assignment on i.b

8/8/2019 Assignment on I.b

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Report OnCountry evaluation for investment decision in Beverage Industry

(Malaysia)

Course Name: International BusinessCourse Code: BUS302

Submitted by

Md. Ariful Haque Jewel 0820BBA00806Md. Rajib Hossain 0820BBA00807

Dewan Nazi Uddin 0820BBA00809Md. Tanvir hassan 0820BBA00812Md. Ibrahim 0820BBA00822Md. Faruk Faysal 0820BBA00826

Under the supervision of

Md. Russel Ahamed Chowdhury

Lecturer in DBA

Department Of Business Administration

Fall Session, 2010

Manarat International University, Dhaka

Date of Submission: 20th December, 2010


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Letter of transmittal

December 20, 2010

Russel Ahmed ChowdhuryLecturer,

Department of Business Administration

FACULTY OF BUSINESS STUDIES

Manrat international University(MIU)

Subject: Country evaluation for investment decision in Beverage Industry.

Sir,

We are pleased to submit my Report after successful completion. We have gathered importantknowledge and experience during this program that will helpful in my practical life. We

express my gratitude to you for giving me chance to learn different thing when we take

investment decision. In spite of various shortcomings, we have devoted my best effort to cover

all the relevant areas of the country. We hope that you will appreciate my endeavor and satisfy

this report up to your expectation.

It is indeed that without your advice and co-operation it would not be possible to submit this

report. We have tried my best effort to make this report in comprehensive and informative

manner. All of our works and information presented in this report is done with utmost sincerely

and honestly. We shall be gratified to answer any sort of queries you think necessary regarding

this report, assuring of my presence if and when needed.

Sincerely Yours,

MD: Ariful Haque Jewel

Md. Rajib Hossain

Dewan Nazi Uddin

Tanvir Hassan Fuad

Md. Ibrahim

Md. Faruk Faysal


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Acknowledgement

All admires and praises are solely due to Almighty ALLAH, the merciful, the omnipotent opt-

for giving who made my assignment works possible.

We sincerely feel it, a proud privilege to express heartfelt gratitude and profound indebtedness

to my reverend supervisor Rasul Ahmed Chowdhury, Lecturer, Department of Business

Administration, Manarat International University(MIU), for his scholarly, supervision,

instruction, valuable suggestion, encouragement, inspiration, untiring help, unprecedented

patience, sympathy during the whole period of assignment works and critical review of this

assignment. We shall be remaining ever grateful to my most respected teacher.

Finally not least but last my gratitude extended to all of our colleagues for their sincere

Co-operation.


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EXECUTIVE SUMMERY

By the following description, we can see the geographical, political, legal,cultural and economical situation of Malaysia. And the international market entryin Malaysia is it right or wrong, we can find it also.


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Contents

Introduction

Objective

Methodology

Discussion

Malaysia Geography

Culture of Malaysia

Economy of Malaysia

Legal & Political Aspects of Malaysia

Beverage Industries In Malaysia

Why Malaysia for Beverage Company

Cost of doing Business

Malaysian Political systems strengths

Decision

Conclusion

Bibliography


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Introduction

A company must devise market entry strategies, in order to enter and survive in todays highlycompetitive markets. Market entry strategies are not easy to devise without the expertknowledge of competitive market conditions, market trends, customer behavior and level ofsatisfaction, etc. Market research consultancy has been helping a large number of foreigncompanies of various sectors in making grand and striking entry into the ever-refining Indian

market, by dint of its expedient market entry strategies devised very sedulously andscrupulously.

Since it became independent; Malaysia's economic record has been one of Asia's best. Realgross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005.alaysiais one of the very few countries expecting growth this year, amidst the changing globaleconomic climate, making it a very attractive destination. In addition to its strong economicstanding,

The Malaysias economy is expected to witness promising grow thin in 2010. According to theMalaysia Statistics Authority, the economy of Malaysia has achieved a remarkable growth in

various economic activities, The Malaysian Government plans to release a new economicmodel in 2010 which will modify and in some cases eliminate NEP measures in an effort tostimulate higher levels of investment and GDP growth over .the next decade.

Objective

In this assignment there are some objectives. The objectives are:

I. Try to find out geographical, political, cultural and economic condition ofMalaysia

II. What is the option International market entry in Malaysia


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Methodology

This study is based on secondary data information. Secondary data information was collectedfrom published articles, magazines; internet etc.

