INTHEBLACK September/October 2025 - Magazine - Page 21
SINGAPORE
MALAYSIA
OVERVIEW
OVERVIEW
In 2024, Singapore’s GDP grew by 4.4 per cent after the
country attracted a record US$159.6 billion (A$247.9
billion) FDI the previous year. FDI was up 13.1 per cent
YOY and was third globally after the US and China.
The overarching theme across the Singaporean economy
is innovation, with the digital economy contributing more
than 17 per cent of GDP in 2023. In 2024, the Economist
Intelligence Unit named Singapore the best country in
the world to do business — for the 16th year in a row.
The digital economy has been a significant contributor
to Malaysia’s emergence as an economic hub, with
the nation’s GDP growing by 5.1 per cent in 2024,
surpassing all expectations. Reflecting the fact
that Malaysia has committed to digital innovation,
the digital economy accounted for 23.5 per cent of
2024 GDP. FDI was RM40.4 billion (A$14.7 billion) in
2023, representing a 46 per cent YOY decrease.
MAJOR SECTORS
MAJOR SECTORS
• Precision manufacturing
• AI and digital technology
• Energy and chemicals
• Pharmaceuticals and biotechnology
• Information and communications
technology, and ecommerce
• Services
• Manufacturing
KEY BUSINESS ATTRACTIONS
KEY BUSINESS ATTRACTIONS
Singapore presents an ideal hub location for
businesses, with a mix of government incentives, a free
market economy, numerous free-trade agreements and
a straightforward regulatory environment. It also has an
attractive and stable social, multicultural environment
that is well connected to the rest of the world.
Business travellers to Malaysia are often
surprised to discover that English is widely
spoken. This helps support Malaysia’s
location as a hub for international business,
which the government recognises and therefore
it supports initiatives to bolster English proficiency.
Malaysia is in the heart of the ASEAN region and is
party to numerous free-trade agreements.
Petronas Towers,
Kuala Lumpur,
Malaysia
SKILLS IN DEMAND
1. Qualitative analysis
2. Carbon footprint management
3. Environmental and social governance (ESG)
SKILLS IN DEMAND
1. Data analysts
2. Financial and fintech experts
3. Sustainability and ESG experts
LOCAL INSIGHT
“What most surprises business travellers
is how efficient Singapore is,” says
Wei Hock Lee FCPA, Singapore
CPA AUSTRALIA
head of assurance at Ernst & Young
MEMBERS
LLP. “Streamlined regulations and
8470
processes, excellent infrastructure
and digital platforms, and a skilled
workforce make it really easy for
companies to do business here.”
“English is widely spoken. Hence, foreign business
executives should face few issues doing business.
However, it is also good to note that Singapore is
a multicultural society in Asia, where traits such
as being respectful, professional and punctual to
business appointments are viewed favourably.”
The main future challenge is that Singapore
thrives under globalisation, Lee says. As countries
increasingly adopt an onshoring or near-shoring
approach, Singapore will have to innovate to
continue growing.
LOCAL INSIGHT
CPA AUSTRALIA
MEMBERS
10,380
“It is very easy to do business in
Malaysia,” says Ching-Fong Ong CPA,
managing director and senior partner at
Boston Consulting Group in Kuala Lumpur.
“While the regulatory landscape is more complex
than in Singapore, due to the interplay of federal
and state laws, the overall ease of doing business
remains high.”
Still, cultural awareness is essential.
“Be aware of cultural and religious sensitivities when
interacting with colleagues,” Ong says. For example,
refrain from offering pork to Muslim associates or beef
to Hindu counterparts, “as these may conflict with
their beliefs”.
Malaysia’s multilingual, multicultural workforce,
which Ong says is “culturally sensitive, adaptable
and in high global demand”, is a rare commodity
by global standards, as evidenced by the number
of Malaysians employed overseas.
GLOBAL GAME CHANGERS intheblack.cpaaustralia.com.au 21
