Laws of Malaysia

Legal protection and regulations are one of the important aspects of investment and business.
Without laws especially those governing investment and business aspects, markets cannot function well, if even function at all.

Changes of laws and regulations are also important to valuation of companies.
Modification of laws and new laws can create, boost or even destroy an industry.
Functioning of a country’s legal system is also an important intangible when doing country analysis.

Website of Attorney General’s Chambers (Jabatan Peguam Negara) of Malaysia is a good resource for laws in Malaysia.

List of laws that are related to investment, business in Malaysia:
website

They are classified into:
Banking and Finance Laws
Commercial Laws
Corporate and Business Laws
Constitutional Law
Custom Laws
Development Corridor Laws
Dispute Settlement Laws
Employment Laws
Environmental Law
Immigration Law
Industrial Laws
Insurance Laws
Intellectual Property Laws
Land Laws
Local Government Laws
Promotion of Investment Laws
Securities Laws
Shipping Law
Taxation Laws

Cool..This is quite a surprise. I didn’t expect there are laws like Development Corridor Laws, Promotion of Investment Laws etc..

For investment, those laws under Banking and Finance Laws, Securities Laws are particularly relevant.

List of laws (with PDF files) in Malaysia:
link

We may not need to know in details these laws to start investing, but it’s good to know where to look for the information when needed.

Investment analysis: company analysis, industry analysis, economic analysis

I just realise I have posted twice on "Laws of Malaysia".
(Wonder what is wrong with the system)
So I edit one of the two posts to this post. :-)

You may see that I have posted more on economy recently.
It is just my personal preference to explore more on economy during this period of turbulence (or financial tsunami). During this period of time, many of the market/business/investment participants are in a "jittery" mode. Many stimulus/rescue packages, businesses asking for rescue, retrenchment, downsizing, debate of economic ideas/policies, volatile reactions, more fear, more greed…. the list goes on.

It is a good time to brush up on economy and economic theories.
However, for investment analysis, it is not only economic analysis.

For investment analysis,
company analysis, industry analysis, economic analysis are all important.
However, their relative importances are debatable.

If we proceed in sequence of company -> industry -> economy, it is called "bottom-up" approach.
If we proceed in sequence of economy ->industry -> company, it is called "top-down" approach.

My personal preference:
I place more importance on company analysis and industry analysis; but I didn’t ignore economic analysis. Need to know effects of economic situation/policies (exchange rate, interest rate change, credit situation, fiscal/monetary policy, state of economy etc..) to the company’s financial position, competitive position, etc. and effects on customers.

I didn’t strictly follow either "bottom-up" or "top-down" approach.
I proactively pick up bits and pieces of information on company, relevant industries (supplier, current industry, customer’s "industry") and relevant economic data;
add on to the "database";
decide based on the "database"..
More like when the three (company, industry, economy) clicks, then I buy or sell.

Company analysis is a must (but is quite a routine task, though may have pitfalls here and there);
I like industry analysis the most :-)