WhatsApp our business consultants: +601117227604

Exposing The Hidden Cost Of Running A Business In Malaysia

Malaysia is a country known for its diverse culture, delicious food, and beautiful landscapes. It is also an attractive destination for entrepreneurs looking to start or expand their businesses. However, like any country, there are hidden costs associated with running a business in Malaysia. 

In this article, we’ll explore the hidden costs of running a business in Malaysia and provide tips on how to manage them.

Licences and permits

One of the biggest hidden costs of running a business in Malaysia is obtaining the necessary licences and permits. Depending on the type of business, you may need to secure permits from multiple government agencies, including the Companies Commission of Malaysia (CCM), Inland Revenue Board of Malaysia (IRB), and the local government authority where your business is located. 

A person who is completing business application forms

The costs of these permits vary, and the process can be time-consuming, requiring multiple visits to government offices and the submission of various documents.

To manage these costs, it’s crucial to do your research and know what permits are required for your business. You can also hire a lawyer or a consultant to help you navigate the process and ensure that you’re complying with all legal requirements.

Employee benefits

Another hidden cost of running a business in Malaysia is providing employee benefits. Malaysia has strict labour laws that require employers to provide certain benefits to their employees, such as the Employees Provident Fund (EPF) and Social Security Organization (SOCSO) contributions. These benefits can add up and significantly impact your business’s bottom line.

A Malaysian supermarket staff

To manage these costs, it’s essential to have a clear understanding of your obligations as an employer. You can also consider offering alternative benefits, such as flexible work arrangements, to attract and retain employees while minimizing costs.

Office space and utilities

Renting office space and utilities is another hidden cost of running a business in Malaysia. Office space in prime locations, such as Kuala Lumpur or Penang, can be expensive. Additionally, utilities such as electricity and water can add up, especially during peak usage periods.

An office in Malaysia

To manage these costs, consider alternative options such as renting co-working spaces or working remotely. You can also negotiate with your landlord or utility provider to get better rates or find ways to reduce your energy consumption.


Finally, taxes are another hidden cost of running a business in Malaysia. The country has a complex tax system, with multiple tax types, including income tax, sales tax, and service tax. Additionally, penalties for non-compliance can be severe, and tax audits can be time-consuming and costly.

Malaysian cafe owners who are filing their taxes

To manage these costs, it’s crucial to maintain accurate records and seek the advice of a tax professional. You can also take advantage of tax incentives, such as those offered to businesses located in economic zones.

Understanding these hidden costs

Running a business in Malaysia can be rewarding, but it’s important to be aware of the hidden costs involved. By understanding the hidden costs of running a business in Malaysia and taking steps to manage them, you can ensure the long-term success of your business. Remember to do your research, seek professional advice when necessary, and be prepared to adapt to changing conditions.

If you’re looking to start or expand your business in Malaysia, consider using StoreHub, a leading cloud-based POS system that can help you manage your inventory, sales, and customer data all in one place. 

With StoreHub, you can streamline your business operations and focus on growing your business, all while minimizing the hidden costs of running a business in Malaysia. 

Try StoreHub today and see the difference it can make for your business!

storehub ecosystem with compatible devices

Share this Post

Hey there! Please enter your store name.