Malaysia was placed 24th in the World Bank’s 2018 Ease of Doing Business Index. The Malaysian business sector is expanding significantly as one of the greatest countries in which to start a business and make investments.
With the best incorporation of company in Malaysia, you must take advantage of the market in the enormous Asia-Pacific region because of its central Southeast Asian location. This benefit is available to any company offering its qualified services to clients in the area.
We have compiled a list of 9 factors that support beginning or growing your business in Malaysia.
More than the fact that Malaysia has a favorable business climate and is one of the fastest-growing economies in Southeast Asia, there are many other advantages to establishing a firm there.
If you’re looking for reasons to start a business in Malaysia, you’ve come to the perfect place:
Low Rates For Corporation Taxes:
After Singapore, another Asian nation with a low corporation tax rate in Malaysia.
A resident business is required to pay a corporation tax rate of 17% if it:
- Has a minimum paid-up capital of RM 2.5 million and a maximum annual income of RM 50 million
- Does not have a direct or indirect ownership interest in another business with paid-up capital exceeding RM 2.5 million
- Is not directly or indirectly owned by another business that has paid-up capital of more than RM 2.5 million
The resident corporation will pay a rate of 24% on sums over RM 600K.
Other than the corporations mentioned above, resident businesses and non-resident businesses are subject to a 24% CIT tax.
Act On New Companies:
The new Companies Act 2016 has made it simpler and more affordable to create a business in Malaysia. Additionally to making the registration procedure more straightforward, there have been additional developments that concern Malaysian firms.
These modifications include:
- Forming a corporation with a single shareholder and director
- Audit exemption for inactive businesses, businesses with no revenue, and businesses that meet certain criteria
- Private corporations do not have annual general meetings
- Passing written resolutions is made simpler for private corporations
Educated And Inexpensive Labor:
Since the government encourages the development of human resources across all industries, the majority of workers in Malaysia are well-educated, so get in touch with the best accounting services provider in Singapore and Malaysia right away. With cheaper expenses than other nations in the area, Malaysia boasts one of the best workforces in Asia.
To fulfill the expanding demand and skill requirements of the industry, there has been a growth in the number of public training institutions such as technical schools, polytechnics, industrial training institutes, and skill development centers.
Language, Not A Barrier:
Malaysia has many official languages. English, Mandarin, and Tamil are also widely spoken in Malaysia in addition to Bahasa Malaysia, or Malay.
The majority of Malaysians, particularly the younger generation, are fluent multilingual speakers.
Strategically Placed:
Malaysia is situated in the center of the ASEAN Community, which also includes Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, on the Asia-Pacific rim.
Due to its advantageous position, Malaysia serves as a gateway to the 667.3 million-strong ASEAN region.
Agreements On Free Trade:
Multiple free trade agreements have been signed by Malaysia. Currently, Malaysia is a party to seven bilateral and seven regional free trade agreements.
Malaysia is a party to the ASEAN FTA as well (AFTA). The ASEAN countries’ members have a trade agreement called the AFTA.
Advantages Of The Agreement Include:
- Reduces or offers a zero-tariff policy for commodities exported and imported under the FTA
- Alters and removes import constraints
- Makes it simpler for investors to enter
- Less difficult custom processes
- Increases the availability of various services on the market
The market-oriented economy and pro-business policies of the Malaysian government are widely recognized. To maximize their prospects of generating both profit and development, firms require just this. The nation has enticing tax laws and provides financial advantages that help businesses compete in the international market and draw in foreign investment.
The government has demonstrated its commitment to fostering an innovative and entrepreneurial economy that would offer numerous commercial possibilities to every Malaysian company. Firms in the nation benefited greatly from the initiatives, as did businesses in Southeast Asia.
Doing Business Is Simple:
The World Bank’s 2020 Ease of Doing Business report placed Malaysia in 12th place. Malaysia has been expanding to make it simpler for citizens and non-residents to start enterprises.
According to The Heritage Foundation’s Index of Economic Freedom, Malaysia was the 24th-freest country in the world. According to the World Economic Forum’s Global Competitiveness Report 2019, Malaysia is the 27th most competitive economy in the world. In the globe, Malaysia ranks second for safeguarding minority shareholders.
There are three basic processes in creating a business, and the procedure of registering a corporation in Malaysia is simple.
The first step in the registration process is to choose a corporate entity, a company name, and the officials of the firm. Following up on any ongoing compliances, such as filing yearly reports, paying taxes, and acquiring business permissions, comes after registering your firm with the Malaysian Companies Commission.
Outstanding Transportation Links:
Malaysia’s transportation infrastructure makes it easier for individuals and businesses to travel internationally and provides quick access to the world’s supply chain. The Southeast Asian nation serves as a significant air hub, with five international airports linking the area to all of the continent’s main cities as well as to the United States and Europe.
All of them have facilities for air freight. The Malacca Straits, one of the busiest maritime lanes in the world, lies nearby, and the nation boasts seven international seaports. Additionally, there are effective rail and road connections to other regions of South-East Asia.
Businesses in Malaysia can readily and effectively deliver their services because of robust transportation connections and an effective supply chain. For any firm in Malaysia, having access to overseas delivery services to satisfy consumer demand is a significant benefit.
Outstanding Infrastructure:
Malaysia has one of the greatest telecommunications networks in Asia with a first-rate fixed and wireless infrastructure. All cities have broad fiber access, although less so in rural regions. This expands the extent of firms’ ability to offer online services.
For internet enterprises or firms that offer online services, various online markets are very profitable. Any business targeting the Malaysian market may profit greatly from digital marketing.
One of Malaysia’s greatest assets is its human capital. Southeast Asia has a youthful, educated, and productive labor pool, making it simple for industrial and service companies looking to expand and make money to find good employees.
Malaysia’s Best Business Ideas:
It is immensely exciting to start your own business, and Malaysia is one of the most promising countries to do so, whether your business plans are modest or ambitious.
In comparison to other nations, Malaysia offers a wide range of options for you to start a successful business. The options are unlimited, ranging from an online business to a real estate enterprise.
According to data, in Malaysia, 14% of domestic and global customers choose small businesses over big corporations.
Nevertheless, it is important to keep in mind that, like with any company concept, not everything will always be in your favor. There will always be challenges to conquer and rivals to outperform. Explore many small company ideas as a result, then choose the one you are most passionate about.
Your drive and enthusiasm will keep you going when you face tougher circumstances. Select a field in which you stand a good chance of succeeding and finding daily operations enjoyable.