Nestled between the Andaman Seas and the South China Sea, Malaysia is one trading centre that is of immense historical significance. As a multicultural country with a history of cosmopolitanism, it is not difficult for foreign investors to communicate with locals in English. Malaysian consumers are also quite generous, easy-going and have a receptive approach when it comes to new products. In addition to this, Malaysia continues to liberalize its customs regulations to improve the ease of importing and exporting out of the country. Malaysia is also a member of the ASEAN organization and a participant in several regional and bilateral FTAs. Its presence in various international bodies offers traders some of the best opportunities to export and import.
While there are some fundamental differences, starting an import business in Malaysia is quite similar to starting an export business in the country. Listed below are a few things that you must consider before you get started!
Get a license
Of course, you will need a business license to conduct business in the country. So, make it a point to not miss out on this step. If you don’t have a proper license, you will not be able to import anything.
In addition to this, it is also vital that you understand the concept of customs duty. It refers to the tax imposed on goods when they are being transported across international borders. Simply put, custom duty tax is levied on the import and export of goods. The government uses this to raise its revenues, regulate the movement of goods, and safeguard domestic industries.
Choose what you want to import
Because imported products are subjected to slightly more stringent requirements than exported products, it is important to be more careful. Drugs are prohibited, and vehicles and car parts are heavily restricted. Having said that, owing to the high demand for car parts, if you manage to be innovative with it, you might as well be dominating the market any time soon.
Work with the customs broker
You will have to work with a customs broker to ensure that you have thoroughly followed all procedures without any gap. However, if there is a mistake in the paperwork, it can cost quite a fortune. So, it is good to outsource this task to someone who has an in-depth knowledge of the procedures. Also, you must be well-versed with basic custom duties as well!
In addition to this, as someone dealing with export or import business, it is important to opt for a secure option for cross-border trade, such as Tazapay. It protects your international payments with a fully digital escrow.
Devise marketing strategy
Because you are on the verge of bringing in plenty of unfamiliar and fresh products, it is quite understandable that you should also come equipped with a full-fledged marketing plan before the official launch of your products to ensure that the locals know about them. An effective marketing plan will create awareness of your products and facilitate a huge boost in your sales.
Ship it right
There are primarily two greatest benefits of finding the right shipping method for your products. Firstly, it will not cost you a lot. Secondly, it will also protect you in case of any breaches in regulations. It is also important that you work with reputable freight forwarders to ensure that your shipments arrive on time without any trace of delay.
Malaysia is one of the most exciting destinations for entrepreneurs across the world. With a little bit of courage and understanding of the local business environment, your import business will undoubtedly flourish and become successful in no time!