Importing to Malaysia
One way to enter into the Malaysian market is to sell German products directly to local customers or distributors in Malaysia. This strategy is ideal for companies testing a foreign market with minimal risk and investment, however, it requires knowledge of the relevant Malaysian import regulations as well as access to the necessary logistics. Alternatively, German companies can use intermediaries like export management companies or trade agents in Germany to handle the Malaysian market for them. This means lower involvement and risk for the company. However, it companies might have less control over the branding and customer relationships.
MGCC is happy to help with your search of business partners and distributors in Malaysia and offers various Customs Support services.
Installing Subsidiaries or Local Presences
Another option is the establishment of a representative office in Malaysia to conduct market research and build a network first before making a full-scale investment, or the establishment of a branch office as a direct extension of the parent company for the offering of goods and services in Malaysia. Alternatively, you can also hire a Key Account Manager in Malysia. One step further would be the installment of a locally incorporated subsidiary company (this will oftentimes be a limited company “Sdn. Bhd.”) which allows full control over operations and branding, is subject to tax incentives and offers easier access to local financing in Malaysia.
MGCC is happy to help find the right choice for you and offers a variety of services in that regard.
Joint Ventures, Strategic Alliances & Partnerships
Collaborating with local businesses on specific projects may be the right market entry strategy for your business, if you want to keep equity involvement at a minimum. A Malaysian partner can help you navigate regulatory requirements, local culture and market insights. This strategy might be suitable especially for sectors like technology, energy and manufacturing. Joint Ventures often give your company a better access to government projects and local networks and might be the right option in industries with restriction on foreign ownership, e.g. construction and telecommunications.
If you are on the look-out for business partners for joint ventures or other strategic partnerships, MGCC is your best address to start. MGCC offers a variety of services, ranging from tailored lists of possible partners for your business, the arrangement of B2B meetings, sector-specific delegations and conferences and many more opportunities to find the right business partner for you.
Licensing & Franchising
Licensing involves granting a Malaysian company the right to produce or sell products under the German company’s brand, while Franchising allows local entrepreneurs to operate under an established German brand name and business model. This market entry strategy can be suitable for sectors like Food & Beverage, retail and education.
Mergers & Acquisitions
Acquiring an existing Malaysian company can provide immediate market access, workforce and local expertise and vastly reduces the time necessary to establish a brand, however, it requires precise research of the company and target market, a significant financial investment and a thorough financial and legal due diligence.
MGCC is happy to help you find the right partner for you to conduct due diligence for your project in order to mitigate any financial and legal risks.
Participating in Trade Fairs, Exhibitions or Delegations (inbound & outbound)
Attending or exhibiting at Malaysian trade fairs to showcase products and connect with potential partners or distributors can be an important module of your market entry strategy. This holds true especially for industry-specific exhibitions such as automation, manufacturing or laboratory technology.
The same applies to the participation of your company in a delegations organized by MGCC with its partners in Malaysia, Germany or third countries, in which companies from specific sectors come together and have the opportunity to identify and develop joint business potentials.