1.

0 INTRODUCTION

Gamuda Berhad is one of Malaysia Construction Company which is leading

infrastructure group, with core business activities ranging from infrastructure privatization,
construction, property development and manufacturing & quarrying. For more than three
decades Gamuda Berhad has played a significant role in helping to transform infrastructure
development in Malaysia. Incorporated on 6 October 1976, Gamuda Berhad was listed on
the Main Board of the Kuala Lumpur Stock Exchange on 10 August 1992.

Gamuda Berhad formerly is an investment holding company which is engage with

civil engineering construction. Gamuda Berhad have three main focus on construction
segment they are engineering and construction, infrastructure concession, and township
development, for engineering and construction, Gamuda Berhad is a leader of turnkey
contractor which is design and build it. Some form is, this company is engaged in the
construction such as highways and bridges, water treatment plants, dams, and residential
and commercial properties, property development and club operations. For infrastructure
concession Gamuda Berhad will make development, financing, operating and transfer on
term of infrastructure, which is development of residential and commercial properties, and
club operations, and water and expressway concessions and for Township Development,
Gamuda Berhad make a plan, design and develop large-scale townships and properties.
Another that the company engaged in the management of water supply and the
management and tolling of highway operations.

Gamuda berhad operates not only in in Malaysia, but also on foreign country like
India, Taiwan, Republic of China, Mauritius, Qatar, Bahrain and Vietnam. In November
2001 Gamuda Berhad make a concession agreement with the National Highways Authority
of India (NHAI) to undertake the Panagarh - Palsit Highway projects in West Bengal, India.
And it also take the project for New Doha International Airport in Qatar to design and build
two runwaysthree parallel taxiways, drainage works, aircraft parking aprons and airfield
ground lighting facilities equipped with four substations.

2.0 WHY GAMUDA BERHAD GOES ABROAD

1
 Goes abroad or internationalization is a process taken by company to make their
product service available in foreign countries. (Bloodgood, 1996). The company should
have to choose the right country to make venture into beside of home country.

Some of the Malaysian construction has consistently been the smallest contributing
in economic sectors in Malaysia outlook financial year 2007 by contributing 3% on average
of total Gross Domestics Product (GDP) in Malaysia for the past 8 years. One of the
reason is Malaysian construction industry has largely been spurred by Malaysian
government spending to develop the nation infrastructure, and not many mega project in
Malaysia going on but even construction industry contributed small to the nation GDP, but
construction industry indirectly increased GDP with other sector such as educational
institution, housing, commercial property, tourist attraction and transportation infrastructure
service such as airport, seaport, and road this is the general reason why some company in
Malaysia want to goes abroad, include Gamuda Berhad itself.

Gamuda Berhad concentrations on developing the new projects and getting

efficiencies to investment and operations in Malaysia. On the domestic front, the
environment for construction likely remains challenging as the government fiscal policy.
There are opportunities to undertake more overseas work. Some of the reason why
Gamuda Berhad goes abroad are can crating opportunities for the growth and expected to
increase earning.

2.1 Creating Business Opportunities for the Growth.

Many companies in Malaysia can not afford to continuous sustainable with the
illusion and dilemma that their domestic markets will always be strong. For the reason,
many companies choose to continuous the business in overseas market as well. Some of
the taking a venture into international markets, As like Gamuda Berhad, the company can
face the offset seasonal fluctuations and increase profits in general through exposure to a
greater number of prospects.

Gamuda Berhad was deciding some countries because it very gives a change or
opportunities like India and Middle East. Gamuda Berhad is a company which wants to
increase in global business activities that created increased opportunities for the company.
This factor will persuade Gamuda Berhad to venture into foreign country in order to sustain
2
the company’s survival rate, to create competitive advantage against other local
competitors, Going abroad with the company’s product and in its way of lengthening or
renewing the product life cycle in other countries and also to avoid early market saturation
in the home country. Further, technical proficiency is often increased by goes abroad into
foreign county with greater expertise in certain areas of technology and. In addition, goes
international can minimize the company’s risk of losing market shares to foreign market.

2.2 Gamuda Berhad Expected to Increase Earning.

Gamuda have an opportunities in overseas, as the pace of Malaysian construction

activities slowed down over the last few years, the main focus for Gamuda Berhad expand
has been on west asia and india, on this country Gamuda berhad got advantage fast paced
development as one of the new Asian economics superpower, and the construction boom
in the affluent gulf states of the middle east.

