Malaysia Country Profile

Recommendations:

Malaysia has a relatively open, growing economy with a skilled, generally English speaking labor force. Despite its comparatively small population, Malaysia is an easy country for foreign companies conducting global trade. **Good choice for most businesses**

(+) Consistently strong economic growth over the last decade;
despite COVID challenges
(+) Generally English-speaking population
(+) Ease of doing business and conducting international trade

(-) Productivity growth and domestic market size lags behind larger regional countries
(-) Internal political turmoil and ethnic tensions can create business challenges
(-) Relatively small population

Highlights:

– 5%+ average GDP growth over last 10 years
– Overall strong English language capabilities
– Top 15% of countries on the Global Competitiveness Index
– Pro-trade policies and low taxes

“Malaysia is one of the most open economies in the world with a trade to GDP ratio averaging over 130% since 2010. Robust manufacturing and service sectors have propelled the country to become a leading exporter of electronics.”

World Bank, 2021

Country Facts:

Population:

32.6 million; 0.2% growth in 2021

GDP:

$387.1 billion USD; 6.9 % growth in 2021

GNI per capita:

E-commerce:

$10,580 USD; 3.3% Inflation in 2021; upper middle-income

$7.1 billion USD; 10.6% growth in 2021

Industries:

Rubber and oil palm processing, petroleum and natural gas, pharmaceuticals, medical technology, electronics and semiconductors, and timber processing

Tourism:

26.1M arrivals in 2019; #4 ranked country in Asia

#12/190

#51/180

61%

22.7 M

$7.1K USD

#20/100

39% NYC Prices

Ease of Doing Business

Corruption Perceptions Index

Human Capital Index

Working Age Population

Household Expenditure Per Capita

English Language Capabilities

Cost of Living Plus Rent Index

Marketing:

Per capita expenditure:

$6,700 USD

Internet penetration:

81% (Southeast Asia 63%)

Shop online:

83%

Mobile ownership:

123%

Primary messaging:

Primary website:

Facebook

Average Labor:

Infrastructure:

Opening a Business:

Relevant Laws:

Companies Act of 2016, Companies Act (amended) of 2019

Time to Incorporate:

5-10 business days

Fees to Incorporate:

$500 USD ($250 government fee / $250 admin fees) for a standard business

Paid in Capital:

Ownership Dependent: 100% foreign ownership requires minimum $120-$250k depending on industry

Remittance Taxes:

Generally no taxes, depending on business activity and country of remittance

Restrictions:

100% foreign ownership is possible, with restrictions on certain industries to include medical, pharmaceutical, textiles, mineral, wood, and foodstuffs

Trends:

Malaysia has created tax and investment incentives to attract additional foreign investment in manufacturing and services; see www .mida.gov.my

BBA Services:

BBA has multiple staff resident in Malaysia, plus several experts living in the United States. We can assist companies across multiple sectors.