Competitive Business Costs

Employee compensation

Employee compensation is significantly lower in Malaysia with pay scales up to 75% lower than the U.S. The following provides an example of employee cost in Malaysia compared to U.S :

Salaries: Senior software engineer

Salaries: Senior software engineer: 30.4 % of U.S
Source: PayScale, Sourcingline, March 2010

 


Salaries: IT project manager

Salaries: IT project manager: 37.4 % of U.S
Source:PayScale, Sourcingline, March 2010

 


Salaries: Customer service manager

Salaries: Customer service manager: 34.0 % of U.S
Source:PayScale, Sourcingline, March 2010

 


In addition, the well-educated workforce is multilingual, and in demand as demonstrated by Malaysia recording the highest employment rate amongst the Asia Pacific countries in 2011.

Employment Rates, (%, y-o-y)
Source: Oxford Economics
 


Rental

Prime office rent is amongst the lowest in the region, around RM7.1 per sq ft or USD28.32 sq ft per annum compared to the other capital cities of Asia Pacific countries.

Country City Per Local Measurement Prime Office Rent Local US$ / Sq ft/ Annum
Singapore Singapore S$ sq. ft. p.m. 8.6 81.89
Taiwan Taipei NT$ ping p.m. 3,875.7 44.56
Mainland China Beijing - CBD RMB sq. m. p.m. 322.3 54.87
Mainland China Beijing - Zhongguangcun RMB sq. m. p.m. 259.0 44.09
Mainland China Beijing - Finance Street RMB sq. m. p.m. 378.3 64.41
India New Delhi - CBD INR sq. ft. p.m. 333 89.65
India New Delhi - Gurgaon INR sq. ft. p.m. 100 26.89
India New Delhi - Noida INR sq. ft. p.m. 46.7 12.55
Malaysia Kuala Lumpur RM sq. ft. p.m. 7.1 28.32
Hong Kong Hong Kong HK$ sq. ft. p.m. 58.2 89.82
Vietnam Ho Chi Minh City US$ sq. m. p.m. 39.2 43.71
South Korea Seoul - CBD KRW sq. m. p.m. 51,390 52.03
Note: Rents refer to prime office rent on net floor area basis in core business districts if not otherwise stated.

Source:CB Richard Ellis

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  • 12 National Key Economic Areas (NKEA)
    Malaysia is taking bold steps forward to transform into a high income nation by 2020 with the Economic Transformation Programme (ETP).
  • Strategic Reform Initiatives (SRI)
    Initiatives designed to make Malaysia more competitive in the global arena.
  • National Key Result Area (NKRA)
    To improve the socio-economic growth of Malaysians.

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