Planning to hire talent in Malaysia? You’re facing several key opportunities and challenges:
- Low unemployment rate (3.3%, near pre-pandemic levels)
- Strong GDP growth projection (5% in 2024)
- New Employment Act coverage for all wage levels
- Mandatory flexible work arrangement response within 60 days
- New protections for gig workers
- Private sector growth of 1.3% year-on-year
- Minimum wage requirements (RM1,500 for 5+ employees)
Based on our analysis of Malaysia’s employment market, Multiplier emerges as the leading EOR solution, offering comprehensive compliance management and expertise in navigating Malaysia’s evolving employment landscape.
This guide provides:
- Detailed comparison of 8 top EOR providers in Malaysia
- Malaysia-specific compliance requirements
- Cost analysis and pricing comparisons
- Implementation timelines
- Local market insights
- Step-by-step hiring process
Top EOR Providers in Malaysia
- Multiplier – Best for comprehensive compliance management
- Remote – Best for tech startups and scalable solutions
- Remofirst – Best for small businesses and competitive pricing
- Deel – Best for contractor management and flexible hiring
- Rippling – Best for HR automation and integrated solutions
- Teamed – Best for personalized support
- Oyster HR – Best for remote-first companies
- Papaya Global – Best for enterprise-level organizations
1. Multiplier
Overview
Multiplier excels in Malaysia with its comprehensive understanding of the updated Employment Act and new labor regulations. Their platform specializes in managing mandatory benefits, flexible work arrangements, and ensuring compliance with the expanded employee coverage laws. They demonstrate particular strength in handling both local and expatriate employment requirements.
Key Features
- Bilingual contract management
- Automated payroll with local tax calculations
- Complete benefits administration
- Work visa support for foreign employees
- Real-time compliance updates
Pros and Cons
Pros
- Competitive pricing: Multiplier’s EOR package is more favorable than other EOR providers.
- Customer support: Follow-ups are done well, and customer reps guide users expertly throughout the initial setting-up process.
- Real-time updates: Keeps me informed with real-time notifications.
- Integration support: Works well with other apps I use.
- Scalability: Suitable for both small and large projects, adapting as needed.
- Quick onboarding: Within minutes, new employees can be set up within your company.
Cons
- Complex interface: The user interface can sometimes be confusing, with many users initially reporting additional guidance.
- Speed of customer support: Response times from customer support can be slow, mainly via email.
- Limited features and customization: Some features that other tools offer are missing, and customization is limited.
- No offline mode: There’s no option to use it without an internet connection.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $400 per employee/month |
| Contractor Management Pricing | $40 per employee/month |
| Annual Discount | Not available |
Best For
Companies requiring sophisticated employment solutions in Malaysia’s evolving regulatory environment, particularly those managing both local and international talent.
2. Remote
Overview
Remote offers a technology-focused approach to EOR services in Malaysia, catering to the country’s growing digital and tech sectors. Their platform excels at managing flexible work arrangements and supporting the increasing trend of gig work while ensuring compliance with new protection laws.
Key Features
Remote offers 10 key features that set it apart.
These key features include:
- Global Employment Solutions: Enables hiring in over 180 countries without establishing local entities, supporting rapid international expansion.
- Owned Entity Model: Operates its own legal entities in each country, ensuring better control over billing, employee experience, and data protection.
- Transparent Pricing: Offers flat-rate pricing starting at $599 per employee per month for annual plans, with no hidden fees or minimum commitments.
- Comprehensive HR Services: Manages the full employee lifecycle, including onboarding, payroll, benefits, and compliance with local regulations.
- Intellectual Property Protection: Provides Remote IP Guard to ensure strong intellectual property protections for clients.
- User-Friendly Platform: Features an intuitive interface for managing both employees and contractors globally with minimal training required.
- Flexible Benefits Administration: Offers competitive, localized benefits packages with multiple tiers in most markets, including health insurance and pension plans.
- Global Payroll Solution: Recently introduced Remote Global Payroll for companies with existing entities, streamlining multi-country payroll management.
