1

Table of Contents
PART A .................................................................................................................................................................... 2
1.0 Strategies of MNCs.................................................................................................................... 2
PART B................................................................................................................................................................... 11
1.0 Policies and actions of Malaysian Government to make the country attractive as a host location
for the next generation of manufactured goods .............................................................................. 11

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PART A

1.0 Strategies of MNCs

Presidents and top administration of huge organizations; Especially in North America; Globalization in
Europe and Japan is perceived as the main test confronting us today. They are very much aware that
over the previous decade, they have gotten progressively mindful of the decisions they have made to
create global change procedures and to work with which nations. All things considered, most
organizations cling to their customary systems. It tests a portion of the neighborhood stunts, at times
zeroing in on standard ways to deal with new business sectors. Subsequently, numerous worldwide
organizations are battling to create effective techniques in developing business sectors. A piece of
the show trust in particular go-betweens in developing business sectors; Lack of administrative and
authoritative instruments: We are liable for hierarchical disappointments; In a 1997 HBR article, it
obstructed the usage of worldwide procedures, and organizations in created nations frequently
assumed a significant function in actualizing plans of action in their homegrown business sectors. In
any case, these frameworks are frequently immature or immature in developing business sectors. For
instance, there is no extraordinariness. Organizations can't discover particular statistical surveying
organizations to give solid data about client inclinations. Therefore, they can tailor items to explicit
requirements and increment individuals' readiness to pay. A couple of start to finish coordinations
benefits that permit makers to diminish costs are to move crude materials and completed items.
Partnerships need to take a look at themselves in enormous numbers prior to employing. (Khanna,
Palepu, Sinha, 2005)
Because of these authoritative disappointments, organizations from everywhere the world have
battled in non-industrial nations. All the strong proof we have assembled shows that American
partnerships have been the world over since the 1990s. They improve in their home climate,
particularly in developing business sectors. Of course, numerous CEOs are careful about developing
business sectors and need to put resources into created nations. Toward the finish of 2002, US
organizations and their offshoots had $ 1.6 trillion in the United Kingdom, $ 514 billion in Canada and
$ 173 billion in Brazil, as indicated by the US Department of Commerce's Economic Analysis Bureau.
Russia, India and China joined. Toward the year's end, it represented just 2.5% of US $ 6.9 trillion in
speculation by US organizations. Indeed, US partnerships' interest in China multiplied somewhere in
the range of 1992 and 2002, adding up to under 1% of their all out unfamiliar resources. Numerous
organizations are moving ceaselessly from developing business sectors when they should be all the
more firmly connected with them. Agricultural nations are turning into the quickest developing
business sectors on the planet for most items and administrations. Organizations can diminish costs

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by setting up creation plants and administration focuses in more affordable areas by talented laborers
and prepared directors. Also, transnational organizations from non-industrial nations have entered
North America and Europe with minimal effort techniques (China's Haier Group in home apparatuses)
and new plans of action (India's Infosys in data innovation administrations). Western organizations
that need to grow counter-methodologies need to push further into developing business sectors that
advance an alternate kind of advancement than develop ones. (Khanna, Palepu, Sinha, 2005)
In the event that Western organizations don't create methodologies to cross agricultural nations and
their worth chains, However, charge boundaries; Despite the multiplication of the Internet and digital
TV and the quickly developing actual foundation, CEOs don't have similar financial potential as non-
industrial nations. This is on the grounds that the nature of market foundation differs from nation to
nation. Progressed organizations for the most part have various successful agreement authorizing
instruments with market go-betweens. Immature economies have untalented delegates and
inadequate general sets of laws. The administrations gave by mediators are not accessible in
developing business sectors and are not very convoluted, so organizations can without much of a
stretch exchange to their developing business sectors in their nations of origin. In the course of recent
years, we have explored and talked with global enterprises far and wide. One of us drove an
examination venture looking at China and India at Harvard Business School, and we were totally
associated with the McKinsey and Company Global Champion Research Project. We discovered that
effective organizations are doing hierarchical disappointments, and they are creating methodologies
for working together in the various business sectors they use at home. They are regularly searching
for better approaches to actualize them. They additionally modify their way to deal with fit the
authoritative circumstance of every nation. As we have appeared, Companies that experience issues
understanding the authoritative contrasts between nations need to pick the best market to enter; It is
conceivable to pick the best methodologies and utilize them in the developing business sectors.
(Khanna, Palepu, Sinha, 2005)
Before we dig further into authoritative disappointments, it is critical to comprehend why organizations
regularly focus on some unacceptable nations or utilize improper globalization systems. Individual
experience of ranking directors; Family ties; Many companies have moved to new nations due to
premonitions or mistaken proof. Others follow key clients or contenders into developing business
sectors. Steers reproducing qualities are solid among global organizations. Predisposition is
additionally the unfamiliar speculation of canine organizations. For instance, the motivation behind
why American organizations have been working together in India more than India for quite a long time
is likely a result of the romantic tale among China and the United States. Most likely in the last part of
the 1950s by MIT political researcher Harold Isaacs. Isaacs brings up that Americans are nearer to

