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Malaysia Fact Sheet

  • MalaysiaMalaysia

About

Malaysia is one of the most open economies in the world, ranking 12th out of 190 countries in the World Bank Doing Business 2020 Report. Its economy has diversified from one that leaned heavily on the export of natural resources like rubber and palm oil, to one that now includes manufacturing, services and tourism.

31.5 mil

31.5 mil

Population size

28.7 years

28.7 years

Median age

Kuala Lumpur

Kuala Lumpur

Capital

Malaysian ringgit (MYR)

Malaysian ringgit (MYR)

Currency unit

78.8%

78.8%

Internet penetration rate

135%

135%

Mobile penetration rate

Economy


US$11,484

2020 estimated
GDP per capita

1.7% | 9%

Real GDP growth projection

(Annual per cent change, 
2020 & 2021)


A-

S&P global ratings

Labour


15.8 mil

Total labour force (2019)


94.9%

Literacy rate (2018)

US$37.20

Average daily wage for
manufacturing employee
(2016)

Key Sectors

  • Aerospace
  • Education
  • Hospitality
  • Industrials
  • Manufacturing
  • Medical devices and healthcare
  • Oil, gas and chemicals
  • Pharmaceuticals
  • Technology
  • Textile

Tax Profile


24%

Corporate tax


74

Number of DTAs


0%

Dividend withholding tax


15%

Interest withholding tax


0%

Capital gains tax


Regulated

FX control

Trade

Exports
US$238 bil		 Imports
US$205 bil
  1. China
  2. Singapore
  3. United States
  4. Hong Kong
  5. Japan
  1. China
  2. Singapore
  3. United States
  4. Japan
  5. Thailand


Based on 2019 data

Others

Economic zones

Economic zones

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Government agencies and business chambers

Government agencies and business chambers

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Key government initiatives and incentives

Key government initiatives and incentives

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  • 5 Economic Corridors
  • 1 Digital Free Trade Zone (DFTZ)
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Industry4WRD was launched in 2018 to drive digital transformation of the manufacturing and related services sectors in Malaysia, with the vision of turning Malaysia into a primary destination for high-tech industries.

 

Pioneer Status (PS)

  • Income tax exemption of 70­-100 per cent of statutory income for five to 10 years.

 

Investment Tax Allowance (ITA)

  • Allowance of 60-100 per cent on qualifying capital expenditure used for approved projects incurred within five to 10 years.

 

Principal hub

  • New Company
    • 0 per cent tax rate for up to 10 years (5+5) – Tier 1
    • 5 per cent tax rate for up to 10 years (5+5) – Tier 2
  • Existing Company
    • 10 per cent tax rate for up to 5 years

 

MSC Malaysia Status

  • 100 per cent tax exemption for five years (Tier 1 and 2), extendable for another five years.
  • 70 per cent tax exemption for five years (Tier 3), extendable provided the company changes to Tier 1 or 2 and fulfills the conditions imposed.

 

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Sources: UOB Global Economics & Markets Research, World Economic Outlook (October 2019 and April 2020), World Bank; UNESCO Institute of Statistics, Asian Development Bank, Malaysian Investment Development Authority (MIDA), Inland Revenue Board of Malaysia, Malaysia Digital Economy Corporation Sdn. Bhd.

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.

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