- Compliance and Security: Incorporates built-in compliance features like Remote Watchtower and adheres to global data protection regulations.
- Equity Incentives Support: Provides compliant equity incentives support, including withholding and reporting.
Pros and Cons
Pros
- Extensive Global Coverage: Operates in over 180 countries, providing broad international reach.
- Comprehensive Compliance Management: Ensures adherence to local labor laws and regulations across all countries.
- Strong IP Protection: Offers unique Remote IP Guard feature for safeguarding intellectual property.
- Transparent Pricing: Provides clear pricing structure without hidden fees or long-term commitments.
- User-Friendly Interface: Offers an intuitive platform for easy management of global workforce.
- Fast Onboarding Process: Enables quick hiring and onboarding of international employees.
Cons
- Premium Pricing: Can be more expensive for smaller businesses, with EOR services at $599 per employee per month.
- Limited Customization: Some services may have restricted customization options compared to competitors.
- Potential Overkill for Small Teams: The comprehensive nature of services might be more than necessary for very small companies.
- Standardized Benefits: While customizable, benefits packages may not be as flexible as some businesses require.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $599 per employee/month |
| Contractor Management Pricing | $29 per employee/month |
| Payroll Pricing | $29 per employee/month |
| Annual Discount | Available |
Best For
Tech companies and startups looking to tap into Malaysia’s semiconductor boom and digital transformation sectors.
3. Remofirst
Overview
Remofirst provides cost-effective EOR solutions for companies entering the Malaysian market. Their platform specializes in making complex employment regulations accessible to smaller companies while ensuring compliance with minimum wage requirements and mandatory benefits.
Key Features
- Simplified onboarding process
- Essential compliance management
- Basic benefits administration
- Standard payroll processing
- Leave management system
- Workers’ compensation coverage
Pros and Cons
Pros
- Unbeatable Pricing: Remofirst is the most affordable EOR platform for most use cases, starting at just $199 per employee per month. This makes global hiring accessible even for startups and SMEs.
- Comprehensive EOR Services: As an Employer of Record, Remofirst handles all legal and administrative tasks in foreign countries, including payroll, taxes, and benefits. This eliminates the need to set up local entities, saving significant time and resources.
- Global Payroll Solution: Remofirst manages payroll across multiple countries seamlessly, simplifying one of the most complex aspects of international hiring.
- Extensive Global Coverage: With services in over 180 countries, Remofirst enables access to a vast pool of international talent without geographical limitations.
- Compliance Assurance: Remofirst ensures adherence to local labor laws and regulations in all countries, mitigating legal risks for employers.
- Global Health Insurance: Offering comprehensive health plans (including vision and dental) to remote workers worldwide is straightforward with Remofirst, enhancing your ability to attract and retain top talent.
- User-Friendly Platform: The intuitive interface makes it easy to manage global teams, streamlining onboarding and ongoing management processes.
Cons
- Limited Reporting Features: While basic reporting is available, Remofirst lacks advanced analytics and visualization tools that some businesses might require for in-depth workforce insights.
- Complex Initial Setup: Despite the user-friendly interface, the initial setup process can be somewhat confusing and time-consuming, especially for those new to EOR services.
- Limited Integration Options: Remofirst could benefit from more integrations with popular CRM, recruitment, and project management tools to create a more seamless workflow for users.
- Potential for Growth in Service Offerings: While Remofirst covers essential EOR services well, it may not offer some advanced features (like recruitment services) that larger, more established competitors might provide.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $199 per employee/month |
| Contractor Management Pricing | $25 per employee/month |
| Annual Discount | Not available |
Best For
Small businesses and startups looking for efficient, compliant employment solutions in Malaysia’s competitive market.
4. Deel
Overview
Deel brings a flexible approach to Malaysian employment, specializing in both contractor and gig worker management. Their platform is particularly effective at managing diverse workforce arrangements while ensuring compliance with new gig worker protection laws.
