Malaysia: Business Practices
April 18, 2019
By GoinGlobal
Conducting a meeting or giving a presentation
Meetings should be arranged in advance but should not be scheduled for lunchtime, especially not on Fridays because it is a day dedicated for prayers for Muslims.
Meetings always start with an introduction. Generally, women are introduced to the men, and seniors and higher-ranked executives are introduced first. Seating position is very important; the host will sit on one side of the table, and the highest-ranked people should be sitting next to him.
Chinese meetings are always punctual and to the point. They would expect you to show up on time, do your homework and make it brief. Indian and Malay meetings are more relaxed with timing, and usually start with small talk and “get-to-know-you” questions where personal details are expected to be shared.
If meetings are held at your own office, you should always greet the guests at the entrance to show respect. If meetings are held at their office, arrive on time, not early, because the hosts will not want to be caught unprepared; this could cause loss of “face.”
Audio-visual aids should be prepared in advance, but you should always have back-up plan because projectors and computers don’t always work. Be fully prepared to give your speech/presentation without the slides.
Negotiation styles
Malaysians share a lot of similarities with their Asian neighbors. In business, there is an emphasis on being polite and diplomatic, as directness may be taken for rudeness or disrespect.
Malaysians prefer long-term business relationships and win-win solutions, so they typically will take some time to evaluate potential partners. Negotiations and business decisions often take longer than Westerners are accustomed to, as Malaysians wish to allow ample time to assess the risks. Negotiation is conducted in multiple rounds. First meetings are usually reserved for getting acquainted, so no shop talk is expected. Giving thoughtful business gifts and hosting lavish meals are an essential part of dealing with Malaysians, and Asians in general. The more exclusive the gifts and meals show how serious you are.
Malaysians value “soft-power” personalities who are considerate and subtle, yet unrelenting in their pursuits. You will not often hear them saying “no” directly; rather, they will find more diplomatic ways of expressing a negative. Non-verbal cues are very much a part of communicating here. Facial expressions, tone of voice and body language are taken as signs of one’s character. Silence is also a crucial element in communication, and you are expected to read between the lines.
Most old-school businessmen continue to rely on verbal contracts in business, so reputation and trust are taken very seriously and should be a top priority. Word travels fast within the community here, and once you have broken the trust, you will find it hard to conduct business.
Written correspondence
With so many languages used concurrently for day-to-day business activities, English has become the unofficial “official” common-ground language for Malaysians. Traditionally, residents learn and use British English, but American English has seen its fair share of adoption in recent years. As a rule of thumb, stick to what you are comfortable using. There are no significant formatting differences for letters and emails. If you receive a written invitation, you should respond in writing. And never forget to use the full honorifics of the person with whom you are communicating.