Malaysia Business Climate in the ASEAN Business Outlook

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The AHK says political stability and talent availability/shortage are the top external factors impacting overall investment decisions in the ASEAN. It also reveals that host country’s inflation rate, corruption levels, taxes, shortage of skilled labour, financial access and weak adherence to rule of law play a major influence on the climate.

Country specific for Malaysia, participating German companies are more confident overall to their current situation, experiencing improvements after the election last year. 63% of the companies expect the economic growth to remain consistent, while only 16% believe it to be better. With 45%, a high percentage of AHK members expects to increase their Malaysian investments. As a growth driver, domestic demand is being rated as ‘highly influential’ by 71%. And regarding the greatest risks, companies pointed to the politico-economic framework (60.6%).