Malaysia is one of the hot business zones to invest in the South-east Asia region that has been rising to attention within the last decade. This is because the country offers a pro-business climate that can be seen across different industries from manufacturing to distribution. With the jurisdiction under the charge of a pro-business government, foreign investors will find Malaysia to be an attractive investment destination as the operating environment is not only business friendly but also offers various opportunities to everyone across the value chain of production. Malaysia is also seen by many investors as the gateway into regional markets of ASEAN countries, allowing for a greater total addressable market by means of trading extension. The powerhouse economy was also ranked 12th in the World Bank’s Doing Business 2020 index, showing the country’s pro-business stance.
Come find out the top benefits to register company in Malaysia in 2022 today.
1) Ideal Investment Environment
The first benefit of registering a company in Malaysia in 2022 is the ideal investment climate the jurisdiction presents to its investors. The developed country of Malaysia is located in the centre of Southeast Asia, which grants companies incorporated in the jurisdiction access to a market of over 649 million people, representing a total combined Gross Domestic Product (GDP) of US$ 3 trillion. Malaysia is home to two key ports, namely Port Klang and Port of Tanjung Pelepas. The ports are next to one of the world’s busiest shipping lanes which is the Straits of Malacca, with over 50,000 merchant ships passing through the waterway annually. Not to mention, the country is well connected to major cities and economies, and is able to reach countries like India and China within a flight period of 8 hours. This means that same day shipping is made possible as well.
Apart from the country’s strategic location, the government of Malaysia takes an open stance to foreign investments. In Malaysia, there are over 5,000 foregin incorporated companies from more than 40 different countries of origin. As of 2019, the total representative investment or Foreign Direct Investments (FDIs) from these companies was measured to be worth US$162 billion.
2) Regulated Environment:
The second benefit of registering a company in Malaysia in 2022 is the regulated business environment that the jurisdiction provides. Malaysia’s business environment is protected by a number of regulations and legislations that maintain efficiency and competitiveness, and also safeguards the interest of the public and stakeholders. To maintain a free and fair competition between businesses, the Malaysian Competition Commission carries out investigations on complaints revolving anti-competition behaviours, market reviews and penalises any offenders who were found to have infringed on the proper business practices. For firms that make “unreasonably high profits” that are non-justifiable, they may also be subjected to penalisation from the government of Malaysia in an effort to maintain price control and anti-profiteering.
Malaysia also conforms with international standards on matters regarding intellectual property (IP) rights, providing appropriate protection to both local and foreign investors. This is done through the passing of various legislation regarding protection for patents, trade marks, industrial designs, copyrights and any intellectual property alike.
3) Huge Educated Workforce:
The third benefit of registering a company in Malaysia in 2022 is the huge educated workforce that Malaysia provides. As of 2019, the working population of Malaysia stands at 32.5 million people. The percentage of high skill employment (those who are employed in the field of managerial, professional or technician roles) are increasing year by year, offering a competitive talent pool of workforce that is ready to perform at their respective roles. It is also important to note that Malaysia has a multicultural and multi-religious society and companies stand to benefit from hiring the locals as most of them are multi-lingual and will be able to communicate with most people in the ASEAN region.
4) Well-Developed Infrastructure:
The fourth benefit of registering a company in Malaysia in 2022 is the well-connected infrastructure that Malaysia provides. Ever since the colonial era, Malaysia has inherited a relatively well-developed infrastructure and the sector received large investment sums to expand its highways, railroads, seaport and airports. The country has a massive network of over 94,500 km of roads developed and has managed to establish two checkpoints with the country of Singapore.
Malaysia is an attractive jurisdiction for foreign investors who are interested in entering the Asian market. It is well connected on many terms, with short flight lead times to major markets, connection to one of the world’s busiest waterways and railroads that connect to various countries. Its strong economic prospects are steadily increasing as the country continues to receive significant investments, making the country a compelling investment choice for many to consider.