Country overview
Malaysia
Multilingual shared-services hub with strong infrastructure in Kuala Lumpur and Penang. Single national minimum wage.
Southeast Asia
How minimum wage works here
National monthly rate (RM1,700) under the Minimum Wages Order 2024, applying to all employers since 1 Aug 2025. Budget 2027 proposes RM2,000 from June 2027, with an exemption for MSMEs with under RM50m in sales.
Cities
Employer contributions
EPF (Employees Provident Fund)
Employer 13% for wages up to RM5,000, 12% above; non-Malaysian employees 2%
Source: PwC Worldwide Tax Summaries – MalaysiaLast checked Oct 2026SOCSO
Employer contribution capped at RM104.15/month
SOCSO uses a wage-band table. The calculator approximates it as 1.75% of wages up to the RM104.15 cap.
Source: PwC Worldwide Tax Summaries – MalaysiaLast checked Oct 2026EIS (Employment Insurance System)
Employer 0.2%, capped at RM11.90/month
Source: PwC Worldwide Tax Summaries – MalaysiaLast checked Oct 2026
13th-month pay
No statutory 13th-month requirement identified; pending confirmation.
Internet
Ookla Speedtest Global Index
Country median (Aug 2026): fixed 179.32 Mbps down / 72.80 up; mobile 165.32 Mbps down / 23.83 up
Country-level median, not city-specific.
Public holidays 2026
12 federal public holidays in 2026 plus state holidays. Kuala Lumpur (Federal Territory) and Penang each add their own.
Islamic and Deepavali dates are subject to change.
Regular holidays
- 17–18 Feb – Chinese New Year
- 21–22 Mar – Hari Raya Puasa*
- 1 May – Labour Day
- 27 May – Hari Raya Qurban*
- 31 May – Wesak Day
- 1 Jun – Agong's Official Birthday
- 17 Jun – Awal Muharram*
- 25 Aug – Maulidur Rasul*
- 31 Aug – National Day
- 16 Sep – Malaysia Day
- 8 Nov – Deepavali*
- 25 Dec – Christmas
State holidays
- 1 Feb – Federal Territory Day (Kuala Lumpur)
- State holidays for Penang and Kuala Lumpur: see the official state table
Power
Awaiting firsthand field notes and an official grid-reliability source.
Entity setup basics
Incorporate a Sdn. Bhd. with the Companies Commission (SSM): RM1,000 registration fee (RM50 name search), at least one director ordinarily resident in Malaysia, and a registered office. A company secretary must be appointed within 30 days. Most services allow 100% foreign equity, subject to sector licences.
Equity policy: https://www.mida.gov.my/setting-up-content/equity-policy-protect-foreign-investment/
Typical steps
- SSM incorporation (MyCoID)
- LHDN tax registration
- EPF, SOCSO and EIS employer registration
- Expatriate posts / Employment Pass approvals if hiring foreigners
Timeline and cost
Realistic timeline and cost to come from field notes.
EOR / payroll coverage
| Provider | EOR status | Link |
|---|---|---|
| Deel | Listed | Provider page |
| Remote | Listed | Provider page |
| Multiplier | Listed | Provider page |
Based on each provider's public country page. Confirm coverage, pricing and entity model directly before signing. No affiliate links.
Last checked Oct 2026