INSTITUTE OF MANAGEMENT

STUDIES, DAVV
SESSION: 2017-19

INTERNATIONAL FINANCE
MALAYSIA

SUBMITTED TO:- SUBMITTED BY:-

DR. YAMINI KARMARKAR NILAY JAIN -64162
RAHUL PATIDAR -64173
MBA FA (IV) - B
 MACROECONOMIC OVERVIEW OF THE COUNTRY

With a world ranking of 18 in the ease of doing business, international business in Malaysia is extremely
friendly to every businessman who is willing to start their venture in this country. On the other hand, after the
formal company set-up finding the right ways to organize distribution and approaching your clients may be
challenging due to the different cultures within this country.
Malaysia’s import market amounts to approximately 73% of its GDP and the level of imports into the
country have shown a healthy trend over several years.
•GROSS DOMESTIC PRODUCT-

The Malaysian economy advanced 4.7 percent year-on-year in the fourth quarter of 2018,
following a 4.4 percent expansion in the previous three-month period and matching market
expectations. It was the strongest growth rate since the first quarter of the year, as net
external demand contributed positively to GDP growth, while private consumption,
government spending, and investment slowed. GDP Annual Growth Rate in Malaysia
averaged 4.80 percent from 2000 until 2018, reaching an all time high of 10.30 percent in the
first quarter of 2010 and a record low of -6.20 percent in the first quarter of 2009.

•BALANCE OF PAYMENT-
Malaysia’s Balance of Payment (BoP): Current Account (CA) data was reported at 3,784.000
MYR mn in Sep 2018. This records a decrease from the previous number of 3,909.121 MYR
mn for Jun 2018. Malaysia’s Balance of Payment (BoP): Current Account (CA) data is updated
quarterly, averaging 18,602.661 MYR mn from Mar 2005 to Sep 2018, with 55 observations.
The data reached an all-time high of 39,982.149 MYR mn in Sep 2008 and a record low of
978.280 MYR mn in Jun 2013. Malaysia’s Balance of Payment (BoP): Current Account (CA)
data remains active status in CEIC (Census and Economic Information Center) and is reported
by Department of Statistics. 
 MAJOR MNCs –
MNCs in Malaysia comprise of both local and international companies. Here are
some of the biggest MNC companies which are currently operating in Malaysia:

• Sime Darby Berhad

• Axiata Group Berhad
• Petroliam Nasional Berhad
• YTL Corporation Berhad
• Malakoff Corporation Berhad
• Intel Corporation, Intel Microelectronics Sdn Bhd
• BASF (Malaysia) Sdn Bhd
• DRB-Hicom Berhad
• Proton Holdings Berhad
• Honda Motor Co.
• Panasonic Corporation
• Alphabet Inc.
• Exxon Mobile Corporation
 MAJOR IMPORT AND EXPORT

• Malaysia was once the world’s largest producer of tin, rubber

and palm oil. Its manufacturing sector has a crucial role in its
economic growth. The export industry was hit hard during the
late 2000 economic recession drastically dropping to 78% i.e.
FDI to RM4.2 billion in the first two quarters of 2009. Total
exports fell down to $156.4 billion in 2009 from $198.7 billion
in 2008. The imports also reduced from 154.7 billion in 2008
to $119.5 billion 2009.
 Malaysia Exports Commodities-

Malaysia mainly exports the following commodities:

• Electronic equipment
• Petroleum and liquefied natural gas
• Wood and wood products
• Palm oil
• Rubber
• Textiles
• Chemicals
 Malaysia Imports Commodities

Malaysia mainly imports the following commodities:

• Electronics
• Machinery
• Petroleum products
• Plastics
• Vehicles
• Iron and steel products
• Chemicals
 MEMBERSHIP OF MALAYSIA-
• Malaysia is a founding member of the Association of Southeast Asian
Nations (ASEAN) and the Organisation of the Islamic Conference (now
the Organisation of Islamic Cooperation).
• Malaysia is affiliated with the United Nations and many of its specialised agencies,
including UNESCO, World Bank, International Monetary Fund, International Atomic
Energy Agency; General Agreement on Tariffs and Trade.
• It is also a member of the Asia-Pacific Economic Cooperation

STORY HIGHLIGHTS-
• Trade has been the engine of growth in the last four decades in Malaysia with 40%
of jobs linked with export activities
• Malaysia’s public and private sector strives to improve logistics and advance best
practices in international trade
• Timely implementation of the Logistics and Trade Masterplan with World Bank
support can help Malaysia become the logistics gateway to Asia