Breaking the Causeway: Why Singaporean Entrepreneurs Are Eyeing Malaysia for Business Expansion

TL;DR for Business Owners Eyeing Malaysia:

• Malaysia rewards patience, relationships, and cultural sensitivity.

• Don’t do currency conversions when pricing your services. Localise.

• Use Malaysian government grants to scale.

• Different states = different rules. Do your homework.

• Start networking before you incorporate.

The Causeway isn’t a wall. For savvy business owners, it might just be a bridge to your next growth chapter.

For many Singaporean professionals and SME owners, the grind of corporate life is intense. The idea of trading high stress for a more balanced lifestyle isn't new. But what if that "new life" included expanding a business just across the Causeway? As more business leaders look to carve out opportunities in Malaysia, candid conversations from those who’ve already made the move are proving invaluable.

"Singapore very hard to do business. Let's do Malaysia," joked podcast host Reggie in a recent live panel with guests Hossan Leong and Isaac Peter — two experienced professionals running businesses on both sides of the border.

Hooked on the Johor Dream

Hossan Leong, a well-known entertainer-turned-businessman, shared how he established two arms of his company, Double Confirm Productions, in Singapore and Double Confirm Arts and Media in Malaysia. The latter focuses on corporate training and presentation coaching. "In Singapore, I still am doing what I do best. In Malaysia, we are trying right now to establish longer, hopefully long-term clients."

What makes Malaysia so attractive for Singaporean businesses?

1. Cultural Fit, But With a Twist

Despite geographic proximity, the way business is done differs drastically. "In Singapore, we are so used to remote working... you cannot do it in Malaysia. You need to be present," said Isaac. Relationships take precedence over transactions. Business cards are exchanged only after you’ve chatted, shared stories, maybe even bonded over a mamak session.

Hossan added, "In Malaysia, when someone hired me just recently to do something, they said, let's meet for lunch. I said, lunch? Why? Just have lunch, get to know you. It’s important that you come out to meet us... so that when we do the show, we all know each other already."

2. Pricing: Don’t Convert, Adapt

Another pitfall for newcomers is pricing. "When I was, I think one of the Malaysian banks reached out... I just convert. Oh, this is my rate here. I convert. Then I tell you my rate. Then the person just look at it. This is my one month marketing budget," shared Reggie.

The key? Localise your pricing. "You convert, divide by two. That is kind of how I price," he advised.

3. There’s No Benchmark — And That’s a Good Thing

Malaysia’s pricing elasticity is wider than you think. "If they don't know you, then they will play with the lowest price. If they know you, then price is not a matter. So it comes down to who do you know," said Isaac. It's a market where reputation and relationships can outweigh fixed rates or branding.

4. The HRDF Pool: Untapped Potential

One unique advantage in Malaysia? The Human Resources Development Fund (HRDF). Unlike Singapore’s SkillsFuture, HRDF is funded through employers and distributed to companies for training. "You’d be surprised the amount of companies who have no idea what training is," said Isaac, pointing out the sheer scale of opportunity.

For Singapore consultants or trainers, this is a goldmine. Learn more here.

5. Pick Your State, Pick Your Strategy

From hyper-competitive Penang to cost-conscious Johor, every Malaysian state offers something different. KL remains the decision-making centre for MNCs, while Iskandar in Johor attracts Singaporeans with its proximity and SEZ status.

"Different states have different rules of how they play... Singaporeans need to be mindful," advised Isaac.

6. Industries Ripe for Disruption

Among the top sectors to explore:

• F&B (with better service quality)

• Health tourism

• Sustainable construction and data centres

• Engineering support for semiconductor spillovers

"Malaysia has good food, but service is always the usual complaint," joked Isaac. "If [Singaporeans] do F&B, it's a matter of just upping the service and you will do well."

Final Advice: Build Your Network Before You Need It

Reggie wrapped up the session with: "Don't just say, oh, I just want to go in blind. Cannot.  There are rules, there are regulations."

Instead, get to know Enterprise Singapore, the consulates, and experienced cross-border players like Isaac. "When I go back [to Malaysia], I have to literally start from scratch. But being on the ground is totally another thing."