HOW TO START AN IMPORT EXPORT BUSINESS IN MALAYSIA | Doing Business In Malaysia
Summary
TLDRThis video offers a comprehensive guide to starting an import-export business in Malaysia, highlighting the country's economic strengths and the importance of understanding local market nuances. It outlines the necessary steps, including obtaining licenses, working with customs brokers, and developing a robust marketing plan. The script also emphasizes the need for compliance with import-export regulations and the strategic selection of products to ensure business success in Malaysia's thriving market.
Takeaways
- 🌏 Research and understanding of new markets, countries, products, and related terms is crucial for starting an import-export business.
- 🇲🇾 Malaysia is the third-largest economy in Southeast Asia, with a rapidly developing economy and a focus on knowledge-based industries and technology adoption.
- 🏦 Malaysia ranks 12th in the World Bank's Ease of Doing Business Index, indicating a business-friendly environment for new ventures.
- 🚫 Certain goods in Malaysia are heavily regulated, including food, agricultural products, motor vehicles, and steel products, with strict prohibitions on drug imports.
- 📜 Before starting an import-export business, it's essential to understand the basic policies, import regulations, and procedures in Malaysia.
- 📄 Obtaining an exporting license and permits for specific products is a mandatory step for starting an export business in Malaysia.
- 🛃 Working with customs brokers is recommended to ensure proper customs procedures and avoid costly mistakes.
- 📦 Malaysia uses the Harmonized Tariff System for classifying goods, and all exports and imports must be classified accordingly.
- 💼 A comprehensive business plan is necessary for starting an export business, considering all aspects of the venture.
- 💡 Sales and marketing are vital for generating revenue and orders; a professional website and brochures can help reach customers effectively.
- 🚚 Choosing the right shipping method and working with reputable freight forwarders ensures timely and compliant delivery of goods.
Q & A
What is the first step in starting an import export business?
-The first step is to conduct research and learn about new markets, countries, products, and related terms for your international business.
Why is Malaysia highlighted as a potential import export business destination?
-Malaysia is highlighted due to its status as the third largest economy in Southeast Asia, its rapid and steady economic growth, and its friendly policies towards new trading ventures.
What is the average annual economic growth rate of Malaysia since 2002?
-Malaysia's economy has been growing at an average of 5.1 percent every year since 2002.
How does Malaysia rank in the World Bank's Ease of Doing Business Index?
-Malaysia ranks 12th in the World Bank's Ease of Doing Business Index.
What are some of the heavily regulated goods for import in Malaysia?
-Heavily regulated goods for import in Malaysia include food and agricultural products, motor vehicles, audio-video recording machines, and steel products.
What is the policy regarding the import of drugs in Malaysia?
-The import of drugs is strictly prohibited in Malaysia unless one has a license from the Malaysian Minister of Health, and drug trafficking can result in a death sentence.
What are some products that cannot be exported from Malaysia?
-Certain products like turtle eggs and ratam from the peninsula of Malaysia cannot be exported.
What is required to start an export business in Malaysia?
-To start an export business in Malaysia, one needs to obtain an exporting license from Malaysian authorities, procure permits for specific products, and follow the export licensing system.
Why is working with a customs broker recommended when starting an import export business in Malaysia?
-Working with a customs broker is recommended to ensure that all customs procedures are followed correctly, avoiding costly mistakes, especially with sensitive export products.
What are some of the important documents required by Malaysian customs for exporting products?
-Important documents include a bill of lading, a packing list, shipment leaflets, catalogues, certificates of insurance (if insured), a letter of credit (if any), licenses and certificates, proof of payment, and a declaration form.
What are the three shipping methods mentioned for goods from Malaysia, and what are their typical applications?
-The three shipping methods are road freight (for normal goods to countries with roads), sea freight (for bulky, heavy, or fragile goods), and air freight (for small, light, small quantities of crucial goods).
Outlines
🌏 Exploring Import Export Business in Malaysia
This paragraph introduces the importance of research and understanding new markets for starting an import export business. It highlights Malaysia as a promising destination for such ventures, being the third largest economy in Southeast Asia with a rapidly growing knowledge-based industry. The video offers guidance on how to navigate the Malaysian market, emphasizing the need to comprehend local regulations and consumer behavior. It also touches on the country's economic growth and its ranking in the World Bank's ease of doing business index.
