining to
the social contract. The government identified intercommunal harmony as one of its official
goals. The previous alliance of communally based parties was replaced with a broader
coalition--the Barisan Nasional (BN) or National Front. The BN won large majorities in the
1974 federal and state elections.
Mahathir Mohamad was Prime Minister between 1981 and 2003, leading UMNO and BN to
successive election victories. Mahathir emphasized economic development during his tenure,
in particular the export sector, as well as large-scale infrastructure projects. Mahathir attributed
the success of the Asian tiger economies to the "Asian values" of its people, which he believed
were superior to those of the West. Mahathir sharply criticized the International Monetary
Fund (IMF), international financiers such as George Soros, and Western governments during
the sharp economic and financial crisis that affected Asia in 1997-1998, and denied that the
downturn was due to the failures of corruption and "crony capitalism."
The end of Mahathir's tenure was marred by a falling out with his deputy and presumed
successor, Anwar Ibrahim. In September 1998, Mahathir dismissed Anwar and accused him of
immoral and corrupt conduct. Although Anwar was convicted on both charges in 1999 and
2000, the trials were viewed as seriously flawed. Malaysia's Federal Court eventually freed
Anwar after overturning his immoral conduct conviction in September 2004.
Mahathir stepped down as Prime Minister in October 2003 after 22 years in power, and his
successor, Deputy Prime Minister Abdullah Ahmad Badawi, was sworn into office. Abdullah
called elections and won an overwhelming victory in March 2004. Abdullah, an Islamic
scholar, promoted the concept of "Islam Hadhari" or "civilizational Islam," emphasizing the
importance of education, social harmony, and economic progress. His relationship with
Mahathir eventually soured, with Mahathir expressing regret at supporting Abdullah to be his
successor.
It is estimated that the present global retail sales in food products are worth around US$3.5
trillion, and are expected to grow at an annual rate of 4.8 per cent to US$6.4 trillion by 2020.
Malaysia remains a net importer of food. In 2008, Malaysia's food exports amounted to
RM17.9 billion, while imports totaled RM28 billion.
Malaysia exported food products to more than 200 countries and the main products exported
were cocoa (RM3 billion), fisheries products (RM 2.5 billion), margarine and shortening (RM
2.4 billion) and animal feed (RM1.2 billion).
Major food imports in 2008 were cereal and cereal preparations, cocoa, vegetables and fruits,
dairy products and animal feed. Raw materials such as cereals and dairy products will continue
to be imported for further processing for human consumption as well as for the production of
animal feed.
In Malaysia, the food industry is dominated by small and medium scale companies. The major
sub-sectors are fish and fish products, livestock and livestock products, fruits, vegetables and
cocoa.
The fisheries product's sub-sector includes processed seafood products such as frozen and
canned fish, crustaceans and molluscs, surimi and surimi products. This sub-sector remained
the main contributor to the exports of processed food.
In the livestock sub-sector, Malaysia is the third largest producer of poultry meat in the Asia
Pacific region. Malaysia is self sufficient in poultry, pork and eggs, but imports about 80% of
its beef requirements
.
Among the dairy products produced are milk powder, sweetened condensed milk, pasteurized
or sterilized liquid milk, ice cream, yoghurt and other fermented milk.
Currently, Malaysia is the largest cocoa processor in Asia and ranks fifth in the world.
However, most of the cocoa beans are imported. Malaysia is also one of the world major
producers of spices.
In 2008, Malaysia's was ranked as the fifth largest exporter of pepper and pepper-related
products (specialty pepper, processed pepper and pepper sauces).
In the Ninth Malaysia Plan, the production of fruits and vegetables is targeted to reach 2.56
million tones and 1.13 million tones, respectively, by 2010. Vegetables are mainly grown on a
small scale for fresh consumption, and are exported mainly to Singapore. The major locations
for the cultivation of vegetables are in Johor, Pahang, Kelantan and Perak.
In the fruits sub-sector, besides mangos, star fruits and papayas, the cultivation of pittaya
(dragon fruit) is gaining interest among farmers. Most of these fruits are to cater for the
domestic market.
