Malaysia presents a compelling opportunity for international expansion, with a 3.3% unemployment rate and a labor force of 17.07 million persons. The country's manufacturing sector accounts for 23.4% of GDP, while services industries continue expanding in wholesale, retail, and food sectors. Malaysia also ranks 3rd in Asia for English proficiency with a High Proficiency score of 568, providing access to a skilled, multilingual workforce.
An Employer of Record (EOR) service acts as the legal employer for your Malaysian workforce, handling the complex statutory requirements that govern local employment. Organizations must navigate EPF contributions of 12-13%, SOCSO contributions of approximately 1.75%, and EIS contributions of 0.2%. Malaysia requires written contracts for employment exceeding one month and mandates a minimum wage of RM 1,500 per month. This guide compares six employer of record services malaysia providers to help you identify the right compliance partner.
Why Use an Employer of Record in Malaysia?
Malaysia's economy expanded by 3.7% in 2023, and the country ranks 27th globally in the World Competitiveness Ranking, signaling a stable environment for business operations. The talent pool includes 289,279 graduates annually, with critical occupations in demand including Software Developers, Data Analysts, and Civil Engineers. Malaysia's participation in RCEP, CPTPP, and ATIGA trade agreements provides strategic access to regional markets. An EOR eliminates the need to establish a local legal entity, enabling you to hire qualified professionals immediately while maintaining full compliance with Malaysia's three-tier statutory contribution system and employment regulations.
Our Picks for the 6 Best EOR Companies in Malaysia
Borderless AI
Borderless AI is an AI-powered Employer of Record platform designed to simplify global hiring through automation and intelligent compliance management. The platform combines cutting-edge technology with comprehensive HR services to enable businesses to hire, onboard, and manage employees across 170+ countries without establishing local entities.
Why Use Borderless AI for EOR in Malaysia
Borderless AI's AI-driven automation and real-time compliance monitoring ensure Malaysian labor law adherence while dramatically reducing administrative burden. With industry-leading 1-2 day onboarding and 5-day payroll processing, businesses can quickly scale their Malaysian operations while maintaining full compliance with local employment regulations, EPF contributions, SOCSO requirements, and statutory obligations.
Key Benefits and Features
- 5-day global payroll processing with zero upfront salary deposits
- Real-time compliance monitoring with AI-powered updates for Malaysian labor laws
- Direct entity ownership in 170+ countries ensuring full legal control
- Dedicated in-house customer support available 24/7 via chat and email
- Automated contract generation tailored to Malaysian employment standards
Price: $579/employee/month
Country Coverage: 170+ countries
G2 Rating: 4.9/5
Free Trial: Demo
Legal & Compliance: Borderless AI maintains strong expertise in global labor laws and compliance frameworks. The platform ensures adherence to local regulations across all jurisdictions, with particular attention to Malaysian Employment Act requirements, EPF and SOCSO contributions, and tax withholding obligations.
Onboarding Speed: 1-2 days
Platform Experience: The platform features a user-friendly interface enhanced with AI-driven tools that streamline global workforce management. Seamless integration capabilities with existing HR systems ensure minimal disruption to current workflows while providing advanced automation for contract generation, compliance tracking, and payroll processing.
Customer Support: Borderless AI provides 24/7 support via chat and email, backed by dedicated account managers for enterprise clients who ensure personalized assistance and rapid resolution of queries.
Pros & Cons
Horizons
Horizons is a global EOR provider that streamlines international hiring through comprehensive payroll and compliance services. The platform offers extensive country coverage and multilingual support to help businesses expand their workforce across borders with confidence.
Why Use Horizons for EOR in Malaysia
Horizons brings strong international labor law expertise to Malaysian market entry, handling complex tax compliance and statutory benefits including EPF and SOCSO requirements. Their cloud-based platform supports multiple currencies including Malaysian Ringgit, while multilingual capabilities facilitate communication with local talent and ensure seamless management of Malaysian employment regulations.
Key Benefits and Features
- Streamlined onboarding and payroll processing for Malaysian employees
- Comprehensive tax compliance and statutory benefits management
- Support for multiple currencies and languages including Malay and English
- Cloud-based platform with real-time data access
- Integration with various HR and accounting systems
Price: $299/employee/month
Country Coverage: 180+ countries
G2 Rating: 4.6/5
Free Trial: No
Legal & Compliance: Horizons demonstrates strong understanding of international labor laws and ensures adherence to local regulations and compliance standards. Their expertise covers Malaysian employment contracts, termination procedures, and ongoing regulatory requirements.
