Business and Market Overview on Malaysia

ECONOMY. Malaysia is a middle-income economy and has the third highest GDP per capita (US$4,625) among the Southeast Asian countries after Singapore and Brunei. The country was primarily a producer of raw materials but transformed its economy from the 1970s to the 1990s into a multi-sector economy. Malaysia’s economic growth is export driven mainly from exports of electrical and electronic products.

Malaysia’s economy is relatively stable with healthy foreign exchange reserves and a GDP of US$118.3 billion in 2004. From 2000 to 2004, Malaysia’s real GDP grew by an annual average of 5.7% while inflation remained below 2.0% and unemployment below 4.0%. The Asian economic crisis of 1997 adversely affected Malaysia’s economy during the period. It is unlikely that the country will experience an economic crisis similar to 1997 with current healthy foreign exchange reserves, low inflation and small foreign debt.

The manufacturing sector accounted for 48.5% of Malaysia’s GDP in 2004, services accounted for 42.4% and the agriculture sector accounted for 9.1%. Major industries include electronic & electrical products, textiles, clothing & footwear, chemicals, petroleum, wood and metal products. Major agriculture industries include palm oil, rubber, cocoa, rice, poultry and timber.

DEMOGRAPHY. Malaysia comprises of Peninsular Malaysia and East Malaysia (located on the northern half of the island of Borneo) with a population of 26 million. Malaysia is a multi-ethnic society comprising of the predominant indigenous Malays (50%) followed by the Chinese (24%) and Indians (7%). Other indigenous groups (11%) include the Ibans, Kadazans, Melanaus and Kelabits. Major religion practiced is Islam followed by Buddhism, Taoism, Hinduism and Christianity. Major languages used are Malay (national language), English (commonly used in business), Chinese (mainly Mandarin, Hokkien and Cantonese) and Tamil.

Malaysia’s population is becoming increasingly urban. The country’s urban population increased from 54.7% to 62.8% of Malaysia’s total population from 1995 to 2004. Main reason is increasing employment opportunities in the major urban areas. Major urban areas include the nation’s capital Kuala Lumpur and the surrounding areas (known as the Klang Valley), Penang, Johor Bahru, Ipoh, Kuantan, Kuching and Kota Kinabalu.

Households in the urban areas have an average income that is twice than those in the rural areas. An estimated 5% of Malaysian households live below the poverty level while 50% are low-income households. The proportion of medium income households is 33% while high-income households are 10%.

INFRASTRUCTURE. Malaysia has a well-served international and domestic telecommunication system. Cities and towns are well connected by roads including highways and public transport. Internet broadband services are available in the cities and major towns. Malaysia has an international airport situated near Kuala Lumpur and airports across the country serving mainly domestic travel.

INTERNATIONAL TRADE. Malaysia’s major trading partners include the United States, Japan, China, Singapore, Thailand, Taiwan and South Korea. Major exports from the country include electrical and electronic products, machineries, petroleum and liquefied natural gas (LNG), textiles, clothing & footwear, palm oil, furniture and sawn timber. High technology exports (mainly electrical and electronic products) account for more than 50% of Malaysia’s exports. Major imports include electrical and electronics, machineries and equipments, petroleum products, plastics, iron and steel products, chemicals and foods.

CONSUMER USAGE OF TECHNOLOGY. Nearly 75% of all homes have fixed line telephones and there are 15 million mobile phone subscribers for a population of nearly 26 million in 2004. Penetration of personal computers in homes was nearly 30% during the period with 3.5 million internet subscribers and 10 million internet users. More than 90% of all Malaysian homes have refrigerators and televisions. Nearly all middle and high-income homes have cars and most have more than one. The estimated penetration of cars in homes is between 75% and 80%. Thus, many low-income homes have cars but tend to be lower-end models or cheaper second hand cars. Furthermore, nearly all lower income homes have motorcycles for their travelling needs.

RETAIL MARKET. Retail sales in Malaysia reached an estimated US$14 billion in 2004 and forecast to grow further to US$20 billion by 2010. The Klang Valley (Kuala Lumpur and the surrounding areas) contributes nearly 30% of the country’s total retail trade. The traditional “mom and pop” establishments dominate Malaysia’s retail industry while shopping at the modern retail establishments such as hypermarkets, supermarkets, departments, mini-markets and convenience stores is gaining popularity. These modern establishments account for nearly 25% of the total retail sales. Shopping at the traditional open-air markets remains popular among Malaysia’s low, medium and even high-income consumers because of their festivity atmosphere.

