Table of contentsIn this case, Malaysia is selected as the model for environmental analysisPolitical environmentEconomic environmentSocio-culture EnvironmentTechnology EnvironmentLegal environmentIn this case, Malaysia is selected as environmental analysis modelPolitical environmentThe current political situation in Malaysia has an impact on MINISO in retail. Above all, Malaysia's government policies will affect MINISO's business operations, such as the GST and withholding tax imposed by Malaysia on businesses. Amarjeet Singh of Ernst and Young spoke about Malaysian businesses facing a heavy tax burden. For example, withholding tax requires businesses to pay tax on services rendered by foreign consultants even when the service was not rendered in Malaysia. MINISO, as a foreign company, will be subject to taxes since the company is from Japan rather than Malaysia (IDEAS 2018). IDEAS Principal Researcher Dr Carmelo Ferlito said Malaysia's tax system and incentive system with a reasonable method, combined with the country's political stability environment and good infrastructure, have made Malaysia a good place to do business (The Star 2018). However, the alarming growth in regulation and the role of government also poses a potential threat to businesses. MINISO prioritizes operating its business in Malaysia, but these taxes imposed by the government and government intervention negatively affect MINISO's business in Malaysia. Additionally, due to less government control over corruption issues, bribery has become a popular issue in the Malaysian business world. Companies tend to pay bribes to regulators rather than jump through hoops to navigate a complex and bureaucratic regulatory system that creates a huge difference in MINISO business culture between Malaysia and Japan. On the other hand, Tun Mahathir, Prime Minister of Malaysia, revised the "Look East" policy which encourages business operators to learn from Japanese business culture and is a great opportunity for MINISO as a company Japanese. The “eastward-looking” policy is used to build a Malaysian economy capable of reaching the heights of its more advanced Asian neighbors (Nikkei 2018). Last but not least, there are less complex and more user-friendly regulations for the establishment of retail businesses such as MINISO Retail Store, with the aim of accelerating significant reform progress in Malaysia and improving the well-being of citizens. To ensure the sustainability of retail trade, the regulations established by the Ministry of Internal Trade, Cooperatives and Consumerism must be respected and used as a reference when conducting business (Official portal of the Ministry of Internal Trade, Cooperatives and Consumerism Consumerism 2018).Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Economic Environment The economic health of a country is always determined by the gross domestic product (GDP). Malaysia has an annual GDP of $314,500 million in 2017, a growth of 5.9% from 2016. According to GDP statistics, Malaysia is considered a country with a healthy economy (Country Economy 2017 ). While Malaysia's population of just 32 million reports a total GDP per capita of 9,828US dollars, indicating relatively higher Malaysian purchasing power than a low-middle income country such as Bangladesh. Higher purchasing power influences MINISO's total revenue, sales and activities, the higher the purchasing power, the higher the annual revenue. In addition, the change of government party in Malaysia also brings a change in policy and a zero-rated Goods and Services Tax (GST) which, effective June 1, 2018, is one of the new policies that delight various business owners. businesses and investors. This can help reduce MINISO's business expenses, which can pass on the benefit of cost reduction to customers in the retail sector. Retailers were initially concerned that sales would drop as people anticipated the implementation of zero-rated GST on June 1, so some retailers are launching the "Great Sales Today" campaign in order to maintain sales from May 18 to May 31, 2018 before officially reduce GST to 0% (Malaysia Digest 2018). Datuk Roslan Mahyuddin, director of enforcement at the Ministry of Domestic Trade, Consumer Affairs and Cooperatives, has given time to the retail sector to relabel the price of its goods following requests for a grace period (The Star 2018). Mr Hong Chee Meng (Chairman of Sundry Goods Merchants Association) said the abolition of GST bodes well for the retail sector and will increase retailers' sales during the " tax holidays” which began from June 1 to September 1, 2018 due to the reintroduction of GST. sales and services tax (SST) with 10% on certain products, confirmed by the Ministry of Finance of Malaysia (The Star 2018). In conclusion, the above factors create great opportunities for MINISO as a retail company in Malaysia. Socio-culture EnvironmentAccording to Worldometers (Worldometers, 2018), the