Historical Timeline

A critical way to show respect for another person's culture is to have knowledge of their country's history and current affairs. Table 9.1 on page 184 outlines a few key events related to Malaysia, together with concurrent world events.⁷

Full Country Name and Location

Malaysia is approximately the size of Norway or the State of New Mexico in the U.S. It is divided into two distinct regions. Peninsular Malaysia shares a land border with Thailand, with the Strait of Malacca to the west, and the South China Sea to the east. East Malaysia is located on the northern one-third of the island of Borneo, sharing land borders with Indonesia and Brunei. It is surrounded by the South China Sea, the Sulu Sea, and the Celebes Sea.

Government/Political Structure

Malaysia is a constitutional monarchy. The latest constitution became effective after 1957 independence from British colonial rule. Parliament meets in Kuala Lumpur, the capital city. The King serves as head of state and is elected from a pool of hereditary rulers every five years. The head of government is the Prime Minister, elected from the House of Representatives. The last national elections were held on May 5, 2013; the next elections are scheduled for 2018.

Population and Economic Centers

The population of Malaysia is approximately 30.1 million, according to the CIA World Factbook. The country is divided into 13 states and three federal territories (Kuala Lumpur, Labuan, and Putrajaya), with 72.8 percent living in urban areas.⁸

The population percentages are: Malays (Bumiputeras) (50.1 percent), Chinese (22.6 percent), Indigenous (11.8 percent), Indian (6.7 percent), and small numbers of other groups (0.7 percent). About 8.2 percent of the population is made up of noncitizens.⁹

The business centers and populations are outlined in Table 9.2 on page 186.¹⁰

Economy

Malaysia is ranked 18th out of 189 economies in terms of ease of doing business, according to the World Bank Group's Doing Business 2015 report.¹¹ Its 2013 GDP was ranked 35th by the World Bank,¹² and the composition of its GDP by sector was services (48.1 percent), industry (40.6 percent), and agriculture (11.2 percent).¹³

Corruption Perceptions Index

Malaysia ranked 53rd least corrupt out of 177 countries and territories with a score of 50 out of 100.¹⁴ This annual index, compiled by Transparency International, measures perceived levels of public sector corruption. The Malaysian Anti-Corruption Commission is the anti-corruption agency that conducts investigations in Malaysia.

Human Development Index

Malaysia ranked 62nd out of 187 countries and territories.¹⁵ The HDI, compiled by the United Nations Development Programme, is a composite index of life expectancy, education, and income statistics.

Global Gender Gap Index

Malaysia ranked 107th out of 142 countries in terms of gender equality with a score of 0.6520.¹⁶ This annual index, compiled by the World Economic Forum, assesses gender gaps based on economic, political, educational, and health-based criteria.

Climate

The climate is tropical, with no distinct seasons. Weather is hot and humid throughout the year, with two monsoon seasons: May to September and November to March.

Languages

Bahasa Melayu, or Bahasa Malaysia, is the official language. English is widely spoken. Other languages include Chinese (Mandarin, Cantonese, Hokkien, Hakka, Hainan, and Foochow), Tamil, Hindi, Telugu, Malayalam, Panjabi, Thai, and indigenous languages (Iban, Kadazan).

Belief Systems, Philosophies, and Religions

The country breakdown is as follows: Islam (61.3 percent), Buddhist (19.8 percent), Christian (9.2 percent), Hindu (6.3 percent), Chinese traditional (1.3 percent), other (0.4 percent), none (0.8 percent), unspecified (1 percent) (2010 est.).¹⁷

For an overview of belief systems, philosophies, and religions, please refer to Chapter 4, pages 64–65.

Time Zones/Daylight Savings

Malaysia has a single time zone, Malaysia Time (MYT). Malaysia is eight hours ahead of GMT (Greenwich Mean Time)/UTC (Coordinated Universal Time). It does not operate under Daylight Savings.

It is 13 hours ahead of U.S. Eastern Standard Time (12 hours ahead in Daylight Savings Time). See www.timeanddate.com/worldclock.

To calculate time in Malaysia, add eight hours to UTC/GMT.

Telephone Country Code and Internet Suffix

The Malaysian telephone country code is 60, and the Internet suffix is .my.

