The management of Chinese small-business enterprises in Malaysia

Abstract

This paper traces the development of Chinese business enterprises in Malaysia, a multiracial country where the Chinese comprise 30 per cent of the population. Most of the Chinese enterprises are very small. Reference is made to the sixteen “Principles of Good Business Practices” which originated from ancient China. It is argued that the strengths of the small Chinese organization such as strong family ties, sharing and pooling of resources, efficient use of manpower, practice of thrift, use of low gearing, flexibility of operations, etc., may become weaknesses if the business expands. ThePok Chow or labour contracting system, and the role of the Chinese business associations and guilds are also discussed. Since the promulgation of the new economic policy in 1970, there is greater urgency for Chinese enterprises to modernise, so as to adapt to changes in Malaysia.