Advantage of setting up business in Malaysia

Advantage of setting up a business in Malaysia

Do you want to start and expand your business in a foreign country?  Do you have the dream of becoming a successful businessman?  If your answer is "yes", Malaysia is the right option for you. A survey conducted by US News in 2020 shows that Malaysia is the top most desirable country to invest in because it offers many advantages.

The most common advantages include a favorable tax environment, educated and skilled labor force, strong government support, well developed infrastructure, rapid communication and transportation facilities, political and economic stability, and congenial environment for businesses. The advantages of setting up a business in Malaysia will be discussed in detail.

Strong Government Support:

Malaysian government aims at being a developed country within 2020. So, it encourages and supports the foreign investors to promote their business by providing attractive incentives for investment.

  1. MIDA offers a one-stop-shop to set up a business.
  2. MITI works on industrial development and international trade and investment in Malaysia.
  3. MATRADE helps in promoting products and services worldwide.
  4. Foreign Direct Investment ( FDI) promotes foreign investment.

Besides, the government allows the investors 100% ownership in a property.

Educated and Skilled labor force:

For every successful business, labor is an important issue. In Malaysia, an investor can easily find productive and skilled labor. The workers are well educated and innovative. The labor cost in Malaysia is cheaper than other Asian counties.

Liberal investment and tax policies:

Malaysian government encourages foreign investment by practicing liberal investment and tax policies.

  1. A trade license is not mandatory. It is easy to get a trade license in Malaysia.
  2. No sales and service tax and GST for sales transaction are needed.
  3. Setting up office and residential is less costly than other South Asian countries.
  4. An investor can easily open his corporate bank account or personal bank account anywhere in Malaysia IF company is registered high volume of paid up capital that not less than RM 500,000.
  5. Malaysia offers work visa for its investors. Besides, the investors in Malaysia can easily live with their family members if they wish. Because, the government allows family visas for them.

Political and economic stability:

Political instability is a barrier to run a business successfully. So, political stability is obligatory for setting up a business and securing profit. Malaysia is a politically stable and peaceful country. It follows parliamentary democracy. Global Peace Index Report 2014 shows that Malaysia is the safest country in South East Asia and the third in Asia. Moreover, Malaysia follows Islamic financial service. The economy of Malaysia is more stable than other Asian countries. The growth rate is at least 6 percent and above.

Congenial environment for business:

Malaysia, a member of the Association of Southeast Asian Nations, is a land with an abundance of natural resources. This country provides its investors with a congenial environment for business.

  1. The people of Malaysia are friendly and hospitable.
  2. A foreign businessman in Malaysia need not worry about natural disasters because Malaysia is free from earthquakes, floods, tsunamis and the like.
  3. Living cost in Malaysia is relatively low.
  4. According to a Nielson research, two - thirds of Malaysia consumers prefer to buy new products from brands. Most of the people in Malaysia love to use foreign brands and foreign made products.
  5. Malaysia is the top tenth tourist destination in the world. It is ranked number one in the World Muslim Tourism 2014.Every year, a large number of tourists come in Malaysia and stay there. So, the investors in Malaysia enjoy the opportunities to sell and advertise their products worldwide.
  6. According to a World Bank report in 2014, Malaysia is the sixth friendliest and easiest in the world to do business.
  7. There is no restriction on repatriation of capital, profits, dividends and royalties.

Rapid Communication and transportation facilities:

To start up a business, an investor has to think of communication and transportation systems of the area or country where he wants to set up his business. Without good communication facilities, an investor cannot easily expand his business. In Malaysia, all modern communication technologies are available. There is good connectivity with broadband of 4G in all most every area in Malaysia.

The transportation system of Malaysia is highly enriched. One can easily travel by bus or train from one area to another areas. High Speed Rail System and Rapid Transit System make Malaysia one of the best places to start a business. Well developed Airports, highways, and seaports ensure easy and affordable connectivity to other countries.

Safe and secure life with modern facilities:

Another advantage of setting up business in Malaysia is to get cheap and affordable health services. In Malaysia, an investor enjoys modern health facilities. Many government and private hospitals provide international health services.

So, people from many countries come to Malaysia to take world class health service. Besides, different famous international educational institutions are available in Malaysia. So, students from developing and developed countries come to study there. As a result, the investors in Malaysia receive maximum opportunities to sell their products to multilingual and multicultural consumers of different countries.

Easy to communicate with the locals and foreigners:

To run a successful business, a businessman needs to communicate with the local people. In Malaysia, it is easy to set up a business because most of the people of Malaysia are able to communicate in English though English is not their native language.

Free from corruption:

Corruption is a barrier to run a business successfully in any country. It is a matter of hope for investors who want to set up their business in Malaysia that Malaysia is one of the lowest corrupted countries. Here, corruption is lower than in other ASEAN countries.

Considering the above mentioned advantages, an investor can set up his business in Malaysia, the most suitable place for foreign investment. Business Supportive Government, congenial environment, friendly people, natural resources, political stability, strategic location and liberal tax policies are the advantages that inspire a businessman to start up his business in Malaysia.


Company Registration Expert Since 2012