Location: Southeastern Asia. Shares borders with Thailand, Indonesia, Singapore and Brunei.

Capital: Kuala Lumpur

Population: 24,821,286 (July 2007 est.)

Language: The Malay language is an Austronesian language spoken not only by Malaysians but all Malay people who reside in the Malay Peninsula, southern Thailand, the Philippines, Singapore, central eastern Sumatra, the Riau islands, parts of the coast of Borneo, Cocos and Christmas Islands in Australia.

Lifestyle & Aspirations
The arts play a big part in everyday life. Many people play musical instruments, the traditional kompang (like a tambourine) one of the most popular, used at everything from weddings to football matches. There are numerous elaborate folk dances, a tradition kept very much alive for family celebrations and official events. The Chinese community includes many lion dance troupes, which are in high demand during the 15 days of Chinese New Year.
Malaysia has a number of festivals and celebrations, some of which are celebrated as public holidays, either nationwide or specific to a few states. Most of these festivals are either religious or cultural in origin, and are swathed in traditions and rituals. Religion is no barrier to a festival being celebrated by all, and everything from Hari Raya Puasa (the end of Ramadan) to Chinese New Year, the Hindu festival of Deepavali and Christmas are observed.
Other leisure interests include football (watching and playing), shopping, movies, theatre and golf (among rich men). But great emphasis is given during leisure time to family and friends, with large gatherings in people's houses, or in a restaurant. The mamak stall, a kind of pavement café, has become a permanent fixture in many parts of Malaysia, especially within the state of Selangor, particularly in Kuala Lumpur and Petaling Jaya and is popular among young adults and teenagers who look at these stalls as a place to gather with friends to while the night away, as an alternative to a nightclub.
Malaysians will travel great distances to be with family on special occasions. The exodus on public holidays from the cities is known as "balik kampung", or "to go back to one's hometown".

The Essentials (10 Key Tips)
1. Malaysia is a multicultural society - make sure you respect the differences between the three major ethnic groups - Malay, Chinese and Indian.
2. When making conversation, family life is a good topic. This is often more effective for relationship -building than talking about business achievements.
3. Building a relationship with your counterpart is very important and they will not do business with you until they feel they know you personally.
4. Make time for entertaining, as it's an important part of the business process.
5. Note the times for prayer for Muslims when scheduling appointments.
6. Remember that Malaysians are indirect communicators and find it difficult to say 'no'.
7. Make sure you are dealing with the right person, as often, only those at the very top of the hierarchy are empowered to make decisions.
8. Be aware that the Malaysian concept of a deadline may not be the same as yours; Muslims see the future as something vague that will be determined by God.
9. Attempt to maintain harmony at all times. Public display of anger would be considered rude and immature.
10. As there is a strong respect for seniority and hierarchy, it is important to gain the trust of your Malaysian employees to know their real points of view.

Working with the Malaysians
There are three principal ethnic groups in Malaysia, with different cultural backgrounds and attitudes. The Chinese used to dominate the business sector, with the ethnic Malays more focused on farming and fishing, and the Indians as shop and plantation workers. This has all changed since the government's affirmative action programme, introduced in the late 1960s, to boost the position of Malays in business and in universities. The programme has been partially successful, although many Chinese Malays are now forced to go to university abroad because of the high quotas of lesser-qualified ethnic Malays being accepted in universities. The Indians, broadly speaking, have become the new underclass.
The ease of working with the Malays depends on the cultural background of the company's owners. The Chinese tend to be businesslike and efficient, while ethnic Malays are more focused on relationship-building. Malays are Muslim and time for prayer must always be accounted for - a meeting, for example, may be interrupted while everybody goes to the mosque, or the prayer room. Both groups are typically Asian in that the concepts of loyalty to the family, respect for elders and saving face are very important to them. Both are high-context communicators and both groups are enthusiastic team players. Malays are becoming increasingly materialistic as their society heads towards one of a developed, rather than developing country, but are still highly loyal to their leader, putting the good of the team before personal goals.