Currency

The currency in Malaysia is the ringgit (MYR). One ringgit is divided into 100 sen.

Fiscal Year

The Malaysian fiscal year runs from January 1 to December 31. Dates are written day, month, year; April 10, 2020 is 10/4/2020.

Working Week

General business hours are observed in most regions, including the capital, Kuala Lumpur. The structure of the Malaysian work week is outlined in Table 9.3.

Some businesses, most government offices, and many banks are open Saturday mornings from 8:30 to 12:00. Muslims working in these regions take a two-hour break on Fridays to attend a mosque.

Traditional Islamic Working Week

The traditional Islamic work schedule in Table 9.4 is observed in the Malaysian states of Perlis, Kedah, Kelantan, Terengganu, and Johor (all on the peninsula) in order to preserve Friday as the Islamic Holy Day.

Some businesses, most government offices, and many banks are open a half-day on Thursday from 8:30 to 12:00.

Holidays and Festivals

Some Malaysian holidays are determined by the lunar calendar, and therefore change from year to year. Floating holidays are designated in Table 9.5 on page 190 with an asterisk. On specific holidays, an office may remain open with limited staff. Check with your embassy or trade office before you plan your travel.

March through July is the best time for business trips. Avoid making appointments for dates during Ramadan, Chinese New Year, and Christmas.

Business Dress/Appearance

Lightweight cotton and linen fabrics are recommended for the year-round hot, humid weather. Attire is conservative and formal. Men wear suits and ties or light-colored shirts with a tie and dress trousers for less formal events. Women wear suits or business dresses, or blouses and skirts or slacks for less-formal events. Revealing clothing such as sleeveless blouses, skirts above the knee, and shorts are never worn. Acceptable casual clothing includes jeans, open collar or golf shirts with slacks for men, and blouses with pants or skirts for women. Avoid yellow colors reserved for royalty.¹⁸ The hijab, a Muslim head covering or scarf representing modesty, purity, humility, and piety, is not required for non-Muslim women in business meetings.

News Sources

Popular news sources in Malaysia include:

• New Straits Times: www.nst.com.my
• The Star: www.thestar.com.my
• The Sun: www.thesundaily.my
• The Malay Mail: www.themalaymailonline.com
• The Malaysian Insider: www.themalaysianinsider.com

Business Cards

The government uses business cards printed with Bahasa Melayu, the official language of Malaysia. When conducting business with Malaysian Chinese, print Mandarin on your card. An exchange of cards occurs upon introduction. The formal custom is to give and receive cards with both hands, or the right hand but not the left. Study the card and place it on the table, in a portfolio, or card case.

Technology

According to Akamai Technology's State of the Internet Report, Malaysia has the 74th fastest average Internet connection speed in the world.¹⁹ Latest figures rank Malaysia 26th in the world for the number of Internet users,²⁰ and 53rd globally for the number of Internet hosts.²¹

Gifts

Gifts are appreciated and exchanged after a relationship has been established, not at first meetings. Give and receive gifts with both hands or the right hand only. Send a thank-you note and reciprocate with an equal gift.

Ideas for business gifts include company logo items, pens, desk accessories, and books. If invited to a home, bring boxed fruit or sweets. Avoid money; sharp objects (these indicate a severing of ties); liquor; gifts that depict pigs or canines (these are Muslim taboos); leather gifts (Indians consider cows sacred); and local frangipani flowers (they represent death). Wrap gifts in pink or red (these colors indicate good luck) or bright colors (they represent happiness). Avoid white or black (they symbolize mourning) and yellow (it is reserved for royalty).

“Corporate gift-giving with the international company's logo is common. The gift should be simple and not high-value so it will not be viewed as a bribe—for example, Apple iPhones and branded watches are a no-no,” one Malaysian Airlines executive said.

Introductions, Greetings, Personal Space, and Eye Contact

Malaysia's ethnic groups include Chinese (see also Chapter 5 on China), and Indians (see also Chapter 7 on India). See the respective chapters for further greeting information regarding these groups.

