Top 8 Best Businesses in Malaysia for New Entrepreneur 2024

Are you looking for the best business opportunity in Malaysia? If yes, you need to understand the A to Z of its requirements so that you can establish a profitable business.

Malaysia is one of the countries in Southeast Asia chosen for starting a business. According to  Suruhanjaya Syarikat Malaysia (Companies Commission of Malaysia), in 2023, there were 51K+ companies, 321K+ businesses, and 3K+ Limited Liability Partnerships registered to the commission. 

Then, why do people choose Malaysia for business establishment? This is because Malaysia offers low corporate tax rates ranging from 17-24%.

Moreover, Malaysia presents a low-cost and accessible company registration with the new Companies Act 2016. 

You also do not need to be worried about labour because the manpower in this country is educated and mostly cost-effective. The labour in Malaysia is also multilingual, so you do not have to worry about the language barrier. 

Additionally, if you want to expand your business, Malaysia also has entered some free trade agreements in bilateral and regional.

Thus, let’s dig deeper into popular businesses in Malaysia you can take note of below. 

Benefits of Starting a Business in Malaysia

Starting a business in Malaysia offers numerous advantages, especially for entrepreneurs and companies looking to expand into Southeast Asia. Here are some key benefits:

• Strategic Location: Malaysia is strategically located in Southeast Asia, with proximity to major regional markets like Singapore, Thailand, Indonesia, and China. Its well-developed infrastructure, including major ports and airports, makes it a convenient hub for trade and logistics within Asia.
• Growing Economy and Market Potential: Malaysia has a robust and diverse economy, with key sectors such as manufacturing, services, oil and gas, and technology. A rising middle class with increasing purchasing power offers opportunities for consumer goods, retail, e-commerce, and tech-based businesses.
• Business-Friendly Environment: Malaysia is known for its business-friendly regulations, ranking high on the World Bank’s Ease of Doing Business Index. The government actively encourages foreign investment, providing clear business registration procedures and favorable tax incentives.
• Skilled Workforce and Multilingual Talent: Malaysia has a relatively well-educated and skilled workforce, and many Malaysians are proficient in English, which is the primary language of business. This multilingualism can be beneficial for companies looking to communicate effectively with global clients.
• Tax Incentives and Grants: The Malaysian government offers various tax incentives, grants, and funding programs for foreign and local businesses, particularly in sectors such as technology, green energy, and manufacturing. Special Economic Zones, like Iskandar Malaysia and the Free Industrial Zones, also offer tax exemptions.

List of Businesses in Malaysia

As mentioned above, Malaysia has become one of the countries suitable for opening business. Yet, you must know what kinds of businesses are appropriate for you. Here is the list of businesses in Malaysia you should know. 

1. E-commerce Business

Malaysia is one of the leading countries for e-commerce growth, showing a promising future ahead. 

In addition, e-commerce contributes to 13.3% of the GDP in Malaysia. The gross merchandise value of the e-commerce market in Malaysia is also projected to grow significantly by 2025. 

This information reveals that starting an e-commerce business in Malaysia can be promising. To start a business in this field, you can choose to be a drop shipper. 

Dropshipping is an e-commerce activity in which the seller establishes a partnership with third-party suppliers to manage orders from customers. 

This business is good for those who want to open a low-cost business since you do not have to regulate the products. 

Other than dropshipping, you can open your e-commerce store allowing you to work remotely. 

You may go with electronics, travel, fashion, or beauty products. Before deciding what products you will sell in your store, it is important to research the market and demand so that you can fulfill the market’s request. 

2. Tourism Business

The tourism sector contributed to approximately 48 billion Ringgit Malaysia (RM) in 2022, making it the most profitable business in Malaysia. 

If you want to open a tourism business, you will be required to provide transportation, accommodation, meals, and other services. 

You can also expand your business by networking with travel agencies, hotels, and tour guides. 

3. Fashion Business

The fashion business has become a popular business in Malaysia and is estimated to grow at an annual rate of 5.08%.

The fashion business is also expected to reach USD 5.57 billion in 2024. Therefore, this business can be one of your considerations if you are into fashion. 

You can open your store or set up your brand easily in Malaysia. Moreover, if you have a garment production, you can also make a profit from both the factory and retail store. 

4. Real Estate Business

Real estate has become a top business in Malaysia since it has a great demand in the country. 

Malaysia is considered populous with 34 million inhabitants, according to Worldometer. Therefore, the demand for housing is high in Malaysia. 

In addition, the real estate business contributed to 1.3% of the country’s GDP in 2022.

Therefore, if you want to start a business in this sector, you can invest in real estate and properties, including industrial, residential, and commercial. 

The government also supports investment in real estate by issuing policies like the National Housing Policy and the Real Property Gains Tax Exemption Order. 

5. Oil and Gas Trade 

Malaysia is one of the countries with rich natural resources, including oil and gas. The nation is the second-largest oil and gas producer in Southeast Asia, making it the best business in Malaysia. 

With refineries, petrochemical facilities, and export terminals, Malaysia boasts a sophisticated oil and gas infrastructure.

Over time, Malaysia has experienced a consistent increase in its oil and gas output. You can either work as a retailer for oil and gas products or create partnerships with local companies.

6. Cleaning Services

If you want to open a small business in Malaysia, establishing a cleaning service can be one of the choices you can consider. 

Although there is an increasing need for cleaning services, the sector requires a significant investment in human resources due to its labour-intensive nature. 

Opening a cleaning service business is considered cost-effective in that you can provide yourself with cleaning supplies, a good marketing strategy, and a website to promote your business. 

Yet, do not forget to pay attention to the regulation of starting a business in Malaysia so that your small business can run well.  

7. Food and Beverages Business

Being a multicultural country, Malaysia offers diverse food and beverage choices, from traditional to plant-based cuisine. 

If you are interested in the food and beverage sector, you can start opening an F&B business in Malaysia. 

Over the years, Malaysia's food business has seen some developments. Therefore, you must pay attention to the trends shaping the industry, including:

• Digital technology in the food and beverage business. 
• Plant-based diets.
• Healthy foods. 
• Sustainable practice in the food industry.
• Diversified culinary experiences
• Personalised cuisine. 
• Virtual kitchen. 
• Collaboration with food delivery service providers.
• Food safety and transparency.

To work in the F&B business, you need to adapt to changing demand, keep innovating, build brand awareness, obey regulations, and maintain quality. 

8. Franchise Business

Last but not least, you can open a franchise business in Malaysia. The average startup cost ranges from RM15,000 to RM1,000,000. 

There are advantages and disadvantages you must pay attention to if you want to start a franchise. 

Talking about advantages, franchises give you a straightforward business plan so that you do not have to worry about making one. 

Moreover, you will not work alone since you will gain assistance from the franchisor. A franchise is also suitable for those who do not want to work in a risky business. 

Despite all the advantages, you need to prepare for the high cost of opening one. Franchising is also less flexible since you only run the business, not managing it. 

Those are the businesses in Malaysia that you can choose for your future business plan. Not only do you decide what business in Malaysia you want to open, but you have to prepare for other aspects, especially the marketing approach. 

In this case, you can opt for cost-effective marketing like SEO. You might be able to attract more potential customers and raise your online presence by employing SEO.

Additionally, by creating outstanding search-engine-optimised content, you may target potential customers with relevant keywords and boost website traffic and revenue.

Try our SEO Services today to find out how we can assist you in using relevant keywords to improve your listings, content, and website!