Making a Good Impression
You will make a good impression in Malaysia if you are well-presented, calm, unhurried and friendly in a respectful way. Dress respectfully (take the lead from your Malaysian counterparts) and use politeness in your tone, showing special respect for older and more senior people. Malaysians are quite formal and their social and business hierarchies must be observed.
Tread carefully through the social minefield of people's religions and taboos, bearing in mind that you may be dealing with a devout Muslim, Buddhist or Hindu. This means observing the correct protocol regarding gifts, body language, menus while entertaining and consumption of alcohol.
Do not appear to be in a hurry when negotiating, as it will be used as a weapon against you. Don't press for a quick decision and don't focus on the bottom line or the short term. Malaysia is all about forming lasting business relationships. Tread carefully around certain conversation topics, particularly government, corruption and race issues. Remember that Malaysians are very patriotic and proud of their country, and are conditioned not to question authority. They are also very welcoming to foreign investors, particularly in the IT sector, and pride themselves in being technologically advanced.

Business Etiquette
Business cards
The language of business is English. Business cards should be embossed and promotional material printed in English. Since many business people in Malaysia are Chinese, it might be worth translating the information into Chinese on the reverse side of your business card.

Communication style
Malaysians use a lot of indirect communication and will make saving 'face' a priority over being blunt and truthful.
When asked for a favour, Malaysians will usually avoid saying "no," as to do so causes embarrassment and loss of face. If a request cannot be met, Malaysians may say it is inconvenient or under consideration. The Malaysians have the habit of telling a person whatever they believe he or she wants to hear, whether or not it is true.
If bad news needs to be told, they will be reluctant to break it. Sometimes they will use an intermediary for communication, or perhaps they will imply bad news without being blunt.

Body language
Malaysians tend to be reserved in their use of body language and are not given to wild gestures of huge displays of emotion. Visitors should behave in the same way to avoid making their hosts feel uncomfortable.
Handshaking in Malaysia is relatively uncommon. Although Malaysians are used to the Western handshake, don't be surprised if the handshake you receive in return is weak by American standards. In fact, do not extend your hand to a Malaysian unless he or she offers first. This is especially true for women. Never touch someone with your left hand, as it's considered unclean. Never expose the soles of your shoes, either by putting them on a table or by crossing your legs. Avoid pointing at anything and if you must, use your entire hand to indicate the object.

Gift giving
Only small gifts are usually given, as anything larger may be perceived as bribery and Malaysians are very sensitive about issues of corruption. If you are presented with a gift, it is customary to accept it with both hands and wait until you are alone to open it. Reciprocate with a gift of equal value in order to avoid loss of face.
If you are going to meet a company for the first time, take some small but tasteful gifts and keep them in your briefcase, so that if you are unexpectedly given something, nobody will lose face. Quality pens, desk accessories and items representative of your country or city are acceptable. If a man gives a gift to a Malaysian woman, he should say that the gift is from his wife, to avoid the gesture being construed as romantic. If you give a Chinese person a gift, they may refuse it three times, as a sign of politeness.
Presenting a gift is complicated. White, blue, black and yellow gift-wrap should be avoided. Red or pink is safest. Give an even number of flowers. Avoid anything with alcohol (including perfume) or pork. Don't take food to a dinner party.
At Chinese New Year, it is customary to give a gift of money in a red envelope to children and a tip to anybody else you deal with on a regular basis. You'll see the red envelopes all over shops and homes. This gift is called "hong bao." Give only new bills in even numbers and even amounts. Many employers give each employee a "hong bao" equivalent to one month's salary; check whether this is part of the culture in your company.

Business Meeting Culture
Planning a meeting
Long meetings as well as business entertaining are part of building the relationship. You must be prepared for what may seem to be an inordinate amount of small talk and numerous social occasions.
Plan the meeting at least two weeks in advance. If it is with Chinese Malays, they will probably turn up reasonably punctually. Ethnic Malays and government officials are likely to have a more relaxed attitude to time and may even cancel with no real explanation.
If the meeting is for negotiating, it is polite to let the other party know who will be attending from your side and how senior they are, so a matched negotiating team can be supplied.

