Discusses pricing formula and other fees, value-added tax (VAT), etc
Last Published: 8/19/2019

Malaysians are price sensitive, but also brand conscious. A number of factors should be taken into consideration when determining appropriate product pricing. Some factors to consider are the exchange rate, applicable taxes and duties, pricing differences between urban and rural areas, and transportation costs to more remote areas. There may also be some government regulations for certain industries that affect the price charged to customers and other end-users.

Another factor to consider is the standard of living in Malaysia. The country is one of the most affluent in the Southeast Asian region, which means that higher-priced products and services have a niche market. However, prices of general consumer goods should reflect the lower cost of living and purchasing power of the average Malaysian.  The Malaysian Investment Development Authority (MIDA) maintains a table of prices of select consumer goods. This table can be accessed by clicking here:  MIDA

In addition, U.S. exporters should generate a price survey of competitor products and services from both domestic and international firms. The U.S. Commercial Service in Kuala Lumpur can assist exporters by providing a Customized Market Research report that specifically identifies competitive factors within the market sector or industry.

There is no one-size-fits-all formula for pricing.  Depending on the product and the volatility of the market, most common pricing strategies are:

  • Penetration pricing – where the exporter must work with their distributor/s on pricing to attract customers and gain market share.  The price will be raised later once market share is gained.  This pricing scheme is usually well suited for fast-moving consumer goods. 

  • Premium pricing – where the importer/distributor keeps the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation, are more reliable or desirable, or represent exceptional quality and distinction.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.