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Why More SMEs Choose EOR to Hire Foreigners in Malaysia

For small and medium enterprises (SMEs), growth often means looking beyond borders. But expanding overseas can be overwhelming — especially when it involves understanding local labor laws, setting up a legal entity, and managing compliance.

Many SMEs want to hire foreigners in Malaysia to tap into its skilled, multilingual workforce — but don’t have the time or resources to deal with the red tape. That’s why more SMEs are turning to an Employer of Record (EOR) service to make global hiring simple.


EOR in Malaysia

The Struggle SMEs Face When Hiring Foreigners in Malaysia

Unlike big corporations, SMEs often lack the in-house HR or legal expertise to handle international employment. To hire foreigners in Malaysia, a company typically needs to:

  • Establish a local entity

  • Apply for work permits or employment passes

  • Register for tax and statutory compliance

For an SME, this process can take months and cost thousands of ringgit — before even hiring the first employee.


How EOR Helps SMEs Hire Foreigners in Malaysia

An Employer of Record (EOR) allows SMEs to hire foreigners in Malaysia without opening a local company. Here’s how it works:

  • The EOR acts as the legal employer for your staff.

  • The SME retains full control over job duties, performance, and operations.

  • The EOR handles everything else — from employment contracts to payroll, work permits, and compliance with Malaysian law.

It’s the simplest and safest way for SMEs to grow across borders while staying fully compliant.


Why SMEs Prefer EOR to Hire Foreigners in Malaysia

  • Low Cost & Fast Setup – Skip the expensive process of registering a company in Malaysia.

  • Full Legal Protection – Stay compliant with Malaysian labor and immigration regulations. Quick Hiring Process – Onboard foreign staff within weeks.

  • No Need for HR Infrastructure – The EOR manages payroll, taxes, and benefits.

  • Scalable Solution – Hire one employee or an entire team, depending on your business needs.

Whether you’re a Singaporean startup, a Hong Kong SME, or an Australian company expanding into ASEAN — an EOR lets you hire foreigners in Malaysia efficiently and legally.


Example: How an SME Expanded into Malaysia Seamlessly

A Singapore-based logistics SME wanted to build a customer service team in Malaysia.Instead of registering a new company, they partnered with GP Asia — their trusted EOR.Within weeks, they were able to hire foreigners in Malaysia, complete all legal onboarding, and start operations — saving months of administrative delay and setup costs.


The Smarter Way for SMEs to Hire Foreigners in Malaysia

Hiring globally doesn’t need to be complicated.With GP Asia’s Employer of Record service, SMEs can hire foreigners in Malaysia easily, stay compliant, and focus on what really matters — growing the business.

Ready to build your team in Malaysia? Let GP Asia handle the legalities while you focus on opportunities.



 
 
 

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