cross cultural impact on trade relations of india & malaysia

8/8/2019 Cross Cultural Impact on Trade Relations of India & Malaysia

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CROSS CULTURAL IMPACT ON

TRADE RELATIONS OF INDIA &

MALAYSIA -Presented byRoopam Goyal

PGDM A-35



Introduction

F ederal constitutionalmonarchyconsists of thirteen

states and three federalterritories.Is separated by theSouth China Sea in tworegions.

Capital city is KualaLumpur.Putrajaya is the seat of the federal government



Ge ography

A coastal NationCovers an area of 329,733km2Coastal area are home tomore than 60% of the totalpopulationMost coastal regions are low-lying, areas that are less than0.5m above the highest tide,or are within 100m inland of the high-water mark, wouldbe especially vulnerable tosea-rise .



P e opl e

Multi-ethnic & Multi-culturalsocietyThe population estimate is28,310,000Malays(50.4%), Chinese(23.7%),Indian (7.1%), other indigenouspeople(11%) and others (7.8%)81% lived in Peninsular Malaysia,with 19% living in Sabah andSarawak.Rate of unemployment is just0.4% which is comparativelylower than other countries.



Malay Cultur e & Soci e tyA multi-cultural society but despitethe ethnic differences there arecommonalities culturally speaking.The family is considered the centre of the social structure. As a result , agreat emphasis on unity, loyalty andrespect for the elderly.Malays, Chinese and Indians all strive

to maintain face and the desire tomaintain face makes Malaysians strivefor harmonious relationships.



E tiqu e tt es & Cu s tom s

Greetings in a social context will depend upon the ethnicity of theperson you are meeting.

In general, most Malays are aware of Western ways so thehandshake is normal.Malay women may not shake hands with men. Men may also notshake hands with women and may bow instead while placingtheir hand on their heart.The Chinese handshake is light and may be rather prolonged.

When being introduced to someone of the opposite sex, noddingthe head and smiling is usually sufficient.Among all cultures, there is a general tendency to introduce:

the most important person to the lower ranking person.the older person to the younger person.women to men.



Bus in ess E tiqu e tt e

Meetings & GreetingsInitial greetings should be formal and denote proper respect.If in a team, introduce the most important person first.It is important that professional titles (professor, doctor,engineer) and honorific titles are used in business. Malays andIndians use titles with their first name while Chinese use titleswith their surname.

Bu siness Card Etiq u etteIf you will be meeting government officials, have one side of yourcard translated into Bahasa Malaysia.Examine any business card you receive before putting it in yourbusiness card case.The respect you show someone's business card is indicative of the respect you will show the individual in business. Actaccordingly.



Communication

As an extension to the need tomaintain harmonious relations,Malaysians rely on non-verbal communication.

Malays may hint at a point rather than making a direct statement,since that might cause the other person to lose face.They may have someone else give you the bad news.Silence is an important element of Malaysian communication.Pausing before responding to a question indicates that they havegiven the question appropriate thought and considered their

response carefully.Many Malaysians do not understand the Western propensity torespond to a question hastily and can consider such behaviorthoughtless and rude.Do not show anger in public as it makes Malaysians uncomfortableand creates a feeling of powerlessness.



Bus in ess Mee ting s

Most senior person on team shouldenter first so that he/she is the firstto greet the most senior Malaysian.This gives face to both parties as it demonstrates respect towards theMalaysian and shows that you respect hierarchy within yourcompany.Customary for leaders to sit opposite each other around the table.Expect the most senior Malaysian to give a brief welcoming speech.You need not reciprocate.Meetings may be conducted or continue over lunch and dinner.

At the first meeting between two companies, Malaysians willgenerally not get into in-depth discussions.They prefer to use the first meeting as an opportunity to get to knowthe other side and build a rapport, which is essential in thisconsensus-driven culture.



Major S e ctor s of Malay s ianE conomy

Mining IndustryBanking & F inance

TourismManufacturingExports & Imports



Doing Bus in ess in Malay s iaWelcomes foreign investments, particularlyin the manufacturing sector.Does not discriminate against investors fromany country.Offers incentives and other advantages to

foreign investorshas entered into double taxation agreementswith more than 40 countries.Has investment guarantee agreements withmost major industrialized countries thatexcept for public purposes, Malaysia will notexpropriate or nationalize property withoutprompt and adequate compensation.F or an individual who is not a Malaysiancitizen exercising an employment in Labuanwith an offshore company in a managerialcapacity, 50% of his income from suchemployment will be exempted from tax up tothe year of assessment 2004.



T rad e r e lation s be tw ee n India

& Malay s iaIndia is Malaysia's largesttrading partnerwhile Malaysia is India'ssecond largest tradingpartner in the (ASEAN)61 joint ventures in sectorsranging from palm oilrefining, power, railways,civil construction, trainingand IT.67 Indian IT companiesenjoy Multimedia SuperCorridor (MSC) status inMalaysia.



T rad e E s timat es

In 2006, India-Malaysia trade reached a recordUS $ 6.58 billion, registering a growth of approximately 22.84% over the previous yearand ten times the amount that existed fourteenyeas ago.Malaysia has traditionally enjoyed a handsome

surplus, of between US $ 1 billion to US $ 1.5billion, in its trade with India.India's exports have increased by 98 % from US $672.5 million in 2003 and US $ 1.3 billion in 2004.



R e c e nt d eve lopm e nt s

India is well placed to participate in Malaysia'sevolution to a high-value economy with investmentsin knowledge- and technology-based industries, saysDato' Sri Mohd NajibTun Abdul Razak, PrimeMinister of Malaysia.Increased economic ties between Malaysia and Indiafor the mutual benefit.Malaysia wants to attract the knowledge workers

and wants to be plugged into the global supplychain. In this regard, Indian companies are wellplaced to play their part in new technologyindustries such as biotechnology and renewableenergy.



Coop e ration P act

The Comprehensive Economic CooperationAgreement (CECA) is a key factor in strengtheningthe ties.

The free trade agreement with ASEAN enablesgreater integration between two economies withinAsia that will be the areas of significant growth.India should focus on business links primarily trade

and investments, as well as flow of people andpeople-to-people relations including throughtourism, movement of knowledge workers, training,education and skill development.



Obj e cti ve Rating

The next level of relations between India and Malaysiawould be to get involved in more sophisticated industriesthat reflect the majority of economy.Key area for Indian companies to tap funds in the Malaysianmarket would be an objective rating' since cost of fundsdepend on it. If the rating system is good then the marketswill respond more positively.Investment opportunities for industries on both sides arehuge because today the arrangement are multifaceted

covering a wide range of areas including animation,movies, oil and natural gas and real estate, apart fromtraditional areas like construction that Malaysiancompanies are involved in.Both the countries are planning to work together to exploitopportunities in third markets.



Ne w Vi s a r e gim e

To facilitate the movement of people andinteraction, Malaysia will soon have a new visaregime which will be able to identify bonafidetourists and business travelers the ones we willfacilitate.The education sector too will see significantcollaborative effort. There is a fair number of students both ways even now.

The way has been cleared for one educationinstitution to set up a distance learning centre avirtual campus -- in India.More collaboration between Malaysian and Indianinstitutions.



THANK YOU

cross cultural impact on trade relations of india & malaysia

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