Multinational Corporations (MNC) in Malaysia (2023)

What’s in this article
  • What is Multinational corporations (MNC)?
  • How does Multinational corporations (MNC) work?
  • Advantages of incorporating a Multinational Corporation (MNC) in Malaysia
  • Disadvantages of incorporating a Multinational Corporation (MNC) in Malaysia
  • Types of Multinational Corporations (MNC) available
  • Malaysia aims to attract 10 more Multinational Corporations (MNC) by 2030
  • List of successful Multinational Corporations (MNC) available in Malaysia
  • FAQs

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Multinational corporations (MNC) are usually the biggest form of a business. In Malaysia, there are many MNCs across various industries and the government aims to attract more MNCs in the coming years. For those who plans to incorporate a MNC in Malaysia, it is important to understand the pros and cons of doing so.

What is Multinational corporations (MNC)?

As described in the name, a multinational corporation (MNC) is technically a Company that owns or control production of goods or services in multiple countries besides its home country.

According to Black’s Law Dictionary, a multinational corporation (MNC) is a Company or group that derives 25% or more of its revenue from out-of-home-country operations. It is also known by several names such as multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC) as well as international corporation.

How does Multinational corporations (MNC) work?

It is common for multinational corporations to expand their operations into other countries by incorporating a foreign branch or subsidiary. Normally, developing countries such as Malaysia aims to attract multinational corporations (MNC) because it is known to have positive economic effect.

Multinational Corporations (MNC) in Malaysia (1)

(Video) Multinational Companies Enriching Malaysian Talent

FUN FACT: Not only does it help boost a country’s economy, but also gives job opportunities to the people. It also assists a country to gain skills and knowledge on an industry they are unfamiliar with, such as microelectronics.

The head office will send out a team of specialists to help build the newly incorporated Company with a team of local. This way, they are not only able to implement the standard operations and culture into the Company but also ensure the local team adhere to the local authority and regulations.

Advantages of incorporating a Multinational Corporation (MNC)

It is a norm for multinational corporations (MNC) to have different stages of supply chain located in different countries to fully utilise its specialisation and raw materials.

Those who venture into multinational corporations (MNC) gains many benefits of being global – economies of scale in production, a global brand recognition as well as employing skilled labors from across the world.

1. Specialisation in production

Being an MNC gives the opportunity for firms to split its production into different countries. It can produce different components in regions which best suited to manufacturing before assembling the plants close to their target market for sale.

2. Outsourcing

MNCs often utilise their benefit in outsourcing, especially those which requires high-labor cost. They will outsource the labor-intensive production to cheaper labor cost countries and enable a reduction in cost.

3. Economies of scale

A Company often aim for maximum revenue with minimal cost of production. By expanding their production into other developing countries, it enables them to form lower long-run average costs with greater efficiency.

4. Tax avoidance

MNCs often benefit in terms of tax schemes offered by developing countries such as Malaysia when they incorporate a Company there. This is one of the many ways for them to attract foreign investors into their countries to boost its economies. Hence, it is not shocking for these Companies to expand their business in the Southeast Asia region.

5. Wide consumer base

Instead of focusing on traditional markets within a country which in the end will limit the grow of sales of the product in the economy, selling abroad enables much greater target market and opens up possibilities to increase sales.

Disadvantages of incorporating a Multinational Corporation (MNC)

While there are many advantages gained by a multinational corporation (MNC), there are also a list of downturns they need to be aware of.

1. Loss of sovereignty

This is one of the most well-known disadvantages faced by MNCs. They might be economically powerful, but at the end of the day, they are required to stick to the host countries rules and regulations.

The policy makers will be protecting their own interest and, in the end, resulting for MNC to lose their sovereignty and independency.

2. Competition

Unless the Company is producing something no one can replicate such as Tesla, Inc. then of course there are competition in every country. Once the Company has opened the opportunity for the local to learn about their products, there is a high chance for them to replicate it and rebrand it within the local market for cheaper price.

This results in MNC requiring to invest more on their market developments, promotions, and R&D.