📋 Navigating Import Export Policies and Procedures in Malaysia
This section delves into the policies and regulations governing imports and exports in Malaysia. It outlines the necessity of obtaining an export license and the importance of understanding the country's import regulations. The paragraph mentions the types of goods that are heavily regulated, such as food and agricultural products, motor vehicles, and steel products, and the strict prohibition of drug imports without a license. It also covers the customs tax or duty that varies depending on the type of goods, and the need for special licenses for certain agricultural products and military items.
🚀 Launching an Export Business in Malaysia: Steps and Considerations
This paragraph provides an overview of the steps required to start an export business in Malaysia, including obtaining an exporting license, registering the business with local authorities, and procuring permits for specific products. It discusses the export licensing system and the tax programs that may provide subsidies or restrict exports. The importance of choosing the right export products to minimize risks and ensure a quick return on investment is highlighted. Additionally, the paragraph advises on the use of custom brokers for paperwork and customs clearance, the classification of goods according to the harmonized tariff system, and the need for insurance to safeguard against potential cargo issues.
📦 Starting an Import Business in Malaysia: Key Steps and Strategies
The final paragraph focuses on the process of starting an import business in Malaysia, which shares similarities with exporting but with distinct differences. It reiterates the need for a business license and the stricter regulations on importing certain products like drugs and car parts. The paragraph emphasizes the importance of a marketing plan to familiarize locals with new products and the use of online marketing tools to raise brand awareness. It also discusses the selection of the right shipping method, the role of freight forwarders in ensuring timely and compliant shipments, and the importance of insurance for cargo protection.
Mindmap
Keywords
💡Import Export Business
💡Research
💡Malaysia
💡Southeast Asia
💡Economic Development
💡Ease of Doing Business Index
💡Import Regulations
💡Customs Tax or Duty
💡Export License
💡Customs Broker
💡Sales and Marketing
💡Insurance
💡Shipping Methods
Highlights
Import and export businesses require thorough research and understanding of new markets, countries, and products.
Malaysia is an attractive destination for import and export businesses due to its status as the third-largest economy in Southeast Asia.
Malaysia's economy has been growing at an average of 5.1 percent annually since 2002, driven by knowledge-based industries and technology adoption.
Malaysia ranks 12th in the World Bank's Ease of Doing Business index, indicating a business-friendly environment.
Certain goods in Malaysia, such as food and agricultural products, motor vehicles, and steel products, are heavily regulated by the government.
Import of drugs in Malaysia is strictly prohibited without a license from the Ministry of Health, with severe penalties including the death sentence for trafficking.
Customs tax or duty on general goods in Malaysia ranges from 0% to 50%, depending on the type of goods.
Raw materials, machinery, essential foods, and pharmaceutical products are rarely subjected to heavy taxes in Malaysia.
Some products cannot be exported from Malaysia, such as turtle eggs, and others require special licenses, including agricultural products and military items.
Starting an export business in Malaysia involves obtaining an exporting license and permits for specific products from the authorities.
Malaysia has an export licensing system and maintains tax programs that may provide subsidies or restrict exports of specific items.
Technical barriers like halal certification are required for meat and poultry imports, and all beef, lamb, and poultry products must come from approved facilities.
Custom brokers are essential for filing customs paperwork and ensuring smooth customs clearance in Malaysia.
Malaysia uses the Harmonized Tariff System for classifying goods, and any classification questions should be directed to specific customs stations.
A list of import and export documents is required by Malaysian customs for exporting products, including bills of lading and insurance certificates.
Forwarders play a crucial role in shipping products, and understanding the shipping and handling procedures is vital to avoid fines.
Sales and marketing are critical for generating revenue and orders in import and export businesses.
Choosing the right products and ensuring compliance with local regulations is essential for a successful export business in Malaysia.
Insurance is a must for export goods to ensure compensation in case of cargo damage or loss.
Starting an import business in Malaysia follows similar steps to exporting, with the need for a business license and adherence to import regulations.
Marketing plans are crucial for the successful launch of imported products in Malaysia, to raise awareness and visibility among potential buyers.
