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flag Malaysia Malaysia: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners


Setting Up a Company

Private Berhad is a Private Limited Company.
Number of partners: Minimum: 2
Maximum: 50
Capital (max/min): Minimum two ordinary shares of MYR 1 each
Shareholders and liability: Liability is limited to the nominal value of the subscribed shares.
Public Berhad is a Public Limited Company.
Number of partners: Minimum: 2
Maximum: No limit
Capital (max/min): Minimum two ordinary shares of MYR 1 each
Shareholders and liability: Liability is limited to the nominal value of subscribed shares.
General Partnership
Number of partners: Minimum 2 and maximum 20.
Capital (max/min): No minimum
Shareholders and liability: Partners' liability is joint and illimited.
The Competent Organization
The Companies Commission of Malaysia (SSM) has the power, as the representative of the Ministry of Domestic Trade and Consumer Affairs, to register, form and strike off Malaysian companies and enterprises. Its main functions are administration and implementation of the applicable laws, registering of companies and enterprises, keeping official company and enterprise dossiers, and making company directors aware of ethical rules. The SSM is also a watchdog organization.
Setting Up a Company Malaysia East Asia & Pacific
Procedures (number) 3.0 7.0
Time (days) 6.0 36.0

Source: Doing Business.

Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Malaysia.
Companies Commission of Malaysia

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The Active Population in Figures

Labor force 12,560,00012,920,00013,190,000

Source: CIA - The world factbook

Total activity rate -62.00%60.40%
Men activity rate 79.20%77.10%76.90%
Women activity rate 44.40%43.70%43.80%

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 12.8%
Agriculture, Hunting and Forestry 9.4%
Construction 7.4%
Hotels and Restaurants 6.2%
Education 5.5%
Transport and Storage 5.2%
Real Estate, Renting and Business Activities 2.4%
Households with Employed Persons 2.4%
Health and Social Work 0.6%
Electricity, Gas and Water Supply 0.5%

Source: International Labor Organization (ILO)

For Further Statistics
ILO, Laborsta Malaysia
For Further Information About the Labor Market
International Labour Organization

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Working Conditions

Legal Weekly Duration
48 hours a week.
Retirement Age
There is no legal age for retirement in the private sector even if the EPF (Employment Provident Fund) considers people are eligible from 55 for men and 50 for women.
Working Contracts
Called "Contract of Service" or "Contract of Employment", the contract is deemed to exist as soon as the employee starts to work. There are fixed-term contracts and open-ended contracts.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
Peninsular Malaysia: US$ 300 per month; Sabah, Sarawak and Labuan: US$ 260 per month (source: Ministry of Human Resources).
Average Wage
USD 5,751 per year (women)
USD 15,861 per year (men)
Social contributions
Social Security Contributions Paid By Employers: 1.5 %.
Social Security Contributions Paid By Employees: 0.5 %.

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Social Partners

Social Dialogue and Involvement of Social Partners
There are two national organizations: the Malaysian Trade Union Corporation (MTUC) and the Congress of Unions of Employees in the Public and Civil Service (CUEPACS).
National Union of Journalists Malaysia
Unionization Rate
9.5% of workers are unionized.
Labor Regulation Bodies
Ministry of Human Resources

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Learn more about Operating a Business in Malaysia on, the Directory for International Trade Service Providers.

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Last Updates: February 2015