During a meeting
Expect a formal exchange of business cards and a degree of small talk before the meeting starts. Tea, coffee and soft drinks should be offered.
Malaysians might ask what other nationalities consider to be quite personal questions, perhaps about your martial status or your income. If you feel unable to respond to these questions, you should be open about it and explain that these are not topics that are discussed in your country, although in such a way that the other person does not lose face.
Malaysians tend to be good, attentive listeners but expect the same politeness from others. Do not interrupt someone while they are making a point and keep the meeting tone formal and respectful. Body language is important, regardless of the ethnic origin of the other party; sitting with legs crossed or in a casual pose, with open-necked shirt is likely to indicate a less than serious attitude to business.

After the meeting
It is not really appropriate to extend an impromptu lunch invitation after a meeting. You should let your Malaysian counterparts invite you out first. Nor is it correct to suggest after-work drinks, although Chinese executives in Kuala Lumpur and other big cities may be amenable to this.
If a contract has been drawn up, go through it carefully and bear in mind that it may be changed even after signing. If there is a list of action points, circulate it and politely reiterate everybody's task and deadline.

Motivating Others
The rapid economic growth of Malaysia under the leadership of its fourth prime minister, Datuk Seri Dr Mahathir Mohamad, did a lot to encourage a patriotic sense of achievement amongst its people. Dr Mahathir's 'Vision 2020', an ambitious plan that saw Malaysia as a fully developed, economically successful, socially integrated country by 2020, also stirred up a sense of unity among Malaysians.
Embodying this spirit is the slogan "Malaysia Boleh!" which loosely translated means "Malaysia Can Do It!". "Malaysia Boleh!" has now become a kind of battle cry and will be heard at sporting and other competitive events.
This sense of patriotism translates to individual companies. If Malaysians have a strong, caring leader, they will be inspired to work better for the good of the team (and the leader), rather than the advancement of the individual. Malaysians are strongly motivated by money as well, of course, but a sense of comfort and belonging in the workplace is very important to them. Many Malaysians do not have a personal career plan, as such, but instead see the future as something vague that will be dictated by the will of God. If they are particularly attached to a leader and that leader moves to another company, they may well follow suit.
Pitting teams against one another is not really done in Malaysia as a losing team will also lose face, and a winning team will feel uncomfortable being singled out. Malaysian companies are more likely to foster team spirit with a caring environment - family days, celebration of special anniversaries, light hearted sports days, for example.

Effective Presentations
Malaysians are good listeners and will normally be an attentive audience. Their decisions are subjective and are emotion- and relationship-based, so there isn't any harm in appealing to this in a presentation, while keeping it relatively modest. Boasting will not make a good impression. Humility and evidence of a high moral standard will attract the audience's attention.
A Malaysian audience will be impressed by a high-tech presentation (provided it is made in an environment with the necessary equipment, of course).
Your audience is unlikely to interrupt during the presentation, so build in time for questions afterwards. Do not be surprised if people are reticent in coming forward; this is a very group-orientated culture and in a large audience, individuals may not want to be singled out for attention. If you want people to ask questions, it's a good idea to allow time for socialising after the presentation and giving them an opportunity to do so on a one-to-one basis.

Audience expectations
A Malaysian audience expects a presentation to be respectful, with an emphasis on ethics, the long term and the benefit of the group or company, not the individual. They will not respond well to aggressive sales tactics or extremes of body language. Humility and harmony are more important.

Managing Relationships
Relationships are the cornerstone of business in Malaysia. The relationship matters more than the deal itself, and it is important to show your counterpart that you are focused on the long term, and on the relationship rather than a quick profit. It is important to visit customers and suppliers frequently, and to socialise with them (once you're established in the business community) in restaurants or on the golf course.
Relationships between Malaysian business colleagues are based on mutual respect and, as such, the same procedure used when addressing their superiors (using titles such as "Mr" and "Madam" ) is used between business associates until they are very close friends.
Because of the strong Asian concept of 'face', Malaysians will avoid conflict at any cost, as it will mean the loss of face for somebody. Managing relationships in the workplace can therefore be a minefield for anyone not used to Asian values. Issues must be carefully stepped around, rather than confronted, and anyone with a grievance may express it either in a roundabout way, or through a third party, or not at all. Malaysia is a high-context culture and it's important for managers to read the signs - and read between the lines - very carefully.