Doing Business in Malaysia VS Malta

Doing Business in Malaysia VS Malta – A Comparison

Entrepreneurs and investors often face a complex decision when choosing between Malaysia and Malta as a business destination. Both countries offer strategic advantages but serve very different markets. Malaysia is well-regarded for its competitive landscape, affordable cost of living, and seamless processes for starting a business in Malaysia. Malta, situated in the Mediterranean, provides access to the EU and offers tax planning benefits for international companies. This article compares key factors to help investors decide which location aligns better with their expansion plans.

Key Comparison Points

Business Environment

• Malaysia: Offers a politically stable environment and government-backed support for foreign investment. Companies can engage 3E Accounting for incorporation and regulatory guidance.
• Malta: Malta maintains a stable government and EU-aligned legal system, making it a preferred destination for finance, gaming, and maritime businesses.

Taxation

• Malaysia: Corporate tax stands at 24%, with tax reliefs and sector-specific incentives. Those undergoing Malaysia company registration may qualify for pioneer status and reinvestment allowances.
• Malta: Malta has a nominal corporate tax rate of 35%, but effective rates can drop to 5% or lower with refunds, especially for foreign shareholders.

Ease of Company Incorporation

• Malaysia: Registration is fast and digital, often completed in 3–5 business days. Investors typically use company incorporation in Malaysia services to simplify the process.
• Malta: Incorporation can be completed in a few days, but compliance with EU regulations requires detailed documentation and due diligence.

Cost of Living and Business Operations

• Malaysia: Malaysia offers low operational and living costs, ideal for startups and SMEs. Setting up businesses in Malaysia is budget-friendly with scalable infrastructure.
• Malta: Malta has moderate to high living costs compared to Malaysia, particularly for office space and professional services.

Access to Markets

• Malaysia: Centrally located in Asia, with strong trade ties to ASEAN, China, and the US. Using company incorporation services provides fast access to regional supply chains.
• Malta: Offers direct access to EU markets, North Africa, and the Middle East, supported by strong transport and financial connectivity.

Quick Comparison Overview

Here’s a quick overview of the key differences for easy reference.

Factor	Malaysia	Malta
Business Environment	Stable, supportive of foreign investment	Stable, EU-compliant legal system
Corporate Tax Rate	24%	35% nominal, ~5% effective with refunds
Capital Gains Tax	Yes, varies by asset type	Yes, under certain conditions
Ease of Incorporation	Digital, 3–5 days	Efficient but EU-regulated
Business Costs	Low setup and operating costs	Moderate to high
Market Access	ASEAN, China, global trade partners	EU, North Africa, Middle East

Benefits of Choosing 3E Accounting

Selecting the right partner is crucial when it comes to starting a business in Malaysia. At 3E Accounting, we offer a comprehensive range of solutions designed to simplify the entire process of company incorporation in Malaysia. From ensuring compliance with local regulations to providing expert guidance tailored to your specific needs, we make the journey seamless.

For entrepreneurs looking to navigate Malaysia company registration or explore company setup in Malaysia, our team provides unmatched expertise and support. Additionally, our company incorporation services are tailored to help you succeed in the competitive business environment.

With a deep understanding of the region’s business landscape, we also provide resources for setting up businesses in Malaysia, ensuring that every step is clear and efficient. Whether you need assistance with corporate secretarial or company secretary services, we are here to help.

To explore our services or discuss your business needs, contact 3E Accounting. With our strong presence in Malaysia and a proven track record, we are your trusted partner for success in Asia.

 

Frequently Asked Questions

Why consider Malaysia instead of Malta for starting a business?

Answer: Malaysia offers lower costs, simpler processes, and strong government incentives. You can explore more in this guide to starting a business in Malaysia.

How does the corporate tax in Malta compare with Malaysia?

Answer: Malta has a high nominal corporate tax of 35% but offers refunds that reduce the effective rate to around 5%. In contrast, Malaysia’s 24% rate remains competitive and comes with incentives for Malaysia company registration.

Is it easier to incorporate a company in Malaysia or Malta?

Answer: Incorporation in Malaysia is faster and digital-friendly. Investors often use company incorporation in Malaysia services to complete setup in under a week.

What are the costs of running a business in Malaysia vs Malta?

Answer: Malaysia has lower operational costs than Malta. Setting up businesses in Malaysia is more cost-effective, especially for startups and SMEs.

Which country offers better access to international markets?

Answer: Malaysia connects to ASEAN, China, and the US through various trade agreements. Businesses benefit from regional access via company incorporation services.

Can foreign investors fully own a business in Malaysia?

Answer: Yes, most sectors in Malaysia allow full foreign ownership, and company setup in Malaysia can be done without local partners in many industries.

What post-incorporation services are needed in Malaysia?

Answer: All companies must appoint a qualified company secretary. Company secretary services ensure compliance with Malaysian law.

What is the role of the SSM in Malaysia?

Answer: The Companies Commission of Malaysia (SSM) oversees all company registrations and monitors legal compliance.