Starting a business in Malaysia can be exciting, but not all ventures lead to success. Many entrepreneurs face challenges that resulted in disappointment and, in some cases, failure. Understanding risks and difficulties can help business owners take informed decisions.
1. F&B industry – high competition and operational costs
Food and Beverages (F&B) is one of the most popular commercial options in Sector Malaysia. However, many startups struggle due to intense competition, rising fare costs and changing consumer preferences. Without a strong brand or unique sales point, several restaurants and cafes fail within the first year.
2. Retail Store-E-commerce threat
Traditional retail businesses, especially small physical stores, face a decline in foot traffic as more Malaysians prefer online shopping. Even well-known brands fight against e-commerce veterans like Shopi and Laja. Without a strong digital strategy, retail business risk losing relevance.
3. Tourism-based undertaking and uncertain market
The tourism industry of Malaysia may be beneficial, but it is highly dependent on external factors such as economic conditions, currency exchange rates and global events (eg, pandemics). Many tour agencies and homestay business struggle with inconsistent income.
4. Tech Startups – Funding and Market Adoption issues
While Malaysia promotes digital changes, tech startups often struggle to secure money and get market approval. Limited local investors face many difficulties in scaling due to interest and high customer acquisition costs.
5. Agriculture and Farming – Labor and Climate Challenges
Agricultural business, such as a durian farm or biological plantation, required important initial investment and faced risks like unexpected weather, , Lack of labor, and ups and downs in the market.
While these industries present challenges, success with proper research, strategic plan and adaptability is possible. Entrepreneurs should carefully assess the risks before diving into any business.
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