FOOD CULTURE. Malaysia has three major ethnic food cultures i.e. Malay, Chinese and Indian foods. Rice is the staple food followed by various types of noodles and Indian bread. Malay dishes tend to be hot and spicy, Indian foods are usually curry dishes while Chinese foods are salty. However, the various ethnic communities have adapted foods from other communities. Western baked bread and bakeries and fast foods are popular and affordable even among many in the lower income group.

Make Money Online – Top 10 Internet Business Ideas

Thousands of people want to start their own home business and want to make money at home. There are many work from home business opportunities. Internet business or online business is one of them. Internet business is more advantages over the offline work from home business.

Online business is less expensive compare to offline business. To make money with internet business all you need is good internet business idea and some essential tools like domain and hosing and autoresponder etc.

As so many people are searching work from home business opportunities and want to start their own internet business. There are so many “So called” business opportunities (beware). Here is brief idea about Top 10 internet business that you can run from home and make money with proper knowledge.

1) Google AdWords : By Writing small advertisement and promoting affiliate program with Google AdWords you can make money.

2) Google AdSense : This is simplest way to make money all you need is to build good content site or blog. Just add your AdSense code in it , drive traffic and start making money with Google AdSense.

3) Affiliate Marketing : Easy to start! Affiliate marketing is easy and most powerful internet business many super affiliate make more than $ 50000 a month!

4)Ezine Publishing : Plug in your prewritten contents in your auto responder, add some affiliate links and make money. Yes running your own newsletter is the business that you can fully automate.

5)ebooks: There is huge demand for specialized information. The information can be delivered or sell through in eBook form i.e. electronic book. With a single eBook you can generate income in many ways.

6)Resell Rights: Creating your own product is time consuming and expensive resell rights is best alternative to having your own product.

7)Private Label Rights: With private right label you can create special reports, ebooks or use the content for website or blog. With little or no modification You can use PLR as your own. (As per seller Guideline)

8) Article Writing: If you are good at writing then you can make money by writing articles in many ways. Primary purpose of article writing is to established yourself as an expert .You can drive traffic to your website and also get important backlinks to your website.

9)eBay : World’s biggest auction site! You can sell or buy here almost anything. There are Powerseller on eBay, makes more than $10000 a month.

10)Blog : Blog is just like a diary or magazine. You can share your views and also can make money with it. Blog can be about anything , It can be personal or business blog.

These are top 10 internet business ideas. You may find variant of the businesses listed above. But don’t waste your money on any “quick money” schemes or on some “so called” secret money making formulas. Select the business that suits to your style. Learn about it more as much as you can. Grow it gradually.

Business is not a fun. So, if you are serious about making money you must select the business that you understand or willing to spend time to understand the business you want to start. Don’t expect results too fast or don’t switch business to business, instead of that, select the proper business model learn about it i.e. how it works and develop it for long term benefits.

How to Start a Small Business – Small Business Tips

Wondering how to start a small business? It can be quite challenging, and today’s economy isn’t necessarily conducive to running a small business, but with the right kind of attitude and business model it can be done. There are lots of different small business ideas floating around, and many of them rely on one of two things – physical businesses require a real world customer base, usually confined to local areas for a specific need, while online businesses need to attract customers in the first place, but are not restricted in the areas they can service. In this article, we’ll take a look at the key differences between these two types of business.

A physical small business is generally a very particular thing, but can be a good example of how to start a small business. They tend to be geared towards providing local citizens with some product or service that either is not provided by larger corporate businesses, or they do it with a higher level of service and product quality. Many small local businesses are supported by the city and its citizens, and therefore are more able to compete with large corporate businesses. However, they are somewhat limited in the areas they can provide service to, and therefore rely on a loyal customer base in order to keep sustained business going.

An online small business differs from this in that it often has no physical office – there might be a customer support center, shipping area, or other peripheral to the business itself, but many internet businesses exist entirely online. They can show you how to start a small business in the online community. This can greatly reduce their overall costs, as they might pay a small hosting fee rather than hundreds or thousands of dollars in monthly rent. They do not have the local support that a physical small business has, although they can more easily attract customers through search engine optimization and other online marketing techniques.

The most important thing to remember when figuring out how to start a small business is where your strengths and weaknesses lie. A physical business needs to quickly and effectively build a base of loyal customers, and then ensure that those customers keep coming back for more due to the high quality of the goods and services provided. An internet business needs to find ways to stand out in the growing number of online businesses, and to attract initial customers through the various methods of web promotion. Using each type of businesses’ strengths to its advantage is key in success either online or off.