Things You Need To Know Before Registering A Company in Malaysia
Malaysia is known for their various cultures and all kind of races which live under the same roof. But, there are a few things that you need to know about Malaysia.
By AZIZAM AZIZAN
Malaysia is located in South East Asia and was on the route of the Silk Road since a long time ago. The strategic location of Malaysia made our port as one of the top 15 busiest ports in the world. Furthermore, the stable politics of the country is one of the factor that business can be carried on very easily.
ABOUT MALAYSIA
Demographics
According to a research data from 2019, there are 30 million people in Malaysia. 67.4% are of the Malay race (Bumiputera), 24.6% are consisted of Chinese race, 7.3% are Indians while the rest are the other minorities such as aboriginals in Sabah and Sarawak. The national religion of Malaysia is Islam and other religions are free to be worshipped in this country without restrictions.
Language
The official language of Malaysia is Bahasa Malaysia. However, English is also widely used and has been the main language in business industry. There are also a lot of other languages that are widely spoken in Malaysia such as Cantonese, Mandarin, Tamil and others. However it is enough to know the basic of English or Malay to carry on doing business or living in Malaysia.
Currency
Malaysian Ringgit (MYR or RM).
Economic
Malaysia has the most developed economies in South East Asia with a GDP per capita of USD 11,028.20 in 2016 and a growth of 5.2% in its GDP by 2017. From an agriculture and primary commodities manufacturing-based dependent economy, Malaysia has progressed and transformed into a service and knowledge-driven economy. Here are a some of the economy activities that Malaysia has taken part in :
- Free Trade Agreements
- One Belt One Road
- Digital Free Trade Zone
- ASEAN Free Trade Area
- Trans-Pacific Partnership Agreement / Comprehensive and Progressive Agreement for Trans-Pacific Partnership
FAQ ABOUT MALAYSIA
What is the currency used in Malaysia?
Ringgit Malaysia
How many Malaysians are English speakers?
English is the second language in Malaysia and is in the top 5 English speaking countries in South East Asia after Philippines.
Is Malaysia good for business?
Malaysia is stated on 24th ranking in 2018 by World Bank’s Ease of Doing Business. Malaysia is a great home ground for many business entrepreneurs. Labuan jurisdiction is one of the best platforms for foreigners to have a presence in Malaysia with 100% ownership and low start-up costs.
How much does it cost to start a business in Malaysia?
From registration of business to office rental fees, the average cost is around RM10K
Is Malaysia political is stable?
Yes, despite being portrayed otherwise by international business, the politics in Malaysia is very stable and having high integrity value.
Due to multiple races in Malaysia, How many public holidays are there in Malaysia ? (Under Holiday Act 1951)
- The Birthday of Prophet Muhammad
- Independence Day
- Chinese New Year
- Wesak Day
- The Birthday of Yang Di-Pertuan Agong
- Hari Raya Aidilfitri
- Hari Raya Aidil Adha
- Deepavali
- Christmas
Under the Work Act 1955, the following are public holidays :
- Independence Day
- The Birthday of Yang Di-Pertuan Agong
- The Birthday of Kings or Yang Dipertua Negeri (For Wilayah Persekutuan)
- Labor Day
Other days that has been stated as public holiday in a year under Act 396
SSM/KPDNHEP
The Companies Commission of Malaysia (Malay: Suruhanjaya Syarikat Malaysia, abbreviated SSM), is a statutory body formed under an Act of Parliament that regulates corporate and business affairs in Malaysia. The SSM was formed in 2002 under the Companies Commission of Malaysia Act 2001, assuming the functions of the Registrar of Companies and Registry of Business. The main purpose of SSM is to serve as an agency to incorporate companies and register businesses as well as to provide company and business information to the public.
SSM is a department under The Ministry of Domestic Trade and Consumer Affairs.
FAQ ABOUT SSM
What are the law and legislation used by SSM ?
Companies Act 2016, Interest Schemes Act 2016, Registration of Businesses Act 1956 [Act 197] (as at 1 June 2017) Register of Business, Limited Partnership Act & Trust Companies Act 1949
Here are some of SSM’s responsibilities:
1. Ensure that the provisions of the Companies Commission of Malaysia Act and laws are administered, enforced, given effect to, carried out and complied with;
2. To act as agent of the Government and provide services in administering, collecting and enforcing payment of prescribed fees or any other charges under the laws administered;
3. To regulate matters relating to corporations, companies and businesses in relation to laws administrated;
4. To encourage and promote proper conduct amongst directors, secretaries, managers and other officers of a corporation, self-regulated corporations, companies, businesses, industry groups and professional bodies in the corporate sector in order to ensure that all corporate and business activities are conducted in accordance with established norms of good corporate governance;
5. To enhance and promote the supply of corporate information under any of the laws administrated, and create and develop a facility whereby any corporate information received by the Companies Commission may be analysed and supplied to the public;