...GLOBAL BUSINESS CULTURAL ANALYSIS: MALAYSIA HSUEN YAN WONG LIBERTY UNIVERSITY Abstract Globalization has simultaneously created global interdependence among nations of the world. Every nation is different from the other. The difference has formed barrier in trade, communication, value and custom. The objective of this paper is to study the factors impacting business in Malaysia and implication of the United States business in Malaysia. Developing countries are typically having more potential for foreign investment because they want to achieve the goal of developed country which is prosperous and fully industrialized. Malaysia is a diversified and humanities rich country from as being offshore destination. Malaysia is classified as upper middle income developing country due to its GNI per capita of $8420 as of 2011 according to World Bank data (2012). Malaysia is determining and rapidly moving to its goal of achieving National Vision 2020 as a fully developed country by year 2020 with its investor friendly business environment. Global Business Cultural Analysis: Malaysia Globalization has simultaneously created global interdependence among nations of the world. Every nation is different from the other. The difference has formed barrier in trade, communication, value and custom. The objective of this paper is to study the factors impacting business in Malaysia and implication of the United States business in Malaysia. Developing countries are typically having more potential...
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...Doing business in Malaysia Contents Foreword Chapter 1 - Introduction • • • • • • • • • • • • • • • • • • Geography & population Advantages of investing in Malaysia Language Political environment Economy Major exports and imports Import controls Regulatory environment Financial services Currency denomination Exchange controls Government policy on foreign investment Communications 5 6 Chapter 2 - Intellectual property protection Patents Trade Marks Industrial Design Layout Design of Integrated Circuits Geographical Indications 19 PKF – Doing business in Malaysia 2 Chapter 3 - Business Structure • • • • • • • • • • • • • Types of business structures Companies limited by shares Companies limited by guarantee Foreign companies and foreign investments Sole proprietorship and partnerships Trusts 24 Chapter 4 - Business Finance Equity financing Loan Funding Grants & soft loans 28 Chapter 5 - Investment Incentives Manufacturing Multimedia Super Corridor Status Operational Headquarters International Procurement Centres / Regional Distribution Centres 35 Chapter 6 - Accounting • • • • • • • • • • • • Statutory Accounting Requirements Audit Requirements Accounting Standards 60 Chapter 7 - Taxation Overview of taxes in Malaysia Scope of taxes: Residency Sources of income liable to tax The Tax Year Payment of Tax Corporation tax Interest Deductions Interaction with International Tax Regime Taxation of Partnerships & Trusts ...
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...on economic development and prosperity, and in societies around the world. The aim of this report is to provide finding and on Malaysian economy in a nutshell with regard to beauty and cosmetic products, identify the current trends and changes in the industry. And also analyze the cultural differences and the impact on Globalization, analyzed the Impact of multinational brands, local brands in the industry and future of the industry. Identify the direction and a coherent, overall plan is particularly important to a global Companies, like Ceylon spa which produces many different product lines worldwide. This report will provide holistic view of the findings and analyzing the environment and the basic structure of Malaysia. The PESTLE analysis of Malaysia identified different impacts on the country’s...
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...are planning on doing business in Malaysia knowledge of the investment environment and information on the legal, accounting and taxation framework are essential to keep you on the right track. Doing business in Country Name Contents Page Foreword Country Profile Regulatory environment Finance Imports Business entities Labour Financial reporting and audit Contact details 1 2 4 6 7 8 10 13 18 Doing business in Malaysia 1 Foreword SJ Grant Thornton is a member firm within Grant Thornton International. SJ Grant Thornton was established in 1974 and ever since, has progressed expeditiously in every aspect. We provide innovative, yet practical advice in a range of assurance, tax and specialist services to privately held businesses and public interest entities. Today, we are ranked as one of the leading accounting and consulting firms in Malaysia. We operate from our main office in Kuala Lumpur and other offices in Penang, Johor Bahru and Kuantan. Grant Thornton International is one of the world's leading organisations of independently owned and managed accounting and consulting firms providing assurance, tax and specialist advice to privately held businesses and public interest entities. The strength of each local firm is reflected in the quality of the international organisation. All Grant Thornton International member firms share a commitment to providing the same high quality service to their clients wherever they choose to do business. This guide has been prepared...