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China than India and India due to the work that teachers and researchers did in China during the
1800s. Organizations that efficiently select new business sectors regularly use instruments, for
example, total investigation and political danger appraisal, with an attention on profiting organizations
in non-industrial nations. In a December 2004 overview of 9,750 ranking directors at the McKinsey
Global Business Management Survey, 61% said their market size and development had driven their
organizations to move to new nations because of their needs and concerns. While 17% believe
political and monetary dependability to be the main factor in dynamic, just 13% imagine that the
institutional setting (or hierarchical setting) is the main factor. Do organizations as a rule anticipate a
nation's latent capacity? Chiefs regularly center around its GDP and per capita pay development;
Population arrangement and development rates; The distinction between the conversion scale and
the buying power (past, present and venture) is contemplated. To finish the image, administrators
need to take a gander at the World Economic Forum's Global Competitiveness Index; It considers the
nation's situation on the World Bank's administration pointers and Transparency International's
degree of defilement. Its weight for developing business sector reserve ventures; And it very well may
be a forecast of its next political change. (Khanna, Palepu, Sinha, 2005)
Such a mix of markers would unquestionably be helpful; However, organizations analyze their bases
and target nations. Just authoritative subjects should be utilized as a reason for key arranging. for
instance, Products in the United States and the United Kingdom with specific mediators and solid
administrative frameworks; There are capital and work markets. The two nations utilize the Anglo-
Saxon overall set of laws. US organizations will discover qualified statistical surveying firms in the UK.
They can depend on English law to establish arrangements endorsed with expected accomplices;
Retailers can enter the UK with the information that they will have the option to circulate products the
nation over. They are hazardous suppositions to arrive at another market where it is difficult to track
down talented mediators or agreement implementing instruments. In any case, total pointers don't fill
in as a notice to contestants about authoritative disappointments in developing business sectors.
Truth be told, the examination of agricultural nations' total lists is more cryptic than they uncover. (See
"The Composite Indicator Tro." Exhibit.) Russia India and China have likenesses in numerous
pointers. Regardless of the similar situation of the four nations, the key achievement factors for every
one of these business sectors turn out in an unexpected way. In China and Russia, for instance,
global retailers and nearby retailers have spread to metropolitan and rural regions. In Brazil, just a
modest bunch of worldwide bonds are open in major metropolitan habitats. In India, as of February
2005, the public authority has prohibited unfamiliar direct interest in retail and land, overwhelmed by
the mother and famous retailers. Brazil Russia India and China could all be huge business sectors for
global customers. Yet, heads need to concoct separate circulation procedures for each market. The

