Analysis of Singapore and Malaysia for Penfold Wine Company Expansion

This report provides an analysis of the political and legal environments for Penfold Wine Company's potential expansion into the markets of Singapore and Malaysia. The analysis begins with an overview of the company, its background, and its current strategic goals. The main body of the report then delves into the political and legal landscapes of both Singapore and Malaysia, assessing factors such as political stability, government policies, tax regulations, and business registration processes. In the case of Singapore, the report highlights the low political risk but also notes the rapidly changing business policies and high costs associated with operating. For Malaysia, the report discusses the impact of government policies, tax rates, and legal frameworks on the company's potential profitability and growth. The report concludes by providing a summary of the findings and includes a list of relevant references from books and journals to support the analysis.

Globalization

Table of Contents
MAIN BODY...................................................................................................................................1
Analysis of the political and legal environment for an Australian Company to investment in
Singapore and Malaysia...............................................................................................................1
REFERENCES................................................................................................................................2

MAIN BODY
Analysis of the political and legal environment for an Australian Company to investment in
Singapore and Malaysia
OVERVIEW OF THE COMPANY
Penfold is an Australian Company whose headquaters is in Australia. It was founded in
year 1844. It is a subsidairy company of Treasury Wine Estates. It is highly popular for Penfolds
Grange. Its serves its wine in Mangill and Barossa Valley. Its key people are Christopher
Rawson Penfold, Mary Penfold, Max Schubert and Ray Beckwith.
Currently company is planning to expand its business and wants to choose Malaysia and
Singapore Market.
POLITICAL ENVIRONMENT OF SINGAPORE
Due to political stability in the country, the political risk in the Singapore is low. This
stability has converted into business opportunities for the new business who are interested in the
opening a new business in Singapore. Thus, For the Penfold Wine Company, it can be beneficial
to do investment in Singapore market. (Krishnan, 2019). Due to highly government succession
in Singapore, business policies impose by government are changing rapidly which lead company
to change their policies as well. It also requires a lot of costs which is not good for the new
business to open and invest in Singapore market.
LEGAL ENVIRONMENT OF SINGAPORE
There are various laws and regulations which is being impose by the Singapore
government on the new business which is very tight and highly costly. It can lead new company
to face losses for starting few years. Thus, for an Australian company, it is not good choice to set
up its business in Singapore. There are particular business vehicles which can help Penfold
company to run its business in following business forms which are as follows – Company limited
by shares, Sole proprietorship, partnership and Branches (Festa & et.al., 2019). It will help
company to registered their business easily.
POLITICAL ENVIRONMENT OF MALAYSIA
Due to new Malaysia government, they are abolishing GST which lead to reduce the
costs of running business and compliance requirements of operating business in Malaysis. This
can lead to creation of opportunity for Penfold Company to run its business in Malaysian Market
successfully. Malaysia Government is increasing tax rate for foreign company which lead to
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reduction in their profitability. Thus, for Penfold company, it is not a good opportunity to invest
in Malaysia Market (Langsæther & Stubager, 2019).
LEGAL ENVIRONMENT OF MALAYSIA
Due to government focus on the economic growth of Malaysia, Government make their
legal framework friendly and encourage inward investment from the foreign company to do
invest in Malaysia market. Thus, it is a good chance for Penfold to invest in Malaysia as
government help company to grow more (Khan, Khan & Haleem, 2019). For the business,
Company requires the property. According to the business legislation of Malaysia, Registering
property for the purpose of opening business requires the assistance of a lawyer, whose fees is
high. This lead company to bear a lot of costs in business start up in Malaysia. Thus, company
should not invest in Malaysia.
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REFERENCES
Books and Journals
Festa, G., & et.al., (2019). Crowdfunding in wine business as financing opportunity for smaller
wineries. International Journal of Globalisation and Small Business. 10(3). pp.278-292.
Khan, M.I., Khan, S. & Haleem, A., (2019). Compensating Impact of Globalisation Through
Fairtrade Practices. In Globalization and Development. (pp. 269-283). Springer, Cham.
Krishnan, R., (2019). CPTPP: The evolution of globalisation. MHD Supply Chain
Solutions. 49(2). p.6.
Langsæther, P.E. & Stubager, R., (2019). Old wine in new bottles? Reassessing the effects of
globalisation on political preferences in Western Europe. European Journal of Political
Research.
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