Positive about Malaysia
How do you view Malaysia from a business viewpoint after the election? What opportunities do you see, and what risks?
Published May 20, 2013
Zaheer K Merchant
Regional Director (Singapore and Europe)
Qi Group of Companies
THE financial sector seems to view Malaysia positively from a business standpoint post-election. While battle weary and bruised, the current government's win managed to rally Bursa Malaysia immediately by 3.4 per cent.
The economic signs, short and long term, suggest fiscal reform to be a priority.
The Economic Transformation Programme that focuses on 12 key economic areas hasn't changed, which will help domestic demand and investment. Exports will add a boost to growth. Opportunities lie in Malaysian government bonds, equities and foreign exchange.
It's not all plain sailing, though, given risks in Bank Negara's unlikeliness to allow swift ringgit appreciation. The threat of continued protests by the opposition add an uncertainty which only time will either heal or play out.
Sam Yap
Group Executive Chairman
HTwo Investments Holdings Pte Ltd
FROM the business perspective, we do not see any drastic change or risk in our line of business in Malaysia with the recent outcome of their General Election.Our services to the Malaysian population in the area of early childhood education and pre-school services would be well-received irrespective of the political leadership as education is a core component in the overall strategic direction of the country.
Parents are more enlightened on the need for early headstart for their children and understand the importance of child development in the early years. Our provision of these services in the private sector would complement the programmes provided by the public sector and NGOs and other agencies like PERMATA. We look forward to further business development in Malaysia.
David Leong
Managing Director
PeopleWorldwide Consulting Pte Ltd
WHATEVER the political outcome arising from the recent election in Malaysia, the relationship will freeze, thaw and warm up according to the chemistry between the respective political leaders. The relationship between PM Lee Hsien Loong and his Malaysian counterpart PM Najib Razak is warm and they have good chemistry, rapport and mutual respect. When businessmen see such rapport, with good and stable political relationship, they will be more comfortable about investing. There is predictability which is good for businesses.
The fervour in Johor in the Iskandar development region will intensify over the years. Singapore will be the Manhattan and Johor the New Jersey. Whatever, it will be a situation of prospering together because Malaysia is indeed an inseparable hinterland.
Dan McConaghy
President
FICO Asia
AFTER any election where the incumbent stays in power, it means a continuation of policies and governance. This is important for companies and organisations that have made a significant investment in the economy, to be able to keep the momentum and increase growth and productivity.
What I do see, though, is the future potential of a credit crunch for the working class. In the run-up to the election, several election promises totalling a few billion ringgit were made. According to some analysts, funding these incentives may require introduction of additional taxes like GST which will impact consumers and SMEs directly in the near future. The government can take steps to ensure that the policies they create will help all businesses, and the outlook for businesses in Malaysia is fairly positive.
Guy Day
CEO
Ambition Group Ltd
FROM a business perspective, Ambition has great confidence in Malaysia and sees it as an important market for achieving its medium-term strategic goals, which is why we have recently established operations in Kuala Lumpur.
The continuing government remains focused on attracting long-term investments into the country and this supportive environment is crucial for us to establish an ongoing business. In our line of recruiting high calibre talent, Malaysia definitely offers the candidate pool required.
The challenge that Malaysia has traditionally faced is that local talent have often pursued their careers in more lucrative markets in Asia such as Singapore and Hong Kong.
However, given our clients' investments and growth in their Malaysian operations, we have begun to see an increase in interest and uptake by more talent to relocate or move back to Malaysia for work.
With the government's continued focus on investment in education, the attraction of foreign direct investments and ongoing infrastructure improvements, we are excited to see how this will contribute and continue to develop Malaysia's competitive advantage in the coming years.
Joe Poon
President
Xchanging Asia Pacific
FOR businesses in search of new opportunities, the fundamentals that attract these investors to Malaysia in the first place remain unchanged as it is a viable country for investors seeking growth to tap into the regional market.
This is underpinned by its export-driven economy spurred on by high technology, knowledge-based and capital intensive industries. Other key drivers that attract investors into the country are its diverse talent pool, skill-set of the labour force, infrastructure and friendliness to investment.
Collectively, these factors will give investors continued confidence in the country and offer a wide spectrum of growth opportunities.
Toby Koh
Group Managing Director
Ademco Security Group
MALAYSIA remains a very attractive investment opportunity. The end result of the elections is that status quo has been achieved. BN has retained its control and life in the business world will continue to chug along as per normal.
