Hire your remote team in Malaysia

Name: Hire a remote team in Malaysia
Brand: Rivermate
SKU: malaysia
Price: 399 EUR
Availability: InStock
Rating: 4.4 (5 reviews)

Only 399 EUR per employee per month

We currently do not offer any services in this country.
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Hiring a remote team in a country as Malaysia comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Malaysia. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

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1. Hire a remote team in Malaysia with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Malaysia, particularly if you don't have established local relationships. You can hire employees in Malaysia effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents

Hire a remote team with Rivermate
Introduction
Hiring a remote team in your country
Cost of living
Cost of renting
Major industries
Hiring cost
Employment laws
Top skills
Economic landscape
Market size
Minimum wage
Why choose Rivermate?

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Malaysia.

As an employer of record, we help you hire employees and run payroll services in Malaysia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Malaysia.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Malaysia or individually hire remote employees in Malaysia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Malaysia services can best help your company!

3. Hire a remote team in Malaysia

According to IMF 2020, Malaysia has the fourth-largest economy in Southeast Asia with a high density of knowledge-based businesses. Malaysia is a Southeast Asian country divided into two independent parts, Peninsular Malaysia or West Malaysia and Malaysia Timur or East Malaysia, separated by 400 miles of the South China Sea.

Following the epidemic, Malaysia's labor market recovered considerably in the fourth quarter of 2020, with the country's unemployment rate predicted to decline between 4.2% and 4.3% in 2021, compared to the unusual high of 4.7% in 2020. The Malaysian Labor Report indicates that the job outlook has been optimistic since March 2021. There is, however, a mismatch between opportunities and credentials.

4. Cost of living in Malaysia

Malaysia's cost of living is $574, which is 1.63 times less costly than the global average. Malaysia ranks 151st out of 197 nations in terms of cost of living and 59th in terms of quality of life.

In Malaysia, the average pay after taxes is $804 per month, which is enough to meet living costs for 1.4 months.

5. Cost of renting in Malaysia

Malaysia provides a fantastic blend of a cheap cost of living and a better quality of life when compared to the West or even other Southeast Asian nations. Kuala Lumpur is Malaysia's capital and commercial center. While other living expenditures are comparable across Malaysia, rentals in Kuala Lumpur are higher. Currency conversion is another expense that ex-pats and students may face.

The typical cost may also vary based on your family's composition. If you are a single person or a university student, your expenditures may vary from those of a family of four. The average monthly cost of living in Malaysia is from $500 and $1500. The table below shows the cost of living for a family in Malaysia's largest cities.

6. Major industries in Malaysia

Malaysia's government wants to implement 5G by the end of 2021, yet even without it, Malaysia ranks third in Southeast Asia for fixed broadband download speed. Malaysia's average internet speed ranged from 35.87 to 91.83 Mbps.

Malaysia has a robust manufacturing sector that draws significant international investment. Foreign investment approved in the first quarter of 2021 was around 52.246 billion (RM Million).

The service industry gets significant domestic investment, with over 14983 million dollars invested in the first quarter (RM Million).

Technology and Fintech, Global business services, FMCG, Healthcare and Life sciences, Engineering, and Manufacturing are the top five recruiting industries in 20-21.

Automotive manufacture, military, communication technology, and construction are some of Malaysia's other major businesses.

Other notable contributions to the Malaysian economy include electronics, pharmaceuticals, medical technology, smelting, forestry, petroleum production, and petroleum refining.

Malaysian businesses want to invest in talent skills in areas such as the Internet of Things (IoT), cloud computing, artificial intelligence, blockchain technology, robots, and others.

7. Hiring cost in Malaysia

If you are an employer from another nation, you must first establish a legal business in Malaysia before recruiting local personnel. Legal representation is another important expense to consider. To stay in compliance with Malaysian rules, you must contact a legal professional.

Hiring costs to be considered in Malaysia

- Company registration costs

- Legal assistance costs

- Expenses involved in screening, interviewing, and onboarding new employees

- Travel expenses to interview candidates

- Advertising expenses for job posting

- Background checks

8. Employment laws Malaysia

The Employment Act of 1955 governs labor issues. This legislation focuses primarily on the minimum wage and the regulations governing leaves and work schedules for employees earning less than RM 2000.00 per month or employees doing manual labor such as craftsmen, transport operators, manual laborers, supervisors, domestic workers, and similar workers.

