Growth Opportunities: Expanding with 10+ Best Small Business Ideas In Malaysia

Small businesses are vital to Malaysia’s economy, significantly enhancing productivity, job creation, and employment across various sectors. If you are new to Malaysia and exploring profitable ventures, this guide outlines some of the top small business ideas to consider. Continue reading for the full list below.

The Perks of Starting a Business in Malaysia

Malaysia offers an attractive environment for entrepreneurs, thanks to its competitive corporate tax rate of 17% for SMEs, matching Singapore’s rate. With a population of 33.5 million, businesses can tap into a sizable domestic market, fostering opportunities for small businesses to thrive locally. The country also boasts a diverse workforce, providing access to talent across various skill levels ranging from semi-skilled workers to professionals.

Malaysia’s strategic location, bordering key markets like Singapore and Indonesia, enhances its appeal for regional expansion. Additionally, the Malaysia Companies Act 2016 simplifies business incorporation for foreigners. Entrepreneurs can serve as both directors and shareholders without needing a local resident director, and certain Sdn Bhd companies are eligible for audit exemptions, easing compliance requirements.

The Best Small Business Ideas in Malaysia

E-commerce

With over 26 million internet users in Malaysia, 80% of whom actively engage in online shopping, the shift to e-commerce has accelerated, especially in the fashion retail sector impacted by the pandemic. Luxury brands in Southeast Asia have seen increased search traffic post-COVID-19, making e-commerce a lucrative opportunity. Entrepreneurs can leverage established platforms like Zalora, Lazada, Shopee, and Carousell to quickly set up and start selling, even without a dedicated website.

On-demand delivery services

The pandemic has significantly boosted the on-demand delivery services sector for groceries and essentials, with platforms like Grab and Pandamart offering users a variety of choices. Aspiring entrepreneurs can join these platforms as shoppers or target specific markets by developing a brand that prioritizes value over volume.

Rental for electronic vehicles and charging stations

The market for renting electric vehicles and charging stations is rapidly growing, with over 10,000 EVs already registered. Before diving into this promising sector, entrepreneurs should conduct thorough research, identify a viable target market, and create a solid business plan. With dedication, passion, and strategic planning, you can build a successful and rewarding business in this evolving industry. 

Tourism

Malaysia attracts millions of visitors annually, generating significant profits for investors in the tourism sector. Investors with substantial budgets can build resorts or hotels, offering services that encourage repeat investments. Smaller businesses can also benefit by providing products and services that cater to tourists’ needs. Regardless of budget size, investing in Malaysia’s tourism industry can be highly profitable, making it an excellent opportunity for both large and small enterprises to generate revenue. 

Running a restaurant

Malaysia, a popular tourist destination, attracts numerous foreign visitors annually for vacations and business purposes. Establishing a restaurant can be highly profitable if done strategically. Choose a location in or near crowded areas such as schools, markets, shopping malls, condos, and office zones. Ensure you obtain the necessary business licenses from SSM and Halal certification. Additionally, hiring multilingual staff can enhance customer service and cater to a diverse clientele. 

Repair for electronic devices

As long as people continue to use electronics and other smart devices, repair services will always be needed. This type of business does not require a lot of start-up capital. All that’s required is a good location to offer your service.

Food truck business

Malaysia has an array of beautiful street food that can be a basis for a food truck business. This business is quite expensive to start as you would need to buy a food truck and other cooking equipment and ingredients. However, this business has a large market because you can move your truck to different places and get different customers.

Sales of electronics devices

Selling mobile devices and other electronics is another profitable business idea in Malaysia. People are always looking to upgrade their mobile devices; hence, this business has a large audience. However, starting this business will require a lot of capital and a good location.

Pet care services

Taking care of pets can be very tasking, so a pet care service provider will be very much appreciated by the population of pet owners. Your pet care service can include pet sitting, cleaning, and other related services. This business does not require a lot of initial start-up capital and is easily scalable.

Affiliate marketing

If you don’t want a demanding business that requires leaving your home daily or if you already have a 9 to 5 and just want something extra, then affiliate marketing is a good choice. Affiliate marketing simply involves referring others to the products and services of a company or another business for a certain percentage of sales. It is a great and easy way to earn extra cash. It doesn’t require start-up capital if you already have a smart device.

Freelance services

Freelance service is another way to earn money easily. Oftentimes, you don’t have to leave your home or spend a lot of money to start such businesses. You can monetize your skills like writing, graphics or web designing, consultancy, and other freelance services from the comfort of your home using only your mobile device and computer.

Event planning

If you have a flair for organizing and planning events, you can consider turning this skill into a business. You can help Malaysians plan their weddings, parties, workshops, baby showers, and other events. You don’t need a lot of capital to start this business, but you can grow as you go.

Printing services

You could also start a printing business that’s not limited to making prints on paper. Consider transferring designs and prints to clothes, mugs, and other surfaces. The equipment for this business is quite expensive, but it is a scalable and profitable business venture.

Babysitting and childcare

If you have a lot of time on your hands and you’re good with kids, you can consider providing babysitting and other childcare services in Malaysia. You can start with going to clients’ houses to take care of their kids and grow to have your own space where people can leave their kids in your care to go to work or attend other functions.

Laundry services

A laundry business is also a profitable business venture in Malaysia. The busy populace will be glad to have someone do their laundry and deliver it to their home, making this business idea very profitable and scalable. Also, it doesn’t require a lot of start-up capital.

Premia TNC’s Assistance

Premia TNC is an established business consulting and accounting firm specializing in guiding clients through the entire process of incorporating a company in Malaysia. Our knowledgeable team handles all aspects of incorporation, from pre-incorporation to post-incorporation, ensuring businesses are well prepared to operate. We offer comprehensive services, including managing incorporations for non-resident or unavailable company owners, and provide consultancy to simplify starting a business in Malaysia.