I am sure that BN will work even harder to improve the country's infrastructure, health care and education for the people before the next election.
The related business sectors will certainly see an increase in initiatives and projects and should capitalise on these. Businesses should prep themselves immediately for upcoming opportunities especially with the shift in influencers and movers in the Malaysian political and administration scene.
Nick Foley
President, South-east Asia & Pacific
Landor Associates
POST-ELECTION, from a business perspective, the reinstatement of the current government has given stability. Businesses (and their brands) are familiar with the system, personalities and style, lending confidence.
This is probably best demonstrated by a glance at the Malaysian stock exchange. Following the election result, the market roared back largely based on this key factor. In the lead up period to elections Landor re-branded Malaysia Airlines. Because of uncertainty, some decisions were understandably prolonged. With this removed, decisions for many brands should be swifter.
One observation: The re-elected government utilised social media to communicate their message. Having seen this, other brands may now look to follow suit and express their story.
Philippe H J Huinck
Regional Managing Director, South and South East Asia
International SOS
THE recent Malaysian election where Barisan Nasional was returned to power signified a sea change in the zeitgeist of the Malaysian electorate. However, in securing its 13th straight victory, the election result suggests business continuity and minimal disruption to public policy. This bodes well for both investors and businesses with their eye on Malaysia.
The ruling party's US$444 billion Economic Transformation Plan to elevate Malaysia's growth with higher value sectors such as health care not only benefits local companies like pharmaceuticals, for cost reasons, it also impacts global emergency services like us at International SOS, supporting delivery of expedient relief in times of emergency. We also shouldn't forget that healthcare demand is not dependent on political flavour.
A stable Malaysia is important for Singapore as the two countries are mutually dependent and enjoy a strong and unique relationship. Both countries are invested in each other economically and this win provides opportunities for continued bilateral cooperation.
Sidney Lim
Managing Director, South East Asia
Protiviti Pte Ltd
ALTHOUGH there was initial speculation of an upset by the Opposition, the Malaysia election was still very much dominated by the ruling BN coalition. Likewise on the business front, although there were some initial concerns about the impact to businesses and the economy, those fears have so far been unfounded, judging from the continued upward price trend and trading volumes of Bursa Malaysia.
OECD has projected Malaysia's economy to grow 5.1 per cent through 2017, which is a clear indication of the continued opportunities in Malaysia. Protiviti recognises this and we have plans in place to grow our presence and business to take advantage of these opportunities.
The World Bank recently hailed Malaysia as a regional leader in corporate governance for their achievements in requiring good corporate governance policies and frameworks, and ensuring high quality accounting standards. There's lots of work to be done by Malaysian companies to live up to that endorsement and these present tremendous consulting opportunities for Protiviti.
Lim Soon Hock
Managing Director
PLAN-B ICAG Pte Ltd
THE political risks have increased in Malaysia after the recent election. In particular, the racial divide will need time to heal. Businesses are watching closely what PM Najib Razak and his new Cabinet are doing to reunite the nation.
Until the political risks have returned to an acceptable and reassuring level, we can expect businesses to be very cautious and to slow down investments, if not stop them for the time being.
The new Malaysia continues to present excellent investment opportunities, if the political risks can be managed. The full potential of the Iskandar region to complement Singapore in tackling the high costs of doing business here and in overcoming the restriction on foreign labour, has yet to be fully tapped.
Malaysia and Singapore have a common interest to maintain, if not enhance, political stability within each other's borders for the good and benefit of businesses.
Liu Chunlin
CEO
K&C Protective Technologies Pte Ltd
THE outcome of the recent Malaysian General Election confirmed that the performance of the National Front government led by Najib Razak for the last five years has been well-received. In general, the result provides a stable environment for business.
For instance, the Iskandar Malaysia (IM) and the Kuala Lumpur-Singapore High Speed Rail (HSR) are two important projects for the people of Malaysia and Singapore. These projects received special attention and fast-track approval procedure during the reign of Mr Najib's National Front government. With the return of Najib Razak to political power, these two projects would materialise as planned.
The 51.4 per cent support received by the Opposition People's Alliance can be viewed positively. It could force the ruling party to work even harder in the next five years to seek national reconciliation and to avoid further polarisation between the various races and between the urban and rural populace.
