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Employ Candidates Compliantly in Malaysia

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  1. Overview: Malaysia
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record (EOR) in Malaysia

Expanding a business to Malaysia can be a great opportunity for companies looking to explore new markets, access a highly-skilled workforce, and take advantage of favourable economic conditions. However, entering a new country’s market can also be complex, time-consuming, and risky. One of the key challenges businesses face when entering Malaysia is compliance with local labour laws, tax regulations, and HR requirements. This is where a Global Employer of Record (EOR) can help. Let’s explore what a Global EOR is, how to choose the best one, and how partnering with one can help address risks and streamline operations in Malaysia.

What is a Global Employer of Record?

A Global Employer of Record (EOR) is a company that acts as an official employer for a foreign workforce. It manages all aspects of HR, payroll, tax compliance, and legal matters related to employment on behalf of a foreign company. A Global EOR can hire employees locally in Malaysia and handle all local labour laws and regulations. At the same time, the foreign company maintains control of its employees’ day-to-day activities and operations.

All-In-One Global Employment Solution in Malaysia

Employing globally is no longer a maze of local setups and legal hurdles. With Express Global Employment, you can build a global team seamlessly. Benefit from our comprehensive, compliant, and efficient global employment solutions that eliminate the complexity of international hiring. From contract generation to seamless integration, we ensure that your expansion is as limitless as your ambition.

Global Mobility Support

Our global mobility support is about turning complexity into simplicity. We expedite onboarding and immigration procedures, ensuring your global talent is ready to engage and deliver results swiftly. By eliminating red tape and administrative burdens, your team can focus on what they do best, propelling your business forward in every corner of the globe.

Global Payroll & Benefits, Handled

Financial well-being is critical to employee satisfaction. That’s why we navigate the intricacies of international payroll and benefits with expertise. Our solutions offer your workforce a competitive and fully compliant financial package, wherever they may be. With Express Global Employment, you can assure your team that their compensation is globally competitive wherever they are.

Borderless Expansion, No Entity Needed

Launch your workforce in 190 countries without the burden of establishing local entities. Our all-in-one global employment solution allows quick, compliant onboarding and talent management. You can immediately scale up your operations and seize international opportunities with Express Global Employment as your guide.

New Markets. Zero Risks.

Expanding your business’s horizons should not multiply its risks. Protect your global ventures from compliance pitfalls with our expert guidance. We manage the complexities of employee classification and permanent establishment risks, ensuring that your expansion is secure and strategically sound. With us, new markets mean new opportunities, not new worries.

Global Payroll Calculator Helps You Streamline Global HR Operations

By creating the Global Payroll Calculator, we’ve done the global payroll and tax math and compliance for you.

  1. Eliminate the time-consuming and costly process of doing your manual calculations.
  2. Gain instant access to up-to-date salary cost breakdowns based on local tax laws and regulations and update in real-time with the latest employment and tax legislation changes across 190 countries.
  3. Stay compliant on all international payroll matters, including local taxes, labour rules, and benefits.
  4. Minimized the risk and global cost-of-hire.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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How a Global Employer of Record Can Help Address Risks in Malaysia

When expanding your business to Malaysia, there are several risks to consider, including permanent establishment risk, employee misclassification risk, under-taxation risk, HR compliance risk, immigration compliance risk, intellectual property rights risk, and vendor management & vetting risk. A Global Employer of Record can help address these risks in the following ways:

Global Employment Risk How a Global EOR Can Help
Permanent Establishment Risk A Global EOR can help mitigate the risk of creating a permanent establishment in Malaysia, which can trigger additional tax obligations and regulatory requirements.
Employee Misclassification Risk A Global EOR can ensure that your employees are properly classified under Norwegian law, helping to avoid costly penalties and legal disputes.
Under-taxation Risk A Global EOR can help ensure you pay the correct taxes in Malaysia, helping avoid penalties and legal disputes.
HR Compliance Risk A Global EOR can ensure that your HR practices comply with Norwegian law, including employment contracts, benefits, and termination procedures.
Immigration Compliance Risk A Global EOR can ensure that your employees have the necessary work permits and visas to work legally in Malaysia.
Intellectual Property Rights Risk A Global EOR can help protect your intellectual property rights in Malaysia, including registering trademarks and patents.
Vendor Management & Vetting Risk A Global EOR can help vet and manage vendors, ensuring they comply with local laws and regulations.

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How a Global Employer of Record Can Replace Multiple Vendors in Malaysia

Partnering with a Global EOR can replace the need for multiple vendors, as they provide a wide range of services necessary for operating a business in Malaysia. A Global EOR can handle payroll processing, tax withholding, and reporting in compliance with Norwegian regulations, eliminating the need for a separate payroll company. They can also offer comprehensive employee benefits packages, provide HR expertise and support, perform background checks and screening, assist with registering and protecting intellectual property rights, provide tax advice, translation services, legal expertise and support, and immigration support.