Discussion

A beverage company of Bangladesh wants to entry International market in Malaysia. . But theboard of directors of Beverage Company is facing difficulty as to their entry strategy into theBeverage industry outside Bangladesh. For that there has to consider all possible entrystrategies. There are some options as a way of entry into the Beverage industry:

Franchising Licensing

Strategic Alliance

Foreign Direct Investment

Before select a strategies we have to conceder following issues:

Malaysia Geography

Located in Southeastern Asia, Malaysia is an island nation that forms a part of the Malaysian

Peninsula. Bordered by Thailand, Indonesia and Brunei, the geography of Malaysia is dividedinto two major parts Peninsular Malaysia and East Malaysia. The South China Sea and theStraits of Malacca are the other two prominent features of Malaysian geography.

The nation has a total area of 329,750 sq. kms. Out of this, 328,550 sq. kms is land and the restis water, as per Malaysias geography. The Malaysian coastline extends to 4,675 kilometers.Out of this 2,068 kms are in Peninsular Malaysia, and the rest are in East Malaysia.

The highest point in Malaysia is Mount Kinabalu (4,095 m), located in the state of Sabah. Thelowest point lies in the Indian Ocean. Tin, timber, copper, iron ore and natural gas have alwaysbeen the main natural resources here, according to the geography of Malaysia.

Air pollution formed by industrial waste and vehicular emissions have created a lot ofenvironmental problems in Malaysia. The country also faces severe deforestation and water pollution problems. Landslides and flooding have been the natural causes of worry forenvironmentalists in Malaysia.

The climate of Malaysia is extremely pleasant all through the year. It remains tropical fromApril to October. This is definitely the best time to visit Malaysia.


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Culture of Malaysia

Malaysia is one of the colorful countries of South Asia, which is renowned for its diverseculture and is fast becoming one of the hottest tourist destinations of South Asia. The countrycomprises of thirteen states and two geographical regions that is separated by the South ChinaSea. Culture of Malaysia is eclectic; the country boasts of a heterogeneous society. Apart fromthe indigenous people of Malaysia, the country also boasts of citizens, of Indian and Chineseorigin. Thus the culture of the country was considerably influenced by the Indian and Chineseculture. The Malaysian culture was further influenced by European, Arab and Persian culture.The multiculturalism of the country is also the result of the fact that the Malaysia was a part of

the British Empire. The colonial hangover still continues in the country and English is thefavored language of the middle class and upper class. Overall the Culture of Malaysia can bebest described as an assorted culture that is rich in variety and truly global.

Malaysia with its multiculturalism is home to delightful festivals, celebrations and feasts allround the year. Festivals in the country are either celebrated nationwide or at the state level.For example Prophet Muhammad's Birthday and Chinese New Year is celebrated allthroughout the country whereas Deepavali is celebrated in West Malaysia.

As far as cultural activity is concerned, there is no dearth of cultural activity in the country andthe cultural scenario of the country is always bustling with activity. Malaysia is rich in art and

architecture; there are many art colleges and art galleries in the country boasting of avant-gardepaintings and sculptures. The country is also interspersed with numerous architectural marvels,which are renowned in all over the world and are major tourist attractions of the country. Craftsof Malaysia are also variegated and reflect multiculturalism of the country; some of the craftsof the country are Batik, Songket, Woodcarving and Keris.

Malaysia also boasts of a local film industry and presently the country produces 15 films andabout 300-400 television dramas, serials, and other programs every year. The country isscattered with 250 theaters and cineplexes exhibiting local but as well as international films. Inorder to boost popularity, appreciation and film literacy the government of Malaysia alsoorganizes the annual National Film Festival. Malaysia's theater scenario is also progressing

rapidly and the plays of the country are traveling to the West and some of the plays have alsoreceived critical appreciation.

Economy of Malaysia


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Since it became independent, Malaysia's economic record has been one of Asia's best. Realgross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005.Performance peaked in the early 1980s through the mid-1990s, as the economy experiencedsustained rapid growth averaging almost 8% annually. High levels of foreign and domesticinvestment played a significant role as the economy diversified and modernized. Once heavily

dependent on primary products such as rubber and tin, Malaysia today is a middle-incomecountry with a multi-sector economy based on services and manufacturing. Malaysia is one ofthe world's largest exporters of semiconductor devices, electrical goods, and information andcommunication technology (ICT) products.

