Malaysia - In-depth PESTLE Insights

This PESTLE country analysis report on Malaysia provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis.

Synopsis

- Understand the political system in Malaysia through analysis of key figures in the country and governance indicators.

- Understand the economic situation in Malaysia through a balanced assessment of core macroeconomic issues.

- Understand customer demographics in Malaysia through analysis of income distribution and the rural-urban split, as well as healthcare and education.

- Understand the technological landscape in Malaysia through analysis of relevant laws and policies, as well as patents data.

Scope

- The political landscape section discusses the evolution of the political scenario in Malaysia, as well as the country's economic, social, foreign, and defense policies. The section also discusses the country's performance according to World Bank Governance Indicators.

- The economic landscape section outlines the evolution of Malaysia's economy, as well as the country's performance in terms of GDP growth, composition by sector (agriculture, industry, and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector, and employment."

- The social landscape section analyzes the government's social welfare policies, as well as the country's performance in terms of healthcare, income distribution, and education.

Reasons to buy

- What is the outlook in Malaysia in terms of political stability, policies towards business, and the popularity of the government?

- How does Malaysia perform in terms of GDP growth, its fiscal situation, international investment position, monetary situation, and employment?

- How does Malaysia perform in terms of healthcare, income distribution, and education?

- How does Malaysia perform in terms of technology-intensive sectors like IT, life sciences, and R&D expenditure trends?

Table of Contents

Table of Contents

Overview 2

Catalyst 2

Summary 2

Key findings 2

Malaysia’s ties with China have strengthened, but authoritarianism poses a threat to ...

Table of Contents

Overview 2

Catalyst 2

Summary 2

Key findings 2

Malaysia’s ties with China have strengthened, but authoritarianism poses a threat to democracy 2

The country has seen FDI growth, but high household debt burden is a problem 2

The country gives importance to healthcare, however restricted freedom continues to be a problem 3

While technology exports are on the rise, the shortage of skilled labor needs immediate attention 3

Malaysia is open to foreign investment, but there is still lack of patent protection 4

The country has effective environmental laws, but increasing presence of transboundary haze is a major challenge 4