Key Features
- Contractor and employee management
- Multiple payment options
- Contract generation tools
- Tax document management
- Global payroll processing
- Compliance monitoring
Pros and Cons
Pros
- User-Friendly Interface: Intuitive platform requiring minimal training for users.
- Extensive Global Coverage: Operates in over 150 countries, providing broad international reach.
- Fast Onboarding: Enables quick employee onboarding, often within 24 hours.
- Transparent Pricing: Offers clear, upfront pricing without hidden fees.
- Flexible Payment Options: Supports various withdrawal methods, including cryptocurrency.
- Dedicated Support: Provides 24/7 customer service in multiple languages.
Cons
- Limited Document Localization: Cannot generate invoices in languages other than English.
- Learning Curve: Despite being user-friendly, there may still be an initial learning period for some users.
- Dependency on Third-Party Services: Uses external providers for some services like background checks.
- No Native Payroll: Relies on partnerships for payroll processing in some regions.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $599 per employee/month |
| Contractor Management Pricing | $49 per employee/month |
| Annual Discount | Available |
Best For
Companies requiring versatile employment solutions in Malaysia, particularly those utilizing both traditional and gig economy workforce models.
5. Rippling
Overview
Rippling distinguishes itself through advanced HR automation capabilities specifically tailored to Malaysia’s employment requirements. Their platform excels at managing complex benefits packages and supporting the growing emphasis on technology and data science in the workplace.
Key Features
- Full HR automation suite
- IT system integration
- Advanced payroll processing
- Time and attendance tracking
- Device management
- Extensive reporting capabilities
Pros and Cons
Pros
- User-Friendly Interface: Highly intuitive and easy to navigate platform.
- Comprehensive Features: Manages payroll, benefits, global compliance, and more in one system.
- Extensive Customization: Offers numerous options to tailor the system to specific business needs.
- Seamless Integration: Compatible with many popular software applications.
- Effective Automation: Unity platform automates many tasks, saving time and reducing errors.
- Mobile Accessibility: Provides a mobile app for easy access to relevant information for employees.
Cons
- Non-Transparent Pricing: Lack of clarity regarding costs, especially for additional features.
- Premium Pricing: Services can be expensive, potentially too costly for smaller businesses.
- Steep Learning Curve: Users may need time to fully understand and utilize the extensive feature set.
- Potential Complexity: The extensive feature set may be overwhelming for businesses with simple HR needs.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $500 per employee/month |
| Contractor Management Pricing | $25 per employee/month |
| Payroll Pricing | $8 per employee/month |
| Annual Discount | Not available |
Best For
Medium to large companies seeking sophisticated HR automation in Malaysia, particularly those in the technology and digital sectors.
6. Teamed
Overview
Teamed focuses on providing high-touch, personalized EOR services in Malaysia. They offer dedicated support for navigating the country’s evolving employment landscape, with particular expertise in managing diverse workforces and complex benefit requirements.
Key Features
- Dedicated account manager
- Customized compliance solutions
- Personalized onboarding
- Local HR consulting
- Benefits administration
- Custom reporting
Pros and Cons
Pros
- Extensive Global Coverage: Presence in over 150 countries for broad international reach.
- Transparent Fee Structure: Clear pricing with no hidden costs or unexpected fees.
- Fast Implementation: Quick onboarding process completed within 24 hours.
- Cryptocurrency Support: Unique offering of cryptocurrency payment options.
- Local Expertise Access: Provides dedicated local specialists for support.
Cons
- Limited Track Record: Newer player in the EOR market compared to some competitors.
- Platform Maturity: May have fewer integrations and features compared to more established providers.
- Geographic Coverage: Marketing may undersell the true extent of available coverage in specialized regions.
- Service Scope: Some specialized services might not be as developed as those of larger competitors.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $299 per employee/month |
| Contractor Management Pricing | $39 per employee/month |
| Annual Discount | Not available |
Best For
Organizations valuing personalized service in Malaysia’s diverse market, especially those focusing on workforce development and compliance.
7. Oyster HR
Overview
Oyster HR specializes in supporting remote-first companies hiring in Malaysia. Their platform is designed to handle the complexities of flexible work arrangements and remote team management while ensuring compliance with new workplace regulations.
