Doing Business or Working in Malaysia

For those who are not familiar with Malaysia, I guess one of the most important factors to be considered about doing business in Malaysia is about its multi-ethnicity. As such, there are bound to be differences between dealing with government linked companies which are predominantly managed by Malays. The other two main ethnic groups in West Malaysia are the Chinese who traditionally concentrates in areas such as retail and trading while Indians have significant presence in advisory services such as law and IT. For this first posting, I will offer some opinions on some business characteristics of companies run by Chinese since I am a Chinese in the first place. Again, there may be some differences of opinions given the fact that Chinese in Malaysia's education background can be either National language (Malay)-medium and Chinese-medium based. I happen to fall in the former category and as such, my views are influenced to a large degree to my education background:

Some characteristics of small and medium size Chinese-run companies:

1) Family-based business. Chinese usually put trusts in their family members and as such, you tend to see father handing over the business to his son/daughter and relatives filling up key positions in the company.

2) Titles are important. Very often, you will observe in business cards with long list of affiliations. Some may be offended if you don't address them with their conferred titles such as Datuk, Sir, etc.

3) Direct comments are usually not recommended. It will be perceived as lack of respect. It has to be done subtlely especially the comments are directed to someone who is older. The elders have to be respected and the terms "loss of face" in Chinese which means loss of respect is something you don't want to cause to the other party.

4) Hierarchy is important. This includes seating arrangements in official functions, lines of communications, etc.

5) Food is important. Guests are usually treated to fine Chinese dining.

6) Very hardworking. Typical of Asians anyway. Emphasis on work-life balance is usually less compared to Western counterparts. Office and private times are often blurred. Work related phone calls after office hours and weekends are normal.

7) Small gifts to guests are welcomed.

8) Major holidays are the Chinese New Year. Expect long breaks during this period and not during Christmas. Work on Chinese New Year eve is a big NO as most Chinese will spend the evening having reunion dinner with family members.

9) Mandarin is the most common language. Other common dialects include Hokkien, Cantonese and Hakka.

10) For business conversations, profanity is seldom used. For example, I have met an American who use the word "f**k" casually in his conversations even when he is not angry. Not common here unless you are dealing with blue collar workers.

Of course, the above are GENERAL observations. There are always exceptions and with the increasingly flat world, I guess the exceptions are increasingly becoming normal. Anyway, others may have their opinions and are welcome to give their comments.