Malaysia

Malaysia

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Picture: No.3 for per capita income in ASEAN
 
 
Picture: No.3 for per capita income in ASEAN
 
Picture: Industrial co-operation in line with the Belt and Road Initiative
 
 
Picture: Industrial co-operation in line with the Belt and Road Initiative
 
Picture: Strategic partnerships along the New Silk Road
 
 
Picture: Strategic partnerships along the New Silk Road
 
Picture: Goods and Services Tax of 6%
 
 
Picture: Goods and Services Tax of 6%
 
Picture: Retail and wholesale: Key development areas
 
 
Picture: Retail and wholesale: Key development areas
 
Picture: Online sales driving retail growth
 
 
Picture: Online sales driving retail growth
 
Picture: Ease of doing business: 2nd within the ASEAN bloc
 
 
Picture: Ease of doing business: 2nd within the ASEAN bloc
 
Picture: An ethnically diverse consumer market
 
 
Picture: An ethnically diverse consumer market
 
Picture: One of the world’s largest exporters of halal goods
 
 
Picture: One of the world’s largest exporters of halal goods
 
Picture: Establishing global halal standards
 
 
Picture: Establishing global halal standards
 

 

Malaysia: Market Profile

Picture: Malaysia factsheet
Picture: Malaysia factsheet

1. Overview

Malaysia is one of the most open markets in the world. Its economy is well-diversified and has successfully weathered the impact of external shocks. This has been bolstered by strong macroeconomic management, with low and stable inflation and on-track fiscal consolidation.

Source: World Bank, Fitch Solutions
Date last reviewed: August 16, 2018

2. Major Economic/Political Events and Upcoming Elections

April 2015
Lower house of parliament passed controversial anti-terrorism bill that allows suspects to be held indefinitely without trial, and toughens penalties for sedition.

December 2016
Sultan Muhammad V was sworn in as the new king, succeeding Sultan Abdul Halim Mu'adzam Shah.

May 2018
An alliance of opposition parties led by Mahathir Mohamad won the general election, Mahathir becomes prime minister.

Source: BBC Country Profile - Timeline, Fitch Solutions Political Risk Analysis

3. Major Economic Indicators

Graph: Malaysia real GDP and inflation
Graph: Malaysia real GDP and inflation
Graph: Malaysia GDP by sector (2017)
Graph: Malaysia GDP by sector (2017)
Graph: Malaysia unemployment rate
Graph: Malaysia unemployment rate
Graph: Malaysia current account balance
Graph: Malaysia current account balance

e = estimate, f = forecast
Source: IMF, World Bank

4. External Trade

4.1 Merchandise Trade

Graph: Malaysia merchandise trade
Graph: Malaysia merchandise trade

e = estimate
Source: WTO
Date last reviewed: August 6, 2018

Graph: Malaysia major export commodities (2017)
Graph: Malaysia major export commodities (2017)
Graph: Malaysia major export markets (2017)
Graph: Malaysia major export markets (2017)
Graph: Malaysia major import commodities (2017)
Graph: Malaysia major import commodities (2017)
Graph: Malaysia major import markets (2017)
Graph: Malaysia major import markets (2017)

Source: Trade Map, Fitch Solutions
Date last reviewed: August 17 2018

4.2 Trade in Services

Graph: Malaysia trade in services
Graph: Malaysia trade in services

e = estimate
Source: WTO
Date last reviewed: August 6, 2018

5. Trade Policies

  • Malaysia has been a member of WTO since January 1, 1995.
  • Malaysia is a member of the Association of South East Asian Nations (ASEAN), alongisde Indonesia, the Philippines, Singapore and Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam.

  • Malaysia's average applied most favoured nation (MFN) tariff increased from 5.6% in 2013 to 7.5% in 2017.

  • Almost all rates (99% of tariff lines) are ad valorem, while duty-free lines accounted for 56.2% of all tariff lines. The number of different tariff rates increased from 19 in 2013 to 25 in 2017.