Functional/health food produced in Malaysia is mainly in the form of food products that are
enriched. Food ingredients such as customized formulations required by food manufacturers,
natural food additives and flavors have the potential for further growth.
One Ringgit Malaysia (RM) is divided into 100 sen. Currently, the Ringgit exchange rate
operates on a managed-float regime against a trade-weighted basket of currencies. In this
brochure, costs quoted in US Dollar are conversions based on US$1 = RM3.5966.
RM US$
Reservation of a name 30 8.34
For registration of a company, fees range according to nominal share capital,
e.g.:
- Not exceeding RM100,000 (US$27,804) 1,000 278
- Exceeds RM500,000 (US$150,875) but does not 5,000 1,390
exceed RM1 million (US$301,750)
- Exceeds RM5 million (US$1.51 million) but does not 10, 2,780
exceed RM10 million (US$3.02 million) 000
- Exceeds RM50 million (US$15.09 million) but does 50,000 13,902
not exceed RM100 million (US$30.18 million)
- Exceeding RM100 million (US$30.18 million) 70,000 19,463
Economic Strength
» Natural resources - oil, gas, tin, timber, palm oil, rubber
» GDP growth - 4.6%
» Gross national savings - 37.9% of GNI
» Debt service ratio - 2.7%
» Unemployment rate - 3.7%
» Inflation(CPI) - 5.4%
» Export of manufactured goods 2008 - 70.0% of total exports
Supportive Government Policies
» Pro-business policies
» Responsive government
» Liberal investment policies
» Attractive tax and other incentives
» Liberal exchange control regime
» Intellectual property protection
An Educated Workforce
» Talented, young, educated and productive workforce
» Multilingual workforce speaking two or three languages, including English
Comprehensive system of vocational and industrial training, including advanced skills
»
training.
» Harmonious industrial relations with minimal trade disputes
Developed Infrastructure
» Network of well-maintained highways and railways
» Well-equipped seaports and airports
» High quality telecommunications network and services
» Fully developed industrial parks, including free industrial zones, technology parks and
Multimedia Super Corridor (MSC)
» Advanced MSC Malaysia Cybercities and Cybercentres
Vibrant Business Environment
» Market-oriented economy
» Well-developed financial and banking sector, including the Labuan International Financial
Exchange
Wide use of English, especially in business Legal and accounting practice based on the British
»
system
» Large local business community with a long history in international business links
» Large foreign business community in all business sectors Extensive trade links - country's total
trade was valued at RM1.19 thrillion
Quality of Life
» Friendly and hospitable Malaysians
» Safe and comfortable living environment
» Excellent housing, modern amenities, good healthcare and medical facilities
» Excellent educational institutions including international schools for expatriate children
» World-class recreational and sports facilities
» Excellent shopping with goods from all over the world
A major factor that has attracted investors to Malaysia is the government's commitment to
maintain a business environment that provides companies with the opportunities for growth
and profits. This commitment is seen in the government's constant efforts to obtain feedback
from the business community through channels of consultation such as regular government-
private sector dialogues. These allow the various business communities to air their views and
to contribute towards the formulation of government policies which concern them.
Developed Infrastructure
Malaysia's persistent drive to develop and upgrade its infrastructure has resulted in one of the
most well-developed infrastructure among the newly industrializing countries of Asia.
The greatest advantage to manufacturers in Malaysia has been the nation's persistent drive to
develop and upgrade its infrastructure. Over the years, these investments have paid off and
serious bottlenecks have been avoided. Today, Malaysia can boast of having one of the well-
developed infrastructures among the newly industrializing countries of Asia.
Latest, the development of Kuala Lumpur Central, a futuristic self-contained city, providing
the perfect live, work and play environment. A modern transportation hub integrating all
major rail transport networks, including the Express Rail Link to the KLIA and Putrajaya, the
government's new administrative centre. The transport facilities offered are on par with the best
the world over.
