Starting a business in Malaysia is one of the best decisions you could make, even in the midst of the pandemic. The country has seen tremendous growth in recent years and has made its name as one of the places to incorporate a company. If you’re looking for inspiration and top business opportunities in Malaysia, this is for you!
Why start a Business in Malaysia?
There are plenty of reasons why investors and entrepreneurs are choosing Malaysia as their destination of choice when it comes to setting up a company. These include:
Good News: New Malaysia Companies Act 2016 about setting up Sdn Bhd for Foreigner
Types of Businesses to Consider in Malaysia
There are many business opportunities available in Malaysia post-pandemic. Here are some of them:
Fintech and Cryptocurrency Business
If you have a finance background, this is the era of online financial business. Cryptocurrency is a form of digital asset that can be exchanged online for goods and services. Your Fintech business can utilise blockchain technology create payment gateway platform for different users to use different types of cryptocurrencies to transact goods and services.
Cybersecurity Business
Since Covid started, there is a surge in usage of online transactions where lots of people working from home resulted in payment and personal information are being uploaded online. As per news:
“Malaysians suffered RM2.23 billion losses from cyber-crime” and “Complaints on online transactions rise 112.5%”
Therefore, Covid resulted in triggers epidemic of cyber fraud hence there is certainly an increase in the demand of cybersecurity business from corporate to consumer markets.
Online E Commerce Business
More than 26 million Malaysians use the internet today, and data from GlobalWebIndex shows that 80% of users between the ages of 16 and 64 are already shopping online.
While fashion retail was recognised as one of the hardest-hit industries due to the pandemic, both consumers and businesses have been taking major steps by going online to adapt to the situation. Luxury brands saw an increase in search traffic in Southeast Asia after the COVID-19 breakout compared to before. Starting an e-commerce business in Malaysia is surely a popular option to consider.
Even if you don’t have a shopping website setup of your own, you can still make this one work. Malaysia has several reputable online shopping websites which have a lot of business and traffic going on each day. Examples of these sites would be Zalora, Lazada, Shopee and Best Buy where you can quickly setup an account and start selling your goods.
Mobile app developer
App development is one of the best business opportunities in recent years due to the Covid-19 pandemic. Mobile apps are a great source of revenue as there will always be market shares available to be sought by those who wants it. According to Tech in Asia, as long as you have sufficient knowledge about programming languages such as Java or Python or Swift, you are ready to go!
As a professional app developer, you are required to write out a proper code and have the ability for graphic designs and coding skills. It is undeniable that there are many app developers in the world, you have to strive to stand out from the crowd by constantly polishing your expertise!
Transportation
Transportation is another thriving sector in the country! Private transportation has revolutionised the industry with e-commerce. This can be shown by the success of companies such as Grab and MyCar. Private transportation business is designed for personal or individual usage and unlike public transportation, customers won’t be encountering mass crowds.
Some of the services you can provide for in the transportation industry include:
- Rental of Vehicles for Events: Company trips, school trips, weddings, party bus, minibus charter
- Corporate Services: Executive ride shares, limo services, airport transfers
- Miscellaneous Services: School bus, delivery services, e-hailing cabs, private hotel tours
F&B Business
There is no place like Malaysia when it comes to delicious cuisines which are sure to delight your taste buds. The Malaysia Food and Beverages Industry (F&B) is identified as a fast-growing market and one of the main contributors to the national account. The F&B industry in Malaysia is very diverse with a wide range of processed food for Asian taste and dietary preference as well as many western recipes. Locals and foreigners alike love eating out and there’s no shortage of food options to choose from. From fine dining to local street food, starting an F&B business could be your calling.
Online Real Estate Business
There are reports that points out that the real estate industry has been slow to innovate, which means it’s poised for disruptors to arrive on the scene. Malaysia real estate is still very much a people business where housing agent and developers set to dominate the transactions.
Therefore, the opening an online real estate business portal where all parties can view, communicate, and even perform sales transaction will be a great breakthrough. The bulk of the real estate growth (closely linked to construction, which also made this list) will come from agents (people or mechanised), property managers, property rentals, and other people and companies providing related services.
Agritech Business
Agritech has long been an active sector in Malaysia’s business field. Agritech refers to the use of technology and innovation to improve the quality, efficiency, and output of agricultural processes and products in Malaysia. Agritech has seen revolutionary change due to exciting new advances in technology. Found below is a non-exhaustive list of use cases in Agritech:
Construction Business
The residential real estate market is the cornerstone of any economy. Shelter is considered a basic need for humans, demand for the construction business. Malaysia currently has a population of about $32 million, with a fertility rate of 2 births per woman and GDP growth rate of 4.3%. These factors can be considered very positive to builder or contractor in starting a construction business in Malaysia. However, construction industry has one of the slowest growths in productivity. Therefore, if the business can concentrate on prefabricated and top-notch manpower planning to reduce overhead cost then opening a construction business is definitely a viable business opportunity.
Childcare Business
Starting a childcare business in Malaysia is another one of the lists of business ideas in Malaysia which you could think about venturing into. In Malaysia, the fertility rate is still at a healthy level of 2 births per woman and constant inflow of foreigner relocating to Malaysia due to second home program. With a rising numbers of children and many parents are starting to realise the importance of early childhood education, and thus there is a growing demand for quality childcare services that needs to be met. If you’ve got the capital and the passion, this is one business idea which could prove very lucrative.
Fashion and Retail Business
Malaysians love their fashion. You simply need to walk into any mall, and you’ll notice that fashion boutiques bustling with customers eagerly scouting for the latest fashion trends.