Onboarding Speed: Couple of days
Platform Experience: Horizons offers a cloud-based platform with real-time data access that integrates with various HR and accounting systems, providing centralized management of global workforce operations.
Customer Support: The platform provides multilingual support and offers dedicated account managers for personalized assistance, ensuring clients receive guidance in their preferred language.
Pros & Cons
Knit People
Knit People specializes in payroll and HR software with EOR services available in select countries. The platform emphasizes seamless integration with popular accounting platforms to create a unified financial and HR management ecosystem.
Why Use Knit People for EOR in Malaysia
Knit People offers tailored EOR solutions for businesses seeking integrated payroll and HR software capabilities in Malaysia. Their integration with QuickBooks and Xero streamlines financial management while providing guidance on Malaysian labor laws. The mobile-accessible platform enables on-the-go management of Malaysian employees, making it suitable for businesses prioritizing accounting system integration.
Key Benefits and Features
- Specialized payroll and HR software platform
- Integration with QuickBooks and Xero accounting platforms
- EOR services in select countries including Malaysia
- User-friendly interface with seamless integration capabilities
- Mobile access for on-the-go workforce management
Price: Custom
Country Coverage: 10+
G2 Rating: Not listed
Free Trial: Demo available
Legal & Compliance: Knit People provides guidance on local labor laws and compliance requirements, ensuring adherence to statutory obligations in the countries they serve including Malaysia.
Onboarding Speed: 1-3 weeks
Platform Experience: The platform offers a user-friendly interface with seamless integration capabilities and mobile access for on-the-go management of HR and payroll functions.
Customer Support: Knit People offers customer support via email and phone, providing resources to assist clients with HR processes and system implementation.
Pros & Cons
BGC Group
BGC Group offers EOR services with a strong focus on compliance and HR administration across the APAC region. The company provides comprehensive payroll processing and statutory benefits management tailored to regional requirements.
Why Use BGC Group for EOR in Malaysia
BGC Group's APAC regional specialization delivers deep understanding of Malaysian labor laws and neighboring markets, ideal for businesses expanding across Southeast Asia. Their focused expertise in APAC compliance standards ensures proper handling of Malaysian statutory requirements including EPF, SOCSO, and Employment Insurance System (EIS) contributions while facilitating seamless regional expansion strategies.
Key Benefits and Features
- EOR services with focus on compliance and HR administration
- Comprehensive payroll processing for Malaysian employees
- Statutory benefits management including EPF and SOCSO
- User-friendly platform with real-time data access
- Integration with various HR and accounting systems
Price: Custom
Country Coverage: APAC region
G2 Rating: Not listed
Free Trial: Demo available
Legal & Compliance: BGC Group demonstrates strong understanding of APAC labor laws and ensures adherence to local regulations and compliance standards across the region, with particular expertise in Malaysian employment legislation.
Onboarding Speed: 1-2 weeks
Platform Experience: BGC Group provides a user-friendly platform with real-time data access that integrates with various HR and accounting systems for streamlined workforce management.
Customer Support: The company offers customer support via email and phone, providing resources to assist clients with HR processes and compliance questions.
Pros & Cons
GPO Asia
GPO Asia specializes in EOR services specifically designed for foreign companies entering the Malaysian market. The provider offers dedicated expertise in Malaysian employment regulations, payroll processing, and tax compliance.
Why Use GPO Asia for EOR in Malaysia
GPO Asia's exclusive focus on Malaysian market entry provides unparalleled local expertise for foreign companies navigating Malaysia's employment landscape. Their in-depth knowledge of Malaysian-specific requirements including Employment Act provisions, EPF and SOCSO regulations, and local tax compliance makes them particularly valuable for organizations prioritizing Malaysia-focused expansion with dedicated local support and market-specific guidance.
Key Benefits and Features
- Specialized EOR services for Malaysian market entry
- Comprehensive payroll processing tailored to Malaysian requirements
- Expert tax compliance and statutory contributions management
- Full HR administration for Malaysian employment
- Mobile access for on-the-go management
Price: Custom
Country Coverage: Malaysia
G2 Rating: Not listed
Free Trial: Demo available
Legal & Compliance: GPO Asia demonstrates in-depth knowledge of Malaysian labor laws and ensures compliance with local employment regulations, including Employment Act requirements, EPF, SOCSO, and EIS contributions.