  • Ad valorem tariff rates range from zero to 60% for industrial products and zero to 90% for agricultural products. Among different product groups, average tariffs are highest for transport equipment (the simple average tariff rate was 21.5% in 2017).

  • Import duty exemptions are applied to local and foreign manufacturing companies on raw materials and components used in the manufacture of goods for export, and for machinery and equipment not available in Malaysia but used directly in the manufacturing process.

  • Export duties range from 5%-30% and apply to 217 tariff lines (mainly crude oil, palm oil, and wood).

Source: WTO - Trade Policy Review, Fitch Solutions

6. Trade Agreement

6.1 Trade Updates

  • In April 2018, Malaysia and members of the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) stated they would oppose any renegotiations to accommodate the United States should the country decide to participate in the trade deal.
  • In April 2018, the Nigeria-Malaysia Business Council in collaboration with the Nigeria Export Promotion Council (NEPC) and the Malaysia Department of Trade set up a special trade corridor that aims to enable Malaysian businesses and Nigerian farmers and exporters to collaborate with a view to adding quality to goods exported from Nigeria to Malaysia. The special focus of this trade corridor will be on crops such as cocoa, palm produce, rubber and solid minerals that are mostly exported in their raw form to Malaysia and other markets.

6.2 Multinational Trade Agreements

Active

  1. Malaysia is a member of WTO (Effective date: January 1, 1995).
  2. ASEAN Free Trade Area (AFTA) (Effective date: January 1993): AFTA reduces tariff and non-tariff barriers between member states. The 10 members of the ASEAN Free Trade Area are: Brunei, Indonesia, Malaysia, Philippines, Singapore, Vietnam, Laos, Myanmar, Indonesia and Cambodia.

  3. ASEAN-China Free Trade Agreement (FTA) and Economic Integration Agreement (effective date: January 2005 for goods and July 2007 for services): The FTA is a comprehensive economic cooperation between ASEAN member states and China. The goal of the agreement is not just eliminating tariffs, but it also seeks to address behind-the-border barriers that impede the flow of goods and services.

  4. ASEAN-Republic of Korea Comprehensive Economic Cooperation Agreement (effective date: July 2007): The Agreement allows 90% of the products being traded between ASEAN and South Korea to enjoy duty-free treatment.

  5. ASEAN-India Comprehensive Economic Cooperation Agreement (Effective date: January 2010): The Agreement involves the liberalisation of tariffs on over 90% of products traded between the two regions, including the so-called ‘special products’, such as palm oil (crude and refined), coffee, black tea and pepper.

  6. ASEAN-Australia-New Zealand Free Trade Agreement (Effective date: January 2010): The Agreement aims to eliminate tariffs on 99% of exports to key ASEAN markets by 2020.

  7. Malaysia-Chile Free Trade Agreement (Effective date: 18 April 2012): The Agreement aims to progressively reduce or eliminate tariffs on their respective industrial and agricultural products. As part of the agreement, Malaysia undertook to fully eliminate import duties on 9,311 tariff lines upon date of entry into force. Chile undertook to fully eliminate import duties for 6,960 tariff lines from the date of entry into force for products that include video recording apparatus and data processing machines (electrical and electronic items), vulcanised rubber thread and cord, surgical gloves, vegetable fats, cocoa butter, fats and oil and parts of aircraft.

  8. Preferential Tariff Arrangement-Group of Eight Developing Countries (Effective date: August 2011): The Agreement involves countries that are members of the D-8 Organisation for Economic Cooperation, namely Indonesia, Malaysia, Bangladesh, Pakistan, Iran, Egypt, Turkey and Nigeria. Objectives of the member countries are to reach a preferential trade agreement to enhance intra-trade and to reach an agreement on administrative assistance in customs matters.

