Global Expansion Resources | Malaysia
Malaysia HR Solutions
Expand into Malaysia with the leading Malaysian PEO company
Guarantee compliant Malaysian HR processes with Leap29
Due to ever-changing employment laws and uncertainty surrounding the interpretation of labour policies, Malaysia is known to have one of the most complex HR and payroll practices. But don’t let this hinder your global expansion plans. With support from Leap29’s expert Malaysian HR Services, we can help you grow your business without the added stress.
For over 25 years, our global PEO specialists have been managing employment contracts, payroll, tax obligations, HR processes, and more, across 180+ countries. So you can grow with confidence, while we handle the rest.
Want to expand into Malaysia?
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.
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What’s included:
HR software
Bespoke employee management software included in our PEO service.
Global compliance
We have expert teams across the world to ensure global compliance.
Transparent pricing
Avoid hidden costs and account for our fee with our transparent pricing.
Malaysia Expansion Advice
What are the benefits of expanding your business into Malaysia?
Expanding your business into Malaysia can provide many benefits, including:
- The Companies Act (2016): Replacing the 1965 version of this act, the 2016 revisions made it even easier to conduct business in Malaysia. Not only is it faster and more straightforward to incorporate a new company, but there is also more flexibility in managing your capital structure, and more streamlined corporate decision-making processes.
- Strategic Location: Situated in the heart of Southeast Asia, Malaysia offers a gateway into the ASEAN (Association of Southeast Asian Nations) market for globally expanding businesses. These vast Asian markets benefit from favourable trade agreements (e.g. ASEAN Free Trade Area or AFTA, which lower tariffs and promote cross-border business) and lower production costs
- Diverse Business Landscape: Malaysia’s markets are diverse, ranging from modern tech start-ups to agriculture and manufacturing – there’s plenty of opportunity for your business to thrive. Kuala Lumpur and Penang are particularly innovative, attracting new businesses and foreign investments due to solid infrastructure and government incentives.
How do I ensure compliant Malaysian HR processes?
Ensuring compliant Malaysian HR processes starts with understanding the country’s core employment laws, staying on top of the latest legislation updates, and following lawful employment contract and payroll procedures.
Comply with Malaysian Employment Laws:
- Employment Act (EA) 1955: The primary legislation for HR in Malaysia, detailing the legal rights and responsibilities of the employer and employees, e.g. terms and conditions of employment, working hours, annual leave, termination of employment, etc. Known in Malay as Akta Pekerjaan 1955.
- Industrial Relations Act (IRA) 1967: Another major piece of legislation, the Industrial Relations Act (Akta Perhubungan Industri) governs employment relationships, trade unions and employers’ associations in Malaysia. It also includes laws regarding unfair dismissal, claims for recognition by trade unions, and collective bargaining.
- Employees’ Social Security Act 1969: This law created the Social Security Organisation/SOCSO (also known as Pertubuhan Keselamatan Sosial, or PERKESO) which acts as a safety net for private sector employees and their dependents. Under this legislation, both employees and employers must contribute to the SOCSO fund, which provides financial assistance in the event of work-related injuries, disabilities, occupational diseases and death.
- Workers’ Minimum Wage Order: Sets a legal threshold for employee compensation to prevent wage disputes. If this threshold is not met, it can result in penalties for employers.
- Employment Provision Fund (EPF) Act 1991: Requires employees and employers to make monthly contributions towards the Employees Provident Fund (Kumpulan Wang Simpanan Pekerja), which provides financial security for employees’ retirement through managed investments.
- Occupational Safety and Health Act: Ensures the health, safety and welfare of employees at work.
Malaysian Employment Contracts
The Employment Act 1955 mandates written contracts for employment lasting longer than one month, or for work expected to take more than a month. The act provides the legal framework, and contracts should also address confidentiality and non-compete clauses.
Malaysian Payroll
An employee’s salary package should include their base salary, as well as allowances, bonuses, non-monetary pension plans and the employer’s contribution towards their social security fund. However, it’s important to note that salaries and wages are different under the Employment Act 1955. A salary is a fixed monthly payment to professionals and managers, but a wage is paid based on hourly, daily or piece-rate work (typically for manufacturing, construction or service-related roles)
How is job security offered to Malaysian employees?