Gamuda Berhad expects equal earning contribution not only from its domestic
operation but Gamuda Berhad focus on gaining the earning from overseas operation,
Gamuda Berhad make diversification strategy to venture abroad after the 1997 – 1998
Asian financial crises has started to show result.

For the current financial year 2010, Gamuda Berhad got a third of its earning is
derived from abroad. But for financial year 2010 it will be 50:50, the infrastructure
concession division would register steady income growth and continue to generate
significant cash flows for the group.

3.0 A COMPREHENSIVE MODEL OF FOREIGN MARKET ENTRIES

3
 It is important to identify the Industry-based considerations, Resources-based
considerations and Institution-based considerations to make decisions whether to do
foreign entry. Based on the Gamuda Berhad website, their core competencies are in
engineering and construction, infrastructure concessions and township development.

3.1 Industry - Based Considerations.

In Industry-based Considerations, it is discuss about how “average” firms within an

industry compete. There are five forces framework to consider in Industry-based
considerations.

First forces are Rivalry among firms in the industry. In the traditional economic
model said that whenever the competition happened among rivals, it didn’t bring any profit
to the related firms. The intensity of rivalry among firms varies across industries; so do
construction industry, firms strive for competitive advantage over their rivals. From
tutor2u.net, Competitive advantage means an advantage over competitors gained by
offering consumers greater value, either by means of lower prices or by providing greater
benefits and service that justifies higher prices. Based on our research, In construction
industry, Gamuda Berhad faced few competitors in Malaysia, IJM Corporation, YTL and
Zelan Berhad. In globally, there are many competitors, Maytas Infra Limited, GMR Group,
Aljabar Engineering and so on. Gamuda Berhad emphasis on differentiation and value-
creation, they provide product differentiation from competitors. In the year 2000, they get
Hicom-Gamuda Development Sdn Bhd Planning Innovation and Concept Award 2000 by
Malaysian Institute of Planners. Based on a review in 2007, we can see that Gamuda
Berhad actually accessed high performance in this few years, the review compare Gamuda
Berhad with other construction company in Malaysia, Gamuda Berhad is the first among
others, we can conclude that Gamuda Berhad is the dominance company in the industry
compared to others competitors.

The second forces are entry barriers. Usually, foreign market entries have high
requirements to enter their market, it is because the protection of the industry from the
government. Gamuda Berhad did enter foreign market through some strategy; there are
joint venture, Turnkey operation and Build Operate Transfer (B.O.T). Gamuda Berhad
entered South East Asia countries such as Vietnam and Laos. There is an agreement
ASEAN Free Trade Area (AFTA) between ten countries included Malaysia, Vietnam and
Laos. From Wikipedia, AFTA is a trade bloc agreement by the Association of Southeast
4
Asian Nations supporting local manufacturing in all ASEAN countries. The primary goal to
have AFTA is increase ASEAN's competitive production in the world market by the
eliminate tariffs and non-tariff barriers within ASEAN countries and attract more foreign
direct investment to ASEAN. So, Gamuda Berhad can direct entry to have investment and
have wholly owned subsidiaries in these two countries.

The third force to consider in industry-based is the substitute products or services in

the industry. Gamuda Berhad have strong rivalry in Malaysia, The Company did provide
construction, property development, and infrastructure concessions. Thus, Gamuda
Berhad seeks the opportunity to enter other market which it don’t have any similar
substitutes.

The others two forces are bargaining power of suppliers and bargaining power of
buyers which we think it not related to Gamuda Berhad.

3.2 Resource - Based Consideration

From Resource-based Consideration, it discusses about how the individual firms

differ from each other within an industry and can outperform the industry average
consistently and significantly. There are two types of resources, intangible and tangible
resources. Tangible resources mean observable and easily quantified while intangible
resources means not easily observed or difficult to quantify. VRIO framework constitutes a
part of these considerations. VRIO stand for Value, Rarity, Imitability and Organization.

Value means a resource must enable a firm to employ a value-creating strategy, by

either outperforming its competitors or reduce its own weaknesses. Gamuda Berhad did do
this part, it creates value on its company, and for example, it had outperforming its
competitors in terms of performance in Malaysia. Furthermore, Gamuda Berhad has joint
many construction project across South East Asia Countries, the construction in New Doha
International Airport, Doha cooperation between The Sinohydro-Gamuda-WCT Joint
Venture (SGW JV).

