Why Setup Business in Malaysia
As an upper-middle income country, Malaysia has certainly emerged as one of the most developed countries in the Asian region. Emerging as an attractive regional hub in many sectors over the years, Malaysia has seen many foreign investors and entrepreneurs eager to establish a business in the country because it is seen as the idea gateway into a vast Southeast Asian market.
A Country with a Host of Benefits
Investors and entrepreneurs need a good reason to choose a country to setup a business, and Malaysia has given several excellent reasons why it continues to remain among the top choices for investors seeking to set up in Asia:
- Malaysia is ranked as the 25th most competitive country in the world
- Starting a business in Malaysia can be done with minimal start-up costs involved compared to a lot of other countries
- Malaysian businesses benefit from the massive consumer demand, especially in local and foreign markets such as Vietnam, India, China and Myanmar
- Malaysian-based businesses will enjoy duty free trade through free ports in Pasir Gudang, Port Klang, Kulim Hi-Tech Park, Port of Tanjung Pelepas and Bayan Lepas
- Malaysia has no restrictions when it comes to repatriation of capital, profits, dividends and royalties
- Companies established in Malaysia benefit from the country’s double taxation treaties which will minimize withholding tax on fund transfers abroad
- Investors can leverage on the country’s youthful and skilled workforce at cost-effective prices
- Malaysia has liberal government policies
Home to One of the Best Locations in Asia
Malaysia is strategically positioned within the Asia Pacific region (just above Singapore, as a matter of fact), and has been ranked as the 6th country in the world as the easiest and friendliest place of doing business by the World Bank.
Malaysia is certainly on track towards its economic transformation goals, and this has been further supported by achieving the 6th position among 189 economies in the World Bank’s 2014 Doing Business report.
Being located in the centre of South East Asia certainly has its perks, putting Malaysia in close proximity to other major markets like Singapore, Vietnam, Thailand, China and India, which means investors to setup a business in Malaysia will in effect triple their business potential by just being located in this region. The country is also an excellent location for doing trade by the sea, with four major ports located and an ideal location on the straits of Malacca.
Stable and Affordable
Malaysia is the ideal place for investors and entrepreneurs seeking a place of stability and affordability as the place to call home for their next business venture. Thanks to the abundance of cheap raw materials and skilled labour, Malaysia has carved out a reputation for itself as a manufacturing hub that is growing considerably, and this has been boosted even more by the country’s bountiful natural resources.
Low labor costs with no compromise on skills and productivity are another reason why Malaysia fares so favourably with investors. And, thanks to its membership in the Association of Southeast Asian Nations (ASEAN), companies registered in Malaysia can reap the benefits from the free trade agreements that exist between other members of the association.