Key Features
- Remote team management tools
- Global hiring platform
- Digital onboarding system
- Employment agreements
- Benefits administration
- Compliance automation
Pros and Cons
Pros
- User-Friendly Interface: Offers an intuitive platform that’s easy to navigate and use.
- Extensive Global Coverage: Operates in over 180 countries, providing broad international reach.
- Comprehensive Compliance Management: Strong focus on keeping businesses compliant with local regulations.
- Ethical Focus: Emphasizes ethical employment practices and social responsibility.
- Integrated Cost Calculator: Helps businesses estimate employment costs in different countries.
- Third-Party Integrations: Offers integrations with various HR and business tools.
Cons
- Premium Pricing: Can be expensive compared to some competitors, with EOR services starting at $599 per employee per month.
- Feature Limitations: Some features require additional purchases, potentially increasing costs.
- Limited Analytics: Reporting and analytics capabilities may be less comprehensive than some competitors.
- Potential Overkill for Small Teams: The comprehensive nature of the platform may be more than necessary for very small businesses.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $599 per employee/month |
| Contractor Management Pricing | $29 per employee/month |
| Payroll Pricing | $25 per employee/month |
| Annual Discount | Available |
Best For
Remote-first companies and organizations building distributed teams in Malaysia, particularly those embracing flexible work policies.
8. Papaya Global
Overview
Papaya Global delivers enterprise-grade EOR solutions for large companies expanding into Malaysia. Their platform offers sophisticated tools for managing complex employment operations, with particular strength in handling expatriate hiring and compliance requirements.
Key Features
- Enterprise-grade platform
- Advanced analytics
- Global payroll engine
- Compliance management
- Strategic HR insights
- Extensive reporting suite
Pros and Cons
Pros
- Extensive Global Coverage: Operates in 160+ countries, providing broad international reach.
- User-Friendly Interface: Offers an intuitive platform and employee portal for easy navigation.
- Strong Compliance Management: Ensures adherence to local labor laws and regulations.
- Fast and Secure Payments: Provides near-instantaneous payments in local currencies through its regulated network.
- Comprehensive Analytics: Offers detailed reporting and predictive analytics for informed decision-making.
- Dedicated Support: Provides dedicated account managers for Payroll Plus and EOR services.
Cons
- Premium Pricing: Can be expensive, especially for smaller businesses or those with fewer international employees.
- Complex EOR Model: Uses an aggregator model for EOR services, which may be complex for some users.
- Limited HR Features: Offers fewer HR functionalities compared to some competitors focusing more on HR management.
- Less Transparent Fees: Management and setup fees may not be as clearly communicated as core service pricing.
Pricing
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $599 per employee/month |
| Contractor Management Pricing | $30 per employee/month |
| Annual Discount | Not available |
Best For
Large enterprises requiring comprehensive employment solutions across Malaysia’s diverse regions and workforce types.
