Malaysia’s ongoing economic growth is all due to its high labor productivity. The country has embraced the benefits of digitalization and has incorporated it into its economic processes. Malaysian citizens are well-versed in technology and have been living an affluent lifestyle because of it.
The International Monetary Fund has considered Malaysia as the 4th largest economy in Southeast Asia. The manufacturing industry has been the greatest contributor to their success since the 1960s and continues to do so as the country is averaging at a 4.3% GDP growth rate.
English Proficiency: Moderate Proficiency
Number of LinkedIn Users (2021): 5,915,000
More information about job portals in Malaysia can be found here.
More information about recruitment agencies in Malaysia can be found here
The minimum wage is 1,200 ringgits per month or 5.77 ringgits per hour.
Payroll in Malaysia is paid monthly, within 7 days of the following month.
13th month salary
Common practice in manufacturing industry to pay salaries in 13 instalments.
Maximum working hours: 48 hours per week. Most common office practice is 45 hours per week.
Maximum over time hours is 104 hours in 1 month (~4 hours in 1 day).
Malaysia’s 16 public holidays can be found here. There are 6 compulsory public holidays & 10 optional public holidays. At least 5 of the 10 should be given, but it is common for all public holidays to be given.
Female employees have 90 days paid leave if employed in the last 4 months and worked for the same employer for at least 90 days in 9 months prior to childbirth.
The termination process is relatively simple with notice to be given for the types of contracts as well as severance pay.
There is no set notice period, but should be equitable for both employee and employer
Probation is optional. Employment act does not distinguish between employees on probation and permanent employees.
Malaysia has enacted the Employment Insurance System Act 2017 (‘the EIS Act’) to establish a social security system for their workers. Insured employees can claim up to 6 months’ worth of benefits once the contract of service has been terminated (except for voluntary resignation, mutual termination, retirement, termination due to misconduct, etc.), Insured employees will have benefits such as job search allowance, early re-employment allowance, reduced income allowance, training allowance. For more information about this act, you may refer to this document here.
ESOPs in Malaysia are granted by employers as a remuneration and incentive for their employees to boost productivity within their business. Some of the Employee Share Plan that Malaysian employers are offering are the following:
Employees in Malaysia may either buy their company’s ordinary shares or the option to buy their shares in the future at a subsidised rate.
Malaysia’s sales and services tax is projected to tread around by 10% in 2022.