CategoryMalaysiaScoreChina (including top tier manufacturers)Score
English ProficiencyManagement strong, Operators high9Management weak, Operators low2
Business TransparencyOpen book pricing; fixed price10Closed book pricing; price increases after agreement1
Human RightsGovernment regulated, match US guidelines10Major violations, must stay diligent with factory to avoid abuses5
Business EthicsHigh level of integrity10Untrustworthy2
Contract NegotiationsSimple and clear10Complex and adversarial1
Quality AssuranceDiligent and maintain standards10Quality creep4
Tariff ScheduleStandard8High and going up2
Training and HistoryJapanese trained, >40 years9Self trained, <20 years3
Inbound CustomsNo issues10Major challenges3
Air Freight - Duration to US3-4 days82-3 days9
Reverse LogisticsNo issues10Agony0
Operator DependabilityStable, local staff, low attrition10Volatile, staff from remote areas, high attrition3
Operator ExperienceHighly trained and broad experience9Poor training and minimal experience3
Labor RateStable, unchanged in 5 yrs9Turbulent, rising quarterly5
Political EnvironmentStable9Unstable5
Susceptibility to Natural DisastersRare9Multiple yearly typhoons6
Chinese New Year Shutdown5 days914-25 days3
Environmental ComplianceStrict10Inconsistent and lax3
Total ScoreMalaysia179 of 190 (94%)China70 of 190 (37%)