The government continues to actively manage the economy. Malaysia's New Economic Policy(NEP), first established in 1971, was a 10-year plan that sought to rectify a situation wherebyethnic Malays and indigenous peoples (bumiputera), who comprised nearly 60% of thepopulation, held less than 3% of the nations wealth. Policy makers implemented a complexnetwork of racial preferences intended to promote the acquisition of economic assets bybumiputera. In 1981 when the racial preferences were set to expire, the government extended

the NEP for another 10 years, stating that its goals had not been achieved. The policies againwere extended in 1991 and in 2001. The Malaysian Government plans to release a neweconomic model in 2010 which will modify and in some cases eliminate NEP measures in aneffort to stimulate higher levels of investment and GDP growth over the next decade.

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financialcrisis, which affected countries throughout the region, including South Korea, Indonesia, andThailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided areturn to recession in 2001 when its economy was negatively impacted by the bursting of thedot-com bubble (which hurt the ICT sector) and slow growth or recession in many of itsimportant export markets. The global financial crisis threw Malaysia into recession again in2009, and the government expects a contraction in GDP of around 3% for the year. Economistsexpect Malaysia to return to a positive growth path in 2010.

The Malaysian financial system exhibited noteworthy resilience to the 2008 global financialcrisis. Malaysian banks are well capitalized and have no measurable exposure to the U.S. sub-prime market. The central bank maintains a conservative regulatory environment, havingprohibited some of the riskier assets in vogue elsewhere. However, decreasing demand in theU.S. and elsewhere is taking a toll on Malaysian exports, resulting in negative GDP growth for2009 with recovery expected in 2010.

Legal & Political aspects of Malaysia

Malaysia's predominant political party, the United Malays National Organization (UMNO), hasheld power in coalition with other parties continuously since independence in 1957. TheUMNO coalition's share of the vote declined in national elections held in May 1969, afterwhich riots broke out in Kuala Lumpur and elsewhere, mainly between Malays and ethnicChinese. Several hundred people were killed or injured. The government declared a state of


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emergency and suspended all parliamentary activities.

In the years that followed, Malaysia undertook several initiatives that became integral parts ofits socioeconomic model. The New Economic Policy (NEP), launched in 1971, contained aseries of affirmative action policies designed to benefit Malays and certain indigenous groups

(together known as bumiputera or "sons of the soil"). The constitution was amended to limitdissent against the specially-protected and sensitive portions of the constitution pertaining tothe social contract. The government identified intercommunal harmony as one of its officialgoals. The previous alliance of communally based parties was replaced with a broadercoalition--the Barisan Nasional (BN) or National Front. The BN won large majorities in the1974 federal and state elections.

Mahathir Mohamad was Prime Minister between 1981 and 2003, leading UMNO and BN tosuccessive election victories. Mahathir emphasized economic development during his tenure,in particular the export sector, as well as large-scale infrastructure projects. Mahathir attributedthe success of the Asian tiger economies to the "Asian values" of its people, which he believed

were superior to those of the West. Mahathir sharply criticized the International MonetaryFund (IMF), international financiers such as George Soros, and Western governments duringthe sharp economic and financial crisis that affected Asia in 1997-1998, and denied that thedownturn was due to the failures of corruption and "crony capitalism."

The end of Mahathir's tenure was marred by a falling out with his deputy and presumedsuccessor, Anwar Ibrahim. In September 1998, Mahathir dismissed Anwar and accused him ofimmoral and corrupt conduct. Although Anwar was convicted on both charges in 1999 and2000, the trials were viewed as seriously flawed. Malaysia's Federal Court eventually freedAnwar after overturning his immoral conduct conviction in September 2004.

Mahathir stepped down as Prime Minister in October 2003 after 22 years in power, and hissuccessor, Deputy Prime Minister Abdullah Ahmad Badawi, was sworn into office. Abdullahcalled elections and won an overwhelming victory in March 2004. Abdullah, an Islamicscholar, promoted the concept of "Islam Hadhari" or "civilizational Islam," emphasizing theimportance of education, social harmony, and economic progress. His relationship withMahathir eventually soured, with Mahathir expressing regret at supporting Abdullah to be hissuccessor.

Beverage Industries in Malaysia

Malaysia's beverage industry is as diverse as the multi-cultures of Malaysia, with a wide rangeof processed food with Asian testes. Processed food with Asian tastes.In 2008, the foodprocessing industry contributed about 10% of Malaysia's manufacturing output and companiesin this industry Malaysian company predominately owned.

It is estimated that the present global retail sales in food products are worth around US$3.5trillion, and are expected to grow at an annual rate of 4.8 per cent to US$6.4 trillion by 2020.