PESTLE highlights 4

Political landscape 4

Economic landscape 5

Social landscape 5

Technological landscape 5

Legal landscape 5

Environmental landscape 6

Key fundamentals 7

Key Facts and Geographic Location 16

Key facts 16

Geographical location 17

PESTLE Analysis 18

Summary 18

Political analysis 19

Overview 19

Current strengths 19

Malaysia-Australia relations 19

Supportive Government Policies 20

Current challenges 20

Poor performer in establishing democratic institutions 20

Territorial dispute over Sabah 20

Controversy over 1MDB 21

Future prospects 22

Improving bilateral ties with Singapore 22

Improving bilateral ties with China 23

Future risks 23

Rising dissatisfaction among ethnic minorities 23

Growing authoritarianism 23

Economic analysis 25

Overview 25

Current strengths 25

Consistent economic progress/success 25

Safe haven for the investors 25

Current challenges 26

Rising household debt 26

Future prospects 26

Ambitious economic plan 26

Meeting long-term energy needs 27

Tourism Plan 27

Encouraging SMEs 28

Future risks 28

Inefficient bureaucracy 28

High government debt 28

Social analysis 29

Overview 29

Current strengths 30

Strength through diversity 30

Improved life style 30

Improvement on the HDI 30

A young society 30

Priority to healthcare 31

Current challenges 31

High youth unemployment rate 31

Unequal distribution of income 31

Restricted freedom 31

Future prospects 32

Ambitious Education Sector Reforms 32

Fight against terrorism 33

Resolving the issue of food security 33

Future risks 34

Human rights violations 34

Technological analysis 35

Overview 35

Current strengths 35

Strong digital infrastructure 35

Progress in innovations 36

Incentives for R&D activities 36

High technology exports 36

Increased Internet penetration 36

Current challenges 37

Low competitiveness of the industry 37

Low talent in ICT industry 37

Vulnerable to cybercrime 37

High piracy levels 37

Future prospects 38

Digital Malaysia initiative 38

Ambitious plan to develop ICT industry by 2020 38

Opportunities for Startups – technology based industries 38

Future risks 38

Skilled labor shortage 38

Legal analysis 40

Overview 40

Current strengths 40

Improvements in the corporate governance code 40

National competition policy 41

Openness to foreign investment 41

Current challenges 41

Lack of patent protection 41

Restrictive internet law 41

Future prospects 42

Improvement in ease of doing business 42

Future risks 42

A lack of transparency in legislative processes 42

New security law 42

Environmental analysis 43

Overview 43

Current strengths 43

Great bio-diversity 43

Effective environment laws and signatory to international pacts 43

Establishing environmental courts 44

Current challenges 44

Transboundary haze 44

Increasing deforestation 44

Future prospects 45

Efforts towards the development of renewable energy 45

Shift towards sustainable greener growth 45

Future risks 45

Bauxite mining creating health hazards 45

Lack of integration of sustainable development in sectoral policies 46

Political Landscape 47

Summary 47

Evolution 47

Structure and policies 49

Key political figures 49

Structure of government 49

Federal government 49

State government 49

Key political parties and alliances 49

Composition of government 51

Key policies 51

Key policy areas 51

Social policy 51

Foreign policy 52

Performance 52

Governance indicators 52

Outlook 53

Economic Landscape 55

Summary 55

Evolution 55

Structure and policies 56

Financial authorities and regulators 56

Stock market 56

Key policies 57

Performance 58

GDP and growth rate 58

GDP composition by sector 60

Agriculture 61

Industry 62

Services 63

Fiscal situation 63

Exports and imports 64

Current account 65

External debt 65

International investment position 65

Foreign direct and portfolio investments 65

Credit rating 65

Monetary situation 65

Interest rate 65

Inflation 65

Employment 67

Outlook 67

Social Landscape 68

Summary 68

Evolution 68

Structure and policies 68

Demographic composition 68

Age and gender-wise composition 68

Urban/rural composition and migration 69

Religious composition 69

Education 70

Healthcare 71

Healthcare services 71

Social welfare 71

Social welfare policies 71

Performance 71

Healthcare 71

Income distribution 72

Education 72

Outlook 73

Technological Landscape 74

Summary 74

Evolution 74

Structure and policies 74

Intellectual property 75

Performance 76

Opportunity sectors 76

Telecommunications 76

Outlook 77

Legal Landscape 78

Summary 78

Evolution 78

Structure and policies 78

Judicial system 78

Structure of the system 78

Tax regulations 79

Taxation 79

Individual income tax 79

Corporate tax 79

Withholding tax 79

Goods and services tax (GST) 79

Corporate governance 79

Performance 80

Effectiveness of the legal system 80

Outlook 80

Environmental Landscape 81

Summary 81

Evolution 81

Structure and policies 81

Environmental regulations 81

Participation in global efforts, agreements, and pacts 82

Performance 82

Environmental impact 82

Outlook 83

Appendix 84

Ask the analyst 84

Disclaimer 84

List of Tables

List of Tables

Table 1: Malaysia – key fundamentals 7

Table 2: Malaysia – key facts 16

Table 3: Analysis of Malaysia’s political landscape 19

Table ...

List of Tables

Table 1: Malaysia – key fundamentals 7

Table 2: Malaysia – key facts 16

Table 3: Analysis of Malaysia’s political landscape 19

Table 4: Analysis of Malaysia's economy 25

Table 5: Analysis of Malaysia's social system 29

Table 6: Analysis of Malaysia’s technology landscape 35

Table 7: Analysis of Malaysia’s legal landscape 40

Table 8: Analysis of Malaysia’s environmental landscape 43

Table 9: Mid-year population of Malaysia by age (percentage of total population), 2016 69

Table 10: Patents granted by the USPTO 75

List of Figures

List of Figures

Figure 1: Map of Malaysia 17

Figure 2: Targets by 2020 27

Figure 3: Malaysia – key political events timeline 48

Figure 4 ...

List of Figures

Figure 1: Map of Malaysia 17

Figure 2: Targets by 2020 27

Figure 3: Malaysia – key political events timeline 48

Figure 4: Key political figures in Malaysia 49

Figure 5: Composition of the Malaysian parliament , 2016 51

Figure 6: Malaysia’s historical GDP growth, 2006–2016 56

Figure 7: GDP and GDP growth rate in Malaysia, 2011–21f 59

Figure 8: GDP composition by sectors, 2016 60

Figure 9: Agriculture output of Malaysia, 2011-16 61

Figure 10: Industrial output of Malaysia, 2011-16 62

Figure 11: Service output of Malaysia, 2011-16 63

Figure 12: External trade of Malaysia, 2012-16 64

Figure 13: Consumer price index and consumer price index-based inflation in Malaysia, 2011-21f 66

Figure 14: Unemployment in Malaysia, 2011-21f 67

Figure 15: Major religions of Malaysia 70

Figure 16: Total expenditure on healthcare in Malaysia, 2009-15 72

Figure 17: Government expenditure on education in Malaysia, 2011-16 73

Figure 18: Internet users and growth rate in Malaysia, 2012-16 77

Figure 19: Carbon dioxide emissions in Malaysia, 2008-15 83

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