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cycle should start with a full comprehension of the contrasts between the nation's market framework.
These distinctions might be more alluring to certain organizations than Brazil to India. (Khanna,
Palepu, Sinha, 2005)
As we help organizations consider their globalization procedures, we have made five topics: a basic
calculated system that permits heads to shape the authoritative scene of any nation. As per
Economics 101, organizations Inputs in the work and capital business sectors are purchased and
sold in items (crude materials and completed merchandise) or administrations markets. Hence, while
picking techniques, heads ought to think about the item, we need to discover how work and capital
business sectors work. This will assist them with understanding the contrasts between the
homegrown market and non-industrial nations. Notwithstanding the social and political states of every
nation, the example of opening up molded the market. Organizations need to consider these
variables. The five topics depend on the system of social and political decisions. Numerous worldwide
organizations center around macroeconomic variables (receptiveness and socio-world of politics);
They see some market factors, yet barely any compensation considerations to them. Our
organizations have built up a bunch of inquiries to make a guide of the circumstance of every nation
and organizations to adjust their methodologies to one another. (See the part on "Institutional Spots
of Spots.") Before we apply the structure for some non-industrial nations, let us quickly analyze five
subjects. (Khanna, Palepu, Sinha, 2005)
As we have talked about, a nation's political framework relies upon its items and administrations.
Influence work and capital business sectors In communist social orders, for example, China, for
instance, laborers can't shape free associations that influence the work market. The social climate of
the nation is likewise significant. In South Africa, for instance, government uphold for the exchange of
resources for verifiably hindered African people group has influenced the improvement of capital
business sectors. Such exchanges regularly include the offer of resources at low costs, making it
hard for global organizations to figure the estimation of South African organizations and the
evaluation of likely accomplices. In developing business sectors, ethnic gatherings; The strained
connection between the district and the language bunches is influencing unfamiliar financial
specialists. In Malaysia, for instance, unfamiliar organizations question whether their potential
accomplices have a place with a Malay-larger part or financially prevailing Chinese people group.
Joint endeavors should be begun simply in the wake of checking for accessibility. From China to
Malaysia This approach is because of the way that the 1969 ethnic mobs were brought about by
pressures among China and the Malays. The manner of speaking has changed marginally in the
course of recent years, however favorable to Malay approach remains. Chiefs are answerable for
such administration; The force places of the nation, for example, the media and common society,

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should be recognized. On the off chance that the public authority should be under oversight; Whether
civil servants and government officials are autonomous of one another; Contrary to set up
convictions. Organizations should quantify the genuine degree of trust in general society. for instance,
If organizations accept they won't wind up with their reserve funds, organizations will have the option
to bring in cash rapidly with local people, not later. (Khanna, Palepu, Sinha, 2005)
Chiefs regularly state that it is ideal to wander into nations that invite corporate direct venture, and
that organizations need to open up. : Still, they ought to recall that the idea of "receptiveness" can be
beguiling. For instance, chiefs accept that China is an open economy. Despite the fact that the public
authority invites unfamiliar speculation, India is moderately shut economy because of the warm
welcome given to it by worldwide organizations. However, India has been open about Western
thoughts. Individuals had the option to move uninhibitedly inside and outside the nation, yet for quite
a long time the Chinese government didn't permit its residents to travel openly abroad. Numerous
thoughts are not permitted to cross its fringes. Thus, While worldwide organizations can put more
effectively in China than they can in India, chiefs in India are more acquainted with market-based and
worldwide mindfulness than in China. The more a nation's economy opens up, The more worldwide
mediators are permitted to work there. Thus, global organizations will think that its simpler to work in
more open business sectors. However, straightforwardness can occur on the two sides. The public
authority, which permits nearby organizations to enter the worldwide capital market, could refute the
vital points of interest of unfamiliar organizations. The full scale conditions we just portrayed - political
and social frameworks and transparency - shape economic situations. for instance, In Chile, a military
upset in the mid 1970s prompted the development of a conservative government, and the nation's
liberal monetary arrangements prompted the nation's capital business sectors. Chile's work market is
immature because of the public authority's refusal to permit associations to work uninhibitedly. The
equivalent applies to the improvement of open business sectors. On the off chance that a nation's
capital business sectors are available to unfamiliar speculators, monetary mediators will turn out to be
more mind boggling. This is the thing that occurred in India. For instance, capital business sectors are
more straightforward than in China. Likewise, In the item market If worldwide organizations can put
resources into the retail area, the coordinations business will develop quickly. This is in China.
Providers are hanging on quicker than those in India. As of late, worldwide organizations have been
permitted to put resources into retail. (Khanna, Palepu, Sinha, 2005)
Non-industrial nations have opened up their business sectors and developed quickly over the
previous decade, yet organizations are as yet battling to acquire solid data about purchasers,
particularly those with low wages. Creating shopper money is troublesome, for instance. This is on
the grounds that the information assets and financial record drawn by organizations in the West are