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3. Economic exploitation

A Company is incorporated with the aim to gain profit. No one wants to invest into something that does not gives them anything in return. Hence, economic exploitation of host countries is often the case by excessive use of natural resources and raw materials.

They pay low wages to local employees with the exchange of selling their products at high price to exploit consumers. This indirectly make policy makers to lower the bar of their national minimum wage to keep attracting foreign investors such as what happens in Philippines, India and Indonesia.

Types of Multinational Corporations (MNC) available

There are typically four (4) types of multinational corporations available:

1. Multinational decentralised corporation

This type of MNC normally maintain their prominent existence in its home country. The organisational structure does not have management or administrative centers. Hence, each offices implement unique management structure making it separate entity within a local market.

2. Global centralised corporation

It is common for global centralised coprorations have its own centralized global corporation with chief administrative and management offices. The corporation may outsource its production for lower costs, but the culture is normally the same as its head office. The aim is to optimise for affordable resources and acquire cost advantages.

3. International company

One of the main objectives by incorporating an international Company is by expanding its research and development (R&D) institute from its parent Company. Effective R&D allows creation of new products or value add their existing products. It also leads to increase of market participation as well as better cost management.

4. Transnational Enterprise

This type of MNC generally implement the decentralised organisational structure. It aims to do businesses in several countries without one location as the head office. It normally engages to value creation in various countries while sustaining high level of responsiveness.

Malaysia aims to attract 10 more Multinational Corporations (MNC) by 2030

As per reported in the Star newspaper, Muhammad Azmi Zulkifli, CEO of InvestKL shared that the country is aiming to attract at least another 10 multinational companies (MNC) to set up base and operations in Malaysia. Malaysia is expected to earn at least a minimum of MYR 1 billion investment from this plan.

The aim is to boost the country’s economy as well as expand the job market for local after the pandemic hit the world in year 2020. They expect at least those from the insurance industry which normally utilize a lot of big data analytics.

List of successful Multinational Corporations (MNC) available in Malaysia

Malaysia has become of the favorite destination for foreign investors to expand their business. Not only does it offer numerous tax schemes that gives tax advantages, but also high skill labor with considerable wage rate and cheaper raw materials. Some of the successful MNC available in Malaysia are:

  • Petroliam Nasional Berhad (PETRONAS)

  • Sime Darby Berhad

  • Axiata Group Berhad

  • Honda Motor Co.

  • Panasonic Corporation

  • Exxon Mobile Corporation

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What are the benefits of multinational corporation towards host country?Paul Hype Page2021-11-08T16:11:39+08:00

What are the benefits of multinational corporation towards host country?

They normally benefit in term of transfer of skills and expertise, helping to develop quality of host labor force.

How many multinational corporations (MNC) are there, worldwide?Paul Hype Page2021-11-08T16:11:36+08:00

How many multinational corporations (MNC) are there, worldwide?

There are over 80,000 multinational corporations spread worldwide which drives the 21stcentury economy.

What are the benefits of multinational corporation towards local Companies?Paul Hype Page2021-11-08T16:10:50+08:00

What are the benefits of multinational corporation towards local Companies?

The MNCs will provide money in terms of investments such as purchasing machineries or technologies which will assist to boost local supplier profit.

What do multinational corporation (MNC) do?Paul Hype Page2021-11-08T16:08:34+08:00

What do multinational corporation (MNC) do?

A Multinational Corporations (MNC) are known as corporate organizations who owns or controls the productions of goods / services in multiple countries besides its home country

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Multinational Corporations (MNC) in Malaysia (8)

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Which company is MNC company? ›

multinational corporation (MNC), also called transnational corporation, any corporation that is registered and operates in more than one country at a time. Generally the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries.

Which is the No 1 MNC company in world? ›

1 (7)Facebook Inc *MUL
2 (13)Google International LLCMUL
3 (25)Microsoft Corp *MUL
4 (30)Alphabet Inc *MUL
104 more rows

What is MNC company example? ›

Some examples of multinational companies are Coca-Cola, Unilever, Pepsi, Starbucks, McDonald's, BMW, Suzuki, Samsung, etc. There are four types of multinational companies: decentralised multinational corporations, global centralised corporations, international companies, and transnational enterprises.

