Why You Should Start a Business in Malaysia
Malaysia is a country known to have a strong community of expat and foreign workers.
Companies will benefit greatly from hiring employees locally. Whether you are looking for employment service, payroll service, benefits administration, or tax and accounting, NNRoad services will help your business operate successfully in Malaysia.
Keep reading to learn why you should start a business in Malaysia.
A. Hiring Employees in Malaysia
One of the benefits of hiring employees in Malaysia is having a highly skilled and competent workforce.
The Malaysian government provides free education for its citizens which has contributed to the development of a productive workforce.
More than half of the population is fluent in English and this gives businesses that engage in Malaysia an immense pool of local talent to choose from.
For companies looking to hire employees in Malaysia, using a Professional Employer Organization (PEO) streamlines the hiring process in a cost-effective way.
PEOs allow multinationals to legally hire employees, even if a company does not have a legal entity or representative office in Malaysia.
To learn more about Malaysia’s hiring requirements, check out our NNRoad’s Malaysia Country Guide, and obtain a better understanding of how to enter the Malaysian market.
B. Taxation and Investment in Malaysia
One of the main reasons why investors invest in Malaysia is because the country’s main drivers are technology and knowledge-based services.
Companies engaging in these sectors are supported by the government in efforts to promote foreign investment in these sectors.
- Green technology projects such as renewable energy and waste management are eligible for an Investment Tax Allowance (ITA) of 100% of Qualifying Capital Expenditures (QCE) against 70% statutory income for QCE incurred from October 25, 2013 for a maximum period of 5 years or until December 31, 2020.
- Research and Development (R&D) projects are eligible for ITA of 100% of QCE for a period of ten years to be utilized against 70% of statutory income.
C. Malaysia’s Strategic Location
Malaysia is a member of the ASEAN (Association of Southeast Asian Nations).
It makes Malaysia a strategic location for connecting the country to the rest of Southeast Asia. Through the ASEAN, Malaysia has a regional market of over 600 million people at its disposal.
Powerful business epicenters in Asia are reachable from Kuala Lumpur within a couple of hours.
Malaysia is one of several ideal markets to start a business in Asia.
We at NNRoad are experts at understanding the best locations for businesses to expand to and have the know-how to make your business expansion easy.
There are nine countries that are members of the ASEAN, like Vietnam, Indonesia, and the Philippines. Starting a business in one of these gives you the opportunity to engage in other markets around Asia.
To learn more about where else in Asia you could expand your business, check out our blog Top 3 Asian Markets to Do Business In which expansion covers countries like Singapore and Thailand.
Get in touch with NNRoad today!