Different shipping methods are available for imports from Malaysia, including road freight, sea freight, and air freight, each with its advantages and disadvantages.
Transcripts
the international ecosystem is
ever-changing when you're starting an
import export business the first thing
you should be ready to do is research
and learn new markets countries products
and many other related terms about your
international business you can get
information from many resources and also
you can learn these things from people
you trust with their knowledge and
experiences so i appreciate you for
being here showing your trust in me and
adding value to my channel okay let's
discover a new country together are you
interested in starting an import export
business in malaysia or if you are
curious about how to export to malaysia
and if you want to import goods from
malaysia then you are in luck this video
will guide you
[Music]
southeast asia is one of the latest
rising dragons in asia and malaysia has
recently taken up the spotlight spot in
the region malaysia's economy is the
third largest economy in southeast asia
after indonesia and thailand and the
35th largest in the world malaysia is
part of the association of southeast
asian nations which includes singapore
thailand vietnam philippines and more
malaysia has been developing rapidly and
steadily with its economy growing at an
average of 5.1 percent every year since
2002 the concentration of
knowledge-based industries and the
adoption of the latest technology in
manufacturing are the drivers of
economic development it ranks 12 in the
world bank's ease of doing business
index however while malaysia is very
friendly to new trading ventures it
should be noted that not all businesses
will be successful in part because of a
lack of understanding of the local
market and the local consumers okay
after a brief overview of malaysia now
let's jump to the policies regarding
imports and exports in malaysia
[Music]
it is crucial to understand the basic
import export policies also you should
know the import regulations and
procedures in malaysia before you can
start your own import export business i
will provide you with a very overview
look at the policies and it should be
used for references only please contact
the professional local attorney for more
in-depth information generally speaking
malaysia has been pretty lux about its
import goods in recent years however
certain goods remain heavily regulated
by the government including food and
agricultural products motor vehicles
audio video recording machines and steel
products so take notice that the import
of drugs is strictly prohibited unless
you have a license from the malaysia
minister of health the sentence of drug
trafficking in malaysia can amount to a
death sentence other general goods are
subjected to a custom tax or duty about
zero percent to 50 percent the exact
value will wholly depend on the kind of
goods in general raw materials machinery
essential foods food commodity and
pharmaceutical products are rarely
subjected to heavy taxes some are not
even taxed at all foodstuffs are
regulated by the government under the
food act 1983 and the food regulation
1985 malaysia so you will have to do
sorrow research first to see if your
products are compliant with local
regulations certain products cannot be
exported out of malaysia including
turtle eggs and ratam from the peninsula
of malaysia some goods are regulated and
you will have to procure special
licenses to export including mostly
agricultural products military uniforms
arms and munitions and with life okay
let's go to the next exciting subject
and look at how to start an export
business in malaysia
[Music]
starting an export business in malaysia
will require certain steps before you
can get your business up and running for
beginners i suggest considering all the
aspects of your future venture and
concluding an export business plan i
will give you a general overview and
instructions let's look at the steps
the first thing you want to do is to get
an exporting license from malaysian
authorities as soon as possible every
company in malaysia has to register its
business with the local government so
getting your licenses ready will
legalize your business furthermore you
will need to procure permits to export
some specific products which are
regulated by the government agencies
malaysia has an export licensing system
in some areas malaysia maintains tax
programs that appear to provide export
subsidise in other cases the goal is to
restrict exports of specific items for
products such as textiles export
licenses are used to ensure compliance
with bilateral export restrictions
technical barriers such as halal
certification to meat and poultry
imports are regulated through licensing
and hygiene control all important beef
lamp and poultry products must originate
from facilities that have been approved
or accepted by muslim authorities in
malaysia porks and pork products can be
important into malaysia only when the
department of veterinary services
malaysia grants import permits each
consignment of pork and pork products
must have a valid import permit issued
by the malaysian current in inspection
services licenses are granted on a
case-by-case basis and are sometimes
denied without explanation
this is an extremely important step as
choosing the wrong products can put
heavy pressure on your export business
for starters you should choose products
that don't present many risks or that
are not regulated to ensure you will get
your return on investment back quickly
if you want to learn more about how to
choose your export product you should
watch this video here
custom brokers are people who will help