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...International Business Malaysia Abstract This abstract will include some information about our research in a briefly way to show more about Malaysia and its transnational corporations. First, we will talk about the role of transnational corporations (TNCs) in the Malaysian economy with specific attention to its environmental implications, and regulatory measures. We will discuss the role of transnational corporations (TNCs) in the Malaysian economy, its environmental implications, and regulatory measures to shield harmful effects. Second, we will also conclude that while environmental considerations did not appear very important in the relocation of TNCs to Malaysia, there is evidence of environmentally inferiority in Malaysia. However, it appears that many TNCs have new environmental practices in place, and that a number of TNCs have environmental management in the country. And as a conclusion, we will include the major sectors of transnational corporations in Malaysia and the main obstacles that affect it through the global business. Criteria 1) Starting Business Many foreigners were confused as to which is the right entity they should have to start their business in Malaysia. Starting a business in Malaysia takes only 11 days. There are overwhelming questions facing by foreigners especially Malaysia is totally new to many. * My Business nature, is it eligible for foreign ownership? * Which is the best recommended tax structure for my...
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...Trading environment is by nature government implication of the host country in the trade relationship with the hosted company; It can be positive and facilitate commerce with encouraging and low tariff and non-tariff barriers, as well as liberalization. Also, the financial environment is the business by which money is transferred among business, government and people and is function of financial and currency stability which are closely link to consumption and inflation which support your market size. It has an impact on currencies, exchange rate and it is supported by organizations such as WTO, or IMF. Finally, geography is the easiness of using resources by some geographical evidence of the country, as well as population, is a market size and a element to take into account when targeting and assessing its potential. In Malaysia, trading environment is pressing and leads for the company as a strong barrier for trade because of tariff and non-tariff barriers (para-tariff measure, price control…) of the intended business, and of strong inflows due to a large-scale policy easing, that tend to financial instability, increased exchange rates and asset prices in the host country. Likewise, the financial environment is slightly deteriorating. Depreciation of the currency would tackle external competitiveness, and therefore decrease standards of living of the citizen (rakyat) resulting in paying higher import prices for a product. But it is not the only factor, and as a consequence...
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...943 individual bankruptcy cases from 1990 to 2010, besides that, this number doesn’t seem to go down from year to year. This is not a good sign for a developing country such as Malaysia. Table 2.1 nomber of personal bankrupcy cases in Malaysis |year |No of bankrupcy cases |Percentage of increment % | |2005 |15868 |- | |2006 |13590 |-14.36 | |2007 |13238 |-2060 | |2008 |13855 |4.67 | |2009 |16228 |17.13 | |2010 |18119 |11.65 | |2011 |17650 |-2.59 | Note: statistics from Bank Negara Malaysia (BNM) The Maps world of finance stated that saving behavior is understand on how people save in a country in order to...
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...BUSINESS ANALYSIS ON “NESTLE MALAYSIA BERHAD” Introduction [Nestle Logo (Famouslogos.us, 2012)] Nestle is a Swiss-based brand founded in 1866 by Henri Nestlé, a German pharmacist. Henri was a very enthusiastic person to globalise his company and advocates pragmatism, flexibility, learning initiatives, respect towards foreign cultures and many other key attitudes and values to stake a corporate culture that lasts until today. (Nestle, 2012) In 1912, Nestle was introduced as the Anglo Swiss Condensed Milk Company to Malaysia. Today, more than 140 years after born, the world’s leading nutrition, health and wellness company continue to improve human lives with nutritious food products. (Nestle, 2013) 1.0 PESTEC 1.0.1 Political, Legal & Governmental Forces [Religion Distribution (Department of Statistics, 2011)] To cater the major ethnic of Muslim market in Malaysia, Nestle has to restrict the process of food productions to ingratiate the Trade Description Order 1957 bound by the Syariah Law (Islamic Law). Under the Act, Nestle is prohibited to produce any food items which contain any parts from haram prohibited animals. During the process and preparation of product, Nestle must not use or touch any ingredients or equipments which are deemed...
