Malaysia first stop for China’s Muslim entrepreneurs
Malaysia’s multicultural environment allows them to handle company registration, secretarial matters, staff recruitment in Mandarin
KUALA LUMPUR, Malaysia (MNTV) — When Chinese Muslim entrepreneurs look beyond China’s borders, Malaysia often tops the list — not for its market size, but for something far more practical: a shared language, a multicultural society and a business environment they already understand, reports Malay Mail.
Since the Covid-19 pandemic, many of these entrepreneurs have come to see Malaysia not as an end point but as a launchpad — a base to build systems, talent and products before expanding deeper into the region.
For many, Malaysia’s population of over 34 million — including some 20 million Muslims and more than six million ethnic Chinese — makes it a natural starting point.
“Chinese Muslims typically speak Mandarin but are generally less proficient in English. This makes Malaysia a comparatively easy place for them to do business,” Malaysia Chinese Restaurant Association president Gao Haoyun told Malay Mail in a recent interview.
“Although they are Chinese Muslims operating halal restaurants, Malaysia’s multicultural environment allows them to handle company registration, secretarial matters and staff recruitment in Mandarin. Therefore, language accessibility is a crucial factor.”
Gao said Malaysia’s business-friendly policies and strong bilateral ties with China had also encouraged Chinese Muslim businesses to expand overseas in the post-pandemic period.
China’s food and beverage sector was hit especially hard by prolonged lockdowns, which disrupted dine-in operations and supply chains.
Competition intensified during the uneven recovery, leaving many halal-focused operators — mainly from northern and western China — searching for overseas markets to diversify risk and reignite growth.
In Malaysia, Gao noted, Chinese cuisine — including Chinese Muslim offerings — is concentrated in three key urban hubs: George Town, Johor Bahru and the Klang Valley. “These three cities are strategic centers for the development of Chinese brands, not necessarily halal-focused,” he said.
The Klang Valley, he added, is experiencing the fastest growth and is the most competitive market, driven by its large population and the rapid rise in outlets. “Nationwide, there are roughly 20,000 to 25,000 Chinese food and beverage outlets, with the Klang Valley alone accounting for around 60% of them — about 11,000 to 12,000 outlets,” he said.
Not Indonesia, despite its huge Muslim population
Although Indonesia has the world’s largest Muslim population, Gao said Malaysia has consistently been the “first choice” for Chinese Muslim entrepreneurs — both historically and today.
“Even though Indonesia has a much larger population than Malaysia, it is not usually the first option, largely due to political considerations.
“In addition, the Chinese community in Indonesia generally has weaker Mandarin proficiency.
“By contrast, company registration, taxation and regulatory compliance in Indonesia can be challenging for mainland Chinese entrepreneurs who are unfamiliar with English and lack local communication channels — a difficulty closely tied to national policy and regulatory frameworks,” he said.