The Smart Way for Singapore Companies to Expand to Malaysia

PEO/EOR Services: The Smart Way for Singapore Companies to Expand to Malaysia

There is a big interest from companies based in Singapore to penetrate the Malaysian market. Yet, starting up and operating a branch or subsidiary in another country is not always straightforward and takes a considerable amount of time. For Singapore companies, this is where Malaysia PEO & EOR Services come in as sensible solutions.

What are PEO/EOR Services

What are PEO Services

Professional employer organization is one such service where a company can outsource its entire employee management functions including payroll, employee benefits administration, and compliance assistance. A PEO performs its duties as a co-employer and hence shares responsibilities of the company, thereby enabling the company to shift towards its core operations.

What are EOR Services

Alternatively, companies may look into using Employer of Record services, wherein they could employ and deal with employees remotely in the world without having established their presence in that country officially. In this case, the EOR acts as the legal employer taking care of HR responsibilities such as payroll, tax compliance and risk management on behalf of the client firm while the worker still remains under the client’s authority and control.

How PEO/EOR Services Work

Entering into a co-employment agreement to provide PEO/EOR services does this. Your company retains ownership and supervision of all business functions and employees, while appointing a PEO/EOR as the employer of record for taxes and social insurance, responsible for HR administration, legal compliance and related matters. The model ensures an easy way to handle international employees without worrying about compliance with foreign employment legislation.

Key Benefits of Using PEO/EOR Services

There are various reasons why companies seeking international expansion could choose PEO/EOR services over other means.

  • Reduced liability: Most of the employer responsibilities are assigned to PEO/EOR.
  • Enhanced efficiency: PEO/ EOR handles HR administrative matters.
  • Cost savings: Do not need company incorporation and company secretary services.
  • Compliance with local labor laws: Taken care of by the PEO/EOR service provider.

Why Choose Malaysia for Expansion

There is no better place for expansion than Malaysia since it shares border with Singapore and offers a conducive business environment. It is close enough for comfortable traveling and communication; an opportunity to achieve success in business by taking advantage of such stable political climate and strong economy which provide favourable conditions for business development. 

Economic Stability and Growth Prospects

The promise of growth in the Malaysian market that may be beneficial to Singaporean companies is largely attributed to its variety-based economy that concentrates on segments like manufacturing, service and agriculture.

Cultural and Geographical Proximity to Singapore

Malaysia’s closeness in geography encourages frequent business travels and direct conversations that enhance stronger business collaboration and associations.

Legal and Regulatory Framework

The country has clear and structured business laws and regulation. In addition, the existence of PEO/EOR services simplifies compliance with these regulations by taking over responsibility for understanding and abiding by local labour laws, employment requirements and so on.

The Advantages of PEO/EOR Services in Malaysia

The expansion of the Singapore companies into Malaysia can be made easier using the PEO/EOR services in Malaysia, among them other benefits. These include:

Flexibility in Hiring and Scaling Workforce

Flexibility is provided by PEO/EOR services in terms of hiring or scaling up workforce. Tap into a vast talented workforce easily, quickly recruit and hire them and do not require a traditional office environment. No complex employment laws that require complicated administrative burden to scale teams up.

Compliance with Local Labour Laws and Regulations

PEO/EOR services are a solution for foreign companies wishing to abide by local labor regulations in Malaysia. Such services deal with HR activities such as payroll, tax, and benefits, ensuring compliance to avoid liability in future.

Cost-Efficiency Compared to Establishing a Local Entity

Establishing a local entity incurs significant costs: such as legal fees, office rental costs and operational expenses. 

Mitigation of Operational and Legal Risks

PEO/EOR services reduce operational and legal risks through their role as the legal employer. They are involved in handling HR tasks as well as minimizing operational mistakes and safeguarding the company’s name.

Steps to Expanding to Malaysia with PEO/EOR Services

  • Step 1: Identifying Your Business Needs and Goals
  • Step 2: Initial Consultation and Assessment
  • Step 3: Tailoring Services to Your Requirements
  • Step 4: Onboarding Process
  • Step 5: Seamless Integration into Your Business

For further information, please feel free to reach out to us or refer to our previously published article on PEO EOR Get Started Guide.


Employing other than strategists and effective type of global expansion on the Malaysian soil by use PEO/EOR services. The company can make necessary changes quickly as it will be able to meet all local legal provisions and access an expansive group of proficient workforce easily. With PEO/EOR support, Singaporean companies can concentrate on their main operations, while FastLane Group will handle required administrative tasks. Talk with FastLane Group today for growth possibilities.