Looking to set up your business in Penang?

Malaysia is an attractive market with strong economic fundamentals. Its GDP was RM1.35 trillion (S$445 billion) in 2017, a 5.9% increase from 2016. This marks the seventh year that Malaysia has enjoyed GDP growth of above 4%.

 

In addition, Penang’s diversified economy presents business opportunities in many industries. Capitalize on Penang’s focus on high-value foreign investments to find opportunities for your business in healthcare, manufacturing, services, tourism, or transport.

Penang is well known for our strength in high-tech manufacturing. Building on top of that, we will focus to enhance the local enterprise ecosystem to go digital and international by leveraging on digitalization and automation.

Digital Penang leads the way of digital transformation by utilizing technology to embrace change and lead the state leap into the digital future. To accelerate efforts in pursuing opportunities in the Digital Economy, Digital Penang offers the following services for investors and companies looking to localize your companies existing products and services, enter the local markets, and set up an office in Penang. Let Digital Penang build, develop, test, and deploy your new product or service and LeanStart with us today.

LeanStart

Ready to set up in one of the most livable cities in the world? Looking to go remote? Digital Penang has all the services and incentives in a central location to assist you.

ScaleUp

For deep technology startups and companies looking to set up an office in Penang, Digital Penang can provide incentives and office space subsidy for up to 10 people as well as fresh graduate subsidies for hiring local talent.

SpringBoard

Set up your regional HQ or a digital hub in Penang and Digital Penang will help your company with MATRADE export incentives, procurement localization, tax subsidies, Trade Fair subsidies, and R&D Center resources.

 

Cost of Doing Business in Penang

Incorporation Fees

Main fees to be paid to the Companies Commission of Malaysia (SSM)

    • Reservation of a name – RM50/USD12
    • Application for incorporation under section 14 of the Act for company limited by share, by guarantee, or unlimited company – RM1000-RM3000/USD250-750
    • Registration of company with share capital:
      • Not exceeding RM1mil (USD250k) costs RM5k/USD1,238
      • RM 1,000,001 to RM 10,000,000 (USD 250K to USD2mil) costs RM20k/USD4,950
      • RM 10,000,001 to RM 50,000,000 (USD2.5mil to USD12.38mil) costs RM40k/USD9,901
      • RM 50,000,001 to RM 100,000,000 (USD12.38mil to USD24.75mil) costs RM60k/USD14,851
      • Exceeding RM100,000,000 (USD24.75mil) or registration of company WITHOUT share capital costs RM70,000/USD17,327
      • For the full range of fees, please go to SSM’s website at www.ssm.com.my

Office Space

Rental Rates for Prime Office Space in Georgetown, Pulau Pinang rates range from RM27 to RM38 (USD6.70 to USD9.41).

Cost of Prime Office Space in Penang (RM psf/month):

  • Penang Island (Georgetown, Bayan Lepas, Bayan Baru)
    • RM2.00 – RM3.50 psf per month
  • Mainland, Penang
    • RM1.50 – RM2.00 psf per month

Industrial Land and Factories

  • Locations: Penang Science Park, Penang Science Park North, Batu Kawan Industrial Park
  • PDC Ready Built Factory Units
    • Bukit Minyak Industrial Park (85 units)
    • Bayan Lepas Industrial Park (Phase IV)
  • PDC SME Units
    • SME Units Bukit Minyak Industrial Park (27 units)
    • SME Village Batu Kawan Industrial Park(Phase 4A)

More Information on Doing Business in Penang

Tax Incentives for Company Relocating into Malaysia under National Economic Recovery Plan (PENJANA)

Tax incentives offered to a new and existing company relocating into Malaysia under the Income Tax Act 1967 are as follows:

Tax incentives offered to a new and existing company relocating into Malaysia under the Income Tax Act 1967

If you have any other queries, do reach out to us and we will get in touch with you immediately.

    Register With Us

    Be the first to subscribe on our newsletter to get the latest information on our tips, programmes and more!