A local service provider in Malaysia acts as the legal employer for a company’s employees, handling payroll, taxes, and compliance with local labor laws, while the company retains control over day-to-day management and work assignments. For instance, a tech company based in the United States expanding operations to Malaysia could utilize this service to onboard local talent quickly without setting up a local entity.
This arrangement offers significant advantages for businesses looking to expand internationally. It simplifies navigating complex Malaysian labor laws and regulations, minimizing administrative burden and potential legal risks. Historically, establishing a foreign presence required significant investment and time, creating barriers to entry for smaller companies. This model reduces these obstacles, allowing for more agile and cost-effective international growth.
