Malaysia is gaining traction as one of the best locations for starting a business in the Asian Pacific region. The country has a steady improvement in its business environment for domestic medium and small-sized enterprises, placing it in 12th place out of 190 economies in the World Bank’s 2020 Doing Business Ranking. This progress demonstrates the government’s commitment to developing business opportunities, job creation, innovation and assurance for aspiring entrepreneurs and other private industries.
Here are other rankings of Malaysia across the globe as of 2020:
The country offers stable and affordable living with an abundance of business opportunities. Following the issuance of the LLP or Limited Liability Partnership Act in 2013, which provided utmost flexibility to LLP and business owners in the aspect of formation, maintenance and termination, the cost for setting up and registering a business and companies in Malaysia is greatly reduced.
Besides, the country stands as an industrial hub. A foreign-owned company can invest in any business sector due to the availability of talented labour and inexpensive raw materials, allowing the Malaysian manufacturing centres to thrive significantly. The country offers various natural resources, including palm oil, timer oil, tin and rubber.
Because of Malaysia’s vast development, it is recognised as a destination full of unrealised potential by the WTTC or the World Travel and Tourism Council. Therefore, setting up a company in Malaysia offers great potential for their investment and business growth.
Other key advantages of setting up an Sdn Bhd company in Malaysia include:
What You Need to Know About Malaysia
The second language after Malay in Malaysia is English, which is spoken by nearly seventy percent of the population. Generally, business owners should speak both languages fluently to easily deal with customers, employers, and suppliers and avoid any misunderstanding with regards to a deal.
Business documentations are also available in English, which cuts the cost of translation services and saves time during the company registration process and when conducting business in Malaysia.
Several ethnic groups represent Malaysia’s demography. As of 2020, Malaysia’s population is estimated to be at approximately 32.7 million. Its population continues to grow at a rate of 0.4 percent every year. Malaysians or Bumiputera account for 69.6 percent of the population. The Chinese population is around 22.6 percent, the Indian population is about 6.8 percent, and other ethnicities belong to 1 percent of the population. Malaysia’s population is expected to increase to 41.5 million by 2040.
More than 60 percent of Malaysia’s population is Muslims. The country establishes halal parks, which are designed to ease the process of business registration and offer incentives for every halal-associated manufacturing sector.
Malaysia also has Islamic banking and is home to the biggest shariah-compliant property. There is no repatriation restriction between international Shariah bank accounts.
Type of Law
Since Malaysia’s independence in 1957, UMNO or United Malaysian National Organisation has ruled the country’s ethnically and religious diverse constitutional monarchy. However, in 2018, PH or Pakatan Harapan won the general elections, ending UMNO’s decades of political monopoly.
MYR or Malaysian Ringgit