Doing Business in Malaysia

Malaysia is a diverse, welcoming society that is accepting and friendly towards foreigners, especially in business matters. If you plan on doing business in Malaysia, make sure you understand the cultural complexities associated with this ethnically diverse country.

Although the Malaysian business world has largely succeeded in establishing a unified ethos, you should be aware that you might deal with people from a broad range of backgrounds – Malay, Chinese, and Indian being the most common. You may need to conduct yourself according to who you are doing business with.

Fast facts

Business language

Officially, the language of business is Malay, but English is widely spoken.

Business hours in Malaysia

Business hours in Malaysia generally vary by region and type of organisation. Most offices operate from 8am to 5pm, Monday to Friday. Government offices in Kuala Lumpur and Putrajaya follow similar hours, but in states like Kedah, Kelantan, and Terengganu, government offices operate from Sunday to Thursday, closing on Fridays and Saturdays.

Business dress in Malaysia

The dress code for business in Malaysia is typically Western, with smart, formal clothes. Men generally wear long-sleeved shirts and ties (jackets should be worn to meetings). 

For women, modest attire that covers the shoulders and knees is expected. In certain sectors, especially those influenced by Islamic practices, women may also wear traditional attire like the baju kurung.

Greeting

The standard greeting between men is a handshake. When greeting a woman, sometimes a slight nod of the head or a handshake is sufficient. It’s best to wait for the woman to initiate the greeting.

Gifts

Sometimes gifts are exchanged when meeting someone for the first time. In certain cases, it may be better to receive a gift first and then reciprocate rather than initiate the gift-giving process. Always accept gifts with both hands and do not open them in the presence of the person who gave them. When reciprocating with a gift, make sure that it’s wrapped and of about equal value to the gift you received.

Gender equality in Malaysia

Women are ostensibly viewed as equals in the Malaysian workplace and can often rise to senior positions. However, challenges remain in traditionally male-dominated sectors. Issues such as gender stereotypes and cultural expectations can influence career progression, but there is a growing recognition of women’s contributions in industries like education and healthcare.

Business culture in Malaysia

The defining characteristic of business culture in Malaysia is respect and deference to authority. Authority figures are respected not only because of their powerful positions but also because they possess the skills, wisdom, and temperament to foster harmony and cooperation within their organisation.

Hierarchy in Malaysian business culture

While business structures in Malaysia remain hierarchical, teamwork and collaboration are encouraged, with all members of the organisation being valued. The Malaysian style of management is less goal-driven and more holistic than in many Western cultures, with managers taking a personal interest in the well-being of their employees.

Acting from a sense of duty is also important within the Malaysian workplace, and you will be expected to work hard without the promise of added incentives or personal credit. Working within a team and accomplishing communal goals is imbued with great importance. Among younger professionals, there is a shift towards more egalitarian approaches, especially in industries that emphasise innovation and creativity.

Communication styles in Malaysia

Sensitivity and diplomacy are essential to doing business in Malaysia. The golden rule is never to cause anyone to ‘lose face’ in professional company – the wilful, or even careless, humiliation of a colleague or subordinate is considered malicious in the Malaysian business world. Always endeavour to protect the pride and honour of professional associates. 

If there is a strong disagreement to air or a complaint to make, do it privately. Using indirect language, such as ‘That’s an interesting point’, can soften disagreements, while non-verbal cues, like maintaining a calm demeanour, also play a critical role.

Meetings in Malaysia

Business meetings in Malaysia usually convene on time but can be subject to a lot of small talk and personal digressions. Building a relationship is an important function of meetings in Malaysia, so try not to lose patience. This holds true for both in-person and virtual meetings, where small talk about family or local events helps foster rapport before getting down to business.

Business cards in Malaysia

Business cards are typically exchanged when meeting new associates. Give and receive cards with your right hand, supported by your left, and never fold a card or put it away without looking at it first. Be sure to have your personal details printed in both English and an additional language (usually Chinese or Malay) on the reverse side.

Dos and don’ts of doing business in Malaysia

Understanding the specific dos and don’ts can significantly enhance your business relationships in Malaysia. Ensure you are patient, engage in small talk, and always respect hierarchy, especially in regions like Kedah or Kelantan, where cultural sensitivities may be heightened due to stronger Islamic influences.

• Do show respect and deference to authority figures
• Do remain polite and respectful in all situations
• Do relish the opportunity to work within a team toward communal goals
• Do keep an open mind and be willing to learn
• Don’t be impatient or aggressive
• Don’t be self-aggrandising or arrogant