Setting Up A Business In Malaysia
The prospect of starting up a new enterprise in an overseas location is certainly an exciting one for those bold enough to take the plunge, offering much more than the opportunity of being in control of one’s own destiny. As enticing as it may be however it is not something to go into without having given it some careful thought, because the success-fail ratio does not give short odds, A Fortune Magazine survey found that only one in ten start-ups eventually turn a profit.
Where does opportunity knock?
Creative thinking can produce great ideas but will they grow into successful business ventures? The astute entrepreneur will survey the lie of the land before taking any decisions. Malaysia for example is an attractive tourist destination with its tropical climate and fine beaches but also many established operators and a depressed market. So, the tourism sector has nothing to offer? Not necessarily. The country still has large areas of interest to eco-tourists, who are growing in number and there are few eco-tourism operators in the country.
Creative use of the country’s resources
Another aspect to consider is that of the country’s natural resources and what’s being done with them. Rubber for example, which Malaysia produces more than 40% of the global supply. Are there manufacturing openings that would use rubber as a raw material? Forget condoms – the country has more than 40 companies manufacturing them. But thinking outside the box, are there any opportunities waiting to be exploited, for example, ways in which rubber might replace plastic.
Outsourcing company accountancy
In the initial stages of the company’s life a lot of time and effort will be needed to get the business running and it would be wise at this point to consider the benefits of outsourcing the accountancy to an accounting firm in Malaysia. This will ensure that the financial side of the business is compliant with local regulations and help to keep employee numbers down to those needed for the operational goals to be addressed.
Cash injections
Once the business is up and running it may seem that the road ahead is clear, but it may not be. Technical problems such as damage to facilities or equipment, extreme weather events, seasonal cash-flow fluctuations and late or non-payment of bills are just a few of the many malaises that may require a cash injection. Or the company might be in great shape and the prospect of acquiring a valuable asset has arisen. A short-term business loan can provide the cash required but care is needed calculating how much is needed and what the real cost of the loan will be. If possible find a lender who will not impose prepayment charges and minimal processing fees. Also check your credit score; a strong one will empower you to negotiate for favourable terms.
The lowdown on visas and work permits
If a business in Malaysia requires expatriate expertise it will be necessary to apply for an employment pass from the country’s Immigration Department and stay permits for accompanying family members.