Rarity resources in a firm encourage firms to leverage their assets overseas. The
question here is it the resources the firm’s own is rare? For Gamuda Berhad, the answer is
rare. The reason is the Gamuda Land owned by Gamuda Berhad, indirectly they have the
tangible resources themselves and they have their owned supplier for raw material, Mapex
Infrastructure Private Limited.
5
 Rarity directly leads to Limitability. From Wikipedia, It means a valuable resource is
controlled by only one firm it could be a source of a competitive advantage (Barney, 1991,
p107). This advantage could be sustainable if competitors are not able to duplicate this
strategic asset perfectly (Peteraf, 1993, p183; Barney, 1986b, p658). A firm might choose
to not enter a country if they think their resources can be imitable easily by others. Gamuda
Berhad has the trademarks and it legally protects the company’s features and resources so
that others can’t imitate their product easily. Hence, they enter foreign market without fear

3.3 Institution-Based Considerations

There are formal and informal institutional differences in these considerations. For
informal institutional differences are cultural differences. A firm might not want to enter the
foreign country if the cultural differences between is very big. For Gamuda Berhad, it
choose the country which in South East Asia, like Taiwan, Vietnam, India, These countries
is easier to enter if compare with Western countries. The cultural is not that much different.

There are three types of formal institutional differences, regulatory risks, trade
barriers and currency risk. Regulatory risk means those risk associated with government
policies of the country. Based on the country which Gamuda Berhad entered, Taiwan,
India, Vietnam, Laos and others Arabian countries, in our opinion, we think that these
countries have regulatory risk when one company entered in. But we couldn’t find any
relevant information.

Trade barriers have three types, tariff and nontariff barriers, local content
requirements and restriction on certain entry modes. The countries which include in AFTA
which I mentioned earlier are Laos and Vietnam which don’t have tariff barriers for Gamuda
Berhad who origin from Malaysia to entered in. For countries like India, their project mostly
involved at there is Joint venture with the local company. Which we think it is restriction on
certain entry modes by the government.

Third type of formal institutional differences is currency risk. In our research, we

think that those countries which Gamuda Berhad entered didn’t occurred in this institutional
differences, it is because the currency among each other’s is average the same.

6
 4.0 WHERE GAMUDA BERHAD CAN ENTER FOREIGN COUNTRIES

Gamuda Berhad interested in serving foreign markets face a difficult decision in

respect to the choice of country to enter. Gamuda Berhad seeks and secures their
landmark projects in foreign markets in order to gain the location advantages. The example
of the location advantages are obtaining cheap inputs, producing close to final consumers

7
or downstream customers, jumping trade barriers, provide services to other country and
saving transport costs.

As a example, Gamuda Berhad select appropriately the environments in which they

operate, conform to those environment and eventually, manipulate the environment in a
manner that facilitates the organization to conform. The two sets of considerations drive the
location of foreign entries are strategic goals and cultural and institutional distances.

4.1 Strategic Goals.

Under strategic goal Gamuda Berhad focus on natural resource seeking, Market
seeking and innovation seeking.

4.1.1 Natural Resource Seeking.

Resource seekers aim to minimize operating costs by locating in country that

providing low-cost inputs to the product or process. Resources can be broadly
characterized into categories such as labor, utilities, natural material, and monetary.
Companies seeking pure labor cost advantages have realized that they are better locating
in regions such as Asia, Eastern Europe, or Latin America.

For instance, Gamuda Berhad chooses to venture into project in India as a strategy
of natural resource seeking. In November 2001, Gamuda Berhad first secured two deferred
payment project in India. The first project is the Panagarh-Palsit Highway and the Durgapur
Expressway, and the second project is Dankuni-Palsit Section, in the State of West Bengal.
In India, Gamuda maintains 130km of highways in West Bengal under 15-year finance,
construct and maintain annuity payment concession with the National Highway Authority of
India.

4.1.2 Market Seeking.

Market seeking strategy is a firms going after the most lucrative markets for their
products and services. A market seeking firm is likely to look at successful competing firms
regardless of their nationality. Hence, a firm who’s seeking to enlarge their market needs to
show some conformity to the local normative and respect the regulatory aspects of
operating in the host market in order to enlarge their market. For example, Gamuda Berhad
8
has achieved a number of significant milestones as they help build Malaysia to its status of
world class infrastructure. For the past 30 years, Gamuda’s engineering and construction
team have realized the visions and aspirations of their clients and customers through their
relentless focus on operational excellence and reliability in delivery.

