Malaysian business culture

Malaysia's cultural diversity makes it an interesting place to do business. The population is predominantly Malay (legally meaning a person must be Muslim), but there are also large Chinese and Indian communities. It is important to understand some of the cultural differences when developing relationships and doing business in this market.

Greetings

English is widely used in both the public and private sectors, and is also widely used in business in Malaysia. However, knowing a few words of Malay is a great way to build relationships.

If you work in the wood or furniture industries, you may need to translate from English to Mandarin, given the strong Chinese influence in these sectors.

As Malaysia is a Muslim country, physical interaction between the sexes may be considered inappropriate. Malay women in this country are not required to shake hands with men. Always wait for the lady to extend her hand first. If the lady does not offer her hand, acknowledge her by placing your hand over your heart. Men should only shake hands lightly and for a short period of time. A smile and a simple nod may be sufficient when greeting Indian business associates, although a handshake is also appropriate.

Business Meetings

Plan business meetings in advance and confirm them the day before. If possible, avoid organizing meetings and events on Fridays, as this is the day Muslims perform a special weekly prayer. Always arrive early for a meeting, but be prepared to wait a little before it starts. The Chinese are known for their punctuality, while others are known for their relaxed approach to time. Therefore, you should arrive on time, but the meeting may start a little later.

Also keep in mind that meetings with large companies and government officials are difficult to arrange, and you may not get another meeting, so seize the opportunity if it presents itself.

Don’t expect business decisions to be made at the first meeting. Initial interactions are often used to build rapport, as business relationships are based on familiarity and trust. The meeting agenda may be interrupted by prayer sessions of practicing Muslims. If you know your Malaysian counterpart prays, it is a good idea to schedule time for the midday prayer. This is the prayer that most likely coincides with the workday. Be patient and respectful if some or all of your Malaysian counterparts leave for a short time to pray. They will return when they are finished.

Small talk is traditional to begin a meeting. Personal questions are premature, but inquiries about interests or other hobbies, as well as questions about family members, are acceptable.

Approach people in positions of authority with respect, as Malaysian society, especially business culture, is very hierarchical. Always be polite during conversation. You should never show your displeasure in public, as this is considered rude. Never belittle or criticize a colleague in front of other colleagues. Use expressions such as “I will try” instead of saying “no”. A minute of silence before answering a question demonstrates good etiquette and that you are paying attention to the matter at hand. Relationships are built on doing what you say you will do, and Malaysians respect that. To build trust, make sure you follow through on what you say you will do.

Many Malaysians have a fatalistic outlook on the world, which leads them to attribute some of the successes and failures of their business ventures to the will of God. As such, they may take into account gut feelings or thoughts based on their faith when making decisions. They cannot always rely on hard facts alone.

Don't reject a Malaysian's offer outright; When you reject someone's idea, it can be interpreted as a rejection of the person who put it forward.

To save face, many Malaysians avoid giving a flat negative to your proposals, even if they disagree with it. So focus on hints of hesitation, listening to what they say but also paying close attention to what they are subtly hinting at. You can always double-check your understanding by asking open-ended questions.

Some Malaysian businessmen, politicians, and academics have honorary titles from the King of Malaysia or the ruler of their state. These are equivalent to our knighthoods and honorary titles, so always use them in written or spoken communication.

Before going into a meeting, it is important to know whether those you are meeting have titles so that you can address them accordingly. If they do, address them by their title and family name, such as "Good morning, Tan Sri Lim." (Tan Sri is the title, Lim is the family name).

Note that even outside of work hours and in informal settings, you should address people by their title.

If a man receives a title, his wife also receives one. However, if a woman receives a title, her husband does not automatically receive one.

Business Cards

As in many Asian countries, cards have cultural significance. In Asian culture, the way you handle a business card indicates the respect you are likely to show in a business relationship. The left hand is generally considered unclean, so avoid using it to present a business card.

Here's what you should do when receiving or presenting a business card:

• Hold the card with both hands.
• Make sure the name on the card is facing up.
• Take a moment to study the card before putting it in your pocket or placing it on the table in front of you. This gesture demonstrates your consideration and respect for the person and the information contained on the card.

Dress Code

For business meetings, you are expected to wear business casual attire. If you are unsure, it is a good idea to consult your host for recommendations.

For men, the recommended attire consists of a dark suit, paired with a long-sleeved shirt and tie. A batik shirt is also considered appropriate for more formal occasions.

Women are advised to dress modestly to show respect for the culture. Dresses and blouses should have sleeves, and it is best to avoid clothing that exposes the shoulders, toes, or knees. Longer skirts are also recommended.

If you are meeting with government officials, a jacket is a must.

Gift Giving and Hospitality

Consider bringing a small gift from your home country when you first meet a potential business partner. This will show your sincerity in building a long-term relationship. Your gift will usually be opened later.

Avoid black, white or blue packaging - these colours symbolise death or sadness - and remember that yellow is reserved for royalty.

Avoid giving a Malay alcohol in any form. Make sure the gift is halal (can be consumed in accordance with Islamic Sharia).

When dining with Malays, choose a halal restaurant. Do not offer alcoholic drinks - Malays will rarely object to you drinking alcohol, but ask first out of politeness.

Finally, if you are invited to someone's home, remove your shoes at the entrance as a sign of respect. This is not usually the case in an office setting.