Sales in Malaysia

Overview by Globlatrade.net:

Reaching the Consumers

Marketing Opportunities

Consumer Behavior
Consumers are more aware of the price than the prestige or quality of a brand.
Consumer Profile and Purchasing Power
Although the GNP per capita is only 6 146 USD, the purchasing power of the Malays is one of the highest in Asia, and shopping is a favorite consumer pastime.
Consumers Associations
Fomca , Federation of Malaysian Consumer Associations
Era Consumer Malaysia
Main Advertising Agencies
A list of the main actors is available on the website of the Association of accredited advertising agents (AAAA)

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Distributing a Product

Evolution of the Sector
The Chinese are commercially powerful and dominate the distribution network. Trade is the center of small family businesses and operates from a complicated structure of suppliers, entrepreneurs and sub-entrepreneurs.
The most influential persons in the economic activity are the public administrators, the Malaysian entrepreneurs (not many) and the Chinese entrepreneurs (who hold the most important private groups of the country).
To sell your products in the country you should call on importers/distributors (who may be a local company), foreign trading companies (which offer better specialization and more technical services than local companies) or medium sized local trading companies. Other alternatives are commission agents, setting up a representative office or making a local alliance with a Malaysian company; the last two are the most recommended options.
Market Shares
Supply stores: 85.7%, Chinese medical shops: 6.4%, groceries: 3.8%, drugstores: 2.7%, supermarkets: 1.3%, hypermarkets: 0.08%, cash and carry: 0.02%. Although hypermarkets, supermarkets and department stores are dominant in urban areas, local retailers and small traders represent 57% of the local market in terms of sales income. Hypermarkets represent 10% of total retail sales. Groceries and service stations represent about 9% of total retail sales and are located in the main urban centers.
Organizations in the Retail Sector
Malaysia retailers association

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Market Access Procedures

International Conventions
Member of World Trade Organisation
Party to the Kyoto Protocol
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer
Main International Economic Cooperation
APEC, ASEAN, AFTA and the ASEAN - China Free Trade Area.
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
Non Tariff Barriers
Import regulations in Malaysia are liberal compared to other ASEAN countries' regulations. Most goods can be freely imported under General Open License. Some specific sectors, considered as strategic, are protected by a system of restricted import licenses. Items covered under this category are the iron and steel industry, cement, the sector of the automobile and its components and also polyethylene and polypropylene.
The restrictions in import licensing also affect other sectors in terms of approval (electrical products) and sanitary items (foodstuffs or veterinary products), without being a protectionist measure.
Quotas are not frequently applied to imports and apply to certain products whose local production is favored (rice, meat, fruits and vegetables). In extreme cases (frozen chicken, eggs, liquid milk or sugar), if it is considered that the local production is self-sufficient, import is forbidden. There are other products that are forbidden or subject to special licenses for safety, religion or morality reasons.
Customs Duties and Taxes on Imports
8.56%


Customs Classification
The Customs classification of goods is based on the International Nomenclature of the Harmonised System. A majority of Customs duties are calculated ad valorem and are specific only in certain cases. Imported goods, except for machinery, its parts and components, are subject to a sales tax which varies between 5 and 10%. In recent years, duties have dropped and now fluctuate between 15 and 25%. However, certain sectors can be taxed up to 30%. The Customs tariff is high when the imported product is also locally produced (from 30 to 50 %).
In January 1996, Malaysia, within the ASEAN market, subscribed to the Common Effective Preferential Tariffs (CEPT) arrangements, which significantly increase the product list of the previous Preferential Trading Arrangements (PTA). The introduction of the CEPT is meant to accelerate the establishment of a free trade zone within ASEAN countries (AFTA - ASEAN Free Trade Area). Before 2003, all products integrated into the CEPT, will undergo a duty from 0 to 5%. Non-taxed farm products remain outside the agreement. There is currently a list of temporary exclusion for some products, in force until January 1, 2000.
Malaysia benefits from the Generalised System of Preferences, under which 14% of its exports are carried out.
Import Procedures
The Customs classification of goods is based on the International Nomenclature of the Harmonised System. A majority of Customs duties are calculated ad valorem and are specific only in certain cases. Imported goods, except for machinery, its parts and components, are subject to a sales tax which varies between 5 and 10%. In recent years, duties have dropped and now fluctuate between 15 and 25%. However, certain sectors can be taxed up to 30%. The Customs tariff is high when the imported product is also locally produced (from 30 to 50 %).
In January 1996, Malaysia, within the ASEAN market, subscribed to the Common Effective Preferential Tariffs (CEPT) arrangements, which significantly increase the product list of the previous Preferential Trading Arrangements (PTA). The introduction of the CEPT is meant to accelerate the establishment of a free trade zone within ASEAN countries (AFTA - ASEAN Free Trade Area). Before 2003, all products integrated into the CEPT, will undergo a duty from 0 to 5%. Non-taxed farm products remain outside the agreement. There is currently a list of temporary exclusion for some products, in force until January 1, 2000.
Malaysia benefits from the Generalised System of Preferences, under which 14% of its exports are carried out.
Importing Samples
Textile samples must be cut or stamped "commercial sample" and there must not be more than three of them.
 
 
For Further Information
Royal Malaysian Customs Department
PCAM 
 
Find Sales and Distribution Service Providers in Malaysia on GlobalTrade.net.
 

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Identifying a Supplier

Type of Production
The manufacturing industry (31.6% of GDP, WTO 2004) has long been the driving force behind growth. Electronics (semi-conductors, electronic equipment and telecommunications equipment) is the leading manufacturing activity, followed by the production of audio-video equipment, and office equipment. The manufacturing sector represents more than 80% of exports. Exporting industries, especially for electronic and electrical products, chemicals, and plastic and wood products, represent more than 70% of the index of manufacturing production. The manufacturing sector oriented towards the domestic market, which represents about 28% of the industry, includes mainly the manufacturing of metal products, products linked to building, foodstuffs and transport equipment. The mining industry (7% of GDP, WTO 2004) exploits tin, oil, copper, iron ore, natural gas and bauxite.
Business Directories
Malaysia Business Directory
MalaysianBiz
 
 
Manufacturers Associations of the Main Industries
Malaysian Plastics Manufacturers Association
Malaysian Textile Manufacturers Association   
Construction Industry Development Board Malaysia
 
 
Trade Agencies and Their Representations Abroad
Malaysian International Chamber of Commerce and Industry
National Chamber of Commerce and Industry of Malaysia
Association of Chambers of Commerce and Industry of Malaysia
Enterprises Federation
SMI Association of Malaysia
Directory of Associations of SMEs and SMIs.
Malaysian Textile Manufacturers Association (MTMA)
 
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Experts Views (3)
  • ICT & Creative Media Oppty

    Malaysia is one of the fastest growing information and communications technology (ICT) markets in Asia, with the ICT sector contributing 9.8% of GDP in 2009.

    UK Trade & Investment on 21 Mar 2011 related to Sales in Malaysia

  • Construction Opportunities

    The construction industry constitutes an important element of the Malaysian economy. Its strength and capability to host of economic sectors and supports to the social development of the country through the provision of basic infrastructure.

    UK Trade & Investment on 21 Mar 2011 related to Sales in Malaysia

  • Healthcare Opportunities

    The growing economy has resulted in increased wealth spent on private healthcare. Malaysia sees an increase in demand for healthcare reflected by the increasing healthcare expenditure.

    UK Trade & Investment on 26 Jan 2011 related to Sales in Malaysia

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