Economic Environment: Bega Cheese Company

Economic environment

Despite Malaysia being affected by the 2008 global financial crisis, the government has tried to manage the favorable conducive business environment. For the instant, friendly political climate, controlling possible bottlenecks and bureaucracies, and flexible economic policies, all of these factors have contributed to increasing export hence multiplying foreign exchange by the double-digit.

The Bega Cheese Company, therefore, stands in a position of excelling. The Malaysian has have embraced collectivism. People have integrated into groups. Europe’s world, for an instant, has adopted individualism and capitalism. The capitalism habit has spread even to the former colonies of European countries. African is the best example. Investors, therefore, have low trustworthy to the countries’ economies.

Inflation Rate

Another factor that favors the Bega Cheese Company is that Malaysia has a very peculiar inflation rate trend. The Malaysian government has been able to lay future-oriented strategies such as vector error correction modeling to maintain low inflation, which has earned the country more foreign exchange. Equally, the state takes advantage of high inflation among the countries in the region.

Another factor includes good transportation, which has been a favor to manufacturers. The finished product has been reaching the market in due time.

Political Environment

Malaysia has for long enjoyed political stability. Contrary to other countries in Africa, Latin America, and some parts of Asian countries whom they have experiencing instabilities such as rampant corruption, nepotism, bribery, political unwillingness, terrorism, inadequate electoral system, the interdependency of arms of the government, and weak judicial system.

Instead, political willingness has helped Malaysia to boost investors’ confidence. The unity of the monarchical government and the opposition parties has brought a conducive business environment and attracting both local and international investors. The coalition government has fruitfully implemented a workable policy of economic changes. The power distance index is low, contrary to another part of the world. A particular example can be drawn from African countries that have shared the government. Kenya, Zimbabwe, to name a few have scared away investors due to political suspense, which amounted to a lot of pressure on the inflation.


The stable unity between the ethnoreligious is an essential pillar to the political and economic environment in Malaysia. Therefore, setting a joint venture will be an unshakable foundation in the future, with efforts to have the highest income dairy manufacturing company. The political system has embraced all traditions, democracy, and its sense of listening to people.


Population factor has influenced the socio-cultural determinant on buying. The purchasing power has marked an increment. Population size offers the country enough demand for local produce. The companies do not struggle much searching for a market. For instance, agricultural and dairy products are much needed in homes in both rural and urban areas. The large population also gives a variety of personnel.


The issue of gender index in Malaysia is well concerned. For instant, advanced technology of buying, a stable lifestyle, and a high number of women in the workforce has led the Malaysia economy to grow at a higher rate. To Bega Cheese Company, the opportunity to work with all diversified people will guarantee the women participating in the company. Across the global, women are sidelined at the expense of men. Masculinity degree is extreme in Nordic countries and relatively high in the Anglo world.

Malaysia has established an ‘ecocentric’ transition a platform whereby people share values, skills, and working together habits. Such a platform will enhance company sales volume and lower the cost of product promotion. Uncertainties face the investors in other countries in Latin America, southern and eastern Germany, and the whole of Africa.

Legal environment

The introduction of efficient regulation has been implemented. With no minimum capital required. A very short bureaucracy. Locally produced goods have an advantage in this regulation. (Philips, 2016) Other countries do not have such free and straightforward control that attracts investors. For an instant, what happens in most African countries. People seem not owning part and parcel of the economic culture.

Free Trade Agreements.

Malaysia has signed a much bilateral trade relationship. By abolishing tariffs and quotas to their neighboring communities, this has widened the market.  Foreign companies are required to register as local companies, though they must undergo the same procedure as a local company.

Other favorable legal policies include monetary policies that ensure enough levels of liquidity, the stability of banks, and the low rate of inflation. According to the rating agency, Malaysia experiences low inflation rates in comparison to other countries with similar GDP, like India, Indonesia, and Qatar.

Efficient regulatory and effective market governance of Malaysia has emerged the top in Asia’s sustainable local currency after Korea and Japan.

In conclusion, monetary policy and capital market. The commercial environment has been stable, which had improved financial openness, reduced exchanged rate controls.

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