Eight Reasons Why Malaysia Is Attractive To Businesses
Advantages of Businesses in Malaysia
Infinity has long known the benefits of business entities operating in Malaysia. The company opened its Kuala Lumpur office in 2004 and has been assisting expatriate and local clients in the country ever since.
The World Bank ranked Malaysia 24th in 2018’s Ease of Doing Business. Malaysian business is gaining traction at a significant rate as one of the best places to build a business in Malaysia as well as invest in a business in Malaysia.
Below are just some of the reasons why the country is such an attractive country to do business and the ideal platform for business entities looking to expand their professional services into the market in Southeast Asia:
A strategic location
Malaysia is located right in the centre of Southeast Asia and ideally positioned to benefit from the market in the vast Asia-Pacific region. This advantage extends to a business entity that is providing its professional services to its customers in the region.
Excellent Transport Links
Malaysia’s transport links facilitate not only international travel for business activities and people but also offer easy access to the global supply chain. The Southeast Asian country is a major air hub with five international airports connecting the region to all the major cities of Asia and beyond, to the U.S. and Europe.
Air cargo facilities exist in all of them. The country has seven international seaports and is located by one of the world’s busiest shipping lanes in the Malacca Straits. There are also efficient road and rail links to other parts of South-East Asia.
Excellent transport links allow businesses in Malaysia to easily and efficiently provide their services by having a good supply chain. Having international delivery services to meet market demand is a major advantage for any business in Malaysia.
A Dynamic Business Environment
The Malaysian government is well known for its pro-business stance and its market-oriented economy. This is exactly what businesses need to maximise their chances of achieving both profit and growth. The country has attractive taxation policies and offers fiscal incentives which enable companies to be competitive in the global marketplace and attract foreign investors.
The government has proven itself dedicated to creating an entrepreneurial and innovative economy that would provide various business opportunities to any business in Malaysia. The efforts gave businesses in the country tremendous benefits for companies in Southeast Asia.
Great infrastructure
Malaysia boasts an excellent fixed and wireless infrastructure with one of the best telecommunications networks in Asia. Fibre connectivity is widespread in all cities, but not as much in rural areas. This gives businesses a great range of reach to provide online services.
There are many online marketplaces that are extremely beneficial and profitable for online businesses or companies that provide online services. Digital marketing leaves tremendous benefits to any company targeting the Malaysian market.
A Dynamic Workforce
Malaysia’s human resources are one of the country’s great strengths. According to Keller a young, educated, and productive workforce means that recruiting excellent candidates in Southeast Asia is easy for both the services and manufacturing industries that want to do business and earn money.
A Resilient Economy
The Malaysian economy has demonstrated consistent growth over a sustained period. According to the country’s Department of Statistics, the economy expanded by 4.3% in 2019, with an average GDP growth just shy of 5% over the last five years. Inflation is also low, averaging 1.84% over the last five years, making it an ideal place for any business ideas.
In spite of an inevitable Covid-related contraction in 2020, the economic outlook is positive, with the World Bank predicting growth of 6.9% for 2021. This is one reason why the Southeast Asian country is such an attractive place for companies worldwide. Compared to other countries, Malaysia’s economy is expected to recover faster, giving companies, customers and investors in Bursa, Malaysia, stock exchange peace of mind.
A Cosmopolitan Community
An ethnically diverse and multicultural population made up of varying cultures and nationalities, like Malays, Chinese and Indians, as well as a thriving expatriate community of people from all over the globe, gives Malaysia a competitive advantage when it comes to international trade. While Bahasa Malaysia is the official language, English is widely spoken, particularly in the business environment and especially in the capital city of Kuala Lumpur, allowing any business in Malaysia to communicate with its English-speaking customers and investors.
A Positive Regulatory Environment
An effective and competitive private sector is governed by various different regulatory bodies to ensure that the interests of different stakeholders and the public are protected. These include the Malaysia Competition Commission, the Securities Commission of Malaysia and the Labuan Financial Services Authority.
The unique combination of factors outlined above makes Malaysia an extremely attractive place to do business and contributes to making the country a magnet for new businesses and foreign investment. In 2019, the country was ranked 27th in the World Economic Forum’s competitiveness index, ahead of China, Thailand and Vietnam.
