Every December, HR teams in Malaysia face the same questions: how much leave is left, can it be carried forward, and does unused leave have to be paid out? The answer depends on two things: the minimum set by the Employment Act 1955, and what the employment contract says. Here is how both work together. Minimum annual leave under the Employment Act Length of service Minimum annual leave Minimum paid sick leave Less than 2 years 8 days 14 days 2 to 5 years 12 days 18 days More

Hiring in Malaysia as a foreign company is more complex than most businesses expect — and the rules changed significantly in 2023 and again in June 2026. From mandatory Employment Pass salary threshold increases to new replacement plan requirements, EPF obligations for foreign staff, and the 2023 Employment Act amendments that many contracts still haven't caught up with — the compliance landscape has never moved faster. We put together this free guide so international compani

By GP Outsourcing Asia | Published June 2026 | 9 min read You've decided Malaysia is the right market. Now comes the question every expanding business faces: do you set up a local legal entity, or use an Employer of Record (EOR)? It's not a trivial decision. The wrong choice can cost you months of delay, tens of thousands of ringgit in unnecessary setup costs, or worse compliance exposure that puts your entire Malaysia operation at risk. This guide breaks down both options