  9. Malaysia-India Comprehensive Economic Cooperation Agreement (Effective date: July 2011): The Agreement is a comprehensive agreement that covers trade in goods, trade in services, investments and movement of natural persons. The items on which India has obtained market access from Malaysia include basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments, which are all items of considerable export interest to India. At the same time, adequate protection has been provided by the Indian side for sensitive sectors such as agriculture, fisheries, textiles, chemicals, autos.

  10. Malaysia-Australia Free Trade Agreement (Effective date: January 2013): The Agreement is a comprehensive agreement comprising 21 chapters encompassing trade in goods, services and investment as well as economic cooperation. It also covers intellectual property rights, e-commerce and competition policy.

  11. Malaysia-New Zealand Free Trade Agreement (Effective date: August 2010): The Agreement is a comprehensive agreement which covers liberalisation of trade in goods, trade in services, investment and economic cooperation. As part of the agreement, Malaysia and New Zealand will progressively reduce or eliminate tariffs on respective industrial and agricultural products. Malaysian exporters will enjoy free duty on cocoa products, carpet, tyres, margarine, steel wire, iron products and wood furniture. Imports from New Zealand into Malaysia will enjoy zero or lower duties for paper, plastics, automotive components, and veneer and chemical products.

  12. Malaysia-Turkey Free Trade Agreement (Effective date: August 2015): The Agreement eliminates and binds duties on 70% of the tariff lines. Malaysia and Turkey will progressively reduce or eliminate tariffs on a substantial number of products traded between both countries with expected duty free imports by 2022.
  13. Japan-Malaysia Economic Partnership Agreement (Effective date: July 2006): The Agreement covers trade in industrial and agricultural goods, trade in services, investment, rules of origin, customs procedures, standards and conformance, intellectual property, competition policy, enhancement of business environment, safeguard measures and dispute settlement. The agreement will result in tariff elimination of about 97% of trade in goods between the two countries on a trade volume basis, which will considerably promote trade in agricultural, forestry and fishery products as well as industrial products between the two countries.

  14. Malaysia-Pakistan Closer Economic Partnership Agreement (Effective date: January 2008): The Agreement encompasses liberalisation in trade in goods and services, investment, as well as bilateral technical cooperation and capacity building in areas such as sanitary and phytosanitary measures, intellectual property protection, construction, tourism, healthcare and telecommunications.

Signed But Not Yet in Effect

  1. ASEAN-Hong Kong FTA: ASEAN member states and Hong Kong have signed a free trade agreement, but it is yet to come into effect. The deal aims to cover all aspects of trade in goods, such as tariffs; rules of origin; non-tariff measures; customs procedures and trade facilitation; trade remedies; technical barriers to trade; and sanitary and phytosanitary measures.

  2. Malaysia-United States Free Trade Agreement: Malaysia and the United States are negotiating a free trade agreement. Areas of particular interest to US exporters include a reduction of Malaysian trade barriers to automobiles and certain agricultural products, provisions for the enforcement of intellectual property rights, and broader access to Malaysia’s service sectors such as financial services, telecommunications, and professional services.

Under Negotiation

  1. Malaysia-United States Free Trade Agreement: Malaysia and the United States are negotiating a free trade agreement. Areas of particular interest to US exporters include a reduction of Malaysian trade barriers to automobiles and certain agricultural products, provisions for the enforcement of intellectual property rights, and broader access to Malaysia’s service sectors such as financial services, telecommunications, and professional services.
  2. Malaysia-EU Free Trade Agreement: Malaysia and the EU are negotiating a free trade agreement. The EU is Malaysia’s biggest palm oil market, importing MYR10 billion worth of palm products in 2016. Bilateral trade between the EU and Malaysia is dominated by industrial products. The EU mainly imports machinery and appliances and mainly exports electrical equipment and machinery (both ways industrial products account for more than 90% of trade). Other sectors of relevance in terms of EU imports from Malaysia are plastics and rubber and animal and vegetable fats and oils and in terms of exports, mechanical products.