Is McDonald's an MNC? ›

McDonald's was founded in 1940 and has become a major multinational fast-food corporation. This article explores the journey of McDonald's and its marketing strategy.

What is multinational company Malaysia? ›

As described in the name, a multinational corporation (MNC) is technically a Company that owns or control production of goods or services in multiple countries besides its home country.

Which is the best MNC company? ›

List of Top MNC (Multinational) Companies in India
  • Microsoft. Microsoft Corporation is a renowned American multinational company that started in 1975. ...
  • Apple Inc. Who does not know Apple Inc? ...
  • HP (Hewlett Packard INC) ...
  • P&G (Procter & Gamble) ...
  • Coca Cola Company. ...
  • PepsiCo. ...
  • Sony Corporation. ...
  • Tata Consultancy Services.
12 Jul 2022

How many companies are there in MNC? ›

There are over 290,000 MNCs in India.

What are 10 examples of multinational companies? ›

List of Multinational Companies in India
  • Microsoft.
  • Apple.
  • LTI.
  • Deloitte.
  • Coca Cola.
  • TCS.
  • Accenture.
  • IBM.

What are the 7 biggest companies in the world? ›

This can lower or even outweigh potential returns.
  • #1 Walmart Inc. (WMT)
  • #2 China Petroleum & Chemical Corp. (SNP)
  • #3 Inc. (AMZN)
  • #4 PetroChina Co. Ltd. (PTR)
  • #5 Apple Inc. (AAPL)
  • #6 CVS Health Corp. (CVS)
  • #7 Royal Dutch Shell PLC (RDS. A)
  • #8 Berkshire Hathaway Inc. (BRK. A)

Is Amazon a MNC or TNC? › is an American tech multinational whose business interests include e-commerce, cloud computing, digital streaming, and artificial intelligence.

Is KFC a multinational company? ›

Corporate Social Responsibility

- KFC is headquartered at Louisville, Kentucky, US. A MNC is short for Multinational Corporation, which are companies that are globally recognized, with branches and factories all around the world. KFC is definitely a MNC, with over 18,000 stores in 80 countries around the world!

Is Nike an MNC? ›

Nike, Inc., which is an American multinational corporation, is the world's largest supplier and manufacturer of athletic shoes and apparel, as well as a major supplier of sports equipment.

What are the four types of multinational corporations? ›

4 types of multinational corporations
  • Decentralized corporation. Decentralized corporations may have multiple offices, facilities and assets in foreign countries, but they still maintain a strong presence in their home country. ...
  • Global centralized corporation. ...
  • International division. ...
  • Transnational enterprise.
8 Oct 2021

Is Coca Cola a MNC? ›

The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups, and alcoholic beverages.

Is Apple a TNC or MNC? ›

Transnational corporations (TNCs) or multinational corporations (MNCs) are companies that operate in more than one country. Unilever, McDonalds and Apple are all examples of TNCs. TNCs tend to have offices and headquarters located in the developed world.

What type of MNC is Starbucks? ›

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain.
Logo since 2011
Headquarters at Starbucks Center in Seattle, Washington
IndustryCoffee shop
18 more rows

Who is the biggest employer in England? ›

Public sector employers
NHS (England)19481,400,000
NHS Scotland1948160,000
British Army1660125,430
Department for Work and Pensions2001111,000
14 more rows

What is the largest company in Europe? ›

Largest European companies by revenue
1ShellUnited Kingdom and Netherlands
2BPUnited Kingdom
4Vitol GroupNetherlands
91 more rows

How much of Britain is owned by foreigners? ›

Overseas nationals own almost 250,000 homes across England and Wales, the latest research by London lettings and estate agents Benham and Reeves shows. In the current market, that is £90.7bn worth of property, suggesting that the UK remains a safe haven for foreign homeowners.

