Doing Business In Malaysia & UK

Length: 693 words

Malaysia and UK cultural differences towards international business can be seen through the country Economic Strength, Supportive Government Policies, An Educated Workforce, Developed Infrastructure, Vibrant Business Environment and Quality of Life. According to Geert Holfstede Cultural Dimension Research, Malaysia scores 104 the highers Power Distance Index. There is a high correlation between the Muslim religion and the Hofstede Dimensions of Power Distance (PDI) and Uncertainty Avoidance (UAI) scores. UK scores 89 for the higher INV. This is much related to the reserved and private people which means, privacy is extremely important.

The Cost Of Doing Business World Bank said Malaysia’s economy will shrink 2.3 per cent this year but rebound to a 4.1 per cent expansion in 2010. Malaysia was on track to grow between 5.6 to 5.9 per cent in 2011 and 2012. The report also said the country faced the challenge of shifting from an upper-middle economy to a high-income economy. Due to the above statement, the costs of doing business in Malaysia will increase. United Kingdom’s economy is stable and the GDP grow from 10.1 per cent to 10.9 per cent in year 2009. There is a phenomenon that unemployment is rising especially in construction and property sectors. People do not have much salary to pay their needs and cash transaction is the best option to keep away from tax man. Workforce from othes country are well come. The cost of doing business in UK will decrease.


The Future Economic Development Malaysia must introduce massive reforms achieve goal of becoming a developed nation by 2020. Specialise the economy further, improve the skills of its workforce, make growth more inclusive and strengthen public finances. If the government do not take further action by now, the investor will find another country to put their money, difficulties to generate enough jobs for the society , also difficult to avert financial and investment risk in Malaysia.

United Kingdom need to generate more temporary work and squeezed the permanent job placement. The government should continue focus on keeping costs low and reacting to the economic conditions too keep business afloat.

Business Practice Malaysia Facial expressions and body language is commonly used to employees behave harmoniously and subjugate their personal desires to the needs of the group.

United Kingdom The British are a bit more contained in their body language and hand gestures while speaking.

If there is any approach to change, it is important to have a track record or history noting the benefits it they are to be accepted and implemented. It’s advisable to reinforce the importance of the agreed-upon deadlines and how that may affect the rest of the organization.

Approach to change is developing all the time. The country is seen to have medium tolerance for change and risk.

Everybody should arrive at meetings prepared and ready to discuss the matter at hand. Most people in the company have an important role and are valued for their input.


Those where the management team has been educated abroad, the line of demarcation between manager and subordinated may not be as extreme, but the still believe that rank has its privilege.

The manager may still make the ultimate decision, after consultation with the staff. Teamwork will becoming increasingly important in most organizations.

Decisions are reached by the person with the most authority, however, they will generally reach a consensus first, which slows down the decision making process. Negotiations may continue after a contracts has been signed since contracts are not viewed as cast in stone. If you are signing a contract with ethnic Chinese, the signing date may be determined by an astrologer or a geomancer (feng shui practioner).

Communication will direct and reserved. Decision making is slow and deliberate. It is a good idea to send a letter summarizing what was decided and what the next step are.

Conclusions Malaysia and UK showed good and excellent in Economic Strength, Supportive Government Policies, An Educated Workforce, Developed Infrastructure, Vibrant Business Environment and Quality of Life. The costs of doing business in United Kingdom are much more expensive compare to Malaysia. Malaysia is heavily dependent on FDIs and exports to support growth. Well coming the investor to Malaysia will generate the income to Malaysia development.

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