HOW TO START AN IMPORT EXPORT BUSINESS IN MALAYSIA | Doing Business In Malaysia

Summary

This 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).