How many MNC are there in Malaysia? ›

Malaysia is one of the top locations in the world, especially for offshore manufacturing and service based operations. It comes as no surprise than that multinational corporations from more than 40 countries all across the globe are currently invested in over 5,000 companies in Malaysia.

What is the biggest company in Malaysia? ›


How multinational companies affect in Malaysia? ›

Multinational corporations from more than 60 countries have invested in over 3,000 companies in Malaysia's manufacturing sector, attracted by the conducive business environment which has made the country one of the world's top locations for manufacturing and service based operations.

Which company is good in Malaysia? ›

Of the seven local companies ranked in 2022, three are government-linked companies, along with one government-linked investment company: PETRONAS, Maybank (#2), Tenaga Nasional (#11) and Permodalan Nasional (#4).

Is MNC company good? ›

MNC provide better work-life balance, whereas, startups offer much more scope of learning to their employees. In the end, individuals can choose where they feel more comfortable to work according to their personality and priorities.

How do I choose a MNC company? ›

The topics that will be discussed below might be your key to a position in your dream company.
  1. Apply to specific positions within that company, not all of them.
  2. Write a killing CV and cover letter.
  3. Keep up with the lingo.
  4. Network with current employees.
  5. Show your proactiveness.
  6. Rock the interview.
  7. Master the hiring process.
5 Jan 2022

Is MNC is a private company? ›

MNC Services India Private Limited is a Non-govt company, incorporated on 04 Jan, 2006. It's a private unlisted company and is classified as'company limited by shares'.

What multinational company are in the UK? ›

The numbers below are according to annual financial reports all of these England companies declared as of Q1 of 2022.
  • Shell Plc. Shell is part of the “Supermajors“, or “Big Oil” companies. ...
  • BP Plc. ...
  • Tesco Plc. ...
  • Rio Tinto Group. ...
  • Legal & General Group Plc. ...
  • Unilever Plc. ...
  • Vodafone Group Plc. ...
  • Deloitte Touche Tohmatsu Ltd.

Which country has the largest number of MNCs? ›

The country with the largest number of MNCs is the U.S., followed by Japan and China. Many European countries and India also have many MNCs.

What is an MNC country? ›

A multinational corporation (MNC) is a company that has business operations in at least one country other than its home country. By some definitions, it also generates at least 25% of its revenue outside of its home country.

Which is Asia biggest company? ›

Asia Top Companies List by Market Cap as on Jan 7th, 2022
  • TENCENT. ...
  • ALIBABA GROUP HOLDING. World Rank (Jan-07-2022) ...
  • TOYOTA MOTOR CORPORATION. World Rank (Jan-07-2022) ...
  • ICBC. World Rank (Jan-07-2022) ...
  • TATA GROUP. World Rank (Jan-07-2022) ...
  • RELIANCE INDUSTRIES. World Rank (Jan-07-2022)

What are the 10 most powerful companies in the world? ›

The 10 Biggest Companies in the World 2022 (at a glance)
  • WALMART. Revenue: $559.2 billion.
  • STATE GRID. Revenue: $386.6 billion.
  • AMAZON. Revenue: $386.1 billion.
  • CHINA NATIONAL PETROLEUM. Revenue: $284.0 billion.
  • SINOPEC. Revenue: $283.7 billion.
  • CVS HEALTH. Revenue: $268.7 billion.
  • APPLE. Revenue: $365.8 billion.
23 Oct 2022

What are the 3 richest companies in the world? ›

Top 12 Richest Companies In The World By Market Cap 2022
  • Apple Inc. ...
  • Saudi Aramco Market Cap ($2.33 trillion): It is the largest oil corporation in the world and accounts for more than half of Saudi Arabia's revenue. ...
  • Microsoft Corp. ...
  • Alphabet Inc. ...
  • Inc. ...
  • Tesla Inc. ...
  • Berkshire Hathaway Inc. ...
  • NVIDIA Corp.
16 Oct 2022

Is Tesco a TNC? ›

Under the Tesco Nature's Choice (TNC) standard various fruits and vegetables can be certified. This program has been designed especially for suppliers of Tesco for fruit and vegetables. Control Union Certifications is authorised to carry out inspections for this programme.