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...1.0 Introduction 1.1Definition of Responsible Business Responsible business is the same meaning as business ethics which mean runs a business honestly, and tries to think more about the environment and people when making decisions for business, so that can make a positive contribution to the local community and wider society (ORB, n.d.). Besides, business responsibilities also known as Corporate Social Responsibilities (CSR), it was actually a management concept whereby companies integrate social and environmental will be more concern in business operation and interaction with stakeholders. According to Starbucks (2004), a responsible company is the one who always listen to the stakeholders and response honestly with concern. Stake holders can be categorise as a person, organisation or a group that has interest or related in an organization. Examples for stakeholders are directors, creditors, employees, shareholders, supplies, government, the community and unions. Proton 1.2 History of Proton Malaysia PROTON (Perusahan Otomobil Nasional Berhad) started their very first business on May 7, 1983 and main in manufacture, sell motor vehicles and related products, which including spare parts accessories for vehicles and other components. As a very memorable history, the first car that produced by PROTON is Proton Saga (Appendix 1), which is launched on July 9, 1985. The original idea that conceived the Malaysia car is actually by a Malaysian, his name is Dato’ Seri Mahatir...
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...Asian Academy of Management Journal, Vol. 12, No. 1, 23–34, January 2007 CORPORATE GOVERNANCE IN MALAYSIA: THE EFFECT OF CORPORATE REFORMS AND STATE BUSINESS RELATION IN MALAYSIA Nor Azizah Zainal Abidin 1 and Halimah @ Nasibah Ahmad2 1 Faculty of Public Management and Law, 2 Faculty of Accountancy Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia ABSTRACT The Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate governance practice. After 1998, Malaysian government decided to adopt corporate reform that could enhance the quality of good corporate management practice. This reform is clearly stated in the code and rules of corporate governance. The purpose of this research is to study the significance of implementing the code and rules of corporate governance since the public already realize the close relationship between business and politics. Three companies were chosen as indicators for this study. As a result, it was found that companies which are involved in corporate malpractice but have good relationship with states will always be excluded from the legal corporate action. Keywords: corporate governance, corporate reforms, political economy, state business relation INTRODUCTION Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate...
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...and discuss environmental issues and its’ challenges in Malaysia. Motivation According to the statistic from the River Division of Department of Irrigation and Drainage Malaysia (Cho, 2006), there are a total of 189 rivers in Malaysia which cover 57,300 kilometres in length with 89 rivers in Peninsular Malaysia, 22 rivers in Sarawak, and 78 rivers in Sabah. River is important to our life because it could serve as the source of transportation, recreation, food, and income. In fact, rivers provide 97 % of all the water used in Malaysia. However, some rivers have been identified as highly polluted and caused great negative impacts to human and livestock in the polluted areas. The reduction in river water quality is a clear indicator of the decline in the environmental health of a river basin too (Azwad, 2012). Since river pollution is highly concerned with our daily lives, I am motivated to look into the river pollution issues and its rehabilitation challenges in Malaysia. River Pollution Statistical Background in Malaysia River pollution is a serious problem in Malaysia and causes negative impacts on the sustainability of water resources. It reduces the total water availability considerably due to the high water treatment cost or the polluted waters are not treatable for consumption in some instances. Meanwhile, Department of Environment (DOE) Malaysia had classified Juru River, Penang as the most polluted river in Malaysia (SungaiJuru.com, 2011). It is shamed that the Juru River...
