Malaysia states in 2023
Summary table to assist you in choosing the best Malaysian state to start your business.
| Malaysia States | Johor | Kuala Lumpur | Penang | Selangor |
|---|---|---|---|---|
| Summary | ||||
| Preferred city for incorporation of the company? | Johor Bahru | Kuala Lumpur | George Town | Shah Alam |
| Business output market size? (in US$ billions) | 23 | 37 | 16 | 56 |
| Market size relative to the economy? | 7% | 11% | 5% | 17% |
| Local purchasing power (GSP per capita)? | US$7,900 | US$24,950 | US$12,000 | US$11,850 |
| Total population? (in millions) | 3.6 | 1.8 | 1.8 | 6 |
| Most popular business sector? | Manufacturing | Services | Manufacturing | Manufacturing |
| Average labour monthly salary? | US$500 | US$650 | US$470 | US$500 |
| Specific attractive Government incentives available? | Yes | Yes | Yes | Yes |
| Time zone? (ahead of GMT) | +8 hours | +8 hours | +8 hours | +8 hours |
| How many tax exempt free zones available? | 2 | 0 | 1 | 1 |
| Average labour monthly salary? | US$500 | US$650 | US$470 | US$500 |
| Literacy rate? (% of population) | 98.5% | 98.8% | 94.1% | 98.7% |
| Hub for the headquarters of Global Firms? | No | Yes | No | No |
| Airport with direct flight to Europe, Asia and America? | No | Yes | No | Yes |
| Logistical considerations | ||||
| Attractive State for a manufacturing business? | Yes | No | Yes | Yes |
| Attractive State for a e-business? | Yes | Yes | Yes | Yes |
| Attractive State for an export-oriented service business? | Yes | No | Yes | Yes |
| CBD monthly office rental per sq m? | US$20 | US$30 | US$17 | US$17 |
| Average monthly warehouse rental per sq m? | US$10 | US$15 | US$10 | US$11 |
| Average monthly electricity prices? (per Kwh) | US$0.18 | US$0.22 | US$0.15 | US$0.20 |
| Frequency of power outages (minutes per year) | 76 | 87 | 75 | 83 |
| Proximity of sea port to the main city? | 26km | 45km | 2.9km | 17km |
| Proximity of airport in kilometres to the main city? | 41km | 60km | 21km | 48km |
| Proximity of rail in kilometres to the main city? | 2 km | 3km | 5km | 4km |
| Number of international tourists? (in million) | 2.8 | 11.6 | 5.7 | 6.6 |
| Average annual inflation rate? | 3.3% | 2.7% | 2.7% | 2.7% |
| Average unemployment rate? | 3.1% | 3.3% | 1.6% | 2.4% |
| Quality of internet broadband and Wi-Fi? | Good | Good | Good | Good |
| Corporate banking and finance considerations | ||||
| Is the main city a financial services hub? | No | No | No | No |
| How many global banks are based in the state? | 6 | 10 | 6 | 4 |
| How many Malaysian banks with local branches? | 8 | 8 | 8 | 8 |
| Recommended Bank for corporate banking? | Standard Chartered | HSBC | Citibank |
Standard Chartered |
| Client to visit bank for account opening? | No | No | No | No |
| Quality of bank customer services? | Good | Very Good | Good | Satisfactory |
| Quality of online banking services? | Very Good | Excellent | Excellent | Very Good |
| Does the State have a reputable financial district? | No | Yes | No | No |
| Does the State have a local Stock Exchange? | No | Yes | No | No |
| Are there Private Equity Funds/VCs in the State? | No | Yes | Yes | Yes |
| Employment considerations | ||||
| Minimum monthly wage? | US$250 | US$250 | US$250 | US$250 |
| Average pension and insurance benefits (% of salary)? | 12% | 12% | 12% | 12% |
| Average skilled labour monthly salary? | US$690 | US$750 | US$650 | US$700 |
| Average unskilled labour monthly salary? | US$320 | US$370 | US$310 | US$350 |
| Mandatory labour unions? | No | No | No | No |
| Minimum notice to dismiss employees? | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| Minimum redundancy indemnity? | 10 days | 10 days | 10 days | 10 days |
| Is there a large expatriate community in the main city? | Yes | Yes | Yes | Yes |
| International schools for children of expatriate employees? | Yes | Yes | Yes | Yes |
| Golf courses near the main city of the State? | Yes | Yes | Yes | Yes |
| General availability of bars and restaurants? | Yes | Yes | Yes | Yes |
| Will I find European F&B products in the supermarkets? | Yes | Yes | Yes | Yes |
| Mercer Survey Ranking for global cities? | 100 | 75 | Not ranked | Not ranked |
| Is the main city of the State safe for expatriates? | Yes | Yes | Yes | Yes |
| Is it easy to convert my driving permit? | Yes | Yes | Yes | Yes |
| Literacy rate? (% of population) | 96% | 99% | 94% | 98% |
| Computer literacy rate? (% of population) | 64% | 76% | 65% | 73% |
| Accounting and tax considerations | ||||
| Monthly and annual tax filing required? | Yes | Yes | Yes | Yes |
| Government grants for manufacturing? | Yes | Yes | Yes | Yes |
| Tax holidays available? | Yes | Yes | Yes | Yes |
| Monthly state tax filing if registered for payroll tax? | Yes | Yes | Yes | Yes |
| Tax incentives for manufacturing start-ups? | Yes | Yes | Yes | Yes |
| Tax incentives for construction start-ups? | Yes | Yes | Yes | Yes |
| Tax incentives for IT software start-ups? | Yes | Yes | Yes | Yes |
| Average customs duty of export products? | 5% | 5% | 5% | 5% |
| Average customs duty for imported products? | 8% | 8% | 8% | 8% |
| Local corporation tax? (%) | 24% | 24% | 24% | 24% |
| Local GST/VAT? (%) | 6% | 6% | 6% | 6% |
| Payroll tax rates? (%) | 11% | 11% | 11% | 11% |