Job security is often provided to Malaysian employees through trade union memberships and collective bargaining. Here’s a full breakdown of the two terms:
- Trade Union Memberships: Trade unions are recognised bodies formed by workers to protect their best interests. Under the Industrial Relations Act, trade unions must be registered and act within their legal mandate – this is essential for representing employee concerns, supporting workers during disputes and negotiating collective agreements.
- Collective Bargaining: Collective bargaining, or a Collective Bargaining Agreement (CBA), is a legally binding, written contract negotiated between an employer (or employers’ union) and a registered trade union of employees that regulates the terms of employment. This includes salaries, working conditions and benefits. Under Malaysian labour law, these discussions must follow legally defined procedures to be valid.
How can Leap29 help with Malaysia HR?
To guarantee a smooth and lawful expansion, our team can help you comply with Akta Pekerjaan 1955, Akta Perhubungan Industri 1967, PERKESO and more. While you focus on growth, we’ll manage all of the following on your behalf:
- Answering employee HR queries promptly and accurately
- Giving Malaysia-specific advice on employee benefits
- Helping your business comply with EA, IRA, SOCSO, EPF and more
- Managing your post-merger/acquisition process with an instant HR desk
- Providing a tailored employee management HR software
- Advising you on the best employment contract practices
To find out more about how our Malaysian HR Services can support your global expansion, call our experts today on +44 (0) 20 8129 6860 or email us at expansion@leap29.com.
Ready to start planning your global expansion? Try our Employee Cost Calculator to find out the estimated figures behind your international employment plans in minutes. Simply enter your chosen country and base salary, then your number will appear on-screen instantly!
Don’t take our word for it!
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Malaysia HR FAQs
What are the benefits of using our Malaysian HR services for global expansion?
- Guaranteed Compliance: Employment law varies from country to country, but Leap29 has over 25 years of experience dealing with Malaysian HR processes, so your global expansion will be in safe (and compliant!) hands. We’ll ensure your company remains compliant with the Employment Act, Industrial Relations Act, Employment Provision Fund, and more.
- Free Up Internal Resources: An in-house HR team won’t be familiar with foreign employment laws, contracts, payroll processes or tax obligations. By using Leap29 Malaysian HR services, you can avoid spreading your internal resources too thin, and allow them to focus on the day-to-day management of your core operations instead.
- Country-Specific Expertise: Employment laws are always changing, and with a core business to focus on as well as a global expansion, it can be difficult to keep up. But with Leap29, the process is straightforward. Our team of HR experts have decades of country-specific experience, including Malaysia’s complex regulations.
How can Malaysian HR services reduce compliance risk?
- Constant Monitoring of Legislative Updates: Our HR experts don’t just help you expand and then drop the ball. We constantly monitor changes to Malaysian employment laws, preventing fines, legal disputes and a tarnished reputation.
- Efficient Turnaround for Payroll Changes: As part of our Malaysian HR services, we also offer a digital global expansion platform, LeapForward – where you get full oversight of international employment costs, real-time reporting, and most importantly, swift processing of salary and payroll changes.
- Correct Management of HR Procedures: We understand how difficult it can be to deal with termination and employee disputes, but that’s where our country-specific experience and digital tools come in. Not only are we well-versed with compliant termination processes in Malaysia, but we can also help deal with employee disputes via our HR helpline.
How much does Leap29’s Malaysian HR management platform cost?
Leap29’s Malaysian HR management platform starts from $3 per user, per month. Within LeapForward, you can:
- Manage attendance & leave requests
- Collect and approve expenses
- Insights from your data with Power BI functionality
- Manage & store employee documentation securely
- Answer employee queries with our HR helpline, available via phone or email
Talk to an expert today
Whatever stage you’re at in your global expansion journey, we can help.
Contact us today to see how Leap29 can be the trusted EOR partner that supports your global expansion.
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Malaysia
Expansion Resources
Malaysia Entity Setup
Malaysia Payroll Solutions
Malaysia’s Employment Framework Faces a Major Shift
Malaysia Employment Contracts
Malaysia PEO Services
Malaysia EOR Services
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
We make expansion in Malaysia simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.