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...South Asian Journal of Business and Management Cases http://bmc.sagepub.com/ Business Turnaround Plan: The Experience of Malaysia Airlines Herwina Rosnan and Razmah Mahmod South Asian Journal of Business and Management Cases 2012 1: 211 DOI: 10.1177/2277977912459444 The online version of this article can be found at: http://bmc.sagepub.com/content/1/2/211 Published by: http://www.sagepublications.com On behalf of: Birla Institute of Management Technology Additional services and information for South Asian Journal of Business and Management Cases can be found at: Email Alerts: http://bmc.sagepub.com/cgi/alerts Subscriptions: http://bmc.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://bmc.sagepub.com/content/1/2/211.refs.html Downloaded from bmc.sagepub.com at Fachhochschule Kufstein on December 3, 2013 >> Version of Record - Jan 8, 2013 What is This? Downloaded from bmc.sagepub.com at Fachhochschule Kufstein on December 3, 2013 Case Business Turnaround Plan: The Experience of Malaysia Airlines Herwina Rosnan Razmah Mahmod South Asian Journal of Business and Management Cases 1(2) 211–221 © 2012 Birla Institute of Management Technology SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/2277977912459444 http://bmc.sagepub.com Abstract Malaysia Airlines (MAS) is the Malaysian national air carrier. It...
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...Title: Role of accounting on business behaviors impacted by tax changes in Malaysia Justification There are many factors influence the changes of accounting importance where the role of accounting evolves along with the business changes affected by these factors. One of the factors that affect role of accounting in business field is tax. In Malaysia, Tax is generally divided into 2 types which are direct and indirect tax. Direct tax can be defined as tax which is imposed straight to the taxpayer. In short, the payment of tax is between taxpayer towards government. Examples of direct tax are income tax from employee salary, corporation tax, property tax, and etc. Meanwhile, indirect tax is a type of charge that can be transferred to the other person. A good example of indirect tax is restaurant that collect tax charge of the food’s sold from the customer (sales tax). Other examples of indirect tax are custom duty, central excise duty, and service tax). In brief, the history of Malaysia tax was started with more dependency towards indirect tax where establishment of direct tax has only started to take effect from 1 January 1948. This establishment has changed the trend of Malaysia tax which depends more and more on direct tax until today. In 2009 itself, government revenue has grown to 48.6% from direct tax. The urgency of understanding changes in accounting role due to tax, become important because of several reasons. Firstly, as the globalization of the economy develops...
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...Hollys Coffee based in Korea, starting business in Singapore. Brief Background of Company Hollys Coffee is a specialty coffee company headquartered in Korea. The company was established in 1998 and opened Korea's first espresso shop that year. Its shops offer espresso, coffee, tea, coffee- and tea-based cold and hot specialty drinks, a variety of pastries and other snacks, and coffee supplies. By 2008 there were more than 100 Hollys Coffee shops in Korea, and the franchise had expanded with additional stores in Japan, China and Malaysia. It has a barista academy called the Hollys Coffee Academy. Home Country: Korea South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD. It is a country filled with rich culture and heritage. All thanks to the influences of Korean pop to all over the world, there are more people getting more interested in Korean culture and heritage. We can seize the opportunity to start the business and learn to speak a little of their language can be useful to us as well. Other financial organizations like the World Bank describe Korea as one of the fastest-growing major economies of the next generation along with BRIC and Indonesia. South Korea was one of the few developed countries that was able to avoid a recession during the global financial crisis...
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...Employed(ROCE | 13 | 5.2.5 Return on Shareholders’ Funds | 14 | 4.1.4 Return on Equity | 14 | 5.2 Efficiency Ratios | 14 | 5.3.6 Assets Turnover | 15 | 5.3.7 Stock Turnover | 15 | 5.3.8 Debtors Collection Period | 15 | 5.3.9 Creditors Payment Period | 16 | 5.3 Liquidity Ratios | 16 | 5.4.10 Current Ratio | 16 | 5.4.11 Acid Test | 17 | 5.4 Growth Ratios | 17 | 5.5.12 Price Earnings Ratio | 17 | 5.5.13 Earning Yield | 18 | 5.0 Recommendation | 18 | 6.0 Conclusion | 18 | Appendix-1: Financial statement of BAT Malaysia | 19-21 | Appendix-2: Calculations of ratios | 22-24 | 7.0 bibliography | 25-26 | 1.0 Introduction: The British American Tobacco Malaysia has established through merger with Rothmans of Pall Mall (Malaysia) Berhad and Malaysian Tobacco Company Berhad in 1999. And now it has been established successful international brands image and become the largest tobacco...
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