  3. Malaysia-EFTA FTA: Malaysia and the European Free Trade Association (consisting of Iceland, Liechtenstein, Norway and Switzerland) are negotiating a free trade agreement. Exports from EFTA States consist mainly of precious stones, machinery and pharmaceutical products. Imports from Malaysia consist mainly of cellular phones and electrical equipment.

  4. Regional Comprehensive Economic Partnership (RCEP): RCEP is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing free trade agreements (Australia, China, India, Japan, South Korea and New Zealand). RCEP will cover trade in goods, trade in services, investment, economic and technical co-operation, intellectual property, competition, dispute settlement and other issues.

Note: Only major FTAs cited
Source: WTO Regional Trade Agreements database, Fitch Solutions
Date last reviewed: August 17, 2018

7. Investment Policy

7.1 Foreign Direct Investment

Graph: Malaysia FDI stock
Graph: Malaysia FDI stock
Graph: Malaysia FDI flow
Graph: Malaysia FDI flow

Source: UNCTAD
Date last reviewed: August 6, 2018

7.2 Foreign Direct Investment Policy

  1. Foreign Investment Committee (FIC) primary role is to review investments related to distributive trade (eg, retail distributors) as a means of ensuring 30% of the equity in this economic segment is held by the bumiputera (ethnic Malays and other indigenous ethnicities in Malaysia).
  2. Foreign investments in services, whether in sectors with no foreign equity limits or controlled sub-sectors, remain subject to review and approval by ministries and agencies with jurisdiction over the relevant sectors. A key function of this review and approval process is to determine whether proposed investments meet the government's qualifications for the various incentives in place to promote economic development goals.

  3. The Malaysian government allows 100% foreign ownership across the following sectors: healthcare, retail, education as well as professional, environmental, and courier services. Export-dependent Malaysia is keen to attract FDI and promote high-value manufacturing. Investment incentives including corporate income tax exemption and tax allowance are provided in such industries as advanced electronics, medical devices, bio-technologies and green technologies.

  4. Restrictions on foreign investment remain in fisheries, energy, telecommunications, finance, and transport services, and foreign participation in public-private-partnership projects is limited to a ceiling of 25% of share capital.

  5. In the oil and gas sector, foreign participation tends to take the form of production sharing contracts (PSCs). Petroleum Nasional Berhad (PETRONAS) regularly requires its PSC partners to work with Malaysian firms for many tenders. Non-Malaysian firms are permitted to participate in oil services in partnership with local firms and are restricted to a 49% equity stake if the foreign party is the principal shareholder. PETRONAS sets the terms of upstream projects with foreign participation on a case-by-case basis.

  6. There is no foreign equity restriction in the capital market except for a 70% cap on investment banks.

  7. In the telecommunications industry, there is a 70% cap on foreign capital for investments in network facilities providers and network service providers. Non-Malaysians are limited to 70% equity in shipping and logistics companies. These regulatory restrictions on FDI are at odds with the government's otherwise welcoming attitude to foreign investors.

  8. The central bank, Bank Negara Malaysia (BNM), allows a greater foreign ownership stake if the investment is determined to facilitate the consolidation of the financial industry. BNM currently allows foreign banks to open up to four new branches throughout Malaysia, subject to restrictions, which include designating where the branches can be set up (ie in market centres, semi-urban areas and non-urban areas). The policies do not allow foreign banks to set up new branches within 1.5 km of an existing local bank. BNM also has conditioned foreign banks' ability to offer certain services on commitments to undertake certain back office activities in Malaysia.