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Malaysia remains a net importer of food. In 2008, Malaysia's food exports amounted toRM17.9 billion, while imports totaled RM28 billion.

Malaysia exported food products to more than 200 countries and the main products exportedwere cocoa (RM3 billion), fisheries products (RM 2.5 billion), margarine and shortening (RM

2.4 billion) and animal feed (RM1.2 billion).

Major food imports in 2008 were cereal and cereal preparations, cocoa, vegetables and fruits,dairy products and animal feed. Raw materials such as cereals and dairy products will continueto be imported for further processing for human consumption as well as for the production ofanimal feed.

In Malaysia, the food industry is dominated by small and medium scale companies. The majorsub-sectors are fish and fish products, livestock and livestock products, fruits, vegetables andcocoa.

The fisheries product's sub-sector includes processed seafood products such as frozen andcanned fish, crustaceans and molluscs, surimi and surimi products. This sub-sector remainedthe main contributor to the exports of processed food.

In the livestock sub-sector, Malaysia is the third largest producer of poultry meat in the AsiaPacific region. Malaysia is self sufficient in poultry, pork and eggs, but imports about 80% ofits beef requirements

.Among the dairy products produced are milk powder, sweetened condensed milk, pasteurizedor sterilized liquid milk, ice cream, yoghurt and other fermented milk.

Currently, Malaysia is the largest cocoa processor in Asia and ranks fifth in the world.However, most of the cocoa beans are imported. Malaysia is also one of the world majorproducers of spices.

In 2008, Malaysia's was ranked as the fifth largest exporter of pepper and pepper-relatedproducts (specialty pepper, processed pepper and pepper sauces).

In the Ninth Malaysia Plan, the production of fruits and vegetables is targeted to reach 2.56million tones and 1.13 million tones, respectively, by 2010. Vegetables are mainly grown on asmall scale for fresh consumption, and are exported mainly to Singapore. The major locations

for the cultivation of vegetables are in Johor, Pahang, Kelantan and Perak.

In the fruits sub-sector, besides mangos, star fruits and papayas, the cultivation of pittaya(dragon fruit) is gaining interest among farmers. Most of these fruits are to cater for thedomestic market.


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Functional/health food produced in Malaysia is mainly in the form of food products that areenriched. Food ingredients such as customized formulations required by food manufacturers,natural food additives and flavors have the potential for further growth.

Malaysia's food manufacturer can contemplate joint-ventures with established food

manufacturer's, particularly from Australia and New Zealand, to service the ASEAN, MiddleEast, European and US markets which have sizeable Muslim populations.

Why Malaysia For Beverage Company

Costs of Doing Business

The objective of this section is to enable investors to make a preliminary assessment of the

major costs involved in doing business in Malaysia. Investors who require more specific detailscan contact MIDA headquarters in Kuala Lumpur or the nearest MIDA overseas or stateoffices for further advice and assistance.

One Ringgit Malaysia (RM) is divided into 100 sen. Currently, the Ringgit exchange rateoperates on a managed-float regime against a trade-weighted basket of currencies. In thisbrochure, costs quoted in US Dollar are conversions based on US$1 = RM3.5966.

Base lending rates: Commercial banks - 5.53% (as at May 2009)

Main fees to be paid to the Companies Commission of Malaysia (SSM)

RM US$

Reservation of a name 30 8.34

For registration of a company, fees range according to nominal share capital,e.g.:

- Not exceeding RM100,000 (US$27,804) 1,000 278

- Exceeds RM500,000 (US$150,875) but does notexceed RM1 million (US$301,750)

5,000 1,390

- Exceeds RM5 million (US$1.51 million) but does not

exceed RM10 million (US$3.02 million)

10,

000

2,780

- Exceeds RM50 million (US$15.09 million) but doesnot exceed RM100 million (US$30.18 million)

50,000 13,902

- Exceeding RM100 million (US$30.18 million) 70,000 19,463

It is not too much costly for starting a new business.


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By the following chart we can see why Malaysia is correct for a Beverage company.

Economic Strength

Natural resources - oil, gas, tin, timber, palm oil, rubber

GDP growth - 4.6%

Gross national savings - 37.9% of GNI

Debt service ratio - 2.7%

Unemployment rate - 3.7%

Inflation(CPI) - 5.4%

Export of manufactured goods 2008 - 70.0% of total exports

Supportive Government Policies

Pro-business policies

Responsive government

Liberal investment policies

Attractive tax and otherincentives

Liberal exchange control regime

Intellectual property protection

An Educated Workforce

Talented, young, educated and productive workforce

Multilingual workforce speaking two or three languages, including English

Comprehensive system ofvocational and industrial training, including advanced skillstraining.

