Doing Business in Malaysia VS Saudi Arabia – A Comparison
Choosing between Malaysia and Saudi Arabia as a business destination is a common dilemma for entrepreneurs and investors. Each country offers distinct advantages, and the right decision often depends on business goals, regional strategies, and regulatory comfort.
Malaysia appeals with its cost-efficiency, strategic ASEAN location, and high quality of life. On the other hand, Saudi Arabia’s economic transformation under Vision 2030, combined with its vast energy resources and market size, makes it a powerful contender in the Middle East.
Key Comparison Points
Business Environment
- Malaysia: Malaysia maintains political stability and a solid legal infrastructure, with strong government incentives for foreign investors. Many rely on 3E Accounting for efficient business registration and compliance support.
- Saudi Arabia: Saudi Arabia has made significant regulatory reforms to support business and foreign ownership, particularly through initiatives tied to Vision 2030, though bureaucracy remains a factor in some sectors.
Taxation
- Malaysia: The corporate tax rate is 24%, with various tax exemptions and allowances available depending on industry and location. This is explained in detail in this starting a business in Malaysia guide.
- Saudi Arabia: Corporate tax is 20% for foreign companies, but there’s also a 2.5% Zakat for local entities and a 15% VAT applicable across the board.
Ease of Company Incorporation
- Malaysia: Company incorporation is straightforward and digitized via the Companies Commission of Malaysia (SSM). Investors often refer to this company incorporation in Malaysia resource for step-by-step assistance.
- Saudi Arabia: Incorporation is improving through the Ministry of Investment, especially for 100% foreign-owned entities, but the process involves more documentation and local navigation.
Cost of Living and Business Operations
- Malaysia: Operational costs, including salaries, office space, and utilities, are generally low. For a deeper understanding, check this setting up businesses in Malaysia guide.
- Saudi Arabia: Business costs vary by sector, but salaries and overheads in cities like Riyadh and Jeddah tend to be higher than in Malaysia, though still competitive by Gulf standards.
Access to Markets
- Malaysia: Centrally located in Southeast Asia, Malaysia offers access to ASEAN markets and is backed by a strong network of trade agreements. Services like company setup in Malaysia help streamline regional entry.
- Saudi Arabia: Saudi Arabia provides access to the Middle East and North Africa, and its economic reforms are drawing increasing investment from Europe and Asia. However, market diversification is still ongoing.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor |
Malaysia |
Saudi Arabia |
Business Environment |
Stable, investor-friendly policies |
Reforming with Vision 2030 initiatives |
Corporate Tax Rate |
24% |
20% (plus Zakat and VAT) |
Capital Gains Tax |
No capital gains tax |
No capital gains tax |
Ease of Incorporation |
Online, efficient via SSM |
More complex, improving digitally |
Business Costs |
Lower overall expenses |
Higher but competitive regionally |
Market Access |
ASEAN and global trade networks |
MENA region and growing foreign interest |

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 offers low operational costs, strong government support, and access to ASEAN markets. This makes it ideal for entrepreneurs who are starting a business in Malaysia.
Malaysia has a 24% corporate tax with incentives, while Saudi Arabia has a 20% corporate tax for foreign firms, plus Zakat and VAT.
Malaysia is part of major trade agreements, making company setup in Malaysia ideal for businesses targeting the ASEAN market.
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.