Onboarding Speed: 2-3 weeks
Platform Experience: GPO Asia provides a comprehensive HR platform with user-friendly interfaces and offers mobile access for on-the-go management of Malaysian employees.
Customer Support: The provider offers customer support via email and phone, with dedicated account managers for personalized assistance on Malaysian employment matters.
Pros & Cons
Skuad
Skuad operates a unified global HR platform that facilitates swift onboarding and efficient cross-border payments. The tech-enabled solution serves businesses seeking to build international teams across 160+ countries with streamlined processes.
Why Use Skuad for EOR in Malaysia
Skuad combines competitive pricing with swift onboarding capabilities, enabling Malaysian workforce expansion at an accessible price point. Their unified platform approach and cross-border payment infrastructure simplify Malaysian employee compensation in Ringgit while ensuring compliance with local laws, taxes, and social security requirements, making them suitable for cost-conscious businesses seeking efficient Malaysian hiring solutions.
Key Benefits and Features
- Unified platform for global workforce management
- Swift onboarding capabilities (2-3 days)
- Efficient cross-border payment processing
- Tech-enabled global HR platform
- Compliance with local laws, taxes, and social security
Price: $199/employee/month
Country Coverage: 160+ countries
G2 Rating: 4.6/5
Free Trial: Demo
Legal & Compliance: Skuad ensures compliance with local laws, taxes, and social security requirements across all jurisdictions, including Malaysian employment regulations and statutory obligations.
Onboarding Speed: 2-3 days
Platform Experience: Skuad provides a tech-enabled global HR platform that unifies workforce management functions and facilitates seamless international hiring and payments.
Customer Support: The platform features a responsive support team available to assist clients with their global workforce management needs.
Pros & Cons
Selection Criteria and Methodology
Our evaluation of employer of record services in Malaysia employed a rigorous, data-driven methodology to identify the most capable providers for businesses expanding into the Malaysian market. Each company was assessed across eight critical dimensions that directly impact hiring success and operational efficiency.
- Price: We analyzed transparent pricing models, comparing fixed monthly rates against custom pricing structures. Providers offering clear pricing ($199-$579 per employee monthly) were evaluated against those requiring consultation, considering total cost of ownership and value delivery.
- Country Coverage: Global reach was assessed from Malaysia-specific providers to those covering 170+ countries. Broader coverage indicates established infrastructure and compliance expertise across diverse regulatory environments, essential for businesses with multi-country expansion plans.
- Key Features: We evaluated automation capabilities, AI-powered tools, compliance monitoring, integration options, and specialized offerings. Features directly impacting Malaysian operations—including EPF/SOCSO management, contract generation, and multilingual support—received particular attention.
- G2 Rating: Verified user reviews from G2 provided independent validation of service quality. Ratings ranging from 4.6/5 to 4.9/5 reflect actual customer experiences with platform reliability, support responsiveness, and compliance accuracy.
- Legal & Compliance: Compliance expertise was evaluated based on demonstrated knowledge of Malaysian Employment Act, statutory contributions, and regional labor law understanding. Providers with in-depth local expertise and real-time compliance monitoring received higher marks.
- Onboarding Speed: Time-to-productivity was assessed from initial engagement to employee work readiness. Speeds ranged from 1-2 days to 2-3 weeks, directly impacting how quickly businesses can activate Malaysian talent.
- Platform Experience: User interface quality, AI-driven automation, mobile accessibility, and system integration capabilities were evaluated to assess operational efficiency and user satisfaction for both employers and employees.
- Customer Support: Support availability (24/7 versus business hours), communication channels, account management models, and responsiveness were assessed to determine quality of ongoing partnership and issue resolution effectiveness.
Expert Tips for Hiring in Malaysia
- Understand statutory contribution requirements: Malaysian employers must contribute to EPF (12-13% of wages), SOCSO, and Employment Insurance System (EIS). Ensure your EOR partner accurately calculates and remits these contributions while maintaining compliance with monthly submission deadlines to avoid penalties.
- Navigate employment contract specifics: Malaysian employment contracts must specify terms including probation periods (typically 3 months), notice periods, and termination conditions in accordance with the Employment Act 1955. Work with providers offering automated, compliant contract generation that addresses industry-specific requirements.
- Plan for cultural and linguistic considerations: Malaysia's multilingual workforce speaks Malay, English, Mandarin, and Tamil. Select EOR providers offering multilingual support and culturally-aware onboarding processes to ensure smooth communication and integration of Malaysian employees into your global team.