Harmonious industrial relations with minimal trade disputes

Developed Infrastructure

Network of well-maintained highways and railways

Well-equipped seaports and airports

High quality telecommunications network and services

Fully developed industrial parks, including free industrial zones, technology parks andMultimedia Super Corridor (MSC)

Advanced MSC Malaysia Cybercities and Cybercentres

Vibrant Business Environment

Market-oriented economy

Well-developed financial and banking sector, including the Labuan International Financial

Exchange

Wide use of English, especially in business Legal and accounting practice based on the Britishsystem

Large local business community with a long history in international business links

Large foreign business community in all business sectors Extensive trade links - country's totaltrade was valued at RM1.19 thrillion

Quality of Life
http://www.mida.gov.my/en_v2/index.php?page=taxation-2http://www.mida.gov.my/en_v2/index.php?page=incentives-for-investmenthttp://www.mida.gov.my/en_v2/index.php?page=exchange-control-practicehttp://www.mida.gov.my/en_v2/index.php?page=IP-protectionhttp://www.mida.gov.my/en_v2/index.php?page=manpower-development-2http://www.mida.gov.my/en_v2/index.php?page=industrial-relations-2http://www.mida.gov.my/en_v2/index.php?page=sea-portshttp://www.mida.gov.my/en_v2/index.php?page=air-cargo-facilitieshttp://www.mida.gov.my/en_v2/index.php?page=industrial-landhttp://www.mida.gov.my/en_v2/index.php?page=multimedia-super-corridor-2http://www.mida.gov.my/en_v2/index.php?page=offshore-financial-serviceshttp://www.mida.gov.my/en_v2/index.php?page=offshore-financial-serviceshttp://www.mida.gov.my/en_v2/index.php?page=taxation-2http://www.mida.gov.my/en_v2/index.php?page=incentives-for-investmenthttp://www.mida.gov.my/en_v2/index.php?page=exchange-control-practicehttp://www.mida.gov.my/en_v2/index.php?page=IP-protectionhttp://www.mida.gov.my/en_v2/index.php?page=manpower-development-2http://www.mida.gov.my/en_v2/index.php?page=industrial-relations-2http://www.mida.gov.my/en_v2/index.php?page=sea-portshttp://www.mida.gov.my/en_v2/index.php?page=air-cargo-facilitieshttp://www.mida.gov.my/en_v2/index.php?page=industrial-landhttp://www.mida.gov.my/en_v2/index.php?page=multimedia-super-corridor-2http://www.mida.gov.my/en_v2/index.php?page=offshore-financial-serviceshttp://www.mida.gov.my/en_v2/index.php?page=offshore-financial-services


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Friendly and hospitable Malaysians

Safe and comfortable living environment

Excellent housing, modern amenities, good healthcare and medical facilities

Excellent educational institutions including international schools for expatriate children

World-class recreational and sports facilities

Excellent shopping with goods from all over the world

Malaysian Political System Strengths

The nation of Malaysia is currently under a Federal parliamentary monarchy governingsystem. The United Malays National Organization (UNMO), Malaysias premiere politicalparty, has had their political candidate in office since the country gained its independence in1957. Other political powers seeking to affect Malaysia include the Malaysian ChineseAssociation (MCA) and the Malaysian Indian Congress (MIC). The head of the Malaysianpolitical system is referred to as the King of Malaysia and is also seen as the leader of the

Islamic faith within the country. The Malaysian government is separated into 13 states and 3territories, each represented by a chief minister. Nine of the states rulers are hereditary and aregiven the title Sultan.

Supportive Government Policies

Government policies that maintain a business environment with opportunities for growth andprofits have made Malaysia an attractive manufacturing and export base in the region. Theprivate sector in Malaysia has become partners with the public sector in achieving the nation'sdevelopment objectives.

A major factor that has attracted investors to Malaysia is the government's commitment tomaintain a business environment that provides companies with the opportunities for growthand profits. This commitment is seen in the government's constant efforts to obtain feedbackfrom the business community through channels of consultation such as regular government-private sector dialogues. These allow the various business communities to air their views andto contribute towards the formulation of government policies which concern them.

Liberal Equity Policy

Generally, foreign investors in Malaysia's manufacturing sector can hold 100% equity in

projects which export at least 80% of their production. However, effective from 17 June 2003,100% foreign equity holding is allowed for all investments in new projects, as well asinvestments in expansion/diversification projects by existing companies irrespective of theirlevel of exports.


