Contents 1.0 Introduction 2 2.0 Environmental Analysis Of Malaysia 3 2.1 Economic Analysis of Malaysia 3 2.2 Cultural Analysis of Malaysia 3 2.3 Technology Analysis of Malaysia 4 3.0 Business Issues 5 4.0 Referencing 9

1.0 Introduction
Malaysia is a multi-ethnic, multicultural and multilingual society. It is a fast growing state-oriented and newly-industrialised economy with liberal market policies aimed at promoting trade, entrepreneurship and industrial and economic development. Initiatives undertaken by the government and the private sector are investor-centric and business-friendly with the primary aim of encouraging market development. This has transformed Malaysia into one of the most dynamic business environments in South East Asia.
Malaysia has a mixed economy with active participation in business by both the private and public sector. Although traditionally a commodities-led economy, services have contributed to the country's recent economic growth and now comprise the largest sector of the economy. Primary economic activities in Malaysia include manufacturing, export trade, services, tourism, and commodities such as petroleum, palm oil, natural rubber and timber. Information technology is also a growing industry.
Despite being adversely affected by the economic crisis, the economy contracted by 1.7 per cent in 2009, the economy quickly recovered, experiencing positive growth rates in the years following; furthermore, growth is expected to remain resilient in 2015/16.
The major trading partners of Malaysia are United States, Singapore, Japan, People's Republic of China, Thailand, Hong Kong, South Korea Germany, and Indonesia.
While this guide makes reference to some of the most common issues investors might face, it must be noted that certain industries, such as the financial services sector, are subject to special regulations. For the avoidance of doubt, the content of this guide shall not be construed as, and is not meant to constitute, professional advice.

2.0 Environmental Analysis Of Malaysia
The official name for Malaysia is the Federation of Malaysia which is a form of federated constitutional monarchy under the Supreme Head of State of Malaysia, His Majesty, the Yang di-Pertuan Agong. The Yang di-Pertuan Agong will elect who is the becoming Prime Minister and with the Prime Minster advice, also elect the cabinets.As the constitutional monarch is concern, the Yang di-Pertuan Agong will holds office for five years after being elected by the conference of Rulers. A few political parties can be found in Malaysia but the main political party is the National Front (Barisan National). It is a multiracial party which consists of 14 parties with the largest being the United Malays National Organization (UMNO). As for the House of Representatives (Dewan Rakyat), they have 192 members and are the legislative authority of Malaysia. These representatives are elected by popular vote for the terms of five years .

2.1 Economic Analysis of Malaysia
In year 2016, it is believed that the ringgit is expected to weaken against the US dollar as macroeconomic conditions in Malaysia deteriorate. The exchange rate against the US dollar has been erratic in recent months might be caused by the fluctuations in the US dollar. A weaker ringgit might help the US trade competitiveness.
For foreign investors to enter the Malaysian market, there are some incentives given by the Malaysian government. According to 'Bernama (2008), Malaysian government continue to give tax relief to enhance private investors, incentives to attract foreign direct investments as well as provide more funds to boost regional economic corridors despite tough economic conditions.' Since that Harvard University is a US brand University, they could get tax relief and some incentives from the Malaysian government upon investing in the country. 'Bernama (2008) also stated that the government has allocated an additional RM300 million under the Strategic Investment Fund to further strengthen private investment.
2.2 Cultural Analysis of Malaysia
Malaysia represents a unique fusion of Malay, Indian and Chinese traditions, creating a multicultural and pluralistic nation that has its character strongly rooted in social harmony, religion and pride in its ancestral background. Today, Malaysia offers a unique blend of old traditional culture and new technological innovations. Since Malaysia is a multicultural nation with different races and religion around the corner.
In Malaysia, the official language of Malaysia is Bahasa Malaysia but English is very widely spoken by the nations. There are other major languages as well that are being used in the country such as Chinese language and Tamil language. The other part of Malaysian uniqueness is that most of the Malaysian can speak more than one languages and many others dialects too.
2.3 Technology Analysis of Malaysia
Malaysia is an emerging Asian economy aspiring to move towards a technology-driven and high-tech production-base pattern of development. In fact, Malaysia has been categorized in a group of countries that has the potential to develop their own technology.
The well use of information technology in a business enables to smooth an organization. Currently, the country has various types of facilities for communication. They have telecommunication facilities such as telephones, fax and emails in the country. The advance in telecommunication can save the cost of travelling. For instance, if meeting is needed, staff can use video conferencing as their tools to communicate instead of taking a plane and travel for 10 hours just for a day meeting.
Besides telecommunication, Malaysia is also advance in transportation. They have transportation like planes, cars, trucks and other kinds of transportation available in the country that can bring one from places to places.