Sources: WTO - Trade Policy Review, The International Trade Administration (ITA), US Department of Commerce, Fitch Solutions
Date last reviewed: August 17, 2018

7.3 Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive ProgrammeMain Incentives Available
Peninsular and East Malaysia, including: Iskandar Malaysia in Southern Johor; Northern Corridor Economic Region; East Coast Economic Region; Sabah Development Corridor; and Sarawak Corridor of Renewable EnergyThe Iskandar Malaysia zone in Johor is focussed on attracting creative industries, educational sector groups, financial advisers and consultancies. In addition, healthcare services, tourism and logistics services are also offered inducements. These include 10-year exemptions from corporate tax, a royalty withholding tax exemption, freedom to source capital internationally, unrestricted foreign worker quotas and flexible foreign exchange rules. The Iskandar zone is ideally located for foreign investors looking to expand into other ASEAN countries, including Brunei, Myanmar, Indonesia, Laos, Singapore, Thailand and Vietnam.
Multimedia Super Corridor (MSC)
Special zone between Kuala Lumpur City and the Kuala Lumpur International Airport, which is focused on promoting Malaysia's IT and multimedia sectors. Companies with MSC status receive world-class infrastructure, unrestricted quotas of foreign IT workers, unrestricted ownership of MSC companies, free capital and financial mobility, a 100% income tax exemption for profits from MSC activities, international-standard intellectual property protection, freedom from internet censorship, one stop processing of regulatory approvals and protection under a series of well-developed cyber laws.

Source: US Department of Commerce, Fitch Solutions
Date last reviewed: August 17, 2018

8. Taxation – 2018

  • Goods and services tax: 6%
  • Corporate income tax: 24%

Source: PwC Tax Summaries 2018
Date last reviewed: August 17, 2018

8.1 Important Updates to Taxation Information

  • The Malaysian tax authorities recently issued a practice note to state their position that payments for use of applications (Apps) to create advertising campaigns constitute royalty under the domestic law.
  • In March 2018, Malaysia's tax agency announced that businesses can newly challenge late-payment penalties in respect of goods and services tax (GST) via the tax agency's online portal.

  • The GST is reduced from 6% to 0% with effect from June 1, 2018.

8.2 Business Taxes

Type of TaxTax Rate and Base
Corporate Income TaxThe main rate of corporate tax is 24%. The rates for resident companies incorporated in Malaysia that have paid-up capital with respect to ordinary shares of MYR2.5 million or less at the beginning of the tax-basis period and that satisfy other specified conditions (small and medium enterprises [SMEs]) are 19% on the first MYR500,000 of chargeable income and 24% on the remaining chargeable income. The above rates do not apply to companies carrying on upstream oil and gas activities under a production-sharing contract, which are taxed at a rate of 38%.
Branch Tax RateTax rates on branch profits of a company are the same as CIT rates. No tax is withheld on transfer of profits to a foreign head office.
Real Property Gains Tax30% for a holding period of up to three years from the date of acquisition on gains derived from disposals of real property or shares in real property companies.
Social security contributions for labour12% of employer contribution if the employee's monthly wages are above MYR5,000 per month or 13% if the employee's monthly wages are below MYR5,000 per month. The employees' contribution rate is fixed at 11% of monthly wages, regardless of income level, if the employee is up to the age of 60.

9. Foreign Worker Requirements

9.1 Localisation Requirements

The employment of foreign nationals is not encouraged in Malaysia with the 11th Malaysia Plan (2016-2020) aiming to limit the ratio of foreign labour at not more than 15% of total labour. Registered local job seekers are given priority over foreigners in filling job vacancies in the country. Companies are granted a preapproved quota for the number of workers to be imported to Malaysia under the outsourcing licence. The price could range from MYR800 to MYR1,800 per year, on top of the levy, insurance, medical examination and cost of a banker's guarantee which significantly add to high overheads, particularly for small businesses. Employers seeking to employ foreign workers must notify the Department of Labour of vacancies by registering at Jobs Malaysia to ensure registered local job seekers are given priority. Foreign workers are employed for a period of 10 years in five permissible sectors (manufacturing, agriculture, plantation, construction and services) and, depending on the categorisation of their employment pass, they may or may not marry or bring their family members, dependents and foreign aides into Malaysia.

