“To create a better everyday life for the many people”
Malaysia: Economy
Taxes and costs of operation directly impact a MNC’s financials. For IKEA, Malaysia was a tax saver. Low income tax, combined with a low cost of living meant IKEA could easily keep desired employees (assuming reasonable income after tax is the main attractive factor for employees) and transfer expatriates. Tax charged on corporates, has been stable at 25% in the past 4 years, which is lower compared to most European countries such as Italy (31.4%) and Germany (~29.44%).
Kuala Lumpur is also one of the fastest growing metropolitan regions in the country, with a population of 1.6 million as of 2012. Due to the enormous amount of opportunities available and fast growing economy, Kuala Lumpur has and will continue to attract many young people and working adults, who stimulated demand for furniture.
