Doing Business in Malaysia VS Taiwan – A Comparison
Entrepreneurs exploring business expansion in Asia often compare Malaysia and Taiwan. Both countries offer supportive environments for foreign investors but differ in cost structures, regulatory landscapes, and regional market access. Malaysia stands out for its affordability, pro-investment policies, and strategic location within ASEAN. Taiwan, meanwhile, boasts advanced infrastructure, tech innovation, and proximity to key East Asian markets. This guide compares the two to help you decide which market better fits your business strategy.
Key Comparison Points
Business Environment
- Malaysia: Malaysia maintains a stable political system and pro-business policies, making it easy for investors to navigate regulations and operate efficiently.
- Taiwan: Taiwan offers a competitive, innovation-driven economy with a strong rule of law, but navigating local bureaucracy can be challenging without local partnerships.
Taxation
- Malaysia: The corporate tax rate is 24% and capital gains tax is generally not applicable, especially for private companies.
- Taiwan: Taiwan levies a corporate tax rate of 20% and applies capital gains tax selectively, particularly on securities and real estate.
Ease of Company Incorporation
Cost of Living and Business Operations
- Malaysia: Malaysia offers low operating costs, competitive wages, and affordable living expenses. Check out the full guide to setting up businesses in Malaysia for more insights.
- Taiwan: Operational costs are moderate by East Asian standards, with higher rent and wage levels in Taipei, but still manageable for small businesses.
Access to Markets
- Malaysia: Malaysia is an ASEAN member, giving businesses direct access to a regional market of over 600 million people. Learn more about company setup in Malaysia and expansion options.
- Taiwan: Taiwan is ideally located near China, Japan, and South Korea but has limited free trade agreements due to geopolitical constraints.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
| Factor |
Malaysia |
Taiwan |
| Business Environment |
Stable, pro-investment |
Innovative, but more bureaucratic |
| Corporate Tax Rate |
24% |
20% |
| Capital Gains Tax |
No |
Yes (limited) |
| Ease of Incorporation |
Fast and digital; aided by company incorporation services |
Slower and language-dependent |
| Business Costs |
Low operating and living costs |
Moderate operational costs |
| Market Access |
ASEAN FTAs |
East Asia access, limited FTAs |

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 lower operational costs, a simpler setup process, and strong ASEAN market access, making it more attractive for many entrepreneurs compared to Taiwan. Learn more about company incorporation in Malaysia.
Malaysia’s process is faster, digital, and accessible for foreigners—especially when supported by company incorporation services. Taiwan’s process is more bureaucratic and requires Chinese documentation.
Malaysia has a flat 24% corporate tax and no capital gains tax in most cases. Taiwan charges 20% corporate tax and applies capital gains tax to certain investments.
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.