In 2004, Gamuda Berhad team up with Electricity Generating, Thailand’s second

biggest private power producer, to develop the Nam Theun 1 Hydropower project in Laos.
It holds the concession to develop this project, signed a memorandum of agreement (MOA)
with Egco on September 20 that will pave the way for the setting up of a joint-venture
company to undertake the project.

Other than project in Laos, Gamuda Berhad also runs a project in Bahrain, which is
Sitra Causeway Bridges. This project involves the construction of two landmark marine
bridges and associated embankment works together with grade separated interchanges at
both ends of the Sitra Causeway and on Nabih Saleh Island.

4.1.3 Innovation Seeking.

Gamuda Berhad also used the innovation seeking strategy in select the entry
country. An innovation seeker is a firm targeting countries and regions renowned for
generating world-class. Innovation seekers locate where they can access top-quality talent,
and find the most knowledgeable, creative, or technologically advanced work force to meet
their needs. Besides, through often associated with companies in knowledge-based
industries such as information technology, life sciences, and aerospace, innovation-
seeking also maintains a functional delineation.

For instance, Gamuda Berhad becomes the first Malaysian company to

successfully penetrate the Taiwanese construction market in 2002. Gamuda signed an
agreement with Kaohsiung Rapid Transit Corporation, Taiwan to undertake the Kaohsiung
Mass Rapid Transit (MRT) System Project. The Kaohsiung Mass Rapid Transit System
(KMRT) is a rapid transit system in the metropolitan area of Kaohsiung, Taiwan. The
construction of KMRT started in October 2001, with the Red Line and the Orange Line
opened on March 9 and September 14, 2008 respectively. Gamuda construct of two
parallel underground tunnels 3.86km long, two underground stations, the Fengshan Junior
High School and 4-level Dadung station.

4.2 Cultural and Institutional Distances.

9
 The second consideration of Gamuda Berhad is cultural or institutional distances
between the countries. Cultural distance is the difference between two cultures along some
identifiable dimensions such as individualism. On the other hand, institutional distance is
the extent of similarity or dissimilarity between the regulatory, normative, and cognitive
institutions of two countries.

The distance between home and host country is mainly through the work on cultural
distance and psychic distance. For example, the institutional distance between countries
will create difficulties in the operation of Gamuda Berhad. In face of these difficulties, the
emerge from difference in practices, norms, procedure, and rules are fueled by impairment
of cognition at the managerial level. Hence, Gamuda Berhad will choose foreign entry
modes that require low involvement rather that a large commitment of resources. That is
because larger distances also entail more uncertainty and risk.

A stage models is the one of the school of thought that emerged. It is the rooted in
the idea that firms internationalize first to countries with which the psychic distance is
shorter, and using low involvement entry modes. It gradually expands their operations to
more distant countries and utilizing higher involvement entry modes later. For instance,
Gamuda Berhad chooses to run its projects in culturally similar countries during the first
stage of internationalization, which are in India and Bengal and enter culturally distant
countries in later stages which are Taiwan, Qatar, and Bahrain.

5.0 WHEN GAMUDA BERHAD ENTERS THE FOREIGN COUNTRIES?

Researches show that Malaysian contractors have the first mover advantage. It’s
noted that IJM was the first Malaysian contractor in India in January 1998. It is because of
their early presence in India and good relationship with the National Highway Authority of
India. Moreover, research show that IJM is the first mover that enters to foreign market
successfully and Gamuda Berhad is the second successful mover in this construction
business to enter the foreign market. Gamuda signed a concession agreement with the

10
National Highways Authority of India (NHAI) to undertake the Panagarh-Palsit Highway
projects in West Bengal, India in November 2001.

The first mover is that the movers tend to have a higher performance than their
followers (VanderWerf & Mahon, 1997) and they gain long term competitive advantages
(Kerin, Varadarajan & Peterson 1992). Lieberman and Montgomery (1998, 41) states that
first mover advantages in economical terms is the ability to earn positive economic profits.

First movers like IJM may receive advantage through technological leadership.
When the technology can be patented as trade secret, it can protect a firm from new entry.
First mover can use patent to obtain and protect technological leadership (Golder & tellis,
2002, 7). Kanniainen (1992, 5) pointed out that successful R&D Projects enhance the
productivity of the first mover’ material resources. Advantages derived from the learning
curve model, means unit production costs fall with cumulative output. This generates
sustainable cost advantage for the early entrant if learning can kept proprietary and the firm
can maintain leadership in market share.

