INVEST

Investing in Malaysia offers several advantages for foreign and local investors alike. 

Here are some of the top reasons to consider investing in Malaysia:

1. Strategic location and access to ASEAN market
2. Pro-investment policies and regulatory framework
3. Attractive tax incentives for promoted activities
4. Developed infrastructure and industrial hubs
5. Skilled and multilingual workforce
6. Thriving digital economy and technology sector
7. Access to trade agreements and market integration
8. High quality of life and cultural diversity
9. One-stop support from MIDA

Investing in Malaysia as a foreign national is encouraged by the government, and there are various incentives and opportunities available through the Malaysian Investment Development Authority (MIDA).

MIDA: Overview and Role

The Malaysian Investment Development Authority (MIDA) is the government agency under the Ministry of International Trade and Industry (MITI) responsible for promoting and coordinating investment in Malaysia.

MIDA helps both local and foreign investors by facilitating the entry of foreign capital into various sectors, providing information, and guiding them through the investment process.

Foreign nationals can invest in a wide range of sectors in Malaysia. However, certain industries may have restrictions or require specific approvals. The following are key areas in which foreign nationals can invest:

1. Manufacturing Sector

The manufacturing sector in Malaysia is one of the most attractive areas for foreign investment. Foreign companies are encouraged to establish manufacturing plants or joint ventures with local companies. 

Key industries include:

• Building technology
• Electronics and electrical products
• Automotive & Aerospace
• Chemical and advanced materials
• Food and beverages
• Life science and pharmaceuticals
• Machinery & Metal

MIDA offers various incentives to attract foreign investors. Some of the key incentives include:

1. Tax Incentives

• Pioneer Status (PS)

Provides tax exemption up to 70% to qualifying companies

• Investment Tax Allowance (ITA)

Investment tax allowance up to 60% of qualifying capital expenditure for investments in new projects or expansions of existing businesses

• Tax Incentives for High-Tech Industries

Industries involved in high technology, innovation, and R&D may qualify for additional tax relief and exemptions

2. Grants

MIDA provides grants to foreign companies investing in Malaysia, particularly in areas related to technology, R&D, and green initiatives. 

Invest Malaysia is Malaysia’s premier platform for promoting investment opportunities in the country under MIDA. It serves as a gateway for both local and international investors to explore and capitalize on Malaysia’s dynamic economic landscape.

Below are the steps to apply for InvestMalaysia:

• Business registration

Set up your business by following this guide:

Establishing a business in Malaysia as a non-citizen involves adhering to the guidelines set by the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM). 

Foreign entrepreneurs can choose between incorporating a local company,  registering a foreign company (branch office), or limited liability partnership (LLP). 

Below is a guide to assist you through the process:

1. Incorporating a Local Company (Private Limited Company - Sdn Bhd)

• Eligibility

A minimum of one director who ordinarily resides in Malaysia is required.

The director must have a principal place of residence in Malaysia.

• Steps to Incorporate

Follow the steps in the link below under registration of company: