The country’s stability, digital ambitions, and regional reach are quietly turning it into Southeast Asia’s most balanced business base.
In a region crowded with ambitious economies, Malaysia has managed to do something rare in 2025 — stay steady, open, and quietly attractive.
While other ASEAN countries make headlines for volatility or political risk, Malaysia has emerged as a dependable base for founders and investors who want to grow without the chaos.
According to the Department of Statistics Malaysia (DOSM), the country pulled in RM 51.5 billion (US $10.9 billion) in new foreign direct investment (FDI) in 2024 a 33% increase from the year before.
That brought total FDI stock to nearly RM 1 trillion, signaling long-term confidence from global investors (DOSM, 2025).
From Recovery to Reinvention
Just a few years ago, Malaysia was quietly rebuilding after the pandemic and global supply chain disruptions. Now, it’s reinventing itself as a digital and innovation hub for the next decade.
In late 2024, the government launched its National AI Office, tasked with setting national standards for artificial intelligence and data governance — a clear statement that the future economy won’t just be about factories, but algorithms too (Reuters, Dec 2024).
And global tech players have noticed.
Google LLC announced a US $2 billion investment to build its first Malaysian data centre and cloud region a project expected to support over 26,000 jobs and inject billions into GDP by 2030 (AP News, 2024).
Together, these developments position Malaysia as an emerging digital hub in the heart of ASEAN.
Malaysia’s transformation didn’t happen overnight. Its base was built on decades of manufacturing expertise especially in electronics, semiconductors, and automotive parts.
Now, that backbone is being upgraded with high-tech investments from firms seeking “China + 1” diversification.
As the Financial Times put it, Malaysia has become “the surprise winner of the US-China chip wars,” drawing new semiconductor and EV investments into industrial corridors like Penang and Johor (FT, 2024).
And it’s not just manufacturing. Services from fintech to logistics now lead the FDI charts, pulling in nearly RM 39.4 billion last year.
The Founder’s Advantage
So why are founders from Bangkok, Berlin, and even Jakarta setting up in Kuala Lumpur?
Because Malaysia has struck a rare balance: serious infrastructure, reasonable costs, and zero drama.
- Full foreign ownership is allowed in most industries.
- Incorporation of a Private Limited Company (Sdn Bhd) can be completed digitally within a week through the Companies Commission of Malaysia (SSM).
- Corporate tax is 24% for large firms, 17% for SMEs — with no withholding tax on dividends.
- English is widely spoken, making communication frictionless.
- Office rent and payroll costs remain 30–40% lower than Singapore or Hong Kong, yet quality of life rivals both.
Add to that 5G connectivity, world-class ports, and Malaysia’s location literally between two of Asia’s economic powerhouses and you get a launchpad designed for sustainable regional growth.
Investors Are Already Moving
Malaysia’s approved investments surged to US $86 billion (RM 378 billion) in 2024 a record high according to Reuters (Reuters, Feb 2025).
Most of these inflows are from Asia led by Singapore, Hong Kong and China but Western multinationals are following, drawn by a stable policy environment and Malaysia’s role in the RCEP free-trade network.
Even with global volatility, Malaysia’s fundamentals remain intact: steady GDP growth around 4.5%, inflation under 3%, and a pro-investment government prioritizing industrial upskilling and digital integration.
The “Middle Ground” of ASEAN
If Singapore is the premium hub and Thailand the creative playground, Malaysia sits comfortably in between a sweet spot where businesses can grow regionally without overspending on compliance or rent.
For startups, SMEs, and global founders seeking real presence in ASEAN without the high burn rate — Malaysia simply makes sense.
It’s credible enough for investors, cost-effective enough for startups, and accessible enough for any founder ready to scale.
InvestinAsia’s Perspective
At InvestinAsia, we’ve seen the trend firsthand. More entrepreneurs from Thailand, Indonesia, and China are choosing Malaysia as their next setup destination whether for trading, logistics, or digital operations.
Working with our partners at vOffice Malaysia, we provide a one-stop setup experience: company registration, local director & secretary services, bank account opening, licensing, and post-incorporation compliance.
Our clients see Malaysia not just as a backup to Singapore but as a strategic base in its own right.
Final Thought
Malaysia’s story in 2025 isn’t one of overnight miracles. It’s a story of steady growth, digital transition, and global trust earned over time.
In an uncertain world, founders are looking for clarity and Malaysia is quietly providing it.
📩 Talk to our Malaysia Desk at InvestinAsia today to explore how you can set up your company within two weeks and start operating in the region’s most underrated hub.
👉 www.investinasia.co.th
