Basis for a robust growth outlook, but beware of downside risks

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MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD336.66bn (World ranking 37, World Bank 2020)
Population 32.37mn (World ranking 45, World Bank 2020)
Form of state Constitutional Monarchy
Head of government Ismail Sabri Yaakob (PM)
Next elections 2023, legislative
  • Member of the Association of Southeast Asian Nations (ASEAN)
  • Low inflation
  • Generally strong business environment
  • Resilient banking sector
  • Vulnerable to external pressures
  • Export dependency leads to cyclical risk
  • High level of private external debt
  • High household debt and high external debt burden

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
China 17.2%
1
20.4% China
Singapore 15.4%
2
15.5% Korea, Republic of
United States 8.6%
3
8.1% United States
China 8.3%
4
7.3% Singapore
Japan 6.3%
5
7.1% Japan

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 34.0%
1
26.9% Electrical machinery, apparatus and appliances, n.e.s.
Petroleum, petroleum products and related materials 7.8%
2
8.7% Petroleum, petroleum products and related materials
Office machines and automatic data processing machines 5.7%
3
4.2% Other industrial machinery and parts
Fixed vegetable oils and fats, crude, refined or fractionated 4.3%
4
3.8% Iron and steel
Telecommunication and sound recording apparatus 3.4%
5
3.8% Non-ferrous metals
Even though the payment behaviour of domestic companies is good, the law provides no framework when it comes to late payment.  As a result, interest rates and collection costs should be considered as part of the contract but often have little impact.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

Despite recent efforts, the courts' independence and transparency still have margin for improvement. While lawsuits can be slow and should be avoided whenever possible, recent reforms have seen lawsuits resolved more quicky.

In the absence of an efficient and functional debt restructuration scheme, debtor insolvency would only be dealt with through liquidation proceedings, which generally results in low recovery chances for unsecured creditors.

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