The 3 Best Malaysia PEOs & Employers of Record (EOR)


Doing business with a Malaysia PEO/EOR

As companies discover the advantages of setting up a business presence in Malaysia, they often discover that it can provide challenges. Their newly industrialized market economy is bolstered by one of the best economic records in Asia, and all indicators show that they are poised for continuing, rapid expansion. They’re on pace to rise to the world’s top 20 largest economies in 2050 with a GDP of $1.2 trillion, assisted by electronics and appliance exports, and a stable labor force.

Professional Employer Organizations (PEOs) and Employer of Record (EOR) services allow new Malaysian businesses to hit the ground running. These simplify the recruitment and hiring of employees in Malaysia as they expedite staffing and company setup. Business owners can expand without setting up a legal entity in the country while focusing on company growth and strategy in this growing economy.

Read on as we explore the benefits and ratings of the best Malaysia PEOs/EORs for your needs.

Why partner with a PEO in Malaysia?

Dealing with Malaysian businesses laws and cultural differences can slow market entry. The experience and local expertise of an Asian PEO allows businesses to hire employees in Malaysia efficiently and quickly while remaining compliant with local laws and regulations. As PEOs operate in the country, they manage time-consuming aspects of your business, such as contract administration, benefits, and payroll. Serving as a local partner and EOR in administration, they can prove invaluable for overseas companies.

Best Malaysia PEOs & Employer of Record


Based in Shanghai, Horizons leads with a robust client roster that includes Fortune 500 companies. They can secure and administer contracts in Malaysian and guarantee legal and tax compliance. They accomplish this with localized expertise, providing new companies with smooth market entry and seamless employee procurement.

For any company that requires a simplified launch with turnkey management aspects and a full suite of Malaysia PEO/EOR solutions, Horizons has proven itself to be an invaluable partner in new local markets.

GlobalizationPedia identified some of Horizons’ key advantages compared to its competitors:

  1. A 100% Horizons-owned entity in Malaysia.
  2. Malaysia HR experts on-site in Kuala Lumpur (internal staff of Horizons).
  3. Competitive pricing for Malaysia, with a scalable pricing model that gets even more affordable the more companies hire with Horizons.
  4. Premium medical benefits for Malaysia, to compensate the lack of a public system.
  5. Extremely fast onboarding times for Malaysia.

Website: Horizons

Global PEO

Global PEO is a well-respected global expansion company that has continued to provide superb guidance in recent years. The group is based in Hong Kong, but their knowledge base in other countries is localized and up-to-date with the modern working culture. Global PEO’s focus on providing cost-effective expansion solutions is a strong selling point for businesses expanding into the Malaysia, and offers rates that provide strong value and remain competitive compared to industry norms. In addition to recruitment and hiring services, Global PEO also has the capability to take on a variety of duties based around entity setup, staffing, payroll, and a variety of administrative functions.


Velocity Global

The American company Velocity Global provides end-to-end services for expanding businesses and has a global reach. For research, their helpful online Resource Center offers information on global expansion, the general ins-and-outs of PEO, and suggestions on how to handle onboarding.

With its focus on fast employee launches, Velocity Global has worked in 185 countries since 2014, including Malaysia. They pride themselves on their knowledge base and are currently expanding their cloud-based platform capabilities.


Why are Deel, Remote, or other companies missing?

Deel, Remote, and other market-leading EORs are fine companies – but they may not be the best choice for hiring in Malaysia due to several factors:

  1. Such companies often prioritize hyper-growth, driven by investor demands for rapid expansion, over ensuring compliance with local regulations and protecting the interests of their customers. This can lead to potential legal and financial risks for companies utilizing their EOR services.


    Example: A company focused on hyper-growth might encourage employers to hire de-facto employees as contractors, opening the client up to employee misclassification risk unnecessarily. This practice may be especially present in emerging economies like Malaysia, where the fees charged by hyper-growth Malaysia EORs are comparable to a typical monthly employee salary.


  2. In the past, we’ve seen that such ‘young & tech-driven’ providers may not meet the necessary license requirements for providing EOR services in Malaysia – as may take years to apply for – further jeopardizing compliance.


    Example: To recruit in Malaysia, companies must acquire and maintain at least three separate licenses; to hire foreigners requires additional licensure. Be sure that the company you are working with can meet your current and future anticipated needs during the company prospective process.

  3. Relying on a virtual-only support team can make it challenging to address any issues or concerns that may arise, potentially causing delays or disruptions in operations.


    Example: If there are no local support staff in-country, your Malaysia employees may be left without answers to their important questions. If you go with a company that outsources their support staff to another time zone or to non-HR specialists, you risk losing candidates, or worse, employees.

As such, it is recommended to carefully evaluate Malaysia EOR providers based on their track record of compliance, experience in Malaysia, and support capabilities, rather than solely on their growth and pricing potential.

Request a Proposal

If you are interested in expanding your company’s operations into Malaysia, GlobalizationPedia can connect you with a PEO that best fits your needs at a cost-effective price. Fill out the form below and we’ll use our extensive database of strategic partnerships to provide you with a full rundown of the best potential PEO matches for your company.

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As a specialist in the area of overseas business expansion, Alan covers global business topics with a focus on identifying emerging markets and helping companies expand globally.

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