We are going to discuss why you should incorporate a company in Malaysia. Malaysia is strategically located in the heart of South East Asia and offers a cost-competitive location for investors to set up companies or offshore operations for regional and international markets.
The Malaysian Government continues to ensure that the country remains an attractive business destination for investments. They doubled their efforts to attract investments and drive productivity and innovation through political, economic and regulatory reforms in order to achieve a high-income economy by 2020. These efforts have received worldwide recognition through improved rankings:
- 1st “Most Attractive Emerging Market in Asia”
- 2nd “Ease of Doing Business within ASEAN”
- 2nd “Global Competitiveness among ASEAN Countries”
- 5th “Digital Readiness among Developing Asian Economies”
A Dynamic Business Environment
Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. Malaysia’s key strengths include well-developed infrastructure, productive workforce, political stable with a well-developed legal system, attractive incentives for investors, supported by a market-oriented economy and pro-business Government policies. Some of the supportive government policies are liberal investment policies, attractive tax and other incentives, liberal exchange control regime and intellectual property protection.
Malaysia also has well-developed financial and banking sector, including the Labuan International Business and Financial Centre. English is widely used, especially in business, legal and accounting practices based on the British system. There is a large local business community with a long history in international business links and large foreign business community in all business sectors. The country was recorded to have a total trade of RM1.720 trillion in 2018 (Jan-Nov).
- Natural resources – crude oil, natural gas, tin, timber, palm oil, rubber etc.
- GDP growth: 5.4% (2018f)
- Gross National Savings: RM403,617
- Per capita income: RM42,777 (USD 9,840)
- Unemployment rate: 3.3% (2018)
- Inflation (CPI): 2.5% – 3.5% (p)
Advancing with Technology
Malaysia is one of the most technologically developed countries amongst industrialising nations in the ASEAN region. Malaysia will continue to move towards the direction to implement technologies such as Artificial Intelligence (AI), robotics and cybersecurity. With the help of technology, Malaysia is steadfast in providing for the modern day requirements of investor companies based in the country.
Infrastructure in Malaysia is designed to serve the business community, which is one of the best in Asia. Telecommunications network served by digital and fibre optic technology, five international airports (all with air-cargo facilities), well-maintained highways and seven international seaports make Malaysia an ideal springboard to the Asia-Pacific market.
Malaysia had developed Free Zones throughout the country and these zones are categorised as export processing zones, which cater to the requirements of export-oriented industries. These Free Zones (Pasir Gudang, Port Klang, Port of Tanjung Pelepas, Kulim Hi-Tech Park and Bayan Lepas) offer foreign companies no custom duties and flexible trading laws.
There are also specialised parks including free industrial zones, technology parks and Multimedia Super Corridor (MSC) that have been developed to cater to the needs of specific industries in order to attract foreign investors and encourage businesses in Malaysia. There are advanced MSC Malaysia Cybercities and Cybercenters.
Malaysia has a talented, young, educated and productive workforce, proving to be one of the best in the region. Having a multilingual workforce speaking two or three languages, including English and Chinese, no doubt is one of Malaysia’s greatest assets. The Government’s emphasis on human resource development ensures the continuous supply of manpower to meet the needs of the expanding manufacturing and services sectors.
Easy Incorporation Process
The requirements for starting a company in Malaysia are low. It is currently ranked #2 in “Ease of Doing Business within ASEAN”.
The company only needs to have a minimum of 1 local director, 1 shareholder, RM1 paid-up capital and company secretary. You can set up your company within 1 to 3 days.
Incorporating your company in Malaysia is a strong choice. Stable economy, educated strong workforce and business-friendly tax policies can let your business blooms faster – so that you can spend less time struggling in admin and more time to grow your business.
At TrustMaven, we provide services to help people set up their companies in Malaysia. SIGN UP NOW or talk to us if you have any questions about incorporation at [email protected]. Alternatively, you may just drop us your messages at the contact form below. Meanwhile, you may check out our pre-incorporation checklist.