Doing Business in Malaysia VS Netherlands – A Comparison
Entrepreneurs and investors often find themselves weighing the benefits of expanding into Southeast Asia versus Europe. Malaysia and the Netherlands are two standout options, each offering distinct advantages that cater to different business goals. While Malaysia is known for its cost-efficiency and strategic ASEAN location, the Netherlands is a preferred hub for global trade, innovation, and access to the EU market.
Malaysia appeals to startups and SMEs for its affordable setup costs and government support. Meanwhile, the Netherlands offers strong legal protections, a highly skilled workforce, and direct access to one of the largest economic regions in the world.
Key Comparison Points
Business Environment
- Malaysia: Offers political stability, pro-investment policies, and clear regulatory frameworks. Foreign investors can rely on firms like 3E Accounting to handle compliance and registration.
- Netherlands: Features a well-established legal system, low corruption, and a business-friendly environment supported by advanced digital infrastructure.
Taxation
- Malaysia: Corporate tax is 24%, with sector-specific tax incentives available for manufacturing, R&D, and IT. These incentives are also echoed in regions like Indonesia.
- Netherlands: Applies a progressive corporate tax rate—19% on the first €200,000 and 25.8% beyond that. It also offers innovation-friendly tax regimes such as the Innovation Box regime.
Ease of Company Incorporation
- Malaysia: Company registration is fast and digital via SSM. For hands-on support, many turn to company incorporation services.
- Netherlands: The Netherlands requires a notary and registration through the Dutch Chamber of Commerce. Although efficient, it may be less streamlined for foreign investors than Malaysia.
Cost of Living and Business Operations
- Malaysia: Operating costs—including rent, utilities, and talent—are comparatively low. It’s ideal for lean businesses exploring company setup options.
- Netherlands: Operational and living costs are higher, especially in cities like Amsterdam and Rotterdam. However, the talent pool and infrastructure often justify the investment for global businesses.
Access to Markets
- Malaysia: Located at the heart of Southeast Asia, Malaysia offers trade access via ASEAN and multiple FTAs. Regional expansion plans often also include Indonesia.
- Netherlands: Acts as a gateway to Europe with access to over 400 million consumers through the EU. Its seaports and logistics hubs are among the best in the world.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
| Key Factors | Malaysia | Netherlands |
| Business Environment | Stable, pro-investment, government-supported | Transparent, digital-first, EU-aligned |
| Corporate Tax Rate | 24% | 19% to 25.8% |
| Capital Gains Tax | Yes (depending on asset type) | No (for private individuals) |
| Ease of Incorporation | Fully digital, fast via SSM | Notary-based, registry required |
| Business Costs | Low to moderate | High |
| Market Access | ASEAN, China, Japan, Australia | EU, UK, US, Africa |

Benefits of Choosing 3E Accounting
Selecting the right partner is crucial when it comes to starting a business in Malaysia. At 3E Accounting, we offer a comprehensive range of solutions designed to simplify the entire process of company incorporation in Malaysia. From ensuring compliance with local regulations to providing expert guidance tailored to your specific needs, we make the journey seamless.
For entrepreneurs looking to navigate Malaysia company registration or explore company setup in Malaysia, our team provides unmatched expertise and support. Additionally, our company incorporation services are tailored to help you succeed in the competitive business environment.
With a deep understanding of the region’s business landscape, we also provide resources for setting up businesses in Malaysia, ensuring that every step is clear and efficient. Whether you need assistance with corporate secretarial or company secretary services, we are here to help.
To explore our services or discuss your business needs, contact 3E Accounting. With our strong presence in Malaysia and a proven track record, we are your trusted partner for success in Asia.
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Frequently Asked Questions
Malaysia applies a flat 24% corporate tax, with incentives in key industries. In contrast, the Netherlands has a tiered system from 19% to 25.8%. Learn more through our company incorporation in Malaysia page.
Malaysia’s central ASEAN location gives you access to over 600 million consumers and major FTAs. Discover your opportunities by starting a business in Malaysia.
Yes, Malaysia’s infrastructure and low cost make it an ideal base for regional expansion. Explore your company setup in Malaysia options today.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.