Meet our Members: Priya Selvanathan, Head of Tax & Transfer Pricing APAC, and Associate Partner of Rödl Consulting Sdn Bhd
2. How do you see the business environment in Malaysia evolving in the near future?
The Malaysian economy, like the rest of the world has faced most certain challenges. The global COVID-19 pandemic in 2020 has resulted in shrinking economies and slowdown of investments globally. However, Malaysia’s GDP is expected to grow between 6.5% and 7.5% in 2021, after a 4.5% contraction in 2020, driven by an anticipated improvement in global growth and international trade.
Whilst the most significant shrink in the economy came in Q2 2020, during the MCO period, the announcement and subsequent implementation of various stimulus measures helped dampen the contraction. As Malaysia continues to weather the COVID-19 storm, these stimulus measures will help the economy return to pre-pandemic growth rates.
However, in the longer term, there is a need to focus on attracting new Foreign Direct Investment (“FDI”) and for Malaysia to move up the value chain. Malaysia is already moving in the right direction, with a focus given to businesses in the information and communications technology (“ICT”), services, logistic, as well as those implementing Industry 4.0. Measures implemented in the stimulus packages as well as the recent Budget 2021, show that the Malaysian government is focused on bringing in high value-added foreign investments into Malaysia.
3. Why do you think Malaysia is an attractive destination for Italian Companies and for foreign investments in general?
Malaysia offers an investment friendly and not overregulated statutory framework. Malaysia ranks 12 in the World Bank ranking for ease of doing business.
The government is working hard to attract new investors and retain existing investors. Most growth sectors and industries can benefit from incentive packages created specifically for them. Malaysia also offers a dynamic business environment with a well-developed infrastructure and workforce.
Historically Malaysia’s investments came largely from the manufacturing sectors as well as the production of crude oil and palm oil. However, this is starting to change, with Malaysia having a well-established industry sector, such as electronics, pharmaceuticals and telecommunications
4. What kind of services can you provide to support Italian Companies in doing business in Malaysia?
As Rödl & Partner has been present in the Asia Pacific region since 1994, our team has a broad range of experience from a wide range of services from compliance, corporate, tax, audit, and accounting, payroll and outsourcing services.
We can assist Italian Companies doing business in Malaysia throughout the lifecycle of their business in Malaysia, from setting up, assisting with regulatory and compliance issues, implementing an optimised tax structure, to handling the day-to-day accounting and tax matters.
We have represented clients across a broad range of industries including manufacturing, telecommunications, logistics, renewable energy, and consumer products.