you file custom paperwork and clear
custom clearance in malaysia one wrong
mistake in your paper can cost you a lot
especially if it is sensitive export
product so working with the custom
brokers is your best shot to get through
custom procedures with ease malaysia
adapts harmonized tariff system to
classify goods all exports and imports
into country must be classified
according to malaysia tariffs any
questions related to the classification
of import and export goods must be
directed to the specific customs
stations that must be imported i will
give you the list of import export
documents required by malaysian customs
to export products to malaysia so you
can stop the video and note them bill of
lading or array bill packing please
letter of shipment leaflets catalogues
or other relevant documents certificate
of insurance if insured letter of credit
if any licenses and certificates proof
of payment declaration form
flight forwarders are the people in
charge of shipping your products out of
the country to another warehouse in the
destination country as the shipping and
handling procedures differ from country
to country you should consult with the
fried forwarders beforehand to
understand the process much more clearly
and avoid getting fined due to mistakes
as you start a new business in malaysia
it would be difficult to find a stable
fund to help you get your return on
investment back quickly for this reason
you should try to ask for credits for
healthier cash flow as the banks in your
home country for credits and take notice
that you might have to pay in advance in
some cases to export your products
all sorts of things could go wrong with
your cargo and once they do go wrong you
will rarely be compensated if your goods
are uninsured for this reason you must
ensure all your export goods so that in
the case the worst happens you will
receive compensation from the insurance
company
the most important part and the only
activity which brings you the revenue
and orders is sales and marketing do not
underestimate it think and plan properly
who are your customers what channels you
should use to reach them and what kinds
of fares and exports you should visit
don't forget to prepare a professional
website and brochures for your company
and think about what is important to
your customers so you can write the
sales email pitch accordingly also you
should watch my videos about that
subject alright let's move to the next
topic and learn how to start an import
business in malaysia
[Music]
starting an import business in malaysia
follows roughly the same steps as
starting an export business in the
country however there are certain
fundamental differences so let's check
out these steps
as i mentioned before you will need a
business license to conduct business in
the country so don't miss out on this
step without proper license you won't be
able to import anything
import products are a bit stricter than
export products so you will have to be a
bit wise here drugs are prohibited and
car parts and vehicles are heavily
restricted that's it if you do manage to
be innovative with car parts you could
well dominate the market soon thanks to
the high demand for this product
the process is pretty much the same as
starting an export business you will
have to work with a customs broker to
ensure that you have followed all
procedures properly if there should be a
mistake in the paperwork can end up
costing quite a bit so it would be a
good idea to outsource this task to
someone who knows the procedures well
you will bring to malaysia plenty of new
and unfamiliar products so it is quite
understandable you must have a marketing
plan before the official launch of your
products so ensure the locals know about
them a good marketing plan will
facilitate a huge boost in your sales
and you will soon receive your return on
investment if you want your brand to
reach the most marketing has many ways
such as online marketing keyword
advertising on google seo services
social media marketing and content
marketing are useful tools to raise
awareness and visibility of your
products to access the buyers
the right shipping method will not cost
you a lot and will at the same time not
get you into trouble because of breaches
in regulations you should work with
reputable fried forwarders only to
ensure your shipments arrive on time and
without delay you can use various
methods for shipping from malaysia and
let's look at three of them road fright
apply for normal goods transporting
malaysian goods to countries with roads
is the most common and widely used form
fifright applies to bulky heavy fragile
etc separates helps to keep goods safe
because they do not have to load and
unload many times like on roads transit
time will be longer airfry apply for
small lights small quantities crucial
goods such as contracts and papers
faster delivery time higher flight costs
okay my friends i hope you enjoyed and
learned some from this video malaysia is
an exciting destination for
entrepreneurs around the world with a
little bit of honesty and understanding
of the local business etiquette your
import export business will surely
flourish and become successful in the
future not to mention if you got to this
part of the video let me know by saying
export from malaysia in the comment
section because i want to turn things
around for you anyways please do not
forget to subscribe to my channel hit
the like button and share it with your
friends and on your social media and do
not forget to check out and join my
channel's joining features if you want
to support me and enjoy the privileges i
appreciate you guys i will see you in
the next video take care bye bye
[Music]
[Music]
you
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