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not accessible in developing business sectors. Statistical surveying and publicizing is their earliest
stages in non-industrial nations. It is hard to locate a more profound information base of customer
models. There are not many government offices or free distributions, for example, the Consumer
Reports in the United States, which give master guidance on the appearance and nature of items.
Because of the absence of buyer courts and promotion bunches in agricultural nations, numerous
individuals feel frustrated about the large organizations. (Khanna, Palepu, Sinha, 2005)
In spite of the enormous populace of developing business sectors, worldwide organizations are
thinking that its hard to select chiefs and other talented laborers. This is on the grounds that it is hard
to know the nature of the capacity. In low-pay nations, there are not many inquiry organizations and
enlistment offices. Existing top notch organizations center around top quests, so organizations are
bound to enlist mid-level directors; Engineers or floor managers should be distinguished as quickly as
time permits. Designing universities; Business schools and instructional classes are on the ascent.
However, except for a couple of high societies, organizations have no chance to get of telling which
schools produce gifted directors. for instance, Many Indian organizations have arisen to prepare
individuals in the call community business, however nobody can anticipate the nature of preparing
gave by any association. (Khanna, Palepu, Sinha, 2005)
Capital and monetary business sectors in agricultural nations are famously whimsical. FICO
assessment organizations, except for a couple of stock trades and government-named guidelines;
Investors, experts, Merchants, brokers, Multinational organizations approach neighborhood obligation
to fund their tasks. Like financial specialists, lenders don't approach exact data about organizations.
Organizations can without much of a stretch evaluate the reliability of different organizations.
Corporate administration is famous in developing business sectors. Thus, worldwide organizations
can't persuade their accomplices to consent to neighborhood laws and joint endeavors. As associate
private enterprise prospers in agricultural nations, multinationals can't be viewed as driving
neighborhood organizations for benefit. Numerous CEOs have asked us for what reason we
accentuate the function of our corporate go-betweens and disregard industry factors. They contend
that the structure of the business, for example, the level of rivalry, ought to likewise impact the
technique of organizations. Notwithstanding, when Jan Rivkin, an educator at Harvard Business
School, and one of the writers of this article rank organizations for benefit, the business rating for all
nations is near zero, so the appeal of an industry fluctuates from nation to nation. Access boundaries
and the capacity to separate items are significant in each industry, yet the heaviness of their
significance fluctuates all around. The fabulous business in your home market is not, at this point
alluring in another nation. Organizations should quantify mechanical foundation - a consistently

