Malaysia offers a set of competitive advantages for those looking for a suitable business destination. The country is a great location in terms of the ease of doing business and it benefits from a stable economy. When starting a business in Malaysia, investors will have access to the ASEAN market, which is comprised of more than 600 million consumers. At the same time, the local government is actively seeking to attract more foreign investments in the country, while the start-up sector rapidly develops here, Kuala Lumpur being the hub of the Malaysian digital market.
Businessmen who want to register a company in Malaysia as a start-up can benefit from the growing sectors of its industries, which are mainly related to security, logistics and transportation, banking and the financial sector, medical research or communications.
More importantly, start-up companies in Malaysia can also obtain various incentives, depending on the specific sector in which they activate. For example, companies investing in the research and development field or in high-tech facilities and products can apply for grants with the Multimedia Development Corporation and, in order to qualify, the applicant company has to be registered in Malaysia as a private limited company and to invest in sectors such as software development, hardware design, research and development, e-commerce, IT or business process outsourcing.
Malaysia has also invested in the development of infrastructure. Related to this, the country has a great infrastructure system with Singapore (lower costs for airline carriers and an improved road access), which can lead to relevant business opportunities for Singaporean investors seeking to expand in neighboring countries. The country can become of interest for Singaporean investors due to the fact that renting an office in Malaysia is much cheaper compared to the rental costs practiced in Singapore.
Another key point of starting a business in Malaysia refers to the registration procedure, which can be completed in a week; in order to make this process easier, the local government created a one-stop-shop system. Once the company is incorporated and the business commences its activities, foreign businessmen can benefit from the tax benefits stipulated by the country’s double tax treaties, and also from the ones of the free trade agreements signed between the member states of the ASEAN.