Many of our global clients who started their business in Malaysia always begin with an all-encompassing head-hunting drive. That is usually followed by another hunt for office real estate and other necessities. Most of them also pour in sizeable investment on market strategies and product launches on top of designing enviable employee benefits and perks. However, one of the most ancient practices still found even among the most notable brands is the lack of cutting-edge payroll services.

You’d be puzzled why technologically-advanced brands still push payroll to a last-minute function overseen by an accountant-cum-HR. This forces a lot of payroll and HR-related services to also get pushed to the back burner, only to tumble out and create full mayhem just before pay day. Those who have learnt by experience realise that payroll and HR need to be on the top of the company’s expansion plans – just like marketing, recruitment and product design.

Why You Shouldn’t Let It Pile Up
Whether you like to do payroll in-house or outsource it, there’s no getting away from the reality: payroll will need to be delivered well and on time. Otherwise, your employees will leave. And if your employees leave, your business will suffer, reflecting massive losses in all your painstaking investment. 

Malaysia has been a preferred investment destination for many reasons. There are plenty of financial institutions, logistics companies, FMCG brands, manufacturing and pharmaceutical majors that have chosen Malaysia for its unique opportunities. While each company has its own forte, they do not come to the country to invest hugely on HR or allied verticals, instead focus on mission-critical projects. This could be one reason why they don’t concentrate on payroll and HR requirements that much. And all the more reason why you should focus on payroll. 

This is true in terms of their recruitment too. Most of these global companies hire specialised engineers or software programmers to exclusively work on certain functions. These talents are mostly likely hired from overseas and need the company’s help to sort out their visas, employment contracts and annual leaves. They also need help with medical insurance, tax exemptions and statutory contributions in Malaysia. If the company has no idea or expertise to handle these employee services, then chances are high that employees and the employer would be targeted with heavy fines by local statutory institutions.

A Pile Up Will be More Expensive Than Most of Your Overheads
Payroll is not just about giving employees a monthly salary. It is about making the right deductions (as specified by the law), calculating taxes and ensuring the employee is eligible for benefits or in some cases, if they are not eligible, to withdraw those benefits before rolling out their salary. Adding to these are monthly leaves, medical offs, work-related travel and overtime work. In this sense, payroll is a complicated web of calculations that need the supervision of a specialist who knows how to make these calculations easily and smartly without having to spend a lot of time on them.

Failure to comply with payroll can have long-term complications for your company. The errors and submissions that go unnoticed pile up only to get an unwelcome notice from government agencies. This happens when you least expect it and can cost you several thousand ringgits, if not millions to fix. Not to mention the time and energy you may have to spend to get a professional firm to look into your accounts.

Ways to Do it Quick & Easy
The best time to get a payroll outsourcing partner would be during the recruitment stage. That way, all the employees' data, immigration requirements, and work permits can be handled from the start. It can be also a good way to streamline your employee payroll before your focus shifts to core market strategies. Hiring a payroll partner who knows the ins and out of end-to-end payroll management can be a sure shot way of ensuring that you have all the boxes checked in terms of payroll compliance.

Leave It To the Experts
Payroll and taxes are best left to specialists. Every year, the government releases countless regulatory notices that concern foreign worker salaries, visas, immigration rules and foreign talent requirements in Malaysia. It is impossible for a company to keep tab on all these regulatory practices with a single personnel manning the payroll department. Also, you would also need additional staff to verify payroll before they are delivered to your employees.

Finding the Right Partner
Given the complex nature of payroll and the scrutiny it deserves, always scout for an outsourcing partner that has your best interests at heart. That means accessibility, reliability, peace of mind and confidence in their services. You also need an industry leader who knows the local payroll landscape better so that you can navigate without being pulled up for negligence by the government.

At Propay Partners, we have over 20 years' experience handling payroll and employee mobility for global companies in Malaysia. We onboard the payroll process through a highly stringent and certified payroll process that meets international quality standards. We also optimize payroll requirements according to the clients' timeline and deliver payroll on time without errors.

To know more about our payroll services, visit us at

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