Navigating Cross-Border Challenges: M&V’s Experience Expanding into Malaysia
Measurement and Verification (M&V) Pte Ltd, a Singapore-based energy services company known for driving energy efficiency in some of the country’s most prestigious malls and hotels, recently shared its cross-border expansion experience in a feature by Channel News Asia.
M&V made its first foray into the Malaysian market in 2018, with the goal of scaling operations and replicating its success in Singapore. The move was part of a strategic plan to demonstrate the scalability of its proven business model to investors and clients.
However, the journey was not without its hurdles.
“Many energy services companies succeed in Singapore because the government is pushing energy efficiency very strongly,” said Steven Kang, Managing Director of M&V. “If your building consumes too much energy, by law, you have to do something about it. In Malaysia, they encourage [energy efficiency], but they don’t make it mandatory.”
Without similar regulatory requirements in Malaysia, M&V faced difficulties in securing local clients. Additional challenges included unfamiliar business cultures, limited local connections, and administrative complexities related to staffing and operations across borders.
Despite these setbacks, M&V Malaysia managed to sustain its presence. A key factor in its survival was the continued partnership with Singapore-based clients who expanded into Malaysia and brought with them the same high standards for sustainability and energy efficiency.
These experiences reflect broader issues highlighted at the recent ASEAN Summit, where leaders—including Singapore Prime Minister Lawrence Wong—called for greater integration of services across the region. While ASEAN has eliminated tariffs for nearly all goods traded within the bloc, barriers to services trade remain significant.
“Beyond trading in goods, we should also accelerate trading in services. This is also an important part of the economy, and we can do more to facilitate this,” PM Wong said.