Doing Business in Malaysia

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Latest Destinations

Kuala Lumpur, Malaysia

Please click here to learn about Doing business in Kuala Lumpur

Major Cities and Serving Airports

Kuala Lumpur	Kuala Lumpur International Airport
Kota Kinabalu	Kota Kinabalu International Airport
George Town	Penang International Airport
Kuching	Kuching International Airport
Johor Bahru	Senai International Airport
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At a Glance

Malaysia is a multi- cultural country in Southeast Asia and one of the wealthiest and most developed countries, outranked in GNP only by Singapore and oil-rich Brunei. The Federation of Malaya became an independent country on 31 August 1957.

Malaysia is a federation of 13 states, the country’s political system is a constitutional monarchy based on the British Westminster parliamentary system. The nine Malay States (Sultanates) are constitutionally headed by a traditional ruler of royal descent.

Malaysia is one of the most open economies in the world, with a trade to GDP ratio averaging over 130 percent since 2010. Openness to trade and investment have been instrumental in employment creation and income growth, with about 40 percent of jobs in Malaysia linked to export activities.

In the past couple of decades, the government has focused on modernizing the country, encouraging technological advancements in the country to improve satellite, Internet, and general communications.

Malaysia is focused on attracting foreigners to the manufacturing and services sector. The government’s New Economic Model has been designed to propel Malaysia from a middle-income to a high-income economy, and greater emphasis will be placed on the development of the services sector to sustain the economy. In the Eleventh Malaysia Plan, 2016-2020, the services sector has been cited as being the primary driver of economic growth. The main growth contributors are projected to be the wholesale and retail trade, financial services and communications subsectors; and the services sector is expected to grow at 6.8% per annum and contribute 56.5% to the GDP in 2020, as well as provide 9.3 million jobs. Visit https://www.mida.gov.my/home/investment-opportunities-in-services-sector/posts/ for more information

Getting Around

Infrastructure in Malaysia is excellent and constantly improving. It is arguably one of the most well-developed countries in Asia, making it a great choice for both lifestyle and for business or investment

In Malaysia, you can hop aboard the world’s blingiest trishaws or fly into one of eight international airports. There are modern highways, trains and buses, as well as big-city mass transit in Kuala Lumpur.

Public transport in Malaysia is reliable and inexpensive. Much of your travelling, particularly in Peninsular Malaysia, will be by bus, minivan or, less often, long-distance taxi. Budget flights are a great option for hopping around the region

Trains

The Peninsula’s intercity train service is operated by KTM (short for “Keretapi Tanah Melayu” or Malay Land Trains; wwww.ktmb.com.my). The network is shaped roughly like a Y, with the southern end anchored at Singapore and the intersection north inside Malaysia at the small town of Gemas. The northwest branch travels into Thailand via KL, Ipoh and Butterworth, crossing the border at Padang Besar; the northeast branch cuts up through the interior along a stretch known as the Jungle Railway, to terminate at Tumpat, outside the port of Kota Bharu.

Taxis

There are a wide range of taxi services available from all main airports as well as being able to use ride hail apps such as GRAB. Ensure though you travel in a registered taxi and that the driver uses the meter for your journey.

Companies such as Blue Cab who are an officially licensed taxi company in Malaysia will help you get to your destination – http://bluecab.my/

Visa and Immigration

To enter Malaysia, visitors must have a national passport or other internationally recognized travel documents with a validity period of at least six months beyond the length of stay in Malaysia. All passports and travel documents must be endorsed for travelling in Malaysia.

In order to obtain a work permit, the passport should have a remaining validity of at least 18 months. The foreign national coming to Malaysia to work must be 27 years and above (exception in IT sector, where required minimum age is 23). The work permits are usually issued for periods between 6 months and 5 years.

As for employers, any information regarding the visa process, requirements or the necessary forms, can be viewed on the official website of the Malaysian Immigration Department.

Work passes

Depending on the type of job and skills, different working passes are issued when obtaining a work permit.

Employment Pass: This pass is issued to employees with specific skills, usually for technical or managerial jobs. The minimum period is usually 2 years.
Temporary Employment Pass: Issued for employment for less than 2 years or for jobs with a monthly salary less than RM 5000.
Professional Visit Pass: Issued to foreign nationals who remain employed by the company in the home country but are required by a Malaysian company to provide certain services for a period up to 6 months.

Setting up a business

In Malaysia, a business may be conducted:

By an individual operating as a sole proprietor, or
By two or more (but not more than 20) persons in partnership, or

iii. By a limited liability partnership (LLP), or

By a locally incorporated company or by a foreign company registered under the provisions of the Companies Act (CA) 2016.

Malaysia’s commitment in creating a safe investment environment has attracted more than 8,000 international companies from over 40 countries to make Malaysia their offshore base.

Equity Ownership

A company whose equity participation has been approved will not be required to restructure its equity at any time as long as the company continues to comply with the original conditions of approval and retain the original features of the project.

Investment Guarantee Agreements

Malaysia’s readiness to conclude Investment Guarantee Agreements (IGAs) is a testimony of the government’s desire to increase foreign investor confidence in Malaysia.

IGAs will:

Protect against nationalization and expropriation
Ensure prompt and adequate compensation in the event of nationalization or expropriation
Provide free transfer of profits, capital and other fees
Ensure settlement of investment disputes under the Convention on the Settlement of Investment Disputes of which Malaysia has been a member since 1966.

Malaysia has concluded Investment Guarantee Agreements (IGAs) with various countries. Visit https://www.mida.gov.my/home/starting-up-business/posts/ for more information.

Health & Safety

Malaysia offers some of the best healthcare in South-East Asia. So much so that there is a growing medical tourism sector in the country. The presence of so many medical schools supports the general belief that Malaysia is serious about providing quality healthcare, not only to its citizens, but also to tourists and expatriates.

The healthcare system is divided into two highly developed sectors ‘ a government-led and funded public sector, and a booming private sector that has grown substantially in the last quarter of a century.

The Foreign Worker Hospitalisation and Surgical Insurance Scheme (SKHPPA) is a compulsory scheme that covers the hospital charges of foreign workers. Employers are required to pay an annual premium for each of their foreign workers and, in the event of emergency, they will be allowed admission to non-corporatised Malaysian government hospitals and be paid benefits of up to the RM20,000 per year.

Malaysia is a very safe country. According to https://safearound.com/asia/malaysia/ It is ranked 54^th out of 162 on the ranking of the safest and most dangerous countries. As we all countries you are thinking of visiting or relocating too, it is always best to check on your own government website for an update in security or travel news

Emergency Numbers

Police / Ambulance Tel: 999 / 112 from a mobile telephone
Fire and Rescue Department (known as Bomba) Tel: 994 / 112 from a mobile telephone
Civil Defence Tel: 991
Tourist Police Hotline Tel: 03 2149 6590 Enquiries Tel: 03 2149 6593