Malaysian males greet each other by shaking hands and bowing slightly. In the Muslim world, physical contact with the opposite sex is avoided, including inter-gender hand shaking. Younger or international Muslims may shake hands with everyone, saying “Selamat.” Greetings to someone of the opposite sex may include a head bow (salaam) with placement of the right hand on the left side of the chest (signifying “I greet you from my heart”) while saying Selamat. A Muslim woman wearing the hijab may show her hand to shake hands with another woman.

Useful Phrases

See Table 9.6 for helpful phrases when traveling in Malaysia.

Names

For Chinese and Indian naming conventions, please refer to Chapter 5 and Chapter 7, respectively. Muslim naming conventions (see Table 9.7 on page 194) include the following:

• Historically, the Muslim name order has been given (or first) name, followed by bin (male) or binti (female), followed by the father's given name.
• Today, some Muslims don't use bin or binti; just the given name and the father's given name.
• Some Muslims add a tribal or family name with the prefix –al to the name.
• Professionals use their professional title (such as Dr. or Engineer) or courtesy title (Mr., Mrs., Ms.) plus their given name.
• After marriage, females retain their maiden names.

Meetings and Negotiations

The company's ethnic makeup will have a significant impact on your approach to doing business. Dennis Unkovic recommends identifying good local advisors to help understand ethnic dynamics.²² In general, Malaysians value personal contact and building a relationship before negotiating a deal. They tend to focus more on harmony than competition and are more impressed with people of greater seniority and experience.

To initiate a business relationship, request a meeting by sending a letter of introduction. Be prepared for a much slower pace of doing business, which may require several trips to Malaysia over many months. Malaysians take their time in decision-making. Although negotiations may be lengthy, Malaysians tend to concede more and more over time. Written contracts are considered open to further negotiation and escape clauses are common.

Presentation Styles, Conversational Topics, and Humor

After the third or fourth visit, as the relationship and comfort level develops, Malaysians may ask you questions about income or marital status, which are culturally acceptable. Appropriate conversational topics include ASEAN, Malaysian culture, cuisine, sports, future plans, and company success. Inappropriate topics include personal success, sex, religion, and controversial current events.

Gestures

Be aware of these points when interacting with Malaysians:

• Understand that smiling may signify embarrassment, shyness, or unhappiness, as well as happiness.
• Bow slightly when passing people, entering, or leaving.
• Point with the entire right hand or with the thumb (not with the index finger).
• Beckon with right hand palm down by making scooping motion with fingers a few times.

Notable Foods and Dishes

Cuisine is spicy and flavorful, with regional spices and herbs. Rice is a staple. Barbecued meat, beef or fish curry, vegetables (spinach and cabbage), chili paste, salted eggs, fried dried fish, and fruit (mangoes, papayas, and pineapple) are popular. Fruit juice, tea, or coffee with sweetened condensed milk may be offered. Peranakan or Nonya cuisine, a unique blend of mild, flavorful spices and sauces, is popular.²³

Specialty Dishes

Favorite Malaysian dishes include:²⁴

• Satay: National dish; grilled protein kabobs in spicy marinade, with peanut sauce
• Nasi lemak: Spicy breakfast rice dish cooked with coconut milk and fish
• Soto ayam: Chicken stew with rice, bean sprouts
• Laksa: Spicy fish soup with noodles
• Panggang golek: Spiced duck with cashews and coconut cream
• Rojak: Stir-fried fruits and vegetables in shrimp-based sweet-and-sour sauce
• Mee rebus: Boiled noodles in a rich beef gravy
• Gula Malacca: A sago pudding
• Roti canon: Fried flatbread
• Char kway teow: Stir-fried rice noodles with soy, chili, and prawns

Dining Etiquette

The guest of honor sits to the host's right or at the head of the table. When sitting on floor mats, men sit cross-legged and women fold their legs and feet under. The host provides towels and a bowl of water to wash hands before dinner. Men may eat before women. Taste a bite of every dish. Use only the right hand to eat and pass food; the left is used for personal hygiene and considered unclean.

Dining customs vary by ethnic group. Malaysians eat with their hands or with spoons, often using a fork in the left hand to push food onto the spoon in the right hand. Indians usually eat with their hands, but may give Westerners a fork and spoon. Many Indians are vegetarians. The Chinese use chopsticks and soup spoons. Muslims do not eat pork or consume alcohol and eat halal foods, prepared according to Islamic law. Hindus and Buddhists do not eat beef because cows are considered sacred.