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helpful exercise - and dissect it simply in the wake of understanding the authoritative circumstance of
the nation. (Khanna, Palepu, Sinha, 2005)
Five cases were accounted for in Brazil, Russia As we moved toward developing business sectors in
India and China, the distinctions got evident. (See "Guide Scenarios in Brazil, Russia, India, and
China.") Multinational organizations face an assortment of rivalry between these nations. In China,
state-possessed endeavors control practically 50% of the economy; Expatriates in China control huge
unfamiliar organizations working in those nations. This is on the grounds that the private area is
discovering it practically difficult to raise capital from organizations. India is an impression of China.
Public area organizations are significant, yet no place more conspicuous than in China. Dissimilar to
China, India is careful about unfamiliar speculation. In any case, the nation has delivered numerous
private associations, some of which are worldwide contenders. It is hard to envision an effective
economy in non-government China. In India, most organizations are fruitful across states. (Khanna,
Palepu, Sinha, 2005)
Brazil joins the particular highlights of China and India. Like China, Brazil involves many state-claimed
undertakings. Simultaneously, it has made its ways for worldwide organizations, including European
companies, for example, Unilever; Volkswagen and Nestlé have assembled enormous organizations.
Volkswagen has six industrial facilities in Brazil and rules the neighborhood market. The Gol model is
sent out to Argentina and Russia. Brazil has worldwide organizations, for example, Indian
organizations, and private area organizations moving around in the homegrown market. Some
Brazilian organizations, for example, essential gear organization Votorantim and airplane creator
Embraer, have become worldwide contenders. Russia additionally has joins among China and India,
yet a large portion of its organizations are less serious than those in Brazil. A couple of global
organizations, for example, McDonald's, have progressed nicely, however most unfamiliar
organizations have neglected to develop there. Wimm-Bill-Dann, a dairy maker with just a modest
bunch of privately owned businesses on the lookout, and VimpelCom, a cell administrations
organization. The Russian government is associated with various legitimate and casual ventures. For
instance, an administration stake in Gazprom permits the nation to impact the nation's energy area.
Likewise, executives at all levels are permitted to reject business concurrences with neighborhood
and unfamiliar organizations. In Russia, getting consent and authorization is a muddled undertaking.
Brazil Russia The monetary business sectors in India and China are one stage further. In Brazil and
India, neighborhood organizations, the fundamental contenders of global organizations, depend on
nearby capital business sectors for assets. In China, unfamiliar organizations rival state-claimed
undertakings. The thing that matters is critical. This is on the grounds that Chinese organizations and
banks can't be constrained to make a benefit. What's more, monetary revealing in China isn't

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straightforward regardless of whether organizations are recorded on the stock trade. State-possessed
organizations can seek after techniques that expansion their piece of the pie for quite a long time of
benefit. In Brazil and India, corporate administration norms are nearer toward the West than to Russia
and China. Therefore, worldwide organizations in Russia and China can't depend on the inside
frameworks of their homegrown accomplices to ensure their inclinations and resources, particularly
their licensed innovation. (Khanna, Palepu, Sinha, 2005)
At the point when organizations adjust procedures to the setting of every nation, they can exploit
specific geological favorable circumstances. Nonetheless, prior to adjusting their methodology,
organizations should contrast the advantages of doing as such and the expenses of additional
arrangement. In the wake of finishing this activity, you will see that organizations have three unique
alternatives. They can adjust their plan of action to the nations; They keep up their fundamental
beliefs. might be uneconomical or functional. Can organizations that think associations exist to no end
are practical? They can do it. In the West, institutional disappointments have taken a long time to fill.
(Khanna, Palepu, Sinha, 2005)
Adapt your strategies
To be fruitful, global organizations need to change their plan of action for every nation. They are liable
for the nation's item showcases; Its info markets; But organizations should stick to their center
strategic plans even as they adjust their plans of action. In the event that they roll out such a large
number of improvements, these organizations will miss out on worldwide scale and worldwide brand
advantage. (Khanna, Palepu, Sinha, 2005)
Change the situation
Numerous global organizations have the ability to change the manner in which they work. The items
or administrations offered by these organizations can have a huge effect in the nearby market. For
instance, Hong Kong-based STAR, Asia's first satellite TV station, changed the Indian market from
numerous points of view when it opened in 1991. The organization not just lost its imposing business
model on TV to the Indian government, yet in addition supported its TV creation and dispatched a few
other satellite-based stations focused on Indian crowds. During the 1990s, satellite-based TV stations
turned into a functioning promoting setting. Numerous associations have utilized them to dispatch
items and administrations focused at India's new customer section of TV viewing. (Khanna, Palepu,
Sinha, 2005)
Stay away.
A few organizations think that its hard to adjust their plan of action to developing business sectors.
Home Depot has been wary about entering the creating scene, one of the best American retailers.
Clients can appreciate lower costs, We give precise valuing to clients because of good assistance