If your business is looking to expand within the Asia industry, Malaysia is well worth considering as a base for your operations. The Malaysian Investment Development Authority (MIDA) is a great source of information for both manufacturing and service-based businesses who are looking to establish themselves in Malaysia’s industry.
And if you’re looking for corporate business solutions to your financial conundrums, why not get in touch with Infinity to discuss your requirements? Our experts have a wide range of knowledge that will benefit any company.
8 Best Business Ideas In Malaysia
Starting your own business is an incredibly thrilling endeavour, and Malaysia is one of the most promising locations to pursue your business ideas, be it extremely ambitious or in the territory of small businesses.
Compared to other countries, Malaysia poses a myriad of opportunities for you to establish a profitable business. From an online business to a real estate business, the possibilities are endless.
In Malaysia, statistics show that approximately 14% of local and foreign consumers prefer to support a small business over vast enterprises.
However, it is worth noting that everything won’t always work to your advantage, just like with any business idea. There will always be obstacles to overcome and competition to beat. Therefore, explore many small business ideas and land on one you feel passionate about.
When more challenging times arise, your passion and dedication will motivate you to endure. Choose a niche where you are likely to succeed while also enjoying your day-to-day dealings.
Let’s explore an inclusive list of small business ideas to determine what type of business in Malaysia suits you best.
1) Tourism Business
If touring and exploring new places excites you, starting a tourism business might be just the thing for you.
When you have set your sights on tourism, Malaysia is undoubtedly the right place to be as it is a well-known tourist country. The nation’s tourism division is the third-largest contributor to the GDP of Malaysia.
According to the TouristWire tourist magazine, This tourist country is one of the most visited snorkelling and scuba diving locations. Starting a tourism business will allow you to connect with many businesses local in origin, earn huge revenue in favourable seasons, and get to know all the budget-friendly areas for your personal interest.
2) Online Business
Digital Marketing
Coming up with original and creative small business ideas is no easy feat. A practical alternative is to help other businesses thrive by offering your services as an online marketing expert.
If you have any experience in online marketing, you can boost other businesses’ visibility on social media and drive traffic to their websites.
Your digital marketing business will allow you to choose your niche, gain influence in the community, and stay up to date on the latest trends in market demand. If you have a gift for creative thinking and visual representation, consider branching into additionally offering your services as a graphic designer for brands and businesses.
E-commerce business
Alternative to digital marketing, another small business idea could potentially be more suitable for your expertise. Consider starting an E-commerce sales business.
The internet will always be around, and an E-commerce retail business will guarantee job security. Retail is one of the most promising online business ideas, and you can start smartly and rapidly by simply registering with the Companies Commission of Malaysia and getting your licence.
With an online business, you don’t have to worry about paying rent on a physical shop, and you can ship your products to any location worldwide.
Editorial Services
Among the wide variety of business opportunities in the online world, offering copywriting, proofreading, and copyediting services is one of the best business opportunities if you prefer working on your own time and have experience in the editorial services industry. If language is not necessarily all you have to offer, consider becoming a virtual assistant and take on more challenging tasks.
Life Coach
With the growing emphasis on personal stability and mental health, offering your services as a life coach is a great idea for an online business in Malaysia.
You would be your own boss, set your own business hours, and open the door to growing your client base based on your online coaching performance and availability.
3) Personal Computer Repairing Startup
A smartphone and personal computer repairing startup are arguably among the most profitable business ideas in Malaysia. If you are an expert or have the time to master a technical skill and have the capital needed, you could soon be the owner of a very successful business.
A mobile phone accessories business is another promising field that doesn’t require advanced technical skills, but the competition is very high.
Beyond being a highly profitable business, a mobile phone accessories business or a personal computer repairing startup allows you to gain loyal customers, decide who you work with, and be your own boss.
3) Personal Computer Repairing Startup
A smartphone and personal computer repairing startup are arguably among the most profitable business ideas in Malaysia. If you are an expert or have the time to master a technical skill and have the capital needed, you could soon be the owner of a very successful business.
A mobile phone accessories business is another promising field that doesn’t require advanced technical skills, but the competition is very high.
Beyond being a highly profitable business, a mobile phone accessories business or a personal computer repairing startup allows you to gain loyal customers, decide who you work with, and be your own boss.
4) Real Estate Business
Another excellent business idea in Malaysia is the real estate business. As the Malaysian government made buying and selling property much more straightforward, many new investors have their sights on the real estate business.