Second mover can be the third, fourth or fifth company which moves into an already
existing market. Despite the challenge, Gamuda Berhad being a second mover has its
advantages. Gamuda Berhad can see exactly what the first movers are offering and able to
determine what strategy is working and what isn’t. Tellis and Holder (1996) showed that the
second entrant into market often does better that first that entered. Being a second-mover,
one may have the advantage of breaking down the market’s needs.

Based on Lieberman and Montgomery (1988, 47), second movers may benefit from
the opportunity to free-ride from the investments made by the first-movers. Second mover
may able to free ride on first movers pioneering investment through Research and
development, selecting and hiring employees that had been trained by the first mover
company. Thus, Gamuda berhad may use free ride effect on consumer education by only
focusing on innovation on what is the best to gain profit. For example, in October of 2002,
Gamuda Berhad have also become the first Malaysian company to successfully penetrate
the Taiwanese construction market signed an agreement with Kaohsiung Rapid Transit
Corporation, Taiwan to undertake the Kaohsiung Mass Rapid Transit (MRT) System
Project.

Second movers obtain advantages through resolutions of technological or market

uncertainty. It is important to realize that market and technology uncertainty are related but
11
distinct. The market uncertainty is linked to the volatility of product market size and
consumer’s needs. Technological uncertainty is related to volatility of the stock of
knowledge in the given industrial field. Assessing the effect of both market and
technological uncertainty on the value of the Research and Development capital requires
the definition of a theoretical framework. Leader’s investment provides information
regarding different technologies. When Gamuda Berhad adopt a new technology then
Gamuda berhad get the competitive advantages. By reducing unit cost or introduce a
better product the first adopter is expected to enlarge its market share.

Being able to address these specific needs at the onset allows the second-mover to
build their offering in a way that re-addresses the core needs of the market. When
implemented correctly, the second-mover will be able to start pulling market share from the
first-mover. Sometimes applying a first-mover’s overall idea to a particular niche can be an
effective strategy.

For example, In Qatar, Gamuda has completed the construction for the Dukhan
Highway linking the industrial area in Dukhan to Shahaniya. The contract was awarded in
July 2005 for 750 million Qatar riyals or RM784mil at the time.

First mover mostly defines that difficult to adapt to market changes. When a
company brings new thing or concept to market, it faces challenges. This situation poses a
significant risk since consumer response to the concept or product always hard to predict,
especially when switching cost are high. For instant, Gamuda Berhad signed a Project
Development Agreement (PDA) with the Government of Laos. It develops the Nam Theun
1 (NT1) hydropower project. Construction of the project, with an estimated construction
cost of about US$550 million, will begin in early 2006 after financial arrangements have
been finalized.

As a conclusion, first mover or second mover have different views in advantages

and disadvantages. The process of globalization involves internationalization and
localization. Gamuda Berhad focused on further enlarging presence in international
infrastructure construction in West Asia, India, Indo-China and east country.

12
 6.0 HOW GAMUDA BERHAD ENTERS THE FOREIGN COUNRIES

In general, there are several steps which we need to take into consideration when a
company is planning to enter the international market to expand their business. These
several steps have been categorized into two main sub topics, which are scale of entry and
modes of entry. In the scale of entry, we talk about commitment and experience. The first
step in the modes of entry is to determine whether to pursue equity or non-equity modes of
entry and the second step is to make actual selections.

13
 First of foremost, one of the key dimension in foreign entry decision is the scale of
entry. It is either focuses on the large- or small-scale entry. A number of European financial
firms, such as HSBC, and ING Group, have recently spent several billion dollars to enter
United States by making a series of acquisitions. Gamuda Berhad has chosen on a large-
scale entry in one of their business in Qatar, which it costs US $5 Billion. This large-scale
entry into the Qatar is to design and build airfield facilities, road tunnel and detention ponds
for the New Doha International Airport (NDIA). The benefit of this large-scale entry of
Gamuda Berhad is a demonstration of strategic commitment to certain markets. This both
helps to assure local customers and suppliers and deters potential entrants. The
drawbacks are limited strategic flexibility and huge losses if this large-scale “bets” turn out
to be wrong. There is evidence that the longer foreign firms stay in host countries, they will
get to experience about the foreignness. On the other hand, small-scale entries are less
costly. They focus on organizational learning by getting firms “feet” wet –“learning by
doing”- while limiting the downside risk. The drawbacks of small-scale entries are lack of
strong commitment, which may lead to difficulties in building market share and in capturing
first mover advantages.

