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So today we will be discussing about Malaysia itself, pestle analysis of Malaysia,

sustainable business to be invested in Malaysia and also related business pestle analysis
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Malaysia is a country located in Southeast Asia formed in September 16, 1963. Malaysia
is divided into two parts by the South China Sea: the western half of the Malay Peninsula is
divided into eleven states and two federal territories, Kuala Lumpur and Putrajaya, often called
"West Malaysia." The eastern half is located in the northern part of Borneo, the third largest
island in the world. It belongs to the two states of Sabah and Sarawak and Labuan. The capital is
located in Kuala Lumpur, which is the most densely populated and prosperous area in Malaysia,
and the seat of the federal government is in Putrajaya. As of 2020, the total population of the
country is 32.27 million.
Although the official religion of Malaysia is Islam, citizens enjoy the right to freedom of
religion under the Federal Constitution of Malaysia. The race is very diverse. In addition to the
indigenous people, Malaysia is also composed of malay people and other races.
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Malaysia, which is rich in natural resources such as timber and oil, has established itself
as a leader in the production and processing of palm oil. Malaysia is a strong industrial country
due to its high industrial production, which includes electronics, pharmaceuticals, and medical
technology.
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PESTLE analysis consists of political, economy, social, technological, legal and
environmental analysis.
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Political
Malaysia is a 13-state federal constitutional monarchy with three federal territories. The
Prime Minister is the head of government, while the elected king is the head of state.
Malaysia is a country with a stable political situation. It develops and implements
foreign policies based on the ideals of peace and neutrality. It does, however, have maritime
and other disagreements with some regional countries. It retains strong ties with superpower
China, despite the fact that their conflicts over the South China Sea have drew a lot of
attention. Both countries have signed a series of energy and defence agreements to defuse
tensions and take their ties to new heights, according to reports.
In Malaysia, corruption is a big problem. According to Gabriel (2019), Malaysians are
reportedly forced to pay a ‘sweetener' to access essential facilities such as schools, hospitals,
and even courts. In the 2020 Transparency International Corruption Perceptions Index,
Malaysia was ranked 57th out of 180 nations.
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Economic
The economic environment is the next thing to consider in the PESTEL analysis of
Malaysia. Malaysia's GDP was $364,684 million in 2020. In the same year, the country's GDP per
capita was $11,193, up from $11,193 in 2017. Malaysia's economy is powerful, stable, and
industrialized. With a focus on industrialized and knowledge-based industries, it is diversified
and very strong. The introduction of cutting-edge technology has benefited the economy.
Malaysia is on its way to becoming a high-income nation. However, in order to maintain the
status in the long run, it must increase its labor efficiency and citizens' living standards.
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Sociocultural
Malaysia is a nation that is multi-ethnic and multi-religious. Islam is the most widely
practiced religion in the world. Despite the country's differences, communal peace is a strong
feature. Malay (official), English, Chinese dialects, Tamil, Telugu, and Malayalam are the major
languages. Malaysia has a diverse ethnic population and a vibrant cultural life. In comparison to
their peers in many upper-middle income nations, people live far more affluent lives. The low
national income tax, almost free health insurance, social welfare system, and low cost of local
food, gasoline, and household goods are all major contributors to this wealthy lifestyle. Alcohol
addiction among adolescents, on the other hand, is a serious problem.
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Technological
Malaysia is one of the world's most digitally linked countries. In 2020, around 91 percent
of its inhabitants used the Internet. Due to its strategic position, tech-savvy workforce, and IT
infrastructure, Malaysia has been a great place for foreign tech companies. Malaysia has set a
goal of being the preferred destination for high-tech investment by 2025. The government has
also taken a number of steps to achieve this aim. However, several Malaysian employers are
worried about a lack of locally qualified workers to meet the demands and challenges of the
rapidly evolving digital technology.
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Legal
Malaysia is governed by British common law with the addition of Islamic law. Malaysia
has also put in place a constitution that establishes supreme law and guarantees citizens' rights.
Foreign direct investment is impacted by certain Malaysian legislation. Malaysia is primarily a
common-law nation with a separate Islamic legal structure (mostly civil laws). The Employment
Act of 1955 is the country's largest piece of labor legislation.
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Environmental
Malaysia has one of the world's highest rates of deforestation. The exploitation of
natural gas, which is critical to Malaysia's economic development, is responsible for the
majority of deforestation. As a result of the excessive use of natural gas, the natural
environment has been destroyed. To combat this challenge, the government has enacted
deforestation legislation. Natural gas companies would be required to pay compensation for
each tree cut down, according to the law. As a result, companies would need to consider these
environmental factors before embarking on new projects.
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SUITABLE BUSINESS TO BE INVESTED IN MALAYSIA
Background of Business
As we can see, more and more mobile application is used to serve as a channel for
entrepreneurs to sell their products and services. Culinary is also one of the fields that are
affected by the development of IT. Nowadays, due to competitive era, people are becoming
busier that they are more likely to order instant food delivery rather than cook themselves. As
we know, Malaysia is one of the countries that are well known for its local culinary. However,
due to globalization, fast-paced lifestyle does not permit Malaysian people to cook local cuisine
for themselves but rather choose to eat fast food or branded restaurant.
