According to The Heritage Foundation, the Malaysian economy expanded by 16.1% in the second quarter of 2021. It only means that the Malaysia company setup enables multiple businesses that are residing in the country to flourish despite facing the humanitarian health crisis. This was made possible because the country has good governance on the national level garnering a Government Effective Index of 1.0 last 2019, which is within the range of a strong effective government, based on The World Bank.
Top 10 Reasons for Setting up a Company in Malaysia
Because of the aforementioned data, the company setup Malaysia attracts foreign businessmen to invest in the country for the following beneficial factors:
1. Strategic Location
Malaysia is located at the heart of Southeast Asia that enables any business to trade in its neighboring ASEAN countries, which is home to 661.5 million people based on the 2011-2021 report of Statista.
2. Educated Workforce
According to the World Data Atlas of Knoema, Malaysia has a 94.9% adult literacy rate in the year 2018. This growth in education is due to the government’s efforts in bettering human resource development in every sector.
3. Low-cost Labor
Malaysia is one of the countries in Southeast Asia that has low-cost labor that is why a lot of foreign investors establish companies in Malaysia.
4. Well-developed Infrastructure
The drastic infrastructure development in Malaysia enables the businesses in the country to deliver goods and services effectively and efficiently to their clients through the rigorous reconstruction of the maritime, air cargo, and land transport facilities.
5. Supportive Government Policies
The Malaysian government is continuously implementing and conducting investor-friendly policies to ease the process of doing business in the country. For this, Malaysia holds the 12th spot in the World Bank’s Ease of Doing Business for the year 2020.
6. Technology Business Hotspot
Since Malaysia enforces Personal Data Protection Act (PDPA), it became a desirable technology business hotspot. Aside from that, it also conforms to the World Intellectual Property Organization (WIPO) standard.
7. Low Corporate Tax Rates
Malaysia is one of the Asian countries which imposes a low corporate tax rate of 17-24% to a resident company. The rate depends on the qualifications of the business entity.
8. Flexible Banking
The availability of offshore and onshore banks makes the banking system of Malaysia flexible which allows for foreigners to own multiple bank accounts.
9. Free Trade Agreements
Since its goal is to boost its economy, Malaysia signed 7 bilateral and 7 regional free trade agreements to countries of Japan, Pakistan, New Zealand, India, Chile, Australia, Turkey, China, Hongkong, and South Korea. With this, many businesses profited from it due to its benefits.
10. Investment Guarantee Agreements
The Promotion and Protection of Investment Agreements enable Malaysia to enter into different transactions with 49 countries around the globe. Hence, its economy is strengthened.
Categories: Business
Alexander
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