Among various modes of entry, managers are unlikely to consider all of them
simultaneously. Therefore, it is imperative that managers prioritize, by considering only a
few manageable key variables first and then contemplating other variables later. A decision
model which contains of the choice of entry modes is helpful. The choice of entry mode
distributes into non-equity and equity modes. Exports and contractual agreements are
belonging to the non-equity modes while joint ventures and partially owned subsidiaries are
equity modes. An MNE enters foreign markets via equity modes through foreign direct
investment (FDI) has three principal advantages, which are ownership, location, and
internalization. A strategic decision must be made in terms of whether to undertake FDI
and become an MNE by selecting equity modes.

The second step in modes of entry is on making actual selections. During the second
step, managers consider variables within each group of non-equity and equity modes.
Gamuda Berhad has held the New Doha International Airport contract, Qatar in the year of
2008-2009. It is consider as an equity mode which it is a joint venture project, which named
Sinohydro-Gamuda-WCT Joint Venture. Sinohydro Corp holds the majority 60 percent
sake, Gamuda Berhad 25 percent, and WCT 15 percent. Joint venture is indicative of
relatively larger and harder-to-reserve commitments. One of the advantages of Gamuda
Berhad in this joint venture contract is the sharing costs, risks, and profits with his partners.
Furthermore, Gamuda Berhad can access to partners’ knowledge and assets to achieve
14
their goals in the joint venture contract. The disadvantages of joint venture are the
divergent goals and interests of partners, limited equity and operational control, and difficult
to coordinate globally.

7.0 DEBATES AND EXTENSIONS FOR GAMUDA BERHAD

There are three heated recent debates which we are discussing in Gamuda Berhad
from the aspect of liability versus asset of foreignness, global versus regional geographic
diversification, and cyberspace versus conventional entries.

7.1 Liability versus Asset of Foreignness

Assets of foreignness are those unique benefits enjoyed by an MNE subsidiary that
are unavailable to host-country rival firms whereas liability of foreignness is the problem of
being an outsider and being blocked in access to resources that are crucial. Liability of
foreignness is manifested in two dimensions. First, local firm have to learn the language,
15
and cultural differences quickly. For instance, Gamuda Berhad in India has to learn the
new management way instead of management in Malaysia. Second, foreign firm still
discriminate between each other, sometimes formally and other times informally. Since
Gamuda Berhad is the leader of turnkey project, we cannot deny that Gamuda Berhad has
valuable asset of foreignness. Its operations are carried out in Malaysia, Taiwan, India,
Mauritius, Qatar, Bahrain and Vietnam. Being foreign can be an asset or competitive
advantage. For example, Gamuda Berhad is showing its good image in its operation such
as engineering and construction, infrastructure concession, and township development.
Besides, it also ranked first in term of quality of information provided via one-to-one
meetings and quality of on-going relationship.

7.2 Global versus Regional Geographic Diversification

In nowadays globalization, debates continue on the maximum geographic scope for

MNEs. Is Gamuda Berhad globalizing? or regional geographic diversification? Global
means same services and products are offered all around the world while regional
geographic diversification means the service s and product is different depends on the area
or place. After our analyze on Gamuda Berhad by referring to the internet information, we
found that Gamuda Berhad is a globalize company which it has few key factors such as
competing in new environment, expanding internationally, diversifying management, and
policy matters. Gamuda Berhad has expand their business scope to Taiwan, India,
Vietnam and etc, they are trying to adapt the new environment there and make changes
refer to the condition or culture in the host country. Besides, by expanding internationally,
Gamuda can increase their revenue due to the differences in currency. As company
deepen and broaden their presence in international markets, the more diverse
management we need to manage a company. Gamuda Berhad which is a global company
need to engage with governments and other policy makers in that particular country on
global issues such as regulation and trade issues.

7.3 Cyberspace versus Conventional Entries

Cyberspace is an imaginary place where electronic messages exist while they are
being sent between computers. Gamuda Berhad is entering other countries such as
Vietnam, Taiwan, and India through conventional entries, not via the cyberspace. Before
enter the countries, Gamuda Berhad will do all the research and understand the culture
differences and they will obey to the rules of that country.

16
In my opinion, debates and extension will change day by day. But it will help a company to
know its strength and weaknesses and indirectly improve the actual performance of the
company.

CONCLUSION

17