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Malaysia offers investors a young, educated and productive workforce at very competitive costs. Malaysia's literacy rates are highand school leavers entering the job market have at least 11 years of basic education. Malaysia has a young, educated and productive workforce

Malaysia offers investors a young, educated and productive workforce at costs competitive with other countries in Asia. Backed by the government's continued support of human resource development in all sectors, the quality of Malaysia's workforce is one of the best in the region. Literacy levels are high and school leavers entering the job market have at least 11 years of basic education.

In addition Malaysia registered a significant 7.1% productivity growth during the second quarter of 2008. The growth has translated to a rise in the productivity of the Malaysian economic.

High Priority on Education: Education and training are accorded high priority in national development under Malaysia's five-year development plans.

Today, there are 20 public and 18 private universities and as well as more than 500 colleges, polytechnics and industrial training institutes that offer courses leading to certificate, diploma, degree and post-graduate degree qualifications. Total enrolment in public institutions of higher learning alone is projected to reach over 300,000 with more than half in the science and technical disciplines.

The private sector has also set up educational institutions to supplement the government's efforts to generate a larger pool of professionals and semi-professionals. Among these are institutions of higher learning set up by large corporations such as Telekom Malaysia Berhad, Tenaga Nasional Berhad and Petronas which provide degree-level courses. Various private colleges in Malaysia offer degree programmes on a twinning basis with overseas institutions of higher learning, while foreign universities have set up branch campuses in the country. Educational institutions in Malaysia generate a large pool of professionals with degree and post-graduate qualifications.

Industrial Training: In 1993, the Human Resource Development Fund (HRDF) was launched by the government to encourage training, retraining and skills upgrading in the private sector. Employers, in the manufacturing and service sectors who contribute to this fund are eligible to apply for grants to defray or subsidise the costs incurred in training and retraining their workforce.

The Department of Skills Development (DSD) formerly known as the National Vocational Training Council under the Ministry of Human Resources coordinates the setting up of all public and private training institution, evaluates the demand for existing and future skills, identifies future vocational and industrial training needs and will continue to develop standard under the National Occupational Skills Standards (NOSS). To-date, there are more than 700 certified standards which covers certificate, diploma and advanced diploma qualifications.

Besides the increasing number of public training institutions such as technical schools, polytechnics, industrial training institutes and skills development centres to meet the growing requirements of the industrial sector, collaborative efforts between the Malaysian government, enterprises and foreign governments have resulted in the establishment of several advanced skills training institutes such as the German-Malaysian Institute, Malaysia France Institute, Japan Malaysia Technical Institute, British Malaysia Institute and Malaysian Spanish Institute.

Harmonious Industrial Relations: Industrial relations in the country are harmonious with minimal trade disputes that result in strikes. Malaysia's labour laws safeguard the interests and spell out the rights and responsibilities of employers and employees, thus providing a legal framework for the orderly conduct of industrial relations in the country.

Developed Infrastructure
Malaysia's persistent drive to develop and upgrade its infrastructure has resulted in one of the most well-developed infrastructure among the newly industrialising countries of Asia.

The greatest advantage to manufacturers in Malaysia has been the nation's persistent drive to develop and upgrade its infrastructure. Over the years, these investments have paid off and serious bottlenecks have been avoided. Today, Malaysia can boast of having one of the most well-developed infrastructure among the newly industrialising countries of Asia.

Latest, the development of Kuala Lumpur Sentral, a futuristic self-contained city, providing the perfect live, work and play environment.  A modern transportation hub integrating all major rail transport networks, including the Express Rail Link to the KLIA and Putrajaya, the government's new administrative centre.The transport facilities offered are on par with the best the world over.

Network of Highways: Peninsular Malaysia's network of well-maintained highways is a boon to industries. These highways link major growth centres to seaports and airports throughout the peninsula and provide an efficient means of transportation for goods. To complement these highways, a Kuala Lumpur-Bangkok-Kuala Lumpur containerised service known as the Asean Rail Express (ARX) has been initiated with the aim of expanding it to become the Trans-Asia Rail Link that will include Singapore, Vietnam, Cambodia, Laos and Myanmar before ending up in Kunming, China.

Efficient Seaports: International trade, especially seaborne trade, has traditionally been the lifeblood of Malaysia. Today, more than 90% of the country's trade is by sea via Malaysia's seven international ports - Penang Port, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port and Kemaman Port in Peninsular Malaysia and Bintulu Port in Sarawak. Port Klang's central location and the government's emphasis on making the port as a National Load Centre and regional hub has resulted in an increasing volume of cargo.

In 2007, Port Klang recorded 7.12 million twenty-foot equivalent units (TEUs) With a number of load centring and hubbing strategies, the facilities and services are synonymous to a world class port. Whereas Malaysia's biggest port, Port of Tanjung Pelepas (PTP), located at the southern tip of Peninsular Malaysia is one of the very few ports in the world which is integrated with a Free Trade Zone. The port and free-zone provides shippers and shipping lines with a very attractive business environment. Being a world class port in the Malaysia's southern corridor's new economic growth area, Iskandar Development Region (IDR), PTP with its state-of-the-art port facilities is capable of servicing new generation of vessels being deployed by shipping lines today.Besides the physical infrastructure being in place, the electronic data interchange (EDI) in Port Klang, Penang Port and Johor Port has allowed speedy clearance of cargo with the electronic transfer of documentation.