Network of Highways
Peninsular Malaysia's network of well-maintained highways is a boon to industries. These
highways link major growth centers to seaports and airports throughout the peninsula and
provide an efficient means of transportation for goods. To complement these highways, a
Kuala Lumpur-Bangkok-Kuala Lumpur containerized service known as the Asean Rail
Express (ARX) has been initiated with the aim of expanding it to become the Trans-Asia Rail
Link that will include Singapore, Vietnam, Cambodia, Laos and Myanmar before ending up in
Kunming, China.
Efficient Seaports
International trade, especially seaborne trade, has traditionally been the lifeblood of Malaysia.
Today, more than 90% of the country's trade is by sea via Malaysia's seven international ports -
Penang Port, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port and Kemaman
Port in Peninsular Malaysia and Bintulu Port in Sarawak. Port Klang's central location and the
government's emphasis on making the port as a National Load Centre and regional hub has
resulted in an increasing volume of cargo.
In 2007, Port Klang recorded 7.12 million twenty-foot equivalent units (TEUs) With a number
of load centering and hubbing strategies, the facilities and services are synonymous to a world
class port. Whereas Malaysia's biggest port, Port of Tanjung Pelepas (PTP), located at the
southern tip of Peninsular Malaysia is one of the very few ports in the world which is
integrated with a Free Trade Zone. The port and free-zone provides shippers and shipping lines
with a very attractive business environment. Being a world class port in the Malaysia's
southern corridor's new economic growth area, Iskandar Development Region (IDR), PTP with
its state-of-the-art port facilities is capable of servicing new generation of vessels being
deployed by shipping lines today. Besides the physical infrastructure being in place, the
electronic data interchange (EDI) in Port Klang, Penang Port and Johor Port has allowed
speedy clearance of cargo with the electronic transfer of documentation.
International Airports
Malaysia's central location in the Asia Pacific region makes her an ideal gateway to Asia. Air
cargo facilities are well-developed in the five international airports - the Kuala Lumpur
International Airport (KLIA), Penang International Airport and Langkawi International Airport
in Peninsular Malaysia, Kota Kinabalu International Airport in Sabah, and Kuching
International Airport in Sarawak.Malaysia's biggest airport, the KLIA, surrounded by four
main cities of Kuala Lumpur, Shah Alam, Seremban and Melaka has a capacity of handling 25
million passengers and up to 8 million tonnes of cargo per year. Cargo import and export
procedures are fully automated at the KLIA to cut down delivery time.
Hi-Tech Telecommunications
Malaysia's telecommunications network has seen impressive expansion and upgrading during
the past decade following the successful privatisation of its Telecommunications Department.
The latest digital and fibre optics technology is being used to provide high quality
telecommunication services at competitive prices.
Under the Equal Access Regime, telephone subscribers in Malaysia can choose from five
network service providers for a full range of local, domestic and international services
encompassing voice and data facilities. There are also six internet service providers and five
telco's and other network facilities services support a full range of domestic and international
services. Malaysia is linked to the rest of the world through various fibre optics and satellite
consortia such as FLAG, SE-MA-WE, APCN, China-US, Japanese-US, Measat and Intelsat.
To support the increasing demand for bandwidth, medium and high-end technologies such as
IDSL, IP, VPN and ATM are being extensively deployed throughout the country.
Decision
After watching and analyzing the whole data, we can easily take the step for entering in the
Malaysia for the beverage business
Conclusion
By all the description ,we can easily say that Malaysia is a country where any one can easily
enter in the beverage industry and where any one can do this type of business. And can be a
profitable step for any one to enter in the Malaysia with beverage business.
Bibliography
1) Different newspaper & Magazines
2) Companies Act 1965 (Act 125) & subsidiary legislations
3) Malaysia's Economic Situation: An Overview by a Common Malaysian By Lim J.
4) Lewis, Richard D. (2007):"When Cultures collide-managing successfully across cultures",
5) "Nicholas Brealey Publishing, London&Yarmouth. South-East Asia, Malaysia.
6) The Star Online. Back to Bahasa Malaysia.
7) So on…………..