02/06/2021
Australia Asia Connections TOP 5 COUNTRIES FOR DOING BUSINESS IN ASIA
3. Malaysia
Malaysia is an evolving financial centre in Asia and becoming more popular with foreign investors. Kuala Lumpur is often the city of choice when investing in Malaysia. The standard corporate tax rate in Malaysia is 24%. For SMEs (classified as companies incorporated in Malaysia with paid-up capital of MYR 2.5 million, not part of a company group with a higher capital threshold and have a gross income of no more than MYR 50 million for the year of assessment), the first MYR 600,000 has a tax rate of 17%, with the remaining balance taxed at 24%.
Many Malaysians are multilingual and speak three languages (English, Malay, Chinese). 100% foreign ownership of the company in wholesale, business and distributive business landscapes is subject to the Ministry of Consumerism and Trade’s approval, while foreigners who wish to operate in education, banking and finance, agriculture or tourism face more stringent guidelines and may require a local Malay co-ownership.
Investors with an entrepreneurial technology and innovation background will benefit from expanding their businesses into Malaysia, as high-technology companies and other innovative sectors benefit from investment and tax incentives from the Malaysian government. With a broadly liberal and transparent investment policy, developed infrastructure, high cost-competitiveness ASEAN membership and attractive government incentives, Malaysia proves to be an attractive location for foreign companies and entrepreneurs to do business.