3.0 Business Issues
Malaysia as the third largest economy in ASEAN is also a trade hub with geostrategic nexus. It is also the largest and fourth largest trading partner of China and United State. Malaysia is also negotiating to join into the Trans-Pacific Partnership free trade agreement.
Malaysia is a leading exporter of electrical appliances, electronic parts and components, palm oil and natural gas. It shows strong trade performance despite economic uncertainties and supply chain disruptions. The major category of imports includes electronics and electrical goods, chemical and chemical products, machinery, applicances and parts.

Diagram 3.1 shows the portion of export and import of Malaysia.

Foreign Direct Investment in Malaysia increased by 15,000 MYR million in the first quarter of 2016, accelerating from a downwardly revised 12,200 MYR million in the December quarter 2015. It is the largest figure since the fourth quarter of 2012. In the March quarter 2015, foreign direct investment in the Southeast Asian economy came in at 9,888 MYR million. In the December quarter of 2014, the country's registered a 9,766 MYR million of foreign direct investment. Foreign Direct Investment in Malaysia averaged 14837.74 MYR Million from 2008 until 2015, reaching an all time high of 37325 MYR Million in the fourth quarter of 2011 and a record low of 5121 MYR Million in the fourth quarter of 2009. Foreign Direct Investment in Malaysia is reported by the Department of Statistics Malaysia.

Diagram 3.2 shows the growth of FDI in Malaysia from year 2013 to 2016

The opportunities and threats for investing in Malaysia has been summarized as follow:
Opportunities:
1. Malaysia is moving up the value chain of industries and is currently focusing on attracting high-technology, high value-added, knowledge-based and skill-intensive industries, incorporating activities such as design, research and development.
2. Some of the biggest opportunities could lie in the provision of services like healthcare, eco-tourism, and education. Prime Minister Najib is liberalizing a number of service sectors and reducing affirmative action policies in ways that should create more opportunities for foreign investors and also reduce red tape. The government is also pushing to develop the local capital market. Malaysia is already the world’s largest market for sukuk, the Islamic equivalent of bonds.
3. As a member of ASEAN and a country that has signed a free-trade pact with China, Malaysia has the potential to be used as a base to produce goods and services sold in other, larger but more difficult markets in the region. If Kuala Lumpur can also sign free-trade pacts with India and Muslim countries in the Middle East, its potential role as a base to promote certain kinds of business would be even larger.
4. The recent push to cooperate more with Singapore economically could create new business opportunities in both countries, especially if there is a better interfacing of key institutions in the two countries.
5. Alongside a number of government incentives for investment, Malaysia offers the following competitive advantages for investors: * Political and economic stability * A number of liberalisation programmes welcoming more foreign investment across a large number of sectors * An highly developed transport and telecommunications infrastructure * A skilled labour force with relatively low wage costs * Fully- developed industrial parks, including free industrial zones, technology parks and Multimedia Super Corridor * The Labuan International Business and Financial Centre offering an attractive offshore location for financial services activities

Threats:
1. There is a risk that hard-line elements in the dominant political party, UMNO, might instigate or trigger a political crisis if they lose at the next general election. This would have negative economic implications.
2. Religious and ethnic tensions have the potential to cause social and political instability. Advocates of Malay entitlements also have the potential to slow government reform policies by threatening a Malay backlash.
3. Government-linked entities and local companies with strong political connections can crowd out other private sector players, including foreign investors, and have advantages in how big government contracts are awarded and development plans are focused.
4. The political opposition, if it were to win the next general elections, might be unable to stay united or to implement social and economic policies that enable Malaysia to progress on to developed-country status. The main policy uniting the opposition is their desire to topple the existing government. The actual governing capabilities of the opposition are untested and therefore a cause of uncertainty.

4.0 Referencing 1. http://www.focus-economics.com/countries/malaysia 2. https://www.gov.uk/government/publications/overseas-business-risk-malaysia/overseas-business-risk-malaysia#political 3. http://www.bmiresearch.com/malaysia 4. Edmund, G. (2007) Politics in Malaysia: The Malay dimension. Edited by Edmund Terence Gomez. United Kingdom: Routledge.