Due to pandemic situation that has created limitation people all around the world,
including Malaysian people in doing business, culinary has been one of the industries that
experienced difficulties in their day-to-day activities. Moreover, it can be seen that there are
still high number of unemployment in Malaysia. However, this situation should not been
stumbling stone but rather stepping stone for Malaysian people in order to create innovation in
their business process and to create digital platform that can help to give employment to more
people so that economy in Malaysia can get better after adjustment during pandemic situation.
This innovation can be executed through start-up company in culinary industry which is also
supported by Malaysia technological condition according to PESTLE analysis in which it aims to
be digitally linked country in 2025.
Business Overview
According to background elaborated above, one of the most suitable business that can
be invested in Malaysia is a culinary start-up project that offers an innovative way to do healthy
culinary business by connecting local home-cooking cook, especially housewives who wants to
get profit and customers who want to have a healthy home-cooking delivery. This business can
be said as an online home-cooking restaurant which gathers all of local home-cook to be chefs.
Chefs are actually taking role as partner who will receive profit sharing from sales that they
made from this platform. Besides, food delivery in terms of customers’ food distribution can
also be offered by driver group which will increase customers’ satisfaction. Moreover,
additional feature such as diet tracker can also be added as a feature that serve to encourage
customers’ to increase their awareness of health by selecting suitable diet. With this feature,
every cooking’s common ingredients and make the most suitable recommendation for
customers’ according to their health condition. The main aim of target market for this project is
smartphone users who are busy but still want to enjoy healthy diets. These users can come
from any segments of society especially for students and office employees.
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Business PESTLE Analysis
Political
Pointing to a March survey by the Malaysian Global and Innovation Centre (MaGIC)
which indicated that less than 3% of start-ups would survive if the COVID-19 pandemic drags on
for the next 12 months . Thus, Future Digital is recommending for the Government to help
technology start-ups and provide immediate and medium-term liquidity and funding to them.
Recommendation includes to set aside US$45.9 million (RM200 million) from the RM4.5 billion
set aside to help SMEs with technology start-ups under the new stimulus package. Thus, this
can be a good start for culinary start-up in order to have their base in Malaysia during this
pandemic situation.
Economy
Post-pandemic economy outlook is one of the important aspects that may affect
culinary start-up industry. Despite uneven sectors recovery rate, it is inevitable to say that
economy all around the world is getting better and one of the main contributor is citizen’s
consumption rate as it will increase gross domestic product of Malaysia. One of the most
industries that fulfilled the most basic needs and wants of Malaysian citizens, which is culinary,
this business model is expected to be prospective along the way of post pandemic economy
recovery together with industrial revolution 4.0 that has supported start-up environment.
Furthermore, unprecedented high unemployment rate in Malaysia has also been one of the
reason that supported this business model at which it can be a platform to provide workplace
for people.
Social
As we can see, Malaysia is a multicultural developing country with percentage of
millennials population achieving 29% of total population. Despite being multicultural country
that consist of different races and ethnicity, Malaysia is dominated with malay people with
Islamic religion at which culinary must be halal. Due to sudden pandemic outbreak, society,
especially millennials in Malaysia are trying to pay more attention to their health starting from
diets. Thus, this can also be one of the supporting factors towards culinary industry start-up in
which it can be seen that social distancing limitation has caused lots of restaurant to disable
dine-in service so that home-cooking can be one of the solution for it. Moreover, demand for
healthy lifestyle has also supported the business model in the way that they provide diet
tracker as one of the way to start living healthy lifestyle.
Technology
Our market can be more broadened and beneficial as a result of Malaysia's technical
advancement. The majority of people are proficient at using the internet and are well-versed in
social media. As a result, the full benefits of E-commerce for both advertising and sales
purposes can be enjoyed. This would reduce the time costs and improve the effectiveness and
efficiency of our business strategy. Furthermore, main concept of culinary start-up lies on
mobile application which matched the development of industry revolution 4.0 at which
technology plays an important role.
Legal
SMEs who produce halal foods must adhere to a set of rigorous requirements and rules
that Muslims must follow. SME's must adhere to halal standards of conduct in order to protect
this large demand. The responsibility of enforcing the Standard Halal Food Guidelines has been
assigned to the Department of Islamic Development Malaysia (JAKIM). a result, halal regulatory
enforcement is a significant barrier to start-up development and sustainability.
Food protection standards are clearly stated in all food rules and legislation. According
to the Ministry of Health (MOH), all food processed by Malaysian producers, especially small
and medium-sized food manufacturers, must follow specific food hygiene standards as well as
the specifications of the Food Act 1983.
Environmental
As elaborated above in the Malaysia PESTLE analysis, one of the most important
environmental issue in Malaysia is regarding deforestation. Thus, this business model will also
aim to raise awareness in environment issue using concept of environmental friendly package
as a form of supporting Malaysia in their process of solving environmental issue.
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Thus, through PESTLE analysis that has been conducted, it can be seen that one of the
most prospective business industry that is worth to be invested in Malaysia is culinary start-up
business at which it supports one of Malaysia country goals, which is to be digitally linked
country in 2025. Moreover, the aim for healthy lifestyle after sudden outbreak of pandemic
situation has also caused Malaysian people to realize the existence of local culinary in the form
of home-cooking. This is due to social distancing that has limited dine-in services in most of
restaurants.