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).

Outlines

00:00

🌏 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.

05:01

📋 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.

10:01

🚀 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.

Keywords

💡Import Export Business

An import export business involves the trading of goods and services between countries. It is the core theme of the video, which focuses on starting such a business in Malaysia. The script discusses the importance of understanding markets, products, and regulations for a successful import export venture.

💡Research

Research is the process of gathering information and analyzing data. In the context of the video, it is the first step recommended for starting an import export business, emphasizing the need to learn about new markets, countries, and products to navigate the international ecosystem effectively.

💡Malaysia

Malaysia is highlighted as a country of interest for starting an import export business due to its strategic location and economic growth. The video provides an overview of its economy, regulations, and the importance of understanding the local market for business success.

💡Southeast Asia

Southeast Asia is a region that includes Malaysia and is known for its economic growth. The script positions Malaysia as the third largest economy in this region, indicating its potential for business opportunities within the import export sector.

💡Economic Development

Economic development refers to the growth and advancement of an economy. The video mentions that Malaysia's economy has been growing steadily, driven by knowledge-based industries and technology adoption, which is attractive for new businesses.

💡Ease of Doing Business Index

The Ease of Doing Business Index is a ranking by the World Bank that assesses the regulatory environment for business operations. Malaysia is ranked 12th, indicating that it is business-friendly and has favorable conditions for starting an import export business.

💡Import Regulations

Import regulations are the rules and procedures governing the entry of goods into a country. The script explains that understanding these regulations is crucial for starting an import export business in Malaysia, especially for products like food, agricultural products, and motor vehicles.

💡Customs Tax or Duty

Customs tax or duty is a fee levied on imported goods. The video explains that the rate can vary from 0% to 50% depending on the type of goods, and that some products like raw materials and essential foods are rarely subjected to heavy taxes.

💡Export License

An export license is a legal document required to authorize the export of certain goods. The script outlines the necessity of obtaining an export license from Malaysian authorities and the need for permits for specific regulated products.

💡Customs Broker

A customs broker is a professional who assists with customs paperwork and clearance. The video emphasizes the importance of working with customs brokers to navigate the customs procedures in Malaysia and avoid costly mistakes.

💡Sales and Marketing

Sales and marketing are essential for generating revenue and orders. The script advises creating a professional website and brochures, understanding the customer base, and planning the sales pitch to effectively market import export businesses in Malaysia.

💡Insurance

Insurance provides financial protection against potential losses or damages. The video stresses the importance of insuring export goods to receive compensation in case the worst happens, ensuring business continuity.

💡Shipping Methods

Shipping methods refer to the various ways goods can be transported from one place to another. The script discusses different methods such as road freight, sea freight, and air freight, each with its advantages and disadvantages for import businesses in Malaysia.

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]

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