Malaysia can be proudly called an economic miracle of South-East Asia.
Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5 per cent annually from 1957 to 2005. Malaysia’s economy in 2014–2015 was one of the most competitive in Asia, ranking 6th in Asia and 20th in the world, higher than countries like Australia, France and South Korea. In 2014, Malaysia’s economy grew 6%, the second highest growth in ASEAN behind Philippines’ growth of 6.1%. The economy of Malaysia (GDP PPP) in 2014 was $746.821 billion, the third largest in ASEAN behind more populous Indonesia and Thailand and the 28th largest in the world.

In July 1981, following the resignation of Hussein Bin Onn, the post of Prime Minister was taken by Dato Seri Mahathir Muhammad (ruled 1981-2003). The term of rule of Dr. Mahathir Mohamad is associated with the modernization of Malaysian society. The Government has committed itself to strengthening the order of production and social life, improving the efficiency of the administrative apparatus, strengthening the fight against corruption.

During the term of Mahathir Mohammad important substances as petroleum and natural gas were added to the traditional Malaysian export – rubber and palm oil. Industrial production later joined the list and became one of the most important contributors. Economic growth was accompanied by a reduction in the proportion of the population below the poverty line from 20,7 to 4.5% in 2007. Malaysia has achieved those results by relying on exports, the proceeds of which in 2002 amounted to 95.2 billion dollars.

The tax system of this country is simple. It Significant benefits provided by industrial enterprises, on on one hand enhance the competitiveness of Malaysian producers and on the other, stimulate savings and investment. The main tax paid by Malaysian companies is income tax or, as it is often called corporate tax. Its rate was lowered to 25% in 2009, before that it was 28%. However, it has a large number of benefits. For example, a company specializing in information technologies, as well as educational areas and tourism may be exempt from tax for 5 years with possible extension. In addition to corporate tax Malaysian companies pay sales tax on both imported and domestic goods. Ad valorem rates (in percent) are sometimes specific (specific amount). The general rate of sales tax – 10%, on wine and spirits – 20%, on cigarettes – 25%.

The Goods and Services Tax (GST) is a value added tax in Malaysia. GST is levied on most transactions in the production process, but is refunded with exception of Blocked Input Tax, to all parties in the chain of production other than the final consumer.

Residents of the country pay income tax on their earnings. It is progressive in nature and charged at a rate of 0 up to 27%. When selling any property or real estate citizens must pay Real Property Gain Tax, – tax on profits from sale of the property. RPGT rate varies from 5 to 30% depending on the period of ownership of real property or valuable securities. Residents are exempt from this tax in case if they hold the property for six years or more, and corporate entities in similar cases pay 5%.

There are also offshore zones in Malaysia. One of these is the Island of Labuan.
The convenient location of Malaysia in most dynamically developing region in the world, regime of a free port and low administrative costs are ensuring the privacy of all legitimate business and non-interference by the government and most importantly, the absence of the excessive number of other offshore companies – potential competitors (but this is just the time factor), promise the pioneers very enticing prospects. That’s why one needs to hurry up….

The convenient location of Malaysia in most dynamically developing region in the world, regime of a free port and low administrative costs are ensuring the privacy of all legitimate business and non-interference by the government and most importantly, the absence of the excessive number of other offshore companies – potential competitors (but this is just the time factor), promise the pioneers very enticing prospects. That’s why one needs to hurry up….