International Airports: Malaysia's central location in the Asia Pacific region makes her an ideal gateway to Asia. Air cargo facilities are well-developed in the five international airports - the Kuala Lumpur International Airport (KLIA), Penang International Airport and Langkawi International Airport in Peninsular Malaysia, Kota Kinabalu International Airport in Sabah, and Kuching International Airport in Sarawak.Malaysia's biggest airport, the KLIA, surrounded by four main cities of Kuala Lumpur, Shah Alam, Seremban and Melaka has a capacity of handling 25 million passengers and up to 8 million tonnes of cargo per year. Cargo import and export procedures are fully automated at the KLIA to cut down delivery time.

Developed Industrial Parks: Industries in Malaysia are mainly located in over 200 industrial estates or parks and18 Free Industrial Zones (FIZs) developed throughout the country. New sites, fully equipped with infrastructure facilities such as roads, electricity and water supplies, and telecommunications, are continuously being developed by state governments as well as private developers to meet demand.

FIZs are export processing zones which have been developed to cater to the needs of export-oriented industries. Companies in FIZs are allowed duty free imports of raw materials, components, parts, machinery and equipment directly required in the manufacturing process. In areas where FIZs are not available, companies can set up Licensed Manufacturing Warehouses (LMWs) which are accorded facilities similar to those enjoyed by establishments in FIZs.

Specialised Parks: Specialised parks have been developed in Malaysia to cater to the needs of specific industries. Examples of these parks are the Technology Park Malaysia in Bukit Jalil, Kuala Lumpur and the Kulim Hi-Tech Park in the northern state of Kedah which cater to technology-intensive industries and R&D activities. TPM is among the world's most advanced and comprehensive centres for R&D by knowledge based industries.

Spanning 300 hectares (750 acres), its first phase comprises 12 state-of-the-art buildings with specific functions. To the North is the sprawling 1,450-hectare (3,580-acre) Kulim Hi-Tech Park, the country's first, fully-integrated high technology park. Besides providing one of the best infrastructure there is for high technology manufacturing and R&D, the Park's Masterplan also emphasises on the quality of life within a self-contained township. Amenities incorporated in the plan include a shopping centre, a hospital, educational institutions and recreational facilities. 

Hi-Tech Telecommunications: Malaysia's telecommunications network has seen impressive expansion and upgrading during the past decade following the successful privatisation of its Telecommunications Department. The latest digital and fibre optics technology is being used to provide high quality telecommunication services at competitive prices.

Under the Equal Access Regime, telephone subscribers in Malaysia can choose from five network service providers for a full range of local, domestic and international services encompassing voice and data facilities. There are also six internet service providers and five telco's and other network facilities services support a full range of domestic and international services. Malaysia is linked to the rest of the world through various fibre optics and satellite consortia such as FLAG, SE-MA-WE, APCN, China-US, Japanese-US, Measat and Intelsat. To support the increasing demand for bandwidth, medium and high-end technologies such as IDSL, IP, VPN and ATM are being extensively deployed throughout the country.

Vibrant Business Environment
Malaysia's market-oriented economy, supportive government policies and a large local business community that is ready to do business with international corporations have made Malaysia a highly competitive manufacturing and export base.

A market-oriented economy and government policies that provide businesses with the opportunity for growth and profits have made Malaysia a highly competitive manufacturing and export base. Malaysia's rapid move towards the k-economy allows companies to do business in an environment that is geared towards information technology.

One of Malaysia's major pull factors is its large pool of young, educated and trainable workforce. Many of Malaysia's university graduates are trained overseas in fields such as engineering, and accountancy, allowing them to adapt easily to an international corporate environment. English is widely used in Malaysia, especially in business thus facilitating the investor's communication with local personnel and suppliers.

The country's legal and accounting practices derived from the British system are familiar to most international companies.In addition, Malaysia retained its position as the third best destination in the world for outsourcing activities, after India and China, according to A.T. Kearney's 2007 Global Services Location Index (GLSI).

Chambers of Commerce and Industry: Newcomers to Malaysia's business scene will feel at home with the presence of the various chambers of commerce and trade associations made up of corporations from different countries. These oganisations are invaluable sources for general business information, advice and assistance, and complement the role of government agencies such as MIDA.

Developed Financial Facilities: A well-developed financial and banking sector has enhanced Malaysia's position as a dynamic export base in Asia. Sophisticated financial facilities are available through domestic and foreign commercial banks and their nationwide network of branches. There are also representative offices of several foreign banks that wish to establish a presence in the region. Besides the commercial banks, investment banks, and Islamic banks are major sources of credit to the industrial sector in Malaysia.

Exporters in Malaysia can also take advantage of the credit facilities offered by the Export-Import Bank of Malaysia Berhad (Exim Bank), while another institution, Malaysia Export Credit Insurance Berhad (MECIB), offers export insurance cover and guarantees. To complement Malaysia's financial system, the government has established the Labuan International Business and Financial Centre (IBFC) on the island of Labuan located off the north-west coast of Borneo.

Companies in Labuan enjoy minimal taxes as well as confidentiality. To-date, more than 2,700 offshore companies have commence  operations in Labuan. These include offshore banks, trust companies, and insurance and insurance related companies. The Labuan Offshore Financial Services Authority (LOFSA) is a one-stop body that spearheads and coordinates the development of IBFC.

Local Vendors: Over the last three decades, Malaysia has developed a large pool of ancillary and supporting industries that was initiated with the entry of MNCs into the country. These MNCs, especially those which pursued active vendor development programmes, have contributed greatly towards the development of local small-and-medium scale industries (SMIs) that are highly competent and competitive with some even penetrating export markets.

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