Category | Malaysia | Score | China (including top tier manufacturers) | Score |
English Proficiency | Management strong, Operators high | 9 | Management weak, Operators low | 2 |
Business Transparency | Open book pricing; fixed price | 10 | Closed book pricing; price increases after agreement | 1 |
Human Rights | Government regulated, match US guidelines | 10 | Major violations, must stay diligent with factory to avoid abuses | 5 |
Business Ethics | High level of integrity | 10 | Untrustworthy | 2 |
Contract Negotiations | Simple and clear | 10 | Complex and adversarial | 1 |
Quality Assurance | Diligent and maintain standards | 10 | Quality creep | 4 |
Tariff Schedule | Standard | 8 | High and going up | 2 |
Training and History | Japanese trained, >40 years | 9 | Self trained, <20 years | 3 |
Sourcing | Global | 10 | Global | 10 |
Inbound Customs | No issues | 10 | Major challenges | 3 |
Air Freight - Duration to US | 3-4 days | 8 | 2-3 days | 9 |
Reverse Logistics | No issues | 10 | Agony | 0 |
Operator Dependability | Stable, local staff, low attrition | 10 | Volatile, staff from remote areas, high attrition | 3 |
Operator Experience | Highly trained and broad experience | 9 | Poor training and minimal experience | 3 |
Labor Rate | Stable, unchanged in 5 yrs | 9 | Turbulent, rising quarterly | 5 |
Political Environment | Stable | 9 | Unstable | 5 |
Susceptibility to Natural Disasters | Rare | 9 | Multiple yearly typhoons | 6 |
Chinese New Year Shutdown | 5 days | 9 | 14-25 days | 3 |
Environmental Compliance | Strict | 10 | Inconsistent and lax | 3 |
Total Score | Malaysia | 179 of 190 (94%) | China | 70 of 190 (37%) |