Drinking and Toasting

Alcohol may be served after a meal; however, it is not the custom because Muslims abstain from alcohol. Chinese Malaysians drink beer. Minum (MEE-noom) or cheers is a common toast.

Tipping and Bill-Paying

Restaurants include a service charge; an additional 10-percent tip is customary. Tip small change or round up to the nearest ringgit for taxi drivers, maids, and restroom attendants. Tip valets two ringgits per bag.

Taboos

The following are taboos in Malaysian culture:

• Touching or handling the Qur'an
• Standing or sitting on prayer rugs
• Smoking in front of the elderly or royalty
• Entering a mosque wearing a hat, shoes, or sunglasses
• Pounding one fist into the other hand
• Public displays of affection
• Touching anyone on the head
• Using feet to move objects or point at anyone
• Showing the soles of the feet
• Using left hand to shake, gift, point, eat, or pass items
• Whistling, hissing, or shouting
• Standing with hands in pockets or on hips
• Crossing legs or resting an ankle on the knee
• Littering
• Nose-blowing and throat-clearing

Heroes and Sports

Knowing about another country's heroes and sports offers opportunities to incorporate culture-specific references into your conversations and presentations.

1. How Do Malaysians Prefer to Act: Individually or as a Group?

The multi-religious and multi-cultural differences play different roles in business relationships. There is not a uniform approach fitting all the business situations or relationships in Malaysia. Being sensitive to views, feelings, and saving face is important.

—Executive, Malaysia Airlines

A strong sense of belonging, gotong royong, or cooperation and a spirit of collectivism that requires one to seek the views of challenges before making significant decisions, encourages Malaysians to give priority to group over individual interests.²⁵

The Malaysian business environment includes at least three diverse cultures: Malaysian, Chinese, and Indian, each with their own approach to individual and group dynamics. In that respect, it may be useful to refer to Chapter 5 (China) and Chapter 7 (India) to supplement this information.

“Malaysians are group-oriented and make collective decisions. Group consensus extends to a willingness to prioritize multiple interests over individual concerns; it is a team environment with a sense of belonging,” shares Dr. Amin Osman, Director of Taman Bijaya Pte. Ltd. Consensus seeking is known as Mesyuwarah.

The holy month of Ramadan impacts group as well as individual decision making, especially within large companies, government, and public sector organizations. During Ramadan, when key principals are out of the office and hours are reduced, the decision-making process slows considerably.

2. How Are Power and Authority Viewed in Malaysia?

Status is inherited, not earned, and is confirmed by demonstrating leadership and a caring attitude. Malays feel comfortable in a hierarchical structure in which they have a definite role.

—Richard D. Lewis, When Cultures Collide: Leading Across Cultures²⁶

In Malaysia, people born in high positions are expected to demonstrate leadership capabilities. A good leader is seen as religiously devout, sincere, humble, and tactful. The Malaysians are comfortable in a hierarchical structure, showing deference to seniors, elders, and authority. They are also comfortable in structures where they have a definite role to play. They tend to be modest and will resist asking for promotion because they expect this to occur naturally.

Ethnic Malaysians, known as Bumiputeras, comprising more than 60 percent of Malaysian citizens, hold the political power in Malaysia. Various states have hereditary rulers who have political influence within the borders. The Chinese are active in business and economic affairs, and Indians are well represented in the professional arenas, including law and medicine. The administrators of the country are predominately Muslim.

Another source of power and authority is MIDA, the Malaysian Investment Development Authority, which evaluates and approves applications for manufacturing, tax, and investment.²⁷ MIDA is a quasi-governmental group working with the ministries and prime minister.

According to Ms. Yeo Lam of Johnson Medical, working with the government and the proper contacts is crucial. She goes on to add, “Many people will tell you they are the key; but you still need to check references; bankers and lawyers are helpful references.”

3. How Do Malaysians Compare Rules and Relationships?

“Together we must bear the responsibility, whether big or small.”