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Employment of Expatriates

Foreign companies in the manufacturing sector are allowed to employ expatriates wherecertain skills not available in Malaysia. A company with foreign paid-up capital of US$2million and above will be allowed up to 10 expatriate posts, including five key posts, that is,

posts that are permanently filled by foreigners.

Attractive Tax Incentives

Effective from the year of assessment 2009, the corporate tax rate is reduced to 25% andthe maximum individual tax rate is revised from 28% to 27%. Malaysia also offers a widerange of tax incentives for manufacturing projects under the Promotion of Investments Act1986 and the Income Tax Act 1967. The main incentives are the Pioneer Status, InvestmentTax Allowance, Reinvestment Allowance, Incentives for High Technology Industries andIncentives for Strategic Projects and Incentives for the Setting-up of International/ Regional

Service-based Operations.

Developed Infrastructure

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

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

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

Network of Highways

Peninsular Malaysia's network of well-maintained highways is a boon to industries. Thesehighways link major growth centers to seaports and airports throughout the peninsula andprovide an efficient means of transportation for goods. To complement these highways, aKuala Lumpur-Bangkok-Kuala Lumpur containerized service known as the Asean RailExpress (ARX) has been initiated with the aim of expanding it to become the Trans-Asia RailLink that will include Singapore, Vietnam, Cambodia, Laos and Myanmar before ending up inKunming, China.


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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 thegovernment's emphasis on making the port as a National Load Centre and regional hub hasresulted in an increasing volume of cargo.

In 2007, Port Klang recorded 7.12 million twenty-foot equivalent units (TEUs) With a numberof load centering and hubbing strategies, the facilities and services are synonymous to a worldclass port. Whereas Malaysia's biggest port, Port of Tanjung Pelepas (PTP), located at thesouthern tip of Peninsular Malaysia is one of the very few ports in the world which isintegrated with a Free Trade Zone. The port and free-zone provides shippers and shipping lineswith a very attractive business environment. Being a world class port in the Malaysia'ssouthern 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 beingdeployed by shipping lines today. Besides the physical infrastructure being in place, theelectronic data interchange (EDI) in Port Klang, Penang Port and Johor Port has allowedspeedy 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. Aircargo facilities are well-developed in the five international airports - the Kuala LumpurInternational Airport (KLIA), Penang International Airport and Langkawi International Airport

in Peninsular Malaysia, Kota Kinabalu International Airport in Sabah, and KuchingInternational Airport in Sarawak.Malaysia's biggest airport, the KLIA, surrounded by fourmain cities of Kuala Lumpur, Shah Alam, Seremban and Melaka has a capacity of handling 25million passengers and up to 8 million tonnes of cargo per year. Cargo import and exportprocedures are fully automated at the KLIA to cut down delivery time.

Hi-Tech Telecommunications

Malaysia's telecommunications network has seen impressive expansion and upgrading duringthe 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 fivenetwork service providers for a full range of local, domestic and international servicesencompassing voice and data facilities. There are also six internet service providers and fivetelco's and other network facilities services support a full range of domestic and internationalservices. Malaysia is linked to the rest of the world through various fibre optics and satelliteconsortia such as FLAG, SE-MA-WE, APCN, China-US, Japanese-US, Measat and Intelsat.
http://www.pka.gov.my/http://www.ptp.com.my/http://www.klia.com.my/http://www.klia.com.my/http://www.pka.gov.my/http://www.ptp.com.my/http://www.klia.com.my/http://www.klia.com.my/


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To support the increasing demand for bandwidth, medium and high-end technologies such asIDSL, IP, VPN and ATM are being extensively deployed throughout the country.

Decision

After watching and analyzing the whole data, we can easily take the step for entering in theMalaysia for the beverage business

Conclusion

By all the description ,we can easily say that Malaysia is a country where any one can easilyenter in the beverage industry and where any one can do this type of business. And can be aprofitable step for any one to enter in the Malaysia with beverage business.

Bibliography

1) Different newspaper & Magazines2) Companies Act 1965 (Act 125) & subsidiary legislations

3) Malaysia's Economic Situation: An Overview by a Common MalaysianBy Lim J.4)Lewis, Richard D. (2007):"When Cultures collide-managing successfully across cultures",5) "Nicholas Brealey Publishing, London&Yarmouth. South-East Asia, Malaysia.6)The Star Online. Back to Bahasa Malaysia.7) So on..


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