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and great quality. It is up to different associations in the United States to dispose of this. Contingent
upon US expressway and coordinations the executives frameworks, the measure of capacity needed
in stockrooms should be kept to a base. It depends on workers' stock to give first class administration.
What's more, the way that high wages in the United States urge property holders to engage in
independent work ventures makes their high-esteem proposition advantageous. (Khanna, Palepu,
Sinha, 2005)

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PART B

1.0 Policies and actions of Malaysian Government to make the country attractive as a host location
for the next generation of manufactured goods

Globalization has influenced the Malaysian economy differently and with different components. This
can be examined utilizing an assortment of data and information aggregators. Globalization has a
critical long haul sway on Malaysia as exchange and relocation. Before autonomy under British
pilgrim rule, the advancement of exchange situated businesses with laborers, for example, tin and
elastic required the utilization of unfamiliar specialists. The development of the tin business
somewhere in the range of 1850 and 1930 prompted a huge deluge of Chinese unfamiliar laborers
into the tin mining territories of Malaysia. Additionally, somewhere in the range of 1911 and 1931, with
the quick development of the elastic business, laborers moved from southern India. The effect of
movement goes past the improvement of significant fare situated enterprises. The main impact of the
deluge of transient laborers from 1850 to the 1930s was the development of a multi-ethnic culture in
Malaysia. Traveler laborers can be followed back to the fifteenth century, yet early transients were
moderately little. Afterward, traveler laborers in the tin and elastic ventures altogether changed
Malaysia's populace. In 1947, the Chinese populace in Malaya represented 38.4% of the all out
populace. The vast majority of these transient specialists, who topped at 15% of the Indian people
group in 1921, at last became Malaysians. Because of the low birth rate among Chinese and Indian
people group in Malaysia, their extent has declined over the long run. In spite of this, Malaysia is as
yet a multi-ethnic culture. This significantly affects the political economy of the nation's asset
appropriation. (Lee, 2019)
Today, associations are perceived as a significant factor in monetary turn of events. Implementation
of agreements and property rights, contingent upon the idea of the association. Also, the expense of
postage expenses can be influenced by the nature of the association. It can likewise hinder exchange
assistance. This is on the grounds that these measures can be viewed as diminishing open doors for
debasement. Import costs are paid to shoppers. Debasement ca causes lawful loss of pay. (Lee,
2019)
In Malaysia, there is a shortage of down to earth research on how quality issues identified with
associations (eg debasement) influence exchange. Be that as it may, notwithstanding strong proof,
there has been minimal clinical preliminaries for this condition. Insights on the degree of debasement
in import licenses. Debasement (as a level of organizations hoping to offer endowments to acquire