—Ringan sama dijinjng, berat sama dipikul

A group affiliation, or Kawan, is a “system of relationships among colleagues and associates thatcontributes to a spirit of togetherness, founded on unwritten rules of trust and understanding, [which] takes precedence over a task. More often this value stems from common interests and background based on family affiliation and ethnicity.”²⁸

In addition, Islamic law impacts more than 60 percent of the population in Malaysia, so rules and relationships are intertwined. What is important to know is that Malaysia is one of the world's top Islamic finance centers, providing Sharīʿah-compliant financial services to Muslims worldwide—a market estimated to reach $3.4 trillion by 2018.

Under the Qur'an, which sets forth Islamic law, compliant financial services organizations may not charge interest on loans and riba is a term that prohibits this practice.²⁹ Financial activities must be socially responsible with profits and losses shared by the community to avoid violating the Qur'an. After a financial agreement or any type of contract is negotiated, it is still considered open to further negotiation and escape clauses are common. It is always best to consult an attorney and a certified public accountant for country-specific legal advice.

4. How Do Malaysians Regard Time?

For most government organizations and government linked companies, time for Muslim prayer will have a bearing on meeting time. In addition, during the fasting month of Ramadan, they tend to dislike a meeting in the afternoon.

—Executive, Malaysian Airlines

At one of Sharon's international protocol training sessions, a senior project manager for a U.S. tech company was concerned about whether his two-month implementation schedule should be modified to accommodate the holy month of Ramadan. Concerned with potential delay, his VP decided to proceed with “business as usual” and scheduled meetings regardless. The project team faced not only absent team members, but questions about their disrespect for Islam. The implementation was subsequently delayed six months.

Spending time virtuously and respecting Islamic law is particularly important during Ramadan when work hours are significantly reduced, employees take holidays, telecommuting increases, and colleagues are likely to decline business travel. Some organizations offer an Iftar for their employees, both Muslim and non-Muslim, to get into the spirit of Ramadan. During Ramadan, Muslims are expected to fast from dawn to dusk. Iftar is the meal eaten by Muslims to break their fast after sunset during Ramadan.³⁰

Meetings should be scheduled around prayer times and the holy month of Ramadan. Islamic law impacts time as it relates to holidays and the traditional Muslim workweek, with the weekend falling on Thursday and Friday.³¹ In locations where Friday remains a workday, many offices close at noon as Muslims take a two-hour break for prayers at a local mosque. Malaysians feel the past and future rest in God's hands. You are likely to frequently hear the phrase Inshallah, which means, “God willing.”³²

On a daily basis, time in Malaysia is fluid. As one airline executive explained, “Companies and the management team are becoming more punctual when it comes to meetings in the office. Lunch and dinner meetings may be viewed as more relaxed with an allowance for some delay because of traffic, which is an acceptable social excuse.”

He added, “International visitors should also realize that time is money and it is important to Malaysians that they shift their paradigm to concentrate on ‘us’ rather than on ‘I.’ However, the slight wait that occurs at local companies and government offices is to send the subtle message that they are busy and important people and definitely worth waiting for.”

Malaysians enjoy long-range planning and routinely make future plans, as evidenced by the government's completed long-term projects (the airport, Petronas towers, Putrajaya, a planned city). Former Prime Minister Mahathir Mohamad's 1998 Vision 20/20 program for developing Malaysia into an industrialized country is scheduled for completion in 2020.³³

5. How Direct Is Communication in Malaysia?

Communication may be formal and indirect to start because Malaysians are expert at indirect references to avoid offense and save face. It is rare to hear the word “no,” which is considered impolite. Listen closely to tone of voice when you hear terms such as “I agree,” “yes,” “possibly,” or “maybe” for insight into whether the answer is positive or negative. Sucking air in through the teeth is a nonverbal signal of difficulty with your request.

When conducting business, pay attention to unique ways the scope or impact of the message may change. For example:

1. “You are wrong” (inappropriate) is direct, specific, without room for misinterpretation.
2. “You are wrong lah.” The message is softened and acknowledgment is given that you are only human, may have made a mistake, and can be forgiven.

Accordingly:

1. “No” is strong and final.
2. “No lah” is not as harsh and the impact is lessened; but it is still a no.