latest population in Malaysia is 32,042,458 (Appendix 1). Nationality is Malaysian. Malaysia is a multicultural and multiracial country well known for its social integration and cultural integration (Malaysiaexplorer 2018). Malaysia is rich with a varied social and geographical history, meaning its culture has been influenced by a wide range of individual beliefs. Malaysia is the homeland of many racial groups such as Malays, Chinese, Indians, indigenous groups and other Asian groups. All Malaysian Malays are Muslim, almost 60% of Malaysians are part of the Malaysian population (ExpatFocus 2018). Islam is the official religion in Malaysia and Bahasa Melayu is the official language. Muslims constitute the largest sector of the Malaysian population. The second largest racial group is the Chinese living in Malaysia, the majority of whom are Buddhist. Not forgetting the Indian sector, there are also countless Hindus included in the Malaysian population. In the retail sector there are also different races who will also speak their own language but all of them will know the basic language which is Bahasa Melayu. Malaysians have their own religious festivals. For now, Muslims celebrate Hari Raya Adilfitri, Indians celebrate Deepavali and Thaipusam. Deepavali is also known as the festival of light and Thaipusam celebrates it at Batu Caves. As for the Chinese, they celebrate the Chinese New Year which takes place every year in January or February. Christians, they will celebrate Christmas every end of the year, that is to say in December. MINISO as with retail, workers will also celebrate these holidays according to their religion. Theywill return to their hometown once the festival arrives because the Malaysian people are very respectful. Wages should be paid up to double during the festival as compensation for workers who work during the holiday. Additionally, retailers in the states of Kedah, Kelantan, Johor and Terengganu have slightly different opening hours than those in Kuala Lumpur. The opening days of these retailers in the region are Sunday to Thursday, while Friday and Saturday are weekends for these states in Malaysia, following the Islamic calendar. Technology Environment Technology is becoming important to the retail sector in Malaysia as advancements in digital technology indirectly develop more e-commerce. technologies such as AI, cognitive intelligence, Internet of Technology (IoT), and distributed intelligence are attempting to change the retail landscape for the future (cheshnotes 2017). Above all, smartphones play an important role in retail today. According to statistics, the number of smartphone users will maintain 1% per year for the coming year, 14.5 million smartphone users in 2015 and is expected to reach 20 million more in 2020 (Appendix 2). However, 45% of smartphone users made purchases using a smartphone and 10% using digital wallets. (statistics 2018). All these smartphones used by Malaysians have installed various social media platforms and these platforms help retail businesses to spread and make things viral. For example, MINISO had just launched the new plush toy “The Bare Bear” in partnership with the respective company (Appendix 3). This message spread and viral among young people and increased the sales of MINISO in a short time due to the viral marketing effect on social media using a smartphone. Furthermore, the development of online e-commerce for retail sales is affected by Internet penetration and increase in online shopping sites. The B2C e-commerce market in 2018 shows that the growth rate forecast for online retail is above 20% for the next 2 years and mobile traffic accounts for 50% of internet traffic (Appendix 4). However, MINISO does not have any online e-commerce stores worldwide. MINISO is expected to operate its own online e-commerce store to provide customers with more convenience and increase availability 24/7, anytime, anywhere. Customers now rely more on shopping online through an online shopping app and home delivery rather than visiting a physical store. Thus, the online store is essential for MINISO in this global environment of technological advancement. Furthermore, information technology plays an important role in overcoming the complexity of retail operations by controlling information and data to achieve competitive advantages in the retail industry. The Multimedia Super Corridor Malaysia was established in 1996 with the aim of creating a competitive hub of local ICT companies and a persistent ICT industry. It allows registered Malaysian businesses with 1.1 million businesses to benefit from strong demand in the new economy. Point of Sale (POS) system to help MINISO manage business operations and offer a range of methods to enter purchases including managing customer or order from a single dashboard (capterra 2018). Indeed, when the customer selects a product and then decides to make payment at the counter, the.