Top economic reasons to invest in Malaysia

Stable economy

Malaysia is open economic country with stable economy. According to World Bank Malaysia has the largest economy in South East Asia with the growth of over 7 percent per year for over 25 years. Based on the 2016 report by heritage.org the freedom score increased by 0.7 points with new score being 71.5, it makes Malaysia 29th in Global Ranking. The corporate tax rate in Malaysia is 25 percent and income tax rate is 26 percent.  

Skilled employees

Malaysian education is among the top around the world, the quality and affordability of education is one of the greatest contributors for skilled employees in Malaysia. In 1997 the government established government loan called Perbadanan Tabung Pendidikan Tinggi Nasional or in short it is know as PTPTN loan. The loan is made by the government with 1 percent interest per annum and every Malaysian who wish to study should not be denied to get a loan due to financial background. This loan encourages Malaysians to study and be educated employees. Malaysia is among the best countries in terms of skilled employees and it makes it ideal location to invest and conduct business.  

Technology

The technology is one of the main exported goods of Malaysia, according to OEC the 12 percent of Malaysian export in 2014 was Electronic Microcircuits, 1.8 percent was computers and 1.9 percent was computer parts. The electronics such as computers are essential in conducting business and these products are relatively cheap in Malaysia and it helps the investors to reduce cost in their initial startups. There are other technologies available to export from Malaysia the quality of Malaysian products are considered favorable around the world. 

Cost efficiency

• Transportation
  In 2009 the Malaysia government spent over 6 billion dollars of the national budget on subsidies in petrol. Malaysia has the cheapest petrol in South East Asia due to the subsidies provided by the government. The low petrol price helps the businesses to operate at low cost, it helps the businesses to reduce cost in transportation. The transportation cost is among the highest cost in conducting production and retail businesses.  
• Salary 
  The salary of employees are the highest expense of companies and the higher the experience and skill of an employee the higher their salaries are. In Malaysia average salary of educated and skilled employee is about RM2500 ($625) to RM3500 ($875) with current 2016 exchange rate. The low salary for skilled employees makes Malaysia an ideal location to invest in Malaysia and in expanding a company in South East Asia.