Expanding into Malaysia
Expanding to Malaysia can bring excitement to the possibilities and significant stress to ensure the entity with the country’s structure and structure laws. Ensuring compliance without sufficient knowledge of the country’s laws also adds stress to getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.
Get the Support You Need
The opportunities that come with expanding into Malaysia can be stimulating as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.
These can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, primarily through our Employer of Record (EOR) framework.
This can be best utilised when businesses are just beginning their expansion process and require more information before incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in Malaysia
Malaysia’s unusual geography – split into two distinct regions by the expanse of the South China Sea – has not hampered its growth into one of the powerhouse economies of the southeast Asia region. West Malaysia on the Malay Peninsula has a land border with Thailand and is linked to Singapore by a bridge and causeway. East Malaysia, on the island of Borneo, has land borders with Indonesia and Brunei.
Malaysia’s vibrant economy accelerated in 2022 above expectations, with the World Bank upgrading its growth forecast from 5.5% to 6.4% for the year. Increased consumer spending came alongside improved exports for the electronics and commodities sectors, plus growth in services, the construction industry, tourism and manufacturing.
However, global worries saw the Bank downgrade its 2023 forecast to 4.2% from 4.5% and with private consumption contributing around 60% to the growth, the economy is susceptible to a drop in domestic demand.
In 2021, Malaysia’s Gross Domestic Product (GDP) of 371 billion US dollars ranked it 39th in the world, but per capita GDP of USD 11,125 placed it only 69th. However, the uneven spending power of its 32 million population is offset by the potential of 600 million people among the wider Asia and Pacific Rim nations.
A variety of fundamental strengths underpins the developing economy. Malaysia’s natural resources include oil, timber, rubber and minerals, cocoa, tropical hardwoods and tin, while it produces around 40% of the world’s palm oil.
The well-educated and mainly young workforce are flexible, productive, motivated and predominantly English-speaking. The government encourages foreign investment – more than 40 nations have invested in over 5,000 manufacturing and services companies – and has developed an infrastructure to support expansion.
Malaysia’s strategic location has also seen it diversify as a regional hub for the finance sector, including Islamic financial services, information and communications technology (ICT) and supply logistics. It has become a launch pad for further expansion into other Association of South East Asian Nations (ASEAN) members, among which it has the third highest GDP behind Indonesia and Thailand.
Income Tax Number (ITN or Nombor Cukai Pendapatan): the 12-digit ITN applies to individuals and entities.
National Registration Identity Card Number (NRIC): the 12-digit number is issued to Malaysian citizens and permanent residents. The Inland Revenue Board Malaysia uses it to identify taxpayers without an ITN.
US, China, Singapore, Japan, Association of South East Asian Nations (ASEAN), European Union (EU).
Hiring Staff
in Malaysia
Malaysia’s unusual geography – split into two distinct regions by the expanse of the South China Sea – has not hampered its growth into one of the powerhouse economies of the southeast Asia region. West Malaysia on the Malay Peninsula has a land border with Thailand and is linked to Singapore by a bridge and causeway. East Malaysia, on the island of Borneo, has land borders with Indonesia and Brunei.
Malaysia’s vibrant economy accelerated in 2022 above expectations, with the World Bank upgrading its growth forecast from 5.5% to 6.4% for the year. Increased consumer spending came alongside improved exports for the electronics and commodities sectors, plus growth in services, the construction industry, tourism and manufacturing.
However, global worries saw the Bank downgrade its 2023 forecast to 4.2% from 4.5% and with private consumption contributing around 60% to the growth, the economy is susceptible to a drop in domestic demand.
In 2021, Malaysia’s Gross Domestic Product (GDP) of 371 billion US dollars ranked it 39th in the world, but per capita GDP of USD 11,125 placed it only 69th. However, the uneven spending power of its 32 million population is offset by the potential of 600 million people among the wider Asia and Pacific Rim nations.
A variety of fundamental strengths underpins the developing economy. Malaysia’s natural resources include oil, timber, rubber and minerals, cocoa, tropical hardwoods and tin, while it produces around 40% of the world’s palm oil.
The well-educated and mainly young workforce are flexible, productive, motivated and predominantly English-speaking. The government encourages foreign investment – more than 40 nations have invested in over 5,000 manufacturing and services companies – and has developed an infrastructure to support expansion.
Malaysia’s strategic location has also seen it diversify as a regional hub for the finance sector, including Islamic financial services, information and communications technology (ICT) and supply logistics. It has become a launch pad for further expansion into other Association of South East Asian Nations (ASEAN) members, among which it has the third highest GDP behind Indonesia and Thailand.
Income Tax Number (ITN or Nombor Cukai Pendapatan): the 12-digit ITN applies to individuals and entities.
National Registration Identity Card Number (NRIC): the 12-digit number is issued to Malaysian citizens and permanent residents. The Inland Revenue Board Malaysia uses it to identify taxpayers without an ITN.
US, China, Singapore, Japan, Association of South East Asian Nations (ASEAN), European Union (EU).
The Main Sectors of the Malaysian Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the Malaysian Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
Commercial Laws in Malaysia
Commercial Laws in Malaysia
