Mary, who grew up in Hong Kong, said that the company chose to set up a factory in Penang for five reasons because the company moved its factory from the mainland to Penang in 2013. First of all, Malaysia is more stable and conducive to business than Southeast Asian countries such as Myanmar and Thailand. Second, the import of raw materials from Malaysia has the advantage of tariff forgiveness in the past, which helps to reduce production costs.
Furthermore, the Port of Penang is the second largest port in Malaysia, located at the entrance of the Strait of Malacca Maritime Waterway, connecting about 200 ports around the world. Due to penang's deep-water port, it attracted many Chinese to open small factories in the early years, especially in the plastic industry, which had a relatively small initial investment. Fourth, the rental cost of the local factory is relatively low in the mainland, a factory of about 30,000 square feet, the monthly lease is about 45,000 to 47,000 Hong Kong dollars, small enterprises are easier to afford, and the lower salaries of Malaysian workers will greatly help to improve the competitiveness of the company.
In fact, if Kuala Lumpur is an important business city in Malaysia, Penang is known for its trade, industry, tourism, competitive advantage in advanced manufacturing, and is known as the "Silicon Valley of the East". In recent years, the local government has attracted at least 300 multinational companies such as HP, Dell, and Intel to invest or produce here.
She said Malaysian workers earn about HK$3,000 a month, which is 40 to 50% lower than the monthly salaries of Mainland workers of HK$5,000 and HK$6,000, and Malaysia welcomes foreign companies to hire locals to work. "Although Malaysians may have relatively low work efficiency compared to Hong Kong and the Mainland, they are not lazy and quite simple, and they have their advantages in hiring them to work," she said. But most companies also hire expatriates for management positions."
For example, a foreigner manager with a monthly salary of more than HK$20,000 may seem to be lower than hong Kong's, but due to the low standard of living in Penang, life is more enjoyable. Moreover, there is no need to compromise on the quality of life in Penang, where seafood and fruits are delicious and the choice is abundant.
However, it should be noted that all income from Malaysia, including wages, stock interest, rent, profits from business operations, etc., is taxed. Foreigners who reside in Malaysia for 182 days or more in a year will be considered tax residents at a progressive tax rate of up to 30% and will not be taxed if their income in the tax year is below MYR 5,000. Non-tax residents are taxed at a flat rate of 30%.
Mary agrees that Penang has a low living index and that food, clothing, shelter and mobility are affordable. For example, a 1,300 sq ft flat with two parking spaces will be rented for about HK$3,000 per month. If you pay HK$6,000 per month, you can rent a detached house with a swimming pool and enjoy a higher quality of life than in Hong Kong. In terms of other living costs, the budget for water is 5 to 10 Maks (about HK$9.5 to HK$19) per month, while electricity and Internet access can be budgeted at MA 100 (about HK$190) and MA150 (about HK$285) each.
She went on to share that a cup of milk tea only sells for HK$2 to HK$3. Eating out for lunch or dinner is generally HK$30. I once tried a group of 10 people eating a sumptuous seafood feast at a restaurant, and the checkout was only 60 Hong Kong dollars per person. Gasoline for self-driving is cheap, HK$100 for a full cylinder of oil, and about HK$20 to HK$30 for a ride by e-hailing car. Although the price of shirts, pants, shoes and socks is low, Hong Kong people should get used to not being the most fashionable style. She believes that the Malaysian Parliament should find a way to control the prices of grain, oil and miscellaneous goods at a stable level, so that prices will not soar, so that society will naturally be relatively stable.
She added that Malaysia is a suitable place for "sighing the world" and retirement. Living in Hong Kong with "tight money" can lead to a prosperous life in Malaysia. Professionals who run a business as a boss here or have a good salary are suitable for living in Malaysia. However, if you are an ordinary migrant worker, the salary of working in Malaysia is not high, so it is advisable to think twice.
