Have you ever thought about setting up a company in Malaysia? Malaysia is centrally placed in Asia Pacific and the Asian region! Malaysia was recently ranked as the world’s sixth easiest and friendliest country to do business in by the world bank! In the latest World Bank Doing Business 2020 report, Malaysia ranked 12th among 189 economies. This demonstrates that Malaysia is on pace with its economic transition and is capable of positioning itself as an investment destination that welcomes foreigners!

In the World Bank’s Doing Business 2020 report, Malaysia is placed second in dealing with construction permits and protecting minority investors, fourth in getting electricity among 189 economies. Malaysia is a country on the rise! Malaysia is a country of stability, reasonable living, and a plethora of business investment prospects! Malaysia is a welcoming country for visitors! Start your business in Malaysia, a great area to launch your venture within the region! In Malaysia, Sdn. Bhd. also known as a private limited company.

Why Set Up a Company in Malaysia?

Here is a summary of why you should set up a company in Malaysia:

– Malaysian companies profit from strong consumer demand in domestic and international Asian markets such as India, China, Myanmar, Singapore, and Vietnam
– In comparison to Singapore, a Malaysian-owned business has lower startup costs. Malaysia has a lower monthly office rental Per M2 ($17) and wage rate ($2,310) than Singapore ($68 and $3,245)
– A resident company can take advantage of the country’s 68 double taxation treaties, which reduce withholding tax on international financial transactions
– There is no withholding tax on dividends paid by Malaysian companies abroad
– The repatriation of money, profits, dividends, and royalties by Malaysian enterprises is unrestricted
– The free trade agreements signed between Malaysia and six other ASEAN countries benefit a resident business
– Through free ports in Pasir Gudang, Port Klang, Kulim Hi-Tech Park, Port of Tanjung Pelepas, and Bayan Lepas, Malaysian firms can trade duty-free
– If the share capital of a Malaysian company exceeds RM 500,000, the company can sponsor a visa for its director
– In a 2020 survey, the world bank classified Malaysia as the 12th easiest country to do business in the world
– The country is currently recognized as the world’s 27th most competitive economy
– Industrial and service sector growth potential, particularly shared services activities
– More cost-effective youthful & skilful workforce available
– Attractive incentives for foreign investors
– Liberal government policies

Industrial Hub

A foreign-owned business can invest in any industry. Malaysia’s image as a manufacturing hub is rising rapidly, thanks to a plentiful supply of low-cost raw materials and trained labour. Several natural resources are abundant in the country, including palm oil, rubber, timber, oil, and tin. Malaysia has been dubbed “a destination full of unmet potential” by the World Travel and Tourism Council (WTTC) due to its abundance of natural attraction. As a result, the Malaysian tourism industry has a lot of room for expansion, which foreign investors can take advantage of by registering a firm in Malaysia.

Malaysia is a great place to establish a regional headquarters. Malaysia is a natural choice for shared services due to its low costs, particularly for infrastructure, conducive business environment, and high levels of global integration. Malaysia is located in the heart of Southeast Asia, close to many leading Asian markets such as Singapore, Vietnam, Thailand, China, and India; Malaysia is a natural choice for shared services due to its low costs, particularly for infrastructure, conducive business environment, and high levels of global integration. Malaysian labour market circumstances are favourable. In comparison to industrialized countries, labour expenses in Malaysia are comparatively low, while productivity remains high and the labour is young and trainable, with a largely strike-free environment. Malaysia has a good position for marine trade, with four main ports and an optimal location on the Malacca Straits. Malaysia has five free zones that offer no customs taxes and liberal commercial laws to foreign enterprises. Pasir Gudang, Port Klang, Tanjung Pelepas Port, Kulim Hi-Tech Park, and Bayan Lepas are the five free zones. Malaysia belongs to the Association of Southeast Asian Nations (ASEAN). As a result, enterprises based in Malaysia can take advantage of the free trade agreements that exist among the member states. Some restrictions governing foreign ownership are being eased to entice foreign investors to Malaysia. Stock brokerages’ foreign ownership restriction would be lifted from 49% to 70%. In Malaysia, wholesale fund management organizations can now have 100% foreign ownership. The 70% cap for unit trust corporations has also been raised.

The Malaysian government established industrial parks, such as free industrial zones, technology parks, and the Multimedia Super Corridor (MSC), to attract foreign investment and encourage Malaysian enterprise. Investment incentives exist, such as Pioneers status, BioNexus status, and Multimedia Super Corridor (MSC) status, which allow enterprises to enjoy tax-free status for some time. Malaysia’s sustained economic progress is shown in its average GDP growth of 1.17% during the last ten years. In the first half of 2014, Malaysia’s GDP grew at a rate of 6.3%, the highest among ASEAN countries. GDP growth for 2014 and 2015 is expected to range between 5.5% and 6%.

A Less Expensive Option than Singapore

Due to lower business costs, Malaysia is a great option compared with Singapore for a regional headquarters. Malaysia’s monthly office rental space cost $17 per Sqm in 2012. This is much less than the average monthly office rental space in Singapore, which is $68 per Sqm. In Malaysia, the average worker is less expensive than in Singapore. In 2012, Singapore’s average wage was $3,245, whereas Malaysia’s average wage was only $2,310. Malaysia is rapidly building hotels, amusement and theme parks, shopping malls, luxury residential complexes, art galleries, and museums to compete with Singapore’s strong tourism sector.

Malaysia hopes to emulate Singapore’s success by expanding its manufacturing and service sectors. Malaysia, for example, has created ports like Port Klang to serve key trade routes. To compete with Singapore’s manufacturing industry, Malaysia offers international manufacturing companies investment benefits such as pioneer status and an investment tax exemption.


Malaysia’s second language is English, which is spoken by 70% of the population. As a result, foreign investors interested in Malaysia will be able to speak effectively with local employees, customers, and suppliers. Because most business documents are written in English, translation expenses and time can be avoided when setting up a company in Malaysia or conducting business.

Islamic Community

Malaysia is an excellent place to invest in South East Asia for members of the Islamic community. Here are a few reasons why Muslims should think about moving to Malaysia:

– Halal parks: These parks were created to make business registration in Malaysia easier and to provide incentives to all Halal-related manufacturing industries.

– Islamic financial institution: Malaysia has one of the largest Sharia-compliant assets in the world. Repatriation between international Sharia bank accounts is not restricted.

– The practice of Islam: Malaysia, with its modern Islamic practices, can be considered as a bridge between the “Islamic world” and the “Western world.” As a result, Malaysia’s economy is well suited to both Islamic and Western businesses.