Partnering with a Global EOR benefits companies looking to streamline operations and ensure local laws and regulations compliance in Malaysia. It can also be a cost-effective solution for small to medium-sized businesses that may not have the resources to hire multiple vendors for each service.

Services How a Global EOR Can Help in Malaysia
Payroll Company Handle payroll processing, tax withholding, and reporting in compliance with Norwegian regulations.
Employee Benefits Broker Offer comprehensive employee benefits packages that comply with local laws and regulations.
HR Consultants Provide HR expertise and support, including recruiting, onboarding, and performance management.
Background Checks Vendors Perform background checks and screening to ensure compliance with local regulations in Malaysia.
IP Attorney Assist with registering and protecting intellectual property rights in Malaysia.
Tax Advisor Provide tax advice and ensure compliance with local tax laws.
Translation Service Provide translation services to help bridge language barriers.
Legal Advisor Provide legal expertise and support, including contract review and compliance.
Immigration Advisor Provide support with work permits and visas for international employees in Malaysia.

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From M&As to Close-Downs: Benefits of Partnering with a Global EOR for Successful Business Transitions in Malaysia

A Global EOR (Employer of Record) is a company that provides comprehensive employment solutions to businesses that want to expand their operations globally without having to establish a legal entity in each country where they operate. In addition to handling payroll, compliance, and legal matters, a Global EOR can also provide a range of other services to support businesses undergoing transitions, M&A processes, restructuring, or those on the way to establishing their own local legal entities.

Challenges Solutions
Legal and compliance requirements A Global EOR can ensure that all legal and compliance requirements are met, including handling payroll, taxes, benefits, and employment contracts in accordance with local laws and regulations.
Employee retention and morale A Global EOR can provide support and guidance to employees during times of uncertainty, helping to ensure that they remain motivated and engaged. They can also help ensure employees are seamlessly transferred to the new organization without disrupting their employment or benefits.
Recruitment and onboarding A Global EOR can support the recruitment and onboarding of new employees, helping ensure that the business has the right talent to support its operations.
Cultural differences A Global EOR can provide valuable insights and expertise on local customs, culture, and business practices, helping to ensure that the business can navigate cultural differences effectively.
Cost management A Global EOR can help businesses manage costs during times of transition by providing a flexible, scalable employment solution that can be tailored to their specific needs.
Employment infrastructure A Global EOR can provide an established legal entity in a target country, allowing the employer to operate legally and compliantly. This can be especially beneficial for businesses that are expanding into new markets or regions, as it allows them to establish a local presence and start operating quickly without the need for significant upfront investment or administrative overhead.

Spotlight on Malaysia

  • Location – Southeast Asia, bordered by Thailand to the north, Singapore to the south, Vietnam to the northeast, and Indonesia to the west; Malaysian Borneo borders Brunei and Indonesia.
  • Capital – Kuala Lumpur
  • Population – 33.92 million (2023 estimate)
  • Official languages – Malay and English
  • Government – Federal parliamentary elective constitutional monarchy
  • Currency – Ringgit (MYR)
  • Dominant religion – Islam
  • Exports: $291.08 billion (2022 estimate)

    • Exportable goods: Semiconductor and electronic products, palm oil, liquefied natural gas, petroleum, rubber, wood, wood products, chemicals, machinery, vehicles, optical and research equipment, metal goods

    • Main export partners: China, Singapore, United States, Japan, Thailand, Hong Kong, Vietnam

  • Imports: $273.46 billion (2022 estimate)

    • Import products: Electrical and electronic products, machinery, chemicals, petroleum, plastics, vehicles, refined petroleum, plastics and articles thereof, goods made of metal, iron, and steel

    • Main import partners: China, Singapore, United States, Japan, Thailand, Indonesia, South Korea

  • Public holidays – Maulidur Rasul, Hari Merdeka, Chinese New Year (1-2 days), Wesak Day, The Yang di-Pertuan Agong’s Birthday, Hari Raya Puasa (Aidilfitri), Hari Raya Qurban (Aidiladha), Deepavali, Christmas, Labour Day, Awal Muharram, Malaysia Day.

Types of Employment in Malaysia

Employment contracts in Malaysia fall into two categories: fixed-term and indefinite-term. Fixed-term contracts may be considered permanent if renewed multiple times. Foreign workers employed under fixed-term contracts have statutory employment protection.

Employment of Foreigners in Malaysia

Highly skilled foreign nationals require a valid work permit from the Immigration Department to work in Malaysia. The type of permit depends on the employee and the nature of their work. Expatriates or skilled foreign workers need an Employment Pass, which comes in three categories based on salary and contract duration.

  • Are you seeking to reinforce your existing team with the expertise of Malaysia-based international employees?
  • Have you already selected a candidate from Malaysia?
  • Do you want the prospect to work for you remotely from Malaysia?
  • Would you prefer to hire shortly and stay compliant with Malaysian legislation?

We can help you find, hire, and manage Malaysian-based international employees, ensuring compliance with Malaysian legislation. Contact us today to discuss your specific needs.

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