As a nation that is comparatively small in terms of size and population, Taiwan has to rely mainly on export as part of their growth strategy. Its share of total export in 2015 was valued at NTD$ USD$285 billion, which is 54 percent of its total economic activities for the year (NT$285b/523b) Ministry of Finance. Currently, the total bulk of Taiwanese exports to ASEAN countries rank second after its exports to China. Having said that, SMEs share of export for that year itself is 15.21%, a comparatively low figure. The paper therefore seeks to study the potential opportunities for Taiwan SMEs at this juncture under the auspices of a New Southbound Policy, a renewed economic directive under the new government. For Malaysia which no longer enjoys substantial cost advantages in terms of labor intensive manufacturing, service industry has to be the next significant revenue driver. SME owners have a grasp of understanding about the domestic market, moreover to the myriad rainbow of multi-ethnicities living in Malaysia. Following section orientates among numerous topics with regard to new company registration, securing finance, Halal industry, and various marketing channels in Malaysia, with an emphasis towards retail and services.

TABLE OF CONTENTS

ABSTRACT……………………………………………………………………………………………………………………………………………II
INTRODUCTION……………………………………………………………………………………………………………………………………1
CHAPTER 1 - Fundamentals: The Malaysian Society………………………………………4
I. Government ……...…………………………………………………………….……………………………………4
II. Telecommunications………………………………………………….….……………………………………8
III. Infrastructure & Utilities…………….………………………………….……………………9
IV. Firms…………………………...………………………………………………………………………………………………15
V. Financing………………………………………………………………………………………………………………………17
CHAPTER 2 - Hail to the Malaysian Digital Economy…………………………………19
I. Power of e-Commerce …………………………………………………………………………………………21
II. Logistics for e-Commerce……………………………………………….……………………………24
CHAPTER 3 -MALAYSIAN RETAIL LANDSCAPE -
Market Segments and Positioning…………………………..…………………………………………………26
I. Halal Products…………………………………………………………………….…………………………………26
II. Ethnicities…………………………………………………………………………………………………………………30
III. Retail Space………….…………………………………………………………..….……………………………31
IV. Income Level…………..…………………………………………………………….………………………………34
V. Gender………………………………………………………………………..…………………………………………………37
VI. Effect of Media, Friends and Family…………………………………………………39
VII. Users Experience……………………………………………………….…………………………………………41
DISCUSSION & CONCLUSION ……………………………………………………………………………………………………44
REFERENCES & APPENDICES………………………………………………...…….………………………………………48
LIST OF TABLES
TABLE 1:
SME Export Value as a Share of Total Sales of SMEs and Total Export Value…………………………………………………………………………………………………………………………………………………………2
TABLE 2:
Selected Public Listed Entities in Singapore and Malaysia………………5
TABLE 3:
Total Manufacturing Projects Approved by States, 2016 and 2015…7
TABLE 4:
National Income and Population 2014 - 2016…………………………………………………19
TABLE 5:
E-Commerce Fee Structure on Three Main Players………………………………………23
Table 6:
Comparison of Rental Rates among Prime Retail Space…………………………32

 
LIST OF FIGURES
FIGURE 1:
Bandar Iskandar Malaysia New Township Development Plan………………………6
FIGURE 2:
Percentage of 4th Generation Users in Malaysia………………………………………… 8
FIGURE 3:
Railway Map in Peninsular Malaysia………………………………………………….………………… 11
FIGURE 4:
Expressway Maps in Peninsular Malaysia…………………………………………………………… 12
FIGURE 5:
Commercial Tariff…………………………………………………………………………………………………………………… 13
FIGURE 6:
Business Registration Turnaround Time Among Southeast Asian countries……………………………………………………………………………………………………………………………………………17
FIGURE 7:
Summary of Financial Institutions in Malaysia……………………………………………17
FIGURE 8:
Malaysian and Taiwanese Halal Certification logo……………………………………29
FIGURE 9:
General Fees Structure for Halal Certification in Taiwa….…….……29
FIGURE 10:
Selected Malaysian gas stations with adjunct drive-through restaurants and convenient stores……………………………………………………………………………34
FIGURE 11:
Mean and Median Income (spending power) of rural and urban Malaysians (2014 & 2012) …………………………………………………………………………………………………35
FIGURE 12:
Malaysia Female Labor Participation Rate 2005 - 2015…………………………37
FIGURE 13
Call plans by telecommunication companies DIGI (left) and MAXIS (right)…………………………………………………………………………………………………………………………………………………40

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