Political analysis

Malaysia has been experiencing political stability over the last decades. Since the country got independence in 1957 from Britain, Barisan Nasional Coalition has been ruling the country. However, BarisanNasional Coalition lost its hold of the Malaysian government for the first time in history on 9 May 2018 after carrying out the general election(Salamun et al2018). Mahatir Mohamad, the former prime minister of Malaysia, returned to the office 15 years later after his first tenure as the Pakatan Harapan coalition leader. There were hopes for government reforms, but 2019 has been a litany of backsliding and defeats under the cooling economy from the strong opposing parties and entrenched ethnic fault lines. However, the new administration came with a political analysis change, including carrying out a peaceful transition. It has also started an investigation and launched a corruption case against the former officials, and as part of the investigation, it started with bringing back two stalled chine-funded megaprojects.

The main political parties of Malaysia were the Barisan Nasional coalition and Pakatan Harapan. Barisan National coalition took the country's leadership from 1957 until April 2018 when Pakatan Harapan took over after the general election under the leadership of Mahathir Mohamad, who had been the prime minister from 1981 to 2003(Salamun, et al2018).Mahatir Mohamad happened to become the oldest head of government in the world at the age of 92. Malaysia is termed as a multiparty state consisting of 13 states which enjoy federal decentralization.

Economic Analysis

Malaysia is the fourth largest country with a good economy in South East Asia due to the increasing demand for electronics globally. It also continues to perform strongly due to the increased demand for products such as oil and gas, an improving labor market, and ample infrastructure spending (Unit, 2016). However, there is reduced economic growth to around 4.3% in 2019 due to the increased government expenditure, low public and private investment. Global pandemic such as Covid -19 is expected to make the economic growth rate to go fall to -1.7%. The political crisis over the last few years has affected the Malaysian economy and the low oil and commodity price falling in china, leading to pressure on the country's finance.

Legal analysis

Malaysia's legal system is based on the English standard law system. Some of its areas are systematically arranged, and many laws are the same as those found within the commonwealth. The state legislature can enact specific legislation for their state following both constitutions of federal and state. Federal law is more powerful if there is a conflict between state law and federal law. In the east and peninsular Malaysia, Business laws are the same with differing land laws.

Cultural environment

Malaysia is a country with several cultural and ethnic groups within its society. The main ethnic groups are the native Malays, and the large populated communities are the Chinese and Indians(Raza, Bakar, & Mohamad,2018). It is clear that the ethnic groups have a strong stand in terms of culture, and they have thus retained their religions, customs, and way of life has not changed as well. Public holidays are still the main festival celebrations in each group. People marry from their ethnicity except a few who marry outside, and families tend to socialize within their ethnic group. They do all this to retain their culture and lifestyle.

Technological environment

Malaysia has been trying to improve in terms of technology through being an innovation driven country. ICT has been stated as the nation's critical development segment with a growth rate of 9.0 over seven years. The Malaysian government has set out technological activities meant to improve the economy. For example, there is advancing innovations among the organization and empowering computerized organization. The main online networking being used in the nation is Facebook, Twitter, Instagram, and Youtube.

Why the exporting market entry mode is most suitable for the Malaysian market? According to the above mentioned, what are the risks of this foreign market entry mode?