Political Factors Affecting Business In Malaysia

But political factors that affect businesses are given much importance.

Political factors affecting business in malaysia. It is already a habit for managers to evaluate each of these factors closely. Malaysia is a federal constitutional monarchy that comprises of 13 states and 3 federal territories. Specifically malaysia has considerable exposure in china its biggest trading partner. Pestel or pestle analysis also known as pest analysis is a tool for business analysis of political economic social and technological factors.

If anything external factors were the leading causes of the post election economic slowdown. But malaysia and singapore are fundamentally connected by our close proximity and make natural business partners and collaborators in the long term whatever the political climate may be. During the past few years a political crisis low oil and commodity export prices and the slowdown in china have deeply affected malaysia s economy putting pressure on the country s finances. Connected to many worldwide organizations.

Political factors affecting malaysia. Various aspects of. Malaysia s political uncertainty seen keeping country stuck in middle income trap for next decade. The monarchy consisting of a committee of sultans from the nine malay kingdoms is more of a figurehead while the elected prime minister handles the majority of the country s policies and regulations.

However it is not fair to attribute that solely to political instability. Which the research firm said would come at the cost of a worsening business environment. These factors all spell a much lower growth rate over the coming decade. Stay ahead with our exclusives on asia.

Malaysia has the highest debt levels in the region 56 3 of gdp in 2019 imf with spending increasing faster than gdp. Eurasia has assessed malaysia s short term trajectory as negative highlighting the impact of political factors on the country s business environment. Kuala lumpur is the national capital while putrajaya is the seat of the federal government. The malaysian political environment which has continuous crises between the government and opposition parties where opposition actions often maligned the name of country may caused many foreign investors are afraid to come to malaysia the racial issues between the majority bumiputras and the minority indians and chinese also affect the country s fdi attractiveness.

As long as there is a stable transition of political power the malaysia election outcome is a win for diversity and shows a willingness of malaysians to embrace change. The goal is to always make better decisions for the firm s progress. Malaysia is a powerful country and one of the most vibrant economies in southeast asia. A state of investor uncertainty and market unpredictability remains.