Singapore businessmen have a much better understanding of the culture, custom and religions of Malaysia compared to other neighbours. They enjoy and share many common traits that are unique to the people. As such, they should further explore the business investment opportunities in Malaysia in order to tap into a rapidly-developing and high-income nation.
Dora Hoan
Co-Chairman/Group CEO
Best World International Ltd
MALAYSIA has a robust system that can sustain whichever party that is elected. Besides that, the economic projects, which are expected to create jobs, are unlikely to be disrupted.
All these, together with high foreign direct investment, will allow the country to continue growing. Her bilateral relations with Singapore are also stable; the on-going economic collaborations will continue. Hence, businesses can also be reassured that it will be business as usual.
There may even be better business opportunities as this election will cause the ruling party to reflect and formulate policies beneficial for the country's development.
Keith Martin
CEO
Global Capital & Development
COMING out of the election, the Malaysian economy looks set for another year of growth. Our sentiment is that Singapore and Malaysia will continue to enjoy warm bilateral relations, with joint venture projects and future transportation links as a testament to the governments' collaborative efforts in propelling their economies forward.
We are confident of growth opportunities on both sides of the Causeway and view the current conditions as an opportune time for Singapore-based businesses to expand their presence to Malaysia.
The Iskandar region continues to be an ideal location for this purpose, given its close proximity, educated workforce and strong legal framework modelled after the British legal system. Notably, Medini has been successful in consistently attracting foreign direct investment through its ability to provide a cost-effective blended solution and dual platform for Singapore-based businesses and its pro-business incentives.
Steve Melhuish
Co-Founder and Group Chief Executive Officer
PropertyGuru
THE Barisan Nasional win, albeit by a lower margin, is a reflection of Prime Minister Najib's policies. I see Malaysia continuing its current economic transformation programmes and extending benefits towards inviting overseas investors to buy into Malaysia and bring in much valued foreign currency.
As a business owner operating a Malaysia-registered company, it is only natural to favour government policies that encourage cross-cultural interaction and trade exchange.
Malaysia has seen rapid change in the last few years under Prime Minister Najib's leadership and I do foresee that he will pursue effective policies to modernise his government agencies in order to bring Malaysia forward as a high-income nation.
However, he needs to be able to keep sight of the need to manage and cater to the various complexities in the Malaysian business landscape to ensure that this proposed economic growth can flourish in the long run.
Toby Fowlston
Managing Director, Singapore
Robert Walters (Singapore) Ltd
IN our close-knit network of 53 global offices, we are proud to say our Malaysia office has witnessed massive performance in its seven years of business. With potential for growth in the coming years, we can expect to see continued success.
Currently, areas such as human resources, accounting and finance, compliance and retail servicing are expanding which have subsequently triggered active employment in those markets. Heavy industries including technology, oil and gas and engineering are also seeing sustained growth backed by strong government support through their transformation programme initiatives. With such promising sectors earmarked for development, we look forward to the new opportunities Malaysia's upward economy and abundant resources will bring.
Annie Yap
Managing Director
AYP Associates Pte Ltd
UNDOUBTEDLY, government policies shape business opportunities in the country. After the closely fought elections in Malaysia, Mr Najib's government has been re-elected again. With a familiar party in power, this signals continuity and stability. And these are the exact factors that translate into business opportunities, and definitely are factors that we consider when we are looking to expand into a country.
We feel assured that policies that were previously in place will be carried through with Mr Najib's government. Investors' confidence will hence be increased and Malaysia will continue its position as an attractive country to do business in.
David Low
CEO
Futuristic Store Fixtures Pte Ltd
BUSINESSMEN seek stability and security in their long-term investments, and these are the underpinnings of the recent Malaysian general election. We witnessed overwhelming numbers participating in the vote and with ruling party Barisan Nasional bagging a Parliamentary majority, it is a definite sign of continuation of earlier promised economic growth particularly in infrastructure and developmental works like the Iskandar project. Likewise, it signifies a reinforcement of our good relations with the Malaysian government.
In the short term, the continuity offers investment opportunities. The possible implementation of indirect tax may impact consumerism as a knee-jerk reaction but in the long run, such tax revenue helps to boost economic growth. However, the perils of a potential hand-out policy geared towards a populist government is demonstrated by the opposition gaining strength and presence. This is a long-term risk to factor in when investing.
http://www.businesstimes.com.sg/specials/views-top/positive-about-malaysia-20130520
