How to Start a Business in Malaysia: A Step-by-Step Guide for Locals and Foreigners



 Did you know that starting in 2025, Malaysia is aiming to become a developed country? Malaysia’s strategic location in Southeast Asia and its proximity to the new Indonesian capital (IKN) make it an attractive destination for investors. In this article, we’ll walk you through how to start a business in Malaysia, whether you’re a local or a foreigner.

1. How to Start a Business from Scratch in Malaysia

Starting a business from scratch in Malaysia can seem daunting, but it’s possible with the right approach. The first step is to register your business with the Companies Commission of Malaysia (SSM). Ensure that all legal requirements are met before you begin operations. Don’t worry if you’re starting small—98% of businesses in Malaysia are small businesses, according to recent surveys.

2. How to Start a Business from Home

Due to the pandemic, many employees have lost their jobs. If you’re among them, why not consider starting a business from home? Starting an online business is a great option, and all you need to do is ensure that your business complies with local laws and obtains the necessary permits. You can run your operations from the comfort of your home while reaching a global audience through e-commerce.

3. How to Start a Business in Malaysia as a Foreigner

If you’re a foreigner wondering how to start a business in Malaysia, you’ll need to apply for a Malaysia My Second Home (MM2H) visa or obtain other relevant permits. The good news is, Malaysia allows 100% foreign ownership of businesses, making it a highly favourable environment for foreign investors.

Starting a business in Malaysia can be rewarding if you follow the right steps. Whether you're a local or a foreigner, understanding the procedures and legal requirements is key.

Sources:

  • Companies Commission of Malaysia (SSM) - Official guidelines and procedures for registering a business in Malaysia.
  • World Bank - Doing Business Report - Insights into Malaysia's business environment, including ease of starting a business.
  • Malaysia My Second Home (MM2H) Program - Information for foreigners looking to establish a business in Malaysia.
  • Department of Statistics Malaysia - Data on small and medium enterprises (SMEs) in Malaysia.
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