The real estate business is a good fail-safe for inflation. As your performance will determine your income, you can essentially reach significant paygrades from both properties sold, property rent, and sale agent.
5) Fashion Business
Starting a fashion business in Malaysia will allow you to cater to a vast audience. Fashion has always been a profitable business field in Asia and offers many streams of business opportunities.
You don’t have to be an expert in fashion to start your own business in this line. By simply keeping track of the latest international as well as local trends, you will soon discover what your market is shopping for. It is easy to control cash flow in the fashion industry, and if you find yourself in a cost-competitive location, you can easily experiment with various price ranges to see what many Malaysians are willing to pay for your brand and gain confidence in your approach.
6) Oil and Gas Business
Another one of the best business ideas in Malaysia is to participate in the trade of oil and gas. One of the great advantages of this business is that it only requires a few thousand dollars to become a natural gas retailer and make it big.
Moreover, the extraction process of oil is simpler than other natural resources, and oil serves as a reliable energy source. Malaysia is abundant in palm oil and mineral fuels, so getting into this industry is a cost-effective pursuit with a high success rate.
7) The Food Industry
With Malaysia being the business hub of the southeast Asian nations, the food and beverage industry is one of the best businesses to cater to the immense volumes of foot traffic in the streets.
The restaurant business requires a relatively substantial investment to thrive, but establishing a food truck business is an excellent low-cost alternative.
You can even open a coffee shop and always have many customers supporting your small business.
The great thing about the food truck business is that you, as a business owner, can explore different areas and move your stand to target new markets. All you need to do is register with the Malaysian Institute of Food Technology, and you’re good to go!
8) Child Care Services
Many parents prefer to leave their children with a trusted service during working hours. Starting a daycare centre is a good small business idea if you find working with children fulfilling.
With this small business, you may qualify for grants and have exciting workdays by participating in fun activities.
Starting A Business In Malaysia: FAQs
Which steps should I take to start a business in Malaysia?
There are nine essential procedures that you need to complete to set up a business in Malaysia. These procedures may take around two weeks to complete. First, you are required to send an application to the Companies Commission of Malaysia on form 13A to make sure your company’s name is available. Then, the Company Secretary will prepare your company incorporation files and documents with the one-stop-shop of the Companies Commission of Malaysia. As soon as these documents are finalised, you can open a bank account for your business and register the business for goods or services taxes, PAYE, income tax, Social Security, and Employee Provident Fund. From there, you can navigate which construction permits you may need, whether you need to register your property, how you can protect investors, etc. Another reason why Malaysia is one of the best countries in Southeast Asia to start a business is that it has become increasingly simpler to obtain construction permits.
What is involved in creating a business plan?
An excellent business idea can only be transformed into a successful business if it is combined with a well-structured business plan. The first step to creating a surefire business plan is to conduct diligent market research. Market research is the only way to know who your target market is and who your biggest competitors will be. You will also gain valuable insight into the current market trends and risk factors associated with your industry. A good business plan will be your most helpful tool in identifying where you want your business to go, what challenges you will likely face, and what measures you need to put in place to system your business.
What should I do to start a home-based business in Malaysia?
Starting a home-based business in Malaysia is a simple and cost-effective option. In Malaysia, a residential property can be used to operate a home-based business if the appropriate criteria are met. You can follow these steps to start setting up your home-based business in Malaysia:
- Establish your business idea, such as marketing, dropshipping, etc.
- Draw up a proper business proposal and a financial plan.
- Decide on your business structure and name.
- Register your business.
- Obtain all the appropriate registrations, approvals, licenses, and permits.
- Register your business for taxes.
- Open a bank account for your business.
- Start promoting your business on social media, ads, and branding.
Who can help me start a business in Malaysia?
The best course of action is to engage company incorporation firms. These firms offer many customisable solutions to help professionals start their businesses. Additionally, they offer inclusive packages ranging from compliance to registration. Beyond professional company incorporation firms, the following sources can also facilitate starting a business in Malaysia:
- Online business groups and forums
- Accounting and legal firms that provide incorporation services
- Business coaches, mentors, and successful entrepreneurs
- Are councils and government agencies
- Business owners and those who have experience in running a business
- Company secretarial service providers who offer start-up solutions
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