PESTLE analysis includes political, economic, social, technological, legal and environmental factors. We will discuss how some of the above factors are useful for Malaysia and others are not. Before we get into the discussion, let`s learn a little more about Malaysia. Malaysia is ethnically diverse and has a rich cultural life. People lead much richer lifestyles than their counterparts in many middle-income countries. The main factors contributing to this affluent lifestyle are a low national income tax, an almost free health care system, a social protection system and low costs of food, fuel and local household products. However, alcohol abuse among teenagers is a major problem. Similarly, the government`s tight grip on the media is a problem. Electronic commerce is a valid and legally recognized medium for commercial transactions under the ECA 2006. According to § 7 ECA 2006, a contract concluded by electronic communication (in accordance with CA 1950) is valid, binding and enforceable by and for the parties. To that end, Article 9 of the same legislation recognizes the electronic signature, that is, the signature made electronically in accordance with the requirements of the DSA 1997, including the framed digital signature in accordance with the requirements of the DSA 1997. With the liberalization of the legal sector, a burgeoning Islamic financial sector, growing foreign investment in the UK, and Malaysian companies listed in increasing numbers on the Kuala Lumpur Stock Exchange, it is no surprise that interest in Malaysia has increased significantly in recent years. Malaysia follows the common law system.
The country follows a legal framework that includes the protection of Malaysian civil rights, but also state laws in certain areas. This detailed analysis of PESTEL Malaysia aims to address some of the political, economic, social, technological, environmental and legal factors influencing Malaysia today. Malaysia is a powerful country and one of the fastest growing economies in Southeast Asia. Kuala Lumpur is the national capital, while Putrajaya is the seat of the federal government. Some of the political factors that favor and influence Malaysia are: 13 See www.tmogroup.asia/malaysia-cross-border-ecommerce-insights-and-analysis/ Malaysia is a beautiful holiday destination. Vibrant cities, delicious food, beautiful beaches, weather and friendly people are some of the factors that attract tourists to the country. No wonder about 26.1 million tourists came to the country in 2019 (Hirschmann, 2020). Gabriel, C. (2019) Cleaning up corruption in Malaysia goes beyond Najib, available at: www.aljazeera.com/indepth/opinion/cleaning-corruption-malaysia-najib 190522110246585.html Retrieved 27 October 2019. Wolff, H. (2020) Internet user penetration in Malaysia from 2015 to 2025, available at: www.statista.com/statistics/975058/internet-penetration-rate-in-malaysia/ (accessed 11 March 2021) 11 See www.tmogroup.asia/ecommerce-in-malaysia-how-to-begin/ Foreign lawyers can provide legal services on an air arrival and exit basis as long as they: The final element that needs to be addressed in Malaysia`s PESTEL analysis is the country`s legal landscape. However, it should be noted that due to the limited scope of the article, the discussion here is somewhat limited.
Malaysia is largely a common law country with a distinct Islamic legal system (mainly civil law). The Employment Act (1955) is the most important labour legislation in the country. Like its policies, Malaysia`s economy has changed in recent decades from commodity production to a multisectoral approach. In 2014, the Malaysian legal services market was officially opened to international and foreign lawyers and law firms, and two UK law firms have since established themselves in Malaysia. If your company would like to publish press releases or leadership articles, please contact content@legal500.com Malaysia has a healthy, robust and industrialized economy. It is diverse and very robust and focuses on industrialized and knowledge-based industries. The economy has benefited from the introduction of advanced technologies. Malaysia is well on its way to achieving high-income status. However, to finally achieve this status, it must continue to improve the level of labour productivity and the standard of living of its citizens. There are different definitions of social status in Malaysia, of how rich families send their children abroad, they have a lot of money and their English must be really good. They may judge social class by their buying style; Luxury clothes, expensive jewelry and the latest model of mobile phone. Having the latest model of car or vehicle is more important for maintaining social status than owning a home.
In May 2018, Malaysia experienced its first regime change in 61 years of uninterrupted rule after hard-fought parliamentary elections. The unprecedented victory was the first time the country had witnessed a change of government since independence from the British in 1957. Online businesses in Malaysia operated by foreign nationals (who do not have permanent residence in Malaysia) do not need to be registered with the SSM, but must be established through the establishment or registration of the company.10 For the avoidance of doubt, to establish an online business in Malaysia, the foreign trader must set up a business or, if the trader is already a foreign company under the relevant foreign law, to register the foreign company under the CA 201611. On this page: Business Contract | | Intellectual property Legal framework of the company| International dispute settlement As electronic commerce continues to evolve, existing legislation is not yet complete and must evolve to meet the needs of the market and its participants at the time. Perhaps, in addition to amending existing legislation to consolidate and modernize it, new legislation can be adopted to further strengthen the current legislation along with the development and expansion of e-commerce in Malaysia. For the foreseeable future, due to its convenience, convenience, and accessibility, it is envisioned that e-commerce will be an equally popular (if not more popular) alternative to face-to-face commerce for consumers and merchants. Malaysia is a beautiful country with multi-ethnic groups, amazing forestry and hard-working and improving people. But the country`s political system is corrupted by dubious politicians who are not afraid to bend the rules to stay in power. The next element to be taken into account in Malaysia`s PESTEL analysis is the economic environment. Malaysia`s GDP in 2019 was $364.684 million. The country`s GDP per capita was $11,193 in the same year, higher than in 2017 (Country Economy, 2021).
Corruption is a major problem in Malaysia. According to Gabriel (2019), Malaysians who have access to basic services such as schools, hospitals and even courts would be required to pay a “sweetener”. Political corruption has recently attracted attention with the arrest of prominent political figures. Malaysia ranked 57th out of 180 countries in Transparency International`s Corruption Perceptions Index in 2020. It shows that the country is well below countries such as Singapore and Hong Kong, although the ranking is slightly better than the Southeast Asian average. Malaysia is a politically stable country. It pursues the principles of peace and neutrality in the formulation and implementation of its foreign policy. However, there are maritime and other disputes with some countries in the region. It has close ties with the Chinese superpower, although its disputes with the latter over the South China Sea have attracted a lot of attention. However, it has been reported that the two countries have signed a series of energy and defense agreements to ease tensions and take their relations to “new heights.” Prepared by: Shamimi Saberi, Mohammad Ashraf Mohamed Sopiee & Shazana Abd Hapiz The stability of the government and also in the political environment is only possible if you have peaceful relations with neighboring countries.
China and Malaysia have a serious dispute over the Chinese Ocean, but the two countries have decided to work together to resolve their differences and conflicts. Malaysian exports include oil, gas and petroleum products. Their rate depends on the international market. However, if the international market is good, you will get good prices, otherwise no. The United Kingdom and Malaysia enjoy a strong historical relationship. The UK has been a major investor in Malaysia for decades, and well-known names such as HSBC, Standard Chartered, Prudential, Tesco and Dyson all have large established businesses there. Urbanization leads to deforestation. Since we not only forest fauna, birds and insects, but also purify our atmosphere. When you cut down trees, it means less oxygen and more carbon dioxide, which leads to global warming. Malaysia is listed as a member of the Commonwealth of Nations, the UN and as the founder of ASEAN and the Organization of Islamic Cooperation (OIC). 29 Section 145 of the Consumer Protection Act 1999 (Act 599) There are many cultures in Malaysia – in addition to Malaysians, Indians and Chinese also live in the country. Each group has retained its own religions and ways of life.
The Malaysian population consists of indigenous Malays, Indians and Chinese ethnic groups.