Pros and cons of starting a business in Malaysia

It often seems that investor prefer Singapore over Malaysia. They assume that Singapore by far is much more convenient for doing trades, and consider the nation as the trade hub of south east Asian, but do you know that, Malaysia can offer you with same prospective, or even more, at the same time can be much economic in case of business registration process?

Although there are some drawbacks when doing business at that convenience, but drawbacks are there in Singapore or any other country in the world too. Off course such problems are way more considerable and even minimizable if proceeded carefully in Malaysia. To establish such point, this article pointed out advantages and possible drawbacks of doing business in Malaysia.

Pros of starting a business in Malaysia

Convenient company formation process

Company registration process in Malaysia is much convenient and easy when compared with other neighboring countries. Even the time takes to complete the whole company registration process is pretty low, approximately 5 to 7 days. The e- forms service and fast authority responds during the process keeps the registration task convenient and time saving. 

English is widely spoken and understood

A fabulous advantage for foreign investors is that, English is widely used to carry out conversation or official correspondence. Most of the people are educated enough to understand this internationally recognized language. Therefore, you don’t need to have a grip on local language or doesn’t required an interpreter while initiating a business in Malaysia.

Well established infrastructure

Once you step into Malaysia, you will be pleased with the nation’s well-established infrastructures. The roads and transport systems are well maintained. The corporate buildings and other social infrastructures are kept at an impressive standard. Such ready established infrastructure is appreciated and preferred by any entrepreneurs and overseas investors. 

Better social life

Malaysia can offer a better social life to the expats and local entrepreneurs. This particular aspect is important when you consider investing in Malaysia. Things got more acceptable as Malaysia is offering with suitable conditions for living; preferably in field of climatic suitability, world class medical treatments and better facilities to enjoy day to day life.

Cheaper alternative for business investments

Malaysia is by far cheaper when it comes of business registration expenses in compare with other nearby countries such as Singapore. This cheaper alternative doesn’t make the country less important or less productive when performing businesses. However, convenient price for business registration is definitely a big advantage point for the corporate investors in Malaysia.

Cons of starting a business in Malaysia

Corporate tax rate is comparatively high

Corporate income tax rate is little high in Malaysia. It is about 24%, and unfortunately it is one of the highest tax rates in Asia.

Getting a business visa often gets bothersome

You may fall in a loop, in between bank account opening and getting a business visa. Because you can’t simply open a bank account when you are a foreigner in this country, until you have appropriate business visa approval. On the other hand, the embassy often asks for a bank deposit evidence on your company’s name to approve your business visa.   

Corruption and bureaucracy

You might face some unexpected drawback when starting a business in Malaysia. As corruption and bureaucracy may come in the scenario, it may give you some temporary hassles during running your company. Nevertheless, few pre-measurements should be undertaken to avoid such unwelcoming events.  

Racial and cultural differentiation

Some may face racial or cultural clashes when working in this country. Although, such unpleasant complains are comparatively low, but those are there. Malaysia seems to be strict and sometime orthodox regarding their religious view and social and cultural practices. The practices greatly vary from one province to other.

Every country in the world have their own set of advantages and disadvantages as far as setting up a business is concerned.  Malaysia is of no difference. But you can easily overcome the drawbacks mentioned above by consulting an experienced Business consulting firm. S & F consulting firm, a renowned business consulting agency has all the solution. The experts and experienced business consultants can guide you through a smooth journey towards your business processing here in Malaysia.