9.2 Obtaining Foreign Worker Permits for Skilled Workers

The entry of foreign nationals in Malaysia is governed by the Immigration Act 1963 which also determines the types of employment passes that can be applied for by those aspiring to work in that country. Three types of permits are generally issued by Malaysian authorities which depend on duration of contract of employment, position to be filled and minimum/maximum salary. They include: the employment pass, the temporary employment pass and the professional visit pass permits. Foreign workers who wish to be employed by a company within Malaysia will have to have their application reviewed by the relevant government agencies, such as the Ministry of Manpower. The application for foreign workers by employers is however made easier in that it can be done at a One-Stop Approval Centre at the Foreign Workers Management Division of the Ministry of Home Affairs where various government agencies (departments and ministries) process the application for recruitment of foreign workers under one roof.

9.3 Visa/Travel Restrictions

Following the diplomatic tensions resulting from the death of Kim Jong-nam, visa free access for citizens of North Korea was scrapped on March 6, 2017. Nationals of other countries are allowed to enter Malaysia for maximum stay not exceeding a specified period of days, weeks or months (depending on country of origin). Generally, no visa is required for the Commonwealth block member countries.

Source: Government websites, Fitch Solutions
Date last reviewed: August 17, 2018

10. Risks

10.1 Sovereign Credit Ratings


Rating (Outlook)Rating Date
Moody's
A3 (stable)07/12/2017
Standard & Poor'sA (stable)27/07/2011
Fitch RatingsA- (stable)28/03/2018

Source: Moody's, Standard & Poor's, Fitch Ratings

10.2 Competitiveness and Efficiency Indicators


World Ranking
201620172018
Ease of Doing Business Index
22/189
23/190
24/190
Ease of Paying Taxes Index
115/189
104/19073/190
Logistics Performance Index
32/160
N/A41/160
Corruption Perception Index
55/176
62/180N/A
IMD World Competitiveness19/6124/6322/63

Source: World Bank, IMD, Transparency International

10.3 BMI Risk Indices


World ranking
201620172018
Economic Risk Index Rank22/202
Short-Term Economic Risk Score
74.674.273.1
Long-Term Economic Risk Score71.273.873
Political Risk Index Rank87/202
Short-Term Political Risk Score76.87575.672.5
Long-Term Political Risk Score66.769.565.2
Operational Risk Index Rank31/201
Operational Risk Score6867.2
67.8

Source: Fitch Solutions
Date last reviewed: August 17, 2018

10.4 Fitch Solutions Risk Summary

ECONOMIC RISK
Fiscal concerns remain the biggest risk factor to Malaysia's generally positive economic outlook in the next decade. It remains to be seen if the country will be able to attract sufficient private sector interest to bear most of the development costs of the Economic Transformation Programme.

OPERATIONAL RISK
Malaysia boasts one of the most efficient, developed and well-connected logistics networks in the world, which is a result of the country's integral role in regional and global supply chains. The large, young, healthy and urbanised nature of the Malaysian labour force means that there is a wide pool of available workers from which businesses in the country can recruit. A key threat stemming from the activities of Islamist militant groups in neighbouring countries, have the potential to spill across the border. Some attacks in eastern Malaysia have already put foreigners and businesses in danger.

Graph: Malaysia short term political risk index
Graph: Malaysia short term political risk index
Graph: Malaysia long term political risk index
Graph: Malaysia long term political risk index
Graph: Malaysia short term economic risk index
Graph: Malaysia short term economic risk index
Graph: Malaysia long term economic risk index
Graph: Malaysia long term economic risk index

