Published date: 13/10/2021

Start a business in Malaysia can be difficult if we do not have any background information of the country. It is important for us to know the overview of Malaysia so that we can understand more about Malaysia’s culture, lifestyle and etc. Besides, this can help you to decide on company establishment in Malaysia. Here are some important points about Malaysia that you need to know.

Location, Population and Climate

Malaysia is located in Southeast Asia and is divided into two regions, Peninsular Malaysia and Borneo’s East Malaysia. It is bordered by the land of Thailand, Singapore, Indonesia, and Brunei, and shares maritime borders with Singapore, Vietnam, Indonesia, and the Philippines. Malaysia is a federation of 13 states and 3 federal territories (Kuala Lumpur, Putrajaya, and Labuan). In 2020, Malaysia’s total population is approximately more than 32.9 million people.

Malaysia enjoys tropical weather year-round with an average temperature between 25-35 degrees in most major cities. It is usually hot and humid due to its close proximity to the sea.

Multicultural Society

The population is made up of different types of races, religions, and ethnic groups. The three (3) main races, namely the Malays, Chinese, and Indians. The natives of Peninsular Malaysia are Orang Asli and are commonly classified into three major groups, the Negrito, Senoi, and Proto-Malay. Sabah’s population consists of 32 ethnic groups and the major ethnic is Kadazandusun while Sarawak’s population consists of 27 ethnic groups and Iban is the major ethnic group.

Malaysian population divisions by ethnics are as follows: Bumiputera which includes Malay and natives (69.6%), Chinese (22.6%), Indian (6.8%), and others. The National Language of Malaysia is Malay. However, English is widely understood and spoken at the workplace and is a compulsory subject in schools. In addition, Mandarin and Tamil are also used.

The State religion is Islam and is practiced by the majority of Malaysians. Religion is practiced in an easy-going way and every religion is respected. Other religion being practice in Malaysia includes Buddhism, Christianity, and Hindu.

Malaysian Lifestyle

Malaysia provides a friendly and hospitable place to live in with a life expectancy of 76 years old. Malaysia has much to offer expatriates and their families a safe and comfortable living environment with 21st-century amenities, good healthcare, and medical facilities, excellent education provider, and world-class recreational and sports facilities at a lower cost compared to their home country.


Malaysia is a country blessed with natural resources such as crude oil, natural gas, tin, timber, palm oil, and rubber. It has achieved economic growth through exports and domestic demand from agriculture and high-tech industries.

The favorable business climate in Malaysia has made the country one of the world’s top investment destinations for offshore manufacturing operations. Malaysia’s time zone which is similar to China, Hong Kong, and Taiwan has definitely become one of the advantages for foreign investors. The Gross Domestic Product (GDP) in Malaysia was worth $USD 364.7 billion in 2019 and represents 0.30 percent of the world economy.

We hope that with the overview we shared, you may have a better view of Malaysia. In OCS, we provide company incorporation, overseas business administration, overseas working visa services and etc. You may visit our website for more info.

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