If you’re considering setting up a retail business in Malaysia, research shows that the median age of Malaysians is 29 and 44% of the population is between the ages of 22 to 44. A huge target audience for the Fashion and Retail industry.
Microfinancing Services Business
There are always companies out there in need of funding and financing. With more people eager to fulfil their dreams of being their own boss, new businesses are continuously springing up. If you have the capital needed to help these entrepreneurs get their business off the ground, this could be the venture for you. It is advisable to have some background or knowledge in banking and financing before venturing into this sector.
Professional Services Business
If you’ve got a specific niche of expertise, like accounting for example, you could think about starting a professional services business in Malaysia. With new companies emerging every year, there is a need for professional services to help these businesses survive and thrive. This makes professional services business one of the best small business ideas in Malaysia you could think about starting.
Other Small Business Ideas in Malaysia to Consider
Other small business opportunities in Malaysia which you can consider include:
- Photography business
- Personal computer and smart phone repair services
- Food truck business
- Custom t-shirt printing business
- Mobile phone accessory business
- Pet related business
- Affiliate marketing business
- Freelance services
- Laundry service business
- Café business
Checklist for Starting a Business in Malaysia
Knowing that Malaysia is flush with business opportunities, how does one, for example, start an online business? All businesses in Malaysia must be registered with the Companies Commission of Malaysia. They are known locally as the SSM, and they oversee the registration of all companies in Malaysia while ensuring that compliance requirements are met.
Investors will have several business entities options to choose from for their Malaysia company registration.
Generally, there are 5 main types of business entities in Malaysia.
The table below will highlight the differences of each business type:
| Sole proprietorship | Partnership | Limited Liability Partnership (LLP) | Private Limited Company (Sdn. Bhd.) | Public Limited Company (Berhad) | |
|---|---|---|---|---|---|
| Owner(s) of the business | Owned by single individual | Owned by 2 to 20 partners | Partners have share in the capital and profits | Members (shareholders) invested into the Company have certain rights relation to the Company | Members (shareholders) invested into the Company have certain rights relation to the Company |
| Legal status | Not separate legal entities | Not separate legal entities | Separate legal entities | Separate legal entities | Separate legal entities |
| Liable party towards the debts | Owner | Partners | Company | Company | Company |
| Company Secretary | Not applicable | Not applicable | Qualified company secretary | Qualified company secretary | Qualified company secretary |
| Annual compliance | Annual fee required | Annual fee required | Annual declaration and solvency statement must be filed | Annual return must be filed on each calendar year | Annual return must be filed on each calendar year |
| Audit requirement | Not applicable | Not applicable | Not compulsory unless stated otherwise | Not compulsory unless stated otherwise | Compulsory |
| Tax rate | Tax chargeable on owner (0% to 26%) | Tax chargeable on owner (0% to 26%) | Tax chargeable on Company
For paid up capital less than MYR 2.5 million: On first MYR 600k – 17% Subsequent balance – 24% For paid up capital more than MYR 2.5 million Flat rate 24% |
Tax chargeable on Company
For paid up capital less than MYR 2.5 million: On first MYR 600k – 17% Subsequent balance – 24% For paid up capital more than MYR 2.5 million Flat rate 24% |
Tax chargeable on Company
For paid up capital less than MYR 2.5 million: On first MYR 600k – 17% Subsequent balance – 24% For paid up capital more than MYR 2.5 million Flat rate 24% |
The most popular option is a private limited company, also known as a Sendirian Berhad (Sdn Bhd) company. The reasons are as follows:
- It is considered a separate legal entity.
- The personal assets of the investor are protected and this entity option is suitable for both foreign company setup, as well as business setups by local residents in Malaysia.
- This business entity is also popular for its perpetual successions option.
FAQs
- Minimum age of 18 and above
- Fit and proper person
- He or she is not bankrupt and has not been convicted and imprisoned
In order to ensure all necessary approvals able to obtain in place from the beginning of registration of company, licenses and work permit, we will perform a background check and due diligence process every step of the way based on your profile and objectives.
Not necessary, we can provide the incorporation while you are in your home country.
Incorporation of a Malaysia Sdn Bhd company usually takes 3 to 5 days.
I would like to start a business and be a founder of a product, but i have no idea on what product i can produce. Can i have little advice on how to do the survey to get an idea on what i can do for business?
Hi Ling,
You can conduct a consumer research survey to understand the market, however, it is recommended to have an idea of which industry you’d like to enter to have quality responses (e.g. Food manufacturing, etc.)
This survey can be posted on various groups on social media. If you’d like more responses, you can consider incetivising them. Alternatively, you can engage a research company to conduct your survey for you.
Hope this helps, and good luck with your research! Feel free to reach out to us for incorporation services once you’re ready.
Best Regards,
Paul
I would like to start a small business in Malaysia
Hi,
Thank you for contacting us.
We are happy to assist you with your incorporation of Sdn. Bhd. in Malaysia.
Please be informed that the company can be 100% foreign owned and you are not required to be physically present in Malaysia as it can be done online using our in-house system – iBizfile.
To understand what is required for incorporation/to START your incorporation, please find the link below.
https://my.ibizfile.com/auth/signup
To understand what is required for your employment pass/to START your employment pass, please find the link below.
https://ibizfile.com/employement-pass-form/
Here is a Demo Video to show you what our process looks like:
https://www.youtube.com/watch?v=679s_ekkINc – MSIA INCORP
Thank you for your question.
Warm regards
Paul