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import licenses) is high in the piece of clothing industry in Malaysia, and it is intriguing to take note of
that defilement among exporters is a lot higher than among exporters. Nonetheless, unfamiliar
possessed organizations are more bad than nearby ones. (Lee, 2019)
In the fourteenth general political decision hung on May 9, 2011, one of the most remarkable
occasions since the nation's autonomy was the triumph of the decision Barisan Nasional alliance. The
Barisan Nasionalhad controlled the nation has been going on constantly since 1957. The primary
explanation behind the finish of Barisan Nasional rule was the defilement and bungle of associations
and establishments in the nation, prompting rents and debasement. It intends to improve financial
and political administration in Malaysia. Debasement in these imports and fares can be diminished.
Imagine a scenario in which Malaysia's fare based assembling base and exchanging nations could
gain critical ground. (Lee, 2019)
There is no uncertainty that globalization has significantly affected Malaysia. The nation's inclusion in
globalization can be followed back to the pre-freedom time frame. Monetary straightforwardness in
the nation's exchange and venture has prompted the improvement of fare arranged assembling
businesses. As indicated by information from miniature information exploration, efficiency and
development are positive. In the assembling area, it is identified with trades. Notwithstanding, these
examinations highlight shortcomings in unfamiliar direct venture spills and information streams. Given
these issues and different potential outcomes, it isn't astonishing that early industrialization has been
an issue since the last part of the 1990s. The issue is that in the administration area, positive
government activity on abundance and the objective of reallocation of abundance may restrict the
area's possible commitment to monetary development. The nation's cooperation in new territorial
economic deals is restricted. The expense of drawing in with the worldwide economy is financial
flimsiness. Four significant post-war monetary emergencies hit the Malaysian economy.
Notwithstanding the wellsprings of these emergencies, the Malaysian economy has changed over the
long haul. In spite of such dangers from globalization, globalization isn't a possibility for the Malaysian
economy because of its little size. From a strategy viewpoint, better foundations and strategy devices
are expected to address the dangers presented by globalization. (Lee, 2019)
Malaysia has become a provincial assembling and fare base gratitude to financial development and
open doors for benefit and the public authority's strategies to protect the business climate. The private
area in Malaysia has become a collaborate with the public area to accomplish the nation's
advancement objectives. The fundamental fascination for speculators in Malaysia is the obligation to
organizations to develop and benefit from the business climate. This responsibility is reflected in the
public authority's progressing endeavors to get a reaction from the business network through normal
conferences with the public authority and the private area. It permits different business networks to

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communicate their perspectives and aid the detailing of government arrangements that apply to them.
(Raman, 2008)
Liberal Equity Policy
In general, foreign investors in Malaysia's manufacturing sector can own 100% shares in projects that
export at least 80% of their production. However, in 2003, From 17 June, 100% foreign investment is
allowed for all investments in new projects, and existing companies are allowed to invest in expansion
/ diversification projects, regardless of export volume. (Raman, 2008)
Attractive Tax Payments
The Malaysian company tax rate is attractive from 27% to 2007. The reduction from 26% to another
25% in 2008 and 2008 is for local and non-corporate companies. Malaysia also offers tax exemptions
for production projects under the Investment Promotion Act 1986 and the Income Tax Act. The main
incentives are at the pioneer level; Investment tax subsidies; Reinvestment costs; Incentives for high-
tech industries and strategic incentives. Plans and incentives for the establishment of international /
regional service-based operations that foreigners regularly replenish. In addition, the single tax
system will take effect from the 2008 assessment year. Profits are taxed only at the company level
and profits are tax-exempt. Ultimately, it encourages investment in equity, especially in companies
that share in the long run. (Raman, 2008)
Employment and Labor Market
Malaysia is looking for young and old investors. Educated Malaysia has a literacy rate of over 94%
and those who drop out of the job market have at least 11 years of basic education. Malaysia offers
investors a young, competitive and competitive presence in Asia. Malaysia's workforce is the best in
the region as the government continues to support the government's human resource development in
all sectors. More than 94% have a high literacy rate and dropouts entering the job market have at
least 11 years of basic education. In addition, in the last few years, labor productivity has grown by
more than 3.3% per year, surpassing many developed countries. (Raman, 2008)

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References:

Khanna, T. Palepu, K. Sinha, J. (2005, June). Strategies That Fit Emerging Markets

. Retrieved December 13, 2020 from https://hbr.org/2005/06/strategies-that-fit-emerging-

markets

Lee, C. (2019, December). Globalization and Economic Development in Malaysia. Japan : ISEAS-
Yusof Ishak Institute.

Raman, R. (2008, April). Impact of Multinational Corporation in Malaysia. Malaysia : Malaysian

Trades Union Congress.

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