10.5 Fitch Solutions Operational Risk Index


Operational RiskLabour Market RiskTrade and Investment RiskLogistics RiskCrime and Security Risk
Malaysia Score67.8
61.6
73.5
75.4
60.5
East and Southeast Asia Average55.3
56.5
55.7
54.4
54.7
East and Southeast Asia Position (out of 18)5
7
4
4
7
Asia Average48.9
50.6
47.7
47.1
50.1
Asia Position (out of 35)5
7
4
4
10
Global Average49.7
49.8
50.0
49.3
49.9
Global Position (out of 201)31
29
19
20
63

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Malaysia vs global and regional averages
Graph: Malaysia vs global and regional averages
Country
Operational Risk Index
Labour Market Risk Index
Trade and Investment Risk Index
Logistics Risk Index
Crime and Secruity Risk Index
Singapore83.077.889.974.789.7
Hong Kong
81.371.288.575.989.5
Taiwan74.466.474.377.979.2
South Korea70.663.567.578.173.1
Malaysia67.861.673.575.460.5
Macau62.464.266.950.568.0
Brunei Darussalam60.962.857.253.070.6
Thailand58.856.765.268.245.2
China56.653.952.265.854.4
Vietnam53.452.655.554.551.3
Indonesia52.851.553.957.648.4
Mongolia51.657.852.441.954.1
Philippines43.651.347.344.631.3
Cambodia42.546.7
4637.939.5
Laos38.744.23836.036.7
North Korea32.649.620.329.630.8
Myanmar32.045.528.229.524.9
Timor-Leste31.940.526.628.032.5
Regional Averages55.356.5
55.754.454.4
Emerging Markets Averages46.848
45.545.846.0
Global Markets Averages49.749.8
5049.349.9

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: August 17, 2018

11. Hong Kong Connection

11.1 Hong Kong’s Trade with Malaysia

Graph: Major export commodities to Malaysia (2017)
Graph: Major export commodities to Malaysia (2017)
Graph: Major import commodities from Malaysia (2017)
Graph: Major import commodities from Malaysia (2017)
Graph: Merchandise exports to Malaysia
Graph: Merchandise exports to Malaysia
Graph: Merchandise imports from Malaysia
Graph: Merchandise imports from Malaysia

Exchange Rate HKD/US$, average
7.78 (2011)
7.76 (2012)
7.76 (2013)
7.76 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
Source: Hong Kong Census and Statistics Department, Fitch Solutions

Graph: Merchandise imports, Poland
 

2017
Growth rate (%)
Number of Malaysia residents visiting Hong Kong516,701
-3.5
Number of Malaysians residing in Hong Kong15,511
1.6

Source: Hong Kong Tourism Department, United Nations Department of Economic and Social Affairs - Population Division
Date last reviewed: August 17, 2018


2017
Growth rate (%)
Number of Asia Pacific residents visiting Hong Kong54,482,538
3.5
Number of East Asians and South Asians residing in Hong Kong2,784,870
1.6

Source: United Nations Department of Economic and Social Affairs - Population Division, Fitch Solutions
Date last reviewed: August 17, 2018

11.2 Commercial Presence in Hong Kong


2017
Growth rate (%)
Number of Malaysian companies in Hong KongN/A
N/A
- Regional headquartersN/AN/A
- Regional officesN/AN/A
- Local offices5236.8

Source: Hong Kong Census and Statistics Department
Date last reviewed: October 26, 2017

11.3 Treaties and agreements between Hong Kong and Malaysia

Malaysia has a Bilateral Investment Treaty with China that entered into force in 1990.

11.4 Chamber of Commerce (or Related Organisations) in Hong Kong

Malaysia Consulate in Hong Kong
Address: 24th Floor, Malaysia Building, 50 Gloucester Road, Wan Chai, Hong Kong
Email: mwhongkong@kln.gov.my
Hours of Business: Monday to Friday, 8:30 a.m. - 5:00 p.m.
Tel: (852) 2821 0800
Fax: (852) 2865 1628

Source: Hong Kong Protocol Division of Government Secretariat

11.5 Visa Requirements for Hong Kong Residents

Visa upon arrival valid for 1 month

Source: Visa on Demand


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