Establishing a Representative Office in Malaysia: A Guide for Foreign Investors | Dezan Shira & Associates

Establishing a representative office (RO) in Malaysia is often the fastest and most cost-effective way to have a legal entity and study the local market before determining viable opportunities. However, the RO is prohibited from earning any revenue and is limited to mainly market research, information gathering, and developing trade contacts in Malaysia.

Malaysia is fast competing with Singapore to attract foreign businesses seeking a strategic location to headquarter their Asian operations.

The country’s proximity with other ASEAN markets, competitive operation costs, and strong supply chain linkages underscore Malaysia’s importance as a regional hub. Establishing a representative office is the fastest way of establishing a legal entity and studying the local market before determining if setting up operations in Malaysia is a viable proposition.

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