Malaysia’s Business Environment


Kuala Lumpur, capital city of Malaysia.

Malaysia is ranked 29th on the 2016 Index of Economic Freedom due to the current on-going drastic changes that the government is implementing in order to improve the quality of the country’s business environment.

This index ranks Malaysia in the areas of rule of law, market freedom, government spending and regulatory efficiency which have all experienced improvement from the previous year.

Malaysia is the best among the emerging market economies in Southeast Asia in the ease of doing business and remains one of the low-cost alternatives in terms of running a business in the region as the recurrent business expenditure and overheads are low.

MIDA is the official government organization in charge of promoting trade and investment in Malaysia. Incentives offered by MIDA to investors include tax incentives and loans/grants from the government of Malaysia.

“Malaysia is in its most radical transformation as it battles to achieve the Vision 2020. The transformation is visible on the political front, the public sector and among Malaysian business entities.”

(Source – MIDA)

Foreign businesses are not restricted in Malaysia and can be found in most sectors of the economy. Malaysia offers world class infrastructure throughout the country coupled with a multi-lingual workforce, and the financial sector is stable.

Offshore company setup is further eased when investors choose to incorporate businesses in Labuan Federal Territory, where businesses do not require local investors for the registration process to be complete and the initial capital required is only MYR2 if the company does not intend to employ any expatriate workers.

The World Economic Forum ranks Malaysia as 25th out of 138 countries in the Global Competitiveness Index with indicators such as institutions, infrastructure, macroeconomic environment and health and primary education scoring highly to enhance performance of the country globally. Sighted as the poorest indicators include among others, the ability for businesses to access financing and corruption which need reforms in order to further improve the business environment.

“In accomplishing one of the country’s challenges with vision 2020, Malaysia is set to become an established prosperous society with a higher competitive ranking and a dynamic, robust and resilient economy.”

(Source – wawasan 2020)

For over a decade, Healy Consultants Group PLC has been assisting Clients to venture into the Malaysian market by establishing businesses, securing the required licenses, providing business support services, opening of business bank accounts and securing employee visas. To contact us, email:


  • Healy Consultants website
  • Heritage
  • WE Forum
  • Government website

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