Communicating “no” may also occur in the following ways: “Oh, very difficult lah” (susah lah), or “Cannot lah” (tak boleh lah).

As these examples illustrate, calm and harmonious communication during business negotiation is preferred; listening carefully is valued, and interruptions are to be avoided. Compromise is respected.

6. How Formal or Informal Do Businesspeople in Malaysia Tend to Be?

Read about Islamic ways…it is preferred, as you know we are an Islamic country. It is advisable to be courteous and formal. Respect accorded is not in vain.

Ms. Yeo Eng Lam, Managing Director, Johnson Medical International

When beginning a business relationship, a letter of introduction or a formal, personal introduction is required; a written response to an invitation from a business associate is expected. One Malaysian Airlines executive was emphatic: “Malaysia has one of the highest ‘power distances’ in the world, with a score of 104, meaning that formality, respect, and courtesy are expected. Be formal in addressing people by name and titles.”³⁴

In meetings, he suggests, “Let the host direct the guest where to be seated, and be formal in wardrobe. However, more companies are now practical in attire, and removing a coat if others are is appropriate. Ladies should be businesslike. Humor is generally welcomed, especially as an ice-breaker, but no one wants a clown in the meeting room. Gestures should be controlled and below the American norm. Understand that others many find it difficult to comprehend the American accent, so speak slower and do not be too loud. Maintain personal space and a glass bubble. A man should not offer his hand or a handshake to a Muslim lady.”

7. How Aligned Are Malaysian Social and Business Lives?

There are many opportunities for international visitors to socialize in ways that cement deep, long-lasting relationships. “Malaysians are friendly people, and often welcome guests into their life, especially during festive seasons such as the Hari Raya, Deepavali, or Chinese New Year; the New Year celebrations for each of the three cultures in our country,” said Ms. Lam. “Guests are expected to attend and advised to wear Malaysian dress such as baju, which shows interest and respect to the host. Men can also wear batik, which is very popular for formal functions, although not required. An example of this was when the wife of the Chinese premier visited and wore Malaysian baju, not Chinese cheong sum. I think the Chinese researched our culture to display their respect.”

During social events, religious customs and restrictions must be observed. If you are hosting a meal, do not order or offer pork or alcohol to your Muslim guests and avoid ordering beef for Hindus and Sikhs. Cows are considered sacred in both of these belief systems.

As a Malaysian Airlines executive shared, “Golfers will find opportunities at the CEO and senior management level to socialize during a round of golf. An invitation for dinner that takes note of Muslim restrictions is acceptable, especially to a small group of three to four people. For private and international companies, invitations to drinks are welcome, although not if you are working with government organizations and Muslims who do not drink alcohol.”

8. How Is the Concept of Women in Business Handled in Malaysia?

As a woman in business, I do not find it particularly constrained. We have a female governor of the National Bank, female heads of the stock exchange, corporations, and business enterprises.

—Ms. Yeo Eng Lam

According to the Randstad World of Work Report 58 percent of Malaysian business leaders believe women will play a critical role in ensuring the success of Malaysian organizations in an innovative economy.³⁵ Indeed, many already do, including inspiring female leaders such as Tan Sri Zeti Akhtar Aziz, the governor of the Malaysian Central Bank (BNM), who was named a candidate for president of the International Monetary Fund (IMF). She was also the first woman to be ranked within the top ten central bank governors of the world, helping to place Malaysia at the leading edge of the Islamic money market.

The Randstad report surveyed more than 14,000 employers in Asia Pacific and found Malaysia to be more advanced than some of its neighbors. According to their Malaysian director, Ms. Jasmin Kaur: “Female leaders are often known for possessing important people skills; such as the ability to foster strong teams, build trusted relationships, leverage emotional intelligence, and pick up on non-verbal cues.”³⁶

Nevertheless, said one Malaysian Airlines executive: “Although about 60 percent of the local university undergraduates are comprised of females, women make up (only) 46 percent of the working population. The number of women in senior management, boardrooms, and the Cabinet is slowly but surely increasing. However, this success is still behind the norm for Western nations.”

He offered in-the-trenches advice to incoming businesswomen: “Conduct business dealings professionally and at arms' length. Behavior, dress, and mannerisms must be conservative, modest, and ladylike.”