Expanding into Malaysia but not ready to set up a local entity? With AYP’s Employer of Record Malaysia services, you can hire and manage employees legally—without the burden of company registration. Our EOR Malaysia team handles everything from HR and payroll to statutory compliance, giving you the freedom to focus on growth. Whether you're building a remote team or testing the Malaysian market, our Employer of Record Malaysia experts provide the local knowledge and support you need to stay compliant and move quickly.
Malaysia’s robust economy, multilingual workforce, and strategic location within Southeast Asia make it a prime destination for regional expansion. However, expanding into a new market also requires in-depth understanding of local laws, payroll regulations, cultural nuances, and compliance risks.
By engaging AYP as your Employer of Record Malaysia partner, your company can:
Our advisory approach ensures that we go beyond execution. We provide strategic recommendations on how to structure employment terms, localise benefits, and build sustainable workforce plans—all aligned with your global policies and Malaysia’s legal framework. When you choose our EOR Malaysia service, you choose efficiency, compliance, and peace of mind.
Our Employer of Record Malaysia solution is designed to be comprehensive, compliant, and scalable for organizations of any size. AYP acts as the legal employer, while you retain full operational control of the employee’s day-to-day responsibilities.
Our professional HR team in Malaysia ensures that all employment lifecycle activities are carried out smoothly, efficiently, and in strict compliance with local employment law. Choosing an Employer of Record in Malaysia like AYP means your HR processes are simplified, while you gain access to local insight and ongoing advisory.
In Malaysia, employees are entitled to statutory benefits that protect their financial security and health. These entitlements are enforced by government agencies such as the Employees Provident Fund (EPF), Social Security Organisation (SOCSO), and Employment Insurance System (EIS).
Our Employer of Record Malaysia service ensures:
· Timely registration and contributions to EPF (12–13% employer / 11% employee)
· Coverage under SOCSO for work injuries and invalidity
· EIS contributions for income support during job loss
Beyond the minimum statutory requirements, AYP also works with clients to tailor competitive total rewards packages, including private medical insurance, travel allowances, performance bonuses, and more. We provide insights into what local employees value most to help you remain competitive as an employer of choice. Partnering with a leading EOR Malaysia provider ensures these benefits are administered correctly and attractively.
Malaysia’s labour regulations, including the Employment Act 1955 (as amended), outline clear requirements for working hours, overtime pay, and leave entitlements. Our advisory team ensures your operations remain compliant, especially as employment law evolves.
We manage:
AYP’s Employer of Record Malaysia platform tracks entitlements, ensures accurate payroll deductions or encashment, and automates compliance reporting—reducing administrative burden for your business. With our EOR Malaysia support, you’ll always remain aligned with statutory standards.
Hiring foreign talent in Malaysia requires strict adherence to immigration requirements governed by the Ministry of Home Affairs. As part of our Employer of Record Malaysia service, we offer end-to-end support for securing employment passes for eligible expatriates.
We advise on:
With AYP’s EOR Malaysia framework, you can confidently relocate key talent into Malaysia while ensuring full legal compliance. Our local immigration team works closely with regulatory authorities to minimize delays and ensure a seamless hiring process.
Ending employment in Malaysia must follow due process to avoid wrongful termination claims and reputational risks. AYP provides structured guidance throughout the offboarding process to ensure compliance and professionalism.
We assist with:
Our goal as your Employer of Record Malaysia provider is to ensure every offboarding is handled respectfully and in line with Malaysian labour law, reducing business risk while maintaining a positive employer brand.
In early 2024, a Singapore-based SaaS company planned to expand into Malaysia but lacked a local entity and knowledge of local labour requirements. Their goal was to onboard a technical support team within 30 days.
This successful project highlights the strength of our Employer of Record Malaysia solution and its impact on fast, scalable market entry.
"AYP helped us set up our Malaysia team within two weeks. We didn’t need to worry about compliance or paperwork – they handled everything. This allowed us to focus entirely on sales and business development. – Regional Sales Director, Fintech Company (Singapore)
"As a Singapore startup, we needed a fast and cost-efficient way to expand into Malaysia. AYP’s EOR service made it simple and risk-free. Their local team even helped us tailor benefits to attract top talent." – Co-Founder, HR Tech Platform
"AYP was instrumental in our ASEAN expansion. With their EOR in Malaysia, we were up and running faster than expected – all compliant, no hidden costs." – APAC Operations Lead, Logistics Company
With AYP as your Employer of Record in Malaysia, you gain a strategic partner with deep local knowledge, a professional HR infrastructure, and a commitment to compliance. We support your success by offering:
Work with AYP’s Employer of Record Malaysia team and take the next step in your ASEAN expansion with confidence. Speak to us today and experience a seamless, compliant hiring process powered by local insight and global standards.
An Employer of Record (EOR) in Malaysia is a legal service provider that hires employees on behalf of your business. While you manage the employee’s responsibilities and tasks, the EOR handles employment contracts, payroll, tax filings, and compliance with Malaysian labour laws. Our Employer of Record Malaysia team brings in-depth local knowledge to every engagement.
EOR allows you to enter the Malaysian market quickly without entity setup, reduce compliance risk, and benefit from local HR expertise. It is especially suitable for pilot teams, project-based expansions, or companies with evolving headcount needs. Our Employer of Record Malaysia services streamline the process with minimal overhead.
AYP is a trusted EOR provider with a dedicated presence in Malaysia. We combine local expertise with regional experience to deliver reliable, compliant Employer of Record Malaysia solutions.
Our onboarding process includes:
Yes. We manage end-to-end transitions including contract changes, visa applications (if applicable), and onboarding under Malaysian regulations through our Employer of Record Malaysia process.
These are structured contractually and processed through monthly payroll. We help align performance-related pay with local reporting standards and tax requirements. Our EOR Malaysia experts ensure this is seamless.
Employees under AYP’s Employer of Record Malaysia service are subject to Malaysian income tax laws. We ensure monthly PCB (Potongan Cukai Bulanan) deductions and provide annual EA Forms for submission to LHDN.
Still have more questions? Contact us today