- Regular working hours are 8 hours per day for 5 days a week.

- The minimum wage to be paid by the employer is RM 5.77 per hour.

- While performance-linked bonuses are typical in Malaysia, they need to be mentioned explicitly in the employee contract.

- Employers are responsible for deducting income tax from the monthly salary under the Monthly Tax Deduction (MTD) scheme.

Overall the employment in Malaysia are governed by the following laws:

- Employment Act, 1955

- Children and Young Persons (Employment) Act, 1966

- Employment (Restriction) Act, 1968

- Factories and Machinery Act, 1967

- Occupational Safety and Health Act, 1994

- Minimum Wages Order, 2018

- Minimum Retirement Age Act, 2012

9. Top skills Malaysia

The key to Malaysia's continued prosperity is centered on enterprises embracing and shifting to a more digital environment. The top talents in demand across Malaysia's sectors are digital upskilling and agility in accepting digital advancements.

- Leaders with a digital transformation mindset will be in high demand in the post-pandemic employment market.

- Insurance and legal services have seen significant changes in how they operate. Remote trials, case management, and legal counsels all point to a technologically savvy workforce in the insurance and legal industries.

- The sales sector, which was heavily damaged by the epidemic, has also moved its attention to e-commerce and online operations. The sector would need an exponential increase in the number of software developers, cloud computing, customized software and database administrators, app developers, and other professionals.

- Project managers, site managers, and business managers will be needed in the healthcare industry to support the growing number of clinical trials in pharmaceutical businesses.

- Marketing specialists with strong soft-skills, digital marketing, and conventional marketing experience will be in high demand.

- The user experience will be central to corporate strategy. Businesses will be interested in employing CXOs as well as pure UI and UX specialists to get better control over the product/process life cycle.

Kuala Lumpur - Kuala Lumpur is a technology, health, marketing, and Fintech centre. Digital content, software and technology, finance and insurance, digital marketing, e-commerce, business development and sales, healthcare and medical assistance, customer service, cybersecurity, and supply chain are some of the in-demand talents in Kuala Lumpur. Penang is well-known for its shared services, manufacturing, and education industries. Administration, human resources, quality assurance, consultancy, and medical services are among the most in-demand talents in Penang. Johor Bahru - Manufacturing is a significant industry in this region, and expertise in manufacturing plants and logistics are in high demand. Engineering, quality assurance, logistics, sales and manufacturing heads, and audit heads are some of the often sought-after positions.

Petaling Jaya, Malaysia – Petaling Jaya, located near Kuala Lumpur, is home to more than 25 colleges and institutions. The neighborhood is densely packed with shopping malls and high-end residences, making the education and service sectors the most prominent employment opportunities.

10. Economic landscape in Malaysia

Malaysia's GDP would decrease by 5.6% in 2020, compared to 4.3% in 2019. In 2020, the majority of economic sectors were affected by a pandemic. However, things began to improve in the fourth quarter, particularly in the industrial sector. The technology industry was another that remained healthy. Malaysia's central bank anticipates the economy to recover to pre-crisis levels by mid-2021, with GDP growing at a rate of 6.5 to 7%. ‍

11. Market size in Malaysia

Malaysia is a middle-income Southeast Asian nation with a thriving economy powered by contemporary manufacturing and technology-driven sectors. The favorable forecast for the economy and the resurgence of most industries in the post-pandemic era is a promising omen for the country's employable population. Despite Malaysia's 95% literacy rate, the current problem for most businesses is recruiting the proper skill sets and expertise. According to Michael Page's talent trends report 2021, contractors and temporary workers will be in great demand.

12. Minimum wage in Malaysia

Since February of 2020, the minimum wage in Malaysia has increased to 1,200 MYR per month in urban areas, 1,100 MYR per month in rural areas.

13.Why choose Rivermate to hire your remote team in Malaysia?

Establishing an entity in Malaysia to hire a team takes time, money, and effort. The labor law in Malaysia has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Malaysia simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Malaysia give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Malaysia via our Employer of Record (EOR) / PEO solution.