Employer of Record (EOR) Services in Malaysia Comparison
| Feature | Multiplier | Remote | Remofirst | Deel | Rippling | Teamed | Oyster HR | Papaya Global |
|---|---|---|---|---|---|---|---|---|
| Best For | Companies Looking for Same-Day Global Hiring & Payments | Companies Prioritizing Risk-Free International Hiring | Cost-Conscious and Tight Budgets | Fast-Growing Companies Needing Global Hiring at Scale | Companies Wanting One Platform for Global HR, IT & Finance | Global companies seeking a user-friendly EOR solution to hire international talent. | Scaling Companies Focused on Remote Team Success | Organizations Requiring Enterprise-Grade Payroll Solutions |
| EOR Pricing | $400 per employee/month | $599 per employee/month | $199 per employee/month | $599 per employee/month | $500 per employee/month | $299 per employee/month | $599 per employee/month | $599 per employee/month |
| Contractor Pricing | $40 per employee/month | $29 per employee/month | $25 per employee/month | $49 per employee/month | $25 per employee/month | $39 per employee/month | $29 per employee/month | $30 per employee/month |
| Country Coverage | 150+ Countries | 180+ Countries | 180+ | 150+ Countries | 185+ | 150+ Countries | 180+ | 160+ |
| Support Channels | Email, Phone, Live Chat | Email, Live Chat | Email, Live Chat | Email, Phone, Live Chat | Email, Phone, Live Chat | Email, Phone, Live Chat | Email, Live Chat | |
| Support Availability | Business Hours | 24/7 | 24/7 | 24/7 | Business Hours | 24/7 | Business Hours | 24/7 |
| G2 Rating | 4.7/5 (986 reviews) | 4.6/5 (2068 reviews) | 4.5/5 (109 reviews) | 4.85/5 (4630 reviews) | 4.8/5 (3227 reviews) | 4.8/5 (18 reviews) | 4.4/5 (714 reviews) | 4.5/5 (33 reviews) |
| Capterra Rating | 4.7/5 (40 reviews) | 4.5/5 (46 reviews) | 5/5 (2 reviews) | 4.8/5 (1554 reviews) | 4.9/5 (3073 reviews) | 4.6/5 (8 reviews) | 4.5/5 (68 reviews) | 4.5/5 (31 reviews) |
| Trustpilot Rating | 4.9/5 (832 reviews) | 4.7/5 (1639 reviews) | 3.1/5 (10 reviews) | 4.9/5 (5332 reviews) | 4.4/5 (1029 reviews) | No Reviews | 4.6/5 (199 reviews) | 3.7/5 (24 reviews) |
| Partnership Discount | 15% Off | 20% Off | 1 Month Free | 20% Off | N/A | N/A | N/A | N/A |
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Why Hire Employees in Malaysia?
Malaysia offers compelling advantages for international companies:
- Strong economic growth (5% projected for 2024)
- Strategic location in ASEAN
- Growing semiconductor industry
- Strong consumer demand
- Robust private sector (75.2% of employment)
- Developing technology sector
- Expanding renewable energy industry
- Comprehensive employment protections
Understanding Malaysia’s Employment Landscape
Current Market Trends
- 2% year-on-year employee growth
- Private sector expansion
- Growing tech adoption
- Focus on skills-based hiring
- Strong diversity initiatives
- Expanding gig economy
- Robust expatriate hiring framework
Employment Regulations
- Universal Employment Act coverage
- Mandatory flexible work arrangement consideration
- Enhanced gig worker protections
- Sexual harassment awareness requirements
- Minimum wage regulations
- Strict holiday and leave entitlements
What are the benefits of Using an EOR in Malaysia?
Benefits of using an EOR in Malaysia are:
- Compliance Management
- Handles updated Employment Act requirements
- Manages flexible work arrangement requests
- Ensures proper worker classification
- Maintains sexual harassment compliance
- Manages minimum wage requirements
- Risk Mitigation
- Navigates complex labor laws
- Handles expatriate hiring requirements
- Ensures proper documentation
- Manages termination procedures
- Cost Efficiency
- Eliminates entity setup costs
- Reduces administrative overhead
- Manages benefits efficiently
- Provides economies of scale
- Market Access
- Enables quick entry
- Supports business scaling
- Provides local expertise
- Facilitates workforce management
Market Trends and Insights
Key trends affecting EOR services in Malaysia:
- Low unemployment rates
- Strong economic growth
- Expanding tech sector
- Growing gig economy
- Enhanced worker protections
- Flexible work adoption
- International hiring requirements
Conclusion
Malaysia’s strong economy and evolving employment landscape offer significant opportunities for companies looking to expand. While the market presents unique challenges in terms of compliance and workforce management, partnering with the right EOR provider can help navigate these complexities effectively.
Next Steps:
- Review employment regulations
- Assess workforce needs
- Evaluate compliance requirements
- Compare EOR capabilities
- Plan implementation timeline
- Prepare entry strategy
Choose an EOR partner that aligns with your industry focus and can support your growth in Malaysia’s dynamic market.