- Account for payroll processing timelines: Consider providers with rapid payroll processing (5-7 days) to ensure competitive compensation delivery. Malaysian employees expect timely payments, and efficient payroll systems enhance employee satisfaction while maintaining your employer brand reputation.
- Leverage local market expertise: Malaysia's employment landscape includes unique regulations around termination, annual leave (minimum 8 days), and public holidays (11 national holidays plus state-specific days). Partner with EOR providers demonstrating deep Malaysian market knowledge and ongoing regulatory monitoring capabilities.
How to Choose the Best EOR Company
Selecting the optimal employer of record provider for Malaysian operations requires systematic evaluation aligned with your specific business requirements and growth objectives.
- Define your expansion scope: Determine whether you need Malaysia-only coverage or multi-country capabilities for broader APAC or global expansion. This clarifies whether specialized local providers or global platforms better serve your needs.
- Assess onboarding urgency: Evaluate time-to-hire requirements. If you need rapid talent activation (1-3 days), prioritize providers like Borderless AI or Skuad. For less urgent needs, providers with 1-3 week onboarding may suffice.
- Compare total cost structures: Look beyond monthly per-employee fees to understand setup costs, deposit requirements, and additional charges. Providers requiring salary deposits impact cash flow differently than those with zero upfront costs.
- Evaluate compliance capabilities: Verify the provider's Malaysian labor law expertise, including Employment Act compliance, EPF/SOCSO management, and tax withholding accuracy. Request evidence of compliance track record and regulatory monitoring processes.
- Test platform usability: Request demos to assess interface intuitiveness, mobile accessibility, integration capabilities with your existing HR systems, and automation features that reduce administrative burden.
- Verify support infrastructure: Confirm support availability hours, communication channels, account management models, and response time commitments. For global operations, 24/7 support may be essential.
- Review independent ratings: Consult G2 reviews and customer testimonials to understand real-world experiences with platform reliability, support responsiveness, and compliance accuracy before making final decisions.
- Consider growth scalability: Select providers capable of scaling with your business, supporting additional countries as you expand, and offering features that accommodate growing team complexity.
Why Choose Borderless AI in Malaysia as an EOR Provider
Borderless AI distinguishes itself in the Malaysian EOR market through its combination of AI-powered automation, industry-leading speed, and comprehensive compliance management. The platform's 4.9/5 G2 rating reflects exceptional customer satisfaction, while direct entity ownership across 170+ countries ensures full legal control and compliance accuracy.
- Fastest onboarding in the industry: Borderless AI's 1-2 day onboarding enables immediate Malaysian talent activation, dramatically reducing time-to-productivity compared to competitors requiring 1-3 weeks.
- Industry-leading payroll processing: 5-day global payroll processing without upfront salary deposits preserves cash flow and ensures timely employee compensation, critical for maintaining strong employer brand reputation in Malaysia's competitive talent market.
- AI-powered compliance automation: Real-time compliance monitoring and automated contract generation ensure continuous adherence to Malaysian Employment Act requirements, EPF/SOCSO obligations, and evolving regulatory changes without manual oversight.
- Exceptional customer support: 24/7 availability via chat and email, supplemented by dedicated account managers for enterprise clients, ensures immediate assistance regardless of time zone differences between your headquarters and Malaysian operations.
- User-friendly platform experience: The interface combines AI-driven tools with seamless HR system integration, reducing administrative complexity while providing mobile accessibility for distributed workforce management.
- Strong compliance expertise: Deep understanding of global labor laws and Malaysian-specific regulations ensures accurate statutory contribution calculations, proper termination procedures, and ongoing regulatory compliance without risk exposure.
Final Thoughts
Selecting the right employer of record provider for Malaysian operations represents a strategic decision with lasting implications for compliance, operational efficiency, and talent acquisition success. The comparison analysis reveals significant variations in pricing, onboarding speed, platform capabilities, and support infrastructure across providers. Data-driven evaluation of these factors—aligned with your specific expansion timeline, budget parameters, and geographic scope—enables informed decision-making that balances cost efficiency with service quality. As Malaysian talent continues attracting global employers, partnering with a provider offering rapid onboarding, robust compliance automation, and responsive support positions your organization for sustainable international growth while maintaining regulatory adherence. Ready to streamline your Malaysia hiring process? Book a demo to see how the right EOR partner can accelerate your growth.
