Purchase OBG Publications

In partnership with Chooi & Company, OBG takes a look at Malaysia’s legal system. Key points include the long-awaited Mediation Act 2012, as well as a number of new laws intended to improve regulations and step up protection of relevant parties. Christopher Leong, Managing Partner of Chooi & Company, offers a viewpoint on recent legal developments

In conjunction with Russell Bedford, OBG explores Malaysia’s taxation system.

Malaysia’s R&D spending has skyrocketed over the past decade, albeit from a low base: funds for research grew at an average annual rate of 18% from 1996-2007. New government-led initiatives such as the Cradle Fund and the Malaysian Innovation Agency, are helping to improve the availability of funding, especially for small businesses doing high-value, high-risk research. Biotechnology is one of the emerging industries that has benefitted greatly from this investment, and it now employs over 150,000 people and contributes 2.2% of the country’s GDP. Malaysia’s unique biodiversity has also yielded benefits for entrepreneurs – providing rare natural compounds for pharmaceuticals and biotechnology companies and allowing agribusiness firms to produce high-end rubber and palm oil products. This chapter includes interviews with Francis Gurry, Director-General, World Intellectual Property Organisation (WIPO); and Mohd Nazlee Kamal, CEO, Malaysian Biotechnology Corporation.

Malaysia’s agricultural sector continues to be dominated by the export-oriented rubber and palm oil sectors, the latter of which has achieved primacy in recent years. Palm oil accounts for as much as 8% of Malaysia’s GDP alone, and the recent listing of major plantations owner Felda raised $3.1bn and earned cash payments for upwards of 100,000 families. The sector, however, is facing the challenge of transitioning from raw, small-scale agricultural production to value-added and technology-driven agribusiness. At the same time, concerns over food security are leading some to question the dominance of commercial over staple crops. This chapter features interviews with Bernard Giluk Dompok, Minister of Plantation Industries and Commodities, and Sabri Ahmad, CEO & Group President, Felda Global Ventures Holding (FGV).

Malaysia’s government is in the midst of implementing a long-term strategy that seeks to diversity the national economy away from dependence on the core Kuala Lumpur/ Klang Valley area. This plan, introduced in 2006 under the 9th Malaysia Plan by then-Prime Minister Abdullah Ahmed Badawi, created five regional economic corridors: Iskandar Malaysia (IM), the East Coast Economic Region (ECER), North Coast Economic Region (NCER), Sarawak Corridor of Renewable Energy (SCORE), and Sabah Development Corridor (SDC). By focusing on distinct industries within each region and soliciting private domestic and foreign investment, the government is hoping to alleviate regional poverty and rebalance the nation’s economic growth. This chapter includes interviews with Jebasingam Issace John, CEO, East Coast Economic Region Development Council (ECERDC); Ismail Ibrahim, CEO, Iskandar Regional Development Authority (IRDA); and Mohd Ali Rustam, Chief Minister of Melaka.

Education is a renewed area of focus for the Malaysian government, which has increased its spending on the sector by 60% over the past two years as part of its commitment to building a high-income economy. The current system enjoys relatively high grades in global reports but suffers from low enrolment across primary, secondary, and tertiary levels. Private schools have emerged to fill this gap, especially in the kindergarten and primary market. The government also abolished school fees for primary and secondary school in 2012. One major challenge, however, will be maintaining the quality of Malaysian graduates even as the government increases quality to address labour shortfalls. This section features an interview with Lim Kok Wing, Founder and President of Limkokwing University of Creative Technology, and David Willetts, UK Minister of Universities and Science. Malaysia’s relatively low dependence on the public sector – just 4.1% of budgetary expenditures go toward health care – is fairly unique in ASEAN, but it has produced a system that most agree is fundamentally sound. Around 40% of Malaysians have medical insurance, with the rest using Ministry of Health centres, while the private sector’s share of medical spending has trebled in the past decade. This has led to retention problems in the public sector, as many doctors head for private practice or go overseas.