Why is McDonalds TNC? ›

McDonald's rely on the same brand names and the identical core menu items around the world. But make some concessions to local tastes too. And that is why McDonalds demonstrate a transnational strategy.

Is H&M a TNC? ›

The year 2014 marked the 50th anniversary of H&M being a TNC. News about H&M's unethical practices immediately following the T.V. show spread to the United States, the United Kingdom, Spain, Norway, Denmark, Germany, and France.

What is the difference between multinational and international? ›

International companies are importers and exporters, they have no investment outside of their home country. Multinational companies has locations or facilities in multiple countries, but each location functions in its own way, essentially as its own entity.

Who owns KFC Malaysia? ›

QSR Brands (M) Holdings Bhd (QSR Brands) is the first and only fully integrated food operator in Malaysia operating over 1,300 KFC and Pizza Hut restaurants in Malaysia, Singapore, Brunei and Cambodia.

Does McDonald's own KFC? ›

Key Takeaways. McDonald's is one of the largest and most well-known fast-food chains in the world. Privately-owned Burger King is McDonald's closest competitor. Yum Brands operates Taco Bell, KFC, and Pizza Hut.

Is Adidas an MNC? ›

Adidas is a multinational corporation, founded and headquartered in Herzogenaurach, Germany, which designs and manufactures footwear, apparel, and accessories. The company also owns a share of the German football club Bayern Munich.

Why is Adidas a MNC? ›

In this example, Adidas is a multinational company because aside from its main parent headquarters in the United States of America, it has set up regional headquarters in other countries, such as China, Indonesia, Great Britain, and so on.

What is MNC company India? ›

Best 25 Multinational Companies in India: A Multinational Company or Corporation (MNC) is a business organization whose operations are carried on in more than one country (other than home country).

What are the advantages of MNCs? ›

Some of the advantages of Multinational companies (MNC's) are 1) it will help in increasing the trade of the nation 2) It will help in improving the economy of a nation 3) It will increase employment opportunities for the people of a nation.

What is the 7th largest company in the world? ›


How many MNCs are there in the world? ›

At the present time, there are some 60,000 MNCs worldwide, controlling more than 500,000 subsidiaries.

Which company makes the most money? ›

Apple Inc, a Cupertino-based American tech company is the most valuable company in the world with a record market cap of $ 2.294 Trillion. Apple is the most successful brand with a revenue of $275 billion dollars as of 2021.

Which is richest company in the world? ›

Top 12 Richest Companies In The World By Market Cap 2022
  • Apple Inc. ...
  • Saudi Aramco Market Cap ($2.33 trillion): It is the largest oil corporation in the world and accounts for more than half of Saudi Arabia's revenue. ...
  • Microsoft Corp. ...
  • Alphabet Inc. ...
  • Inc. ...
  • Tesla Inc. ...
  • Berkshire Hathaway Inc. ...
  • NVIDIA Corp.
16 Oct 2022

What are the 7 big companies? ›

What Are the Biggest Companies in the World by Revenue?
  • Walmart (WMT) - $576 billion.
  • Amazon (AMZN) - $486 billion.
  • Petro China (PTR) - $443 billion.
  • Saudi Aramco (2222.SR) - $394 billion.
  • Apple, Inc. ( AAPL) - $388 billion.

What is the 10th largest company in the world? ›

Johnson & Johnson

Who is India's No 1 company? ›

Reliance Industries

This Mumbai-based multinational company has a market cap worth INR 1,795,732.38 crore. And thus, Reliance Industries is the largest company in India.

What are the three types of MNC? ›

Here are some of the most common types of multinational corporations:
  • Decentralized corporation. ...
  • Global centralized corporation. ...
  • International division. ...
  • Transnational enterprise.
8 Oct 2021

How do MNCs benefit countries? ›

MNCs add to the host country GDP through their spending, for example with local suppliers and through capital investment. Competition from MNCs acts as an incentive to domestic firms in the host country to improve their competitiveness, perhaps by raising quality and/or efficiency.


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