Is Your Business Ready to Tap into One of ASEAN’s Hottest Markets?
The 21st century has been dubbed as the Asian Century due to the predicted dominance of the continent’s economy. This prediction has so far held true, with strengthening demographic, economic and cultural trends showing Asia’s growing importance to the world. With a shift to the East, business leaders should contemplate expanding in Asia.
Malaysia has been a hot place for investment for a long-time now and is one of the most developed places in South-East Asia. The pandemic has impacted the economy significantly and a 4% contraction is expected for 2020, however, the Asian Development Bank predicts a strong 6.5% rebound in 2021. Although 2020 has been tough for Malaysia, the economic outlook and potential for investment remain positive in the future.
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5 Reasons to Invest in Malaysia:
The political environment in Malaysia is considered one of the best in South-East Asia, offering businesses the stability they need for long-term success. The government also offers a very pro-business stance, implementing policies that improve the business environment for private enterprises. Tax incentives and financial subsidies are also offered to companies with pioneer status. The nation also allows foreigners to establish 100% foreign-owned companies and has an established financial sector.
Government Support During the Pandemic:
To assist businesses and employees through the economic turmoil caused by the pandemic, the government introduced a hiring incentive programme (PenjanaKerjaya) and wage subsidy programme.
- Hiring Incentive Programme: Monthly cash incentives are given to companies employing new people for 6 months.
- Wage Subsidy Programme: Corporations can receive up to RM1,200 per retained employee each month for a 3-month period.
In August 2020, it was reported that the programme helped employ more than 11,000 people and up to 2.4 million jobs have been saved by the wage subsidy programme. Schemes like this show Malaysia’s commitment to helping provide businesses with assistance and stability, increasing confidence in the country.
For more information on policy changes made to counter the impacts of Covid-19, download our APAC labour law comparison chart!
2. Solid Infrastructure
Malaysia has excellent infrastructure which is positioned to well-serve the businesses in the country. Excellent air, land and sea cargo facilities make transporting goods easy. The international sea and air connections provide multinational corporations with an easy route to deliver their goods and services to places all over the world. With highway access linking the country to Thailand in the North and Singapore at the tip of the peninsula, connectivity between neighbouring nations is also excellent.
The telecommunications infrastructure is one of the best developed in the region, supporting a range of domestic and international communication services. This is excellent for any business that has operations in other locations.
3. The Heart of ASEAN
South-East Asia has seen rapid development in recent years and is one of the main regions fuelling global GDP growth. Malaysia is part of ASEAN, an intergovernmental organisation promoting cooperation between 10 countries, and also the third-largest trade bloc in the world. Located at the heart of ASEAN and surrounded by other major regional powers like Indonesia, the Philippines and Thailand, Malaysia offers easy access to the 650 million large market.
As SE Asia countries progress and its citizens grow more affluent, the consumer spending power of the huge population will grow. Malaysia is strategically positioned to take advantage of this important market, acting as the perfect hub for businesses in the region.
4. Well-Educated Workforce
Thanks to the good education system, foreigners will find it easy to communicate with locals as English language ability is common amongst the population. The workforce has all the required skills to operate a business correctly and are also some of the most productive people. Its legal practices are also based on the British system, giving companies excellent protection.
5. Affordable High-Quality Living
With different ethnic groups mixed into the population, Malaysia has been seen as a successful cultural melting pot. The cultural diversity creates a vibrant environment, full of life and excitement. Its relatively inexpensive cost-of-living coupled with the energetic lifestyle makes it a great place for foreign professionals to live.
Learn More About Malaysian Labour Law!
To assist enterprises looking to expand their business into Malaysia, Links International will be holding a complimentary webinar to go through the latest labour law and compliance updates in the country.
Links International’s Senior Payroll Manager, Alex Le, will use his exceptional local insights on Malaysia to cover the rules and regulations business leaders need to know! This is the perfect opportunity for any businesses looking to expand their footprint or for leaders wanting to keep up to date with the latest changes. The webinar will be held on the 3rd September 2020 at 10:00 AM Hong Kong Time. Sign Up Now!
|• Malaysia Labour Law & Compliance|
|• Malaysia Payroll Basics|
|• Q&A Session|
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Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, PEO/EOR Secondment, outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.