Great news for Malaysia! A recent study by UOB paints a promising picture for the country, highlighting its position as the most attractive destination for businesses looking to expand within Southeast Asia.
The UOB Business Outlook Study 2024 (SMEs & Large Enterprises) surveyed 4,000 businesses across seven key markets in the Asean and Greater China regions. The results revealed a clear shift in focus, with nearly 60% of businesses prioritizing Asean for expansion in the next three years. Notably, interest in entering mainland China sits at just over 30%.
Malaysia emerged as the frontrunner within Asean, followed by Singapore, Thailand, and Indonesia. This is a significant win for the nation, showcasing its potential as a regional hub for business growth.
Key takeaways from the UOB study about Malaysia Business Expansion:
Strong appetite for international expansion Despite economic uncertainties, over 80% of businesses surveyed expressed a desire to explore new markets. This drive is particularly evident in Indonesia and Vietnam, where manufacturing and engineering top the list of sectors poised for expansion.
Positive outlook but cautious optimism While nearly 80% of businesses hold positive views about the current business climate, concerns about inflation, rising operational costs, and economic recovery remain.
Challenges and opportunities The study identified several hurdles for businesses, including finding suitable partners (39%), talent shortages (36%), and limited access to funding (35%). Conversely, it also highlighted the growing importance of sustainability (acknowledged by nearly 90% of businesses) and robust supply chain management (particularly crucial in China, Indonesia, Thailand, and Vietnam).
Embracing digitalization Around 80% of businesses have begun digitalizing their operations, with plans to increase investments in this area throughout 2024. However, concerns regarding cybersecurity, implementation costs, and employee skill gaps pose potential roadblocks.
Looking ahead, businesses are seeking greater support:Â
Tax incentives, easier access to funding, and collaboration opportunities are seen as key solutions to navigate ongoing supply chain challenges when it comes to Malaysia Business Expansion
Collaboration and Partnership to create greater success is a value that GP Outsourcing Asia holds as well! We help international employees, employers, businesses to expand to Malaysia through HR consultation, Employer of Record, Visa Support, Telecommunication Services, and more!
Source:Â The Edge Malaysia, which cites the UOB Business Outlook Study 2024 (SMEs & Large Enterprises).