Malaysia has much to offer to both locals and expats. From its bountiful business opportunities, scenic views, and low tax rates, to diverse cultures, many investors and expats are choosing Malaysia as the destination to live, work, and set up a business. Explore more about the guide to Malaysia in this article.
Business in Malaysia
Malaysia, with the 4th largest economy in Southeast Asia, boasts one of the freest economies in the Asia-Pacific region.
Malaysia allows foreigners to incorporate a company and solely own it so long as they have a legitimate residential address in Malaysia. This attracts many expats to incorporate or expand their business in Malaysia.
When it comes to digitalisation, Malaysia ranks second behind Singapore amongst the Southeast Asian countries. This fuels the rapid development of online businesses, especially during the pandemic.
Taxation in Malaysia
Taxation in Malaysia adopts a territorial principle of taxation, meaning that only income earned in Malaysia is taxable. Malaysia uses both progressive and flat rates for personal income tax, depending on the individual’s duration and type of work in the country.
The corporate tax standard rate is 24% in Malaysia, including for non-resident companies and small or medium-sized enterprises above MYR 600,000.
As for Personal Income Tax, the rate varies from 0% to 28% depending on an individual’s income and residency status, similar to other ASEAN countries.
However, foreign individuals do have to assess their residency status as there is a difference between non-residents, tax residents and those exempted from paying taxes in Malaysia.
Education in Malaysia
Malaysia attracts international students with globally recognized universities, some ranking high among prestigious institutions worldwide.
Since the schools that accept international students, offer curriculums such as IB and IGCSE, students from over 150 countries come to Malaysia to study. During their study period, eligible students with the student pass can bring dependents into Malaysia and receive a Multiple-entry Visa for travel.
Lifestyle & Culture in Malaysia
Malaysia is a Muslim country and is one of the most multicultural countries in Southeast Asia. The population of 32.7 million people comprise the Malays, Chinese, Indians, Indigenous people and expats.
Malaysia’s cuisine, a fusion of local and traditional dishes from diverse cultures, is popular, reflecting its cultural influences. Penang hailed as Malaysia’s Food Capital, is renowned for its diverse and delicious culinary fusions.
Around Malaysia, Islamic practices like greeting old people with “salam” and modest dressing are observed, reflecting cultural uniqueness.
Aside from the practices and multicultural society Malaysia is famous for, it also offers a myriad number of attractions such as the rainforests, mountains and skyscrapers around the country.
Moving to Malaysia
With more expats moving to Malaysia and the rise of foreign-owned businesses, Malaysia has positioned itself as one of the best places in Southeast Asia.
FAQs
Malaysia is one of the best countries for expats, and many expats would agree with the statement. Foreigners feel that the people of Malaysia are extremely friendly and welcoming and Malaysia is ranked as one of the easiest places for expats to live.
Yes. States like Penang and Kuala Lumpur are exceptionally popular amongst expats due to their attractiveness and way of life. Those states also offer places in international schools thus, a myriad number of international students and businesses choose to reside there.
Malaysia’s native and national language is Malay, but Mandarin and Tamil are spoken as those three languages are the first language for majority of the population. However, English is the official language of business and is widely spoken especially in the cities.
