Location guide · Malaysia
Location guides for 3 cities in Malaysia, from Kuala Lumpur, George Town and Johor Bahru. Flip Retail builds custom ERP, AI agents, web applications and SaaS for businesses in Malaysia from Jaipur, India, and delivers remotely.
01 — Compliance
Tax, e-invoicing, data-protection and AI rules that shape an ERP, billing system or AI agent in Malaysia. Last reviewed October 2026.
| Indirect tax | SST (Sales and Service Tax) · Sales tax 10% (5% reduced); service tax 8% (6% for some services)Malaysia has no GST/VAT: a single-stage sales tax applies to manufactured and imported goods and a service tax to prescribed services. The service-tax scope widened on 1 July 2025 (e.g., rental/leasing, construction, financial services), with full enforcement from 1 January 2026. |
|---|---|
| E-invoicing | Mandatory · MyInvois (LHDN e-Invoice)Businesses with annual turnover above RM1 million must issue e-invoices validated by LHDN through the MyInvois portal or API. Phase 4 (RM1 million to RM5 million) began 1 Jan 2026 with a no-penalty relaxation period extended to 31 Dec 2027. Businesses below RM1 million are exempt and the planned Phase 5 was cancelled. |
| Data protection | Personal Data Protection Act 2010 (as amended by the Personal Data Protection (Amendment) Act 2024)The 2024 amendments, in force since 2025, make data processors directly subject to the security principle (1 Apr 2025) and add mandatory breach notification, DPO appointment and data portability (1 Jun 2025), so SaaS vendors acting as processors now carry direct liability. |
| AI rules | No AI-specific statute; MOSTI's voluntary National Guidelines on AI Governance and Ethics (2024) are the main official guidance. |
| Systems we migrate from or connect to | AutoCount, SQL Account, Xero, QuickBooks Online, Bukku, SAP Business One, OdooMasters, ledgers, stock and open balances move across and are reconciled before cutover. |
| Payment rails for web apps and SaaS | FPX, DuitNow QR, Touch 'n Go eWallet, GrabPay, iPay88, Stripe |
| Also worth knowing | Because SST is single-stage there is no GST-style input-tax credit chain. MyInvois e-invoices need the buyer's TIN (general TINs exist for consumers and foreign buyers), and B2C sales can be covered by consolidated e-invoices. |
General information, not legal or tax advice. Rules change, so we confirm current requirements during discovery; your tax adviser should confirm anything that affects filings.
Sources consulted:
02 — Cities
Each guide covers the local economy, the industries we would build for first, and how working with Jaipur fits your hours.
03 — Industries
The industries that come up most across the cities we cover in Malaysia.
04 — Services
ERP built around how your business actually trades, not the other way round.
Learn moreProduction AI built on your own data: knowledge assistants, document processing, forecasting and LLM features inside the tools your team already uses.
Learn moreCustom AI agents that do real work inside your business: qualify leads on WhatsApp, read and key documents, take orders, chase payments and update your ERP or CRM, with a person approving anything that matters.
Learn moreCustomer portals, internal tools, dashboards, marketplaces and workflow apps, built with React and Next.js on solid back ends and APIs, and shipped in two-week increments you can use as they are built.
Learn moreFrom MVP to multi-tenant platform: we design, build and run SaaS products with subscription billing, tenant isolation, role-based access and AI features built in.
Learn moreIf it runs on data and touches revenue, we have probably built one before.
Start a conversation05 — FAQ
Yes. Flip Retail is based in Jaipur, India, and works with Malaysia businesses remotely. We have no office in Malaysia; discovery happens on video calls, you get working software every two weeks, and the engineers who write the code are on the calls.
Yes. Invoicing is built for Malaysia's SST (Sales tax 10% (5% reduced); service tax 8% (6% for some services)). Businesses with annual turnover above RM1 million must issue e-invoices validated by LHDN through the MyInvois portal or API. Phase 4 (RM1 million to RM5 million) began 1 Jan 2026 with a no-penalty relaxation period extended to 31 Dec 2027. Businesses below RM1 million are exempt and the planned Phase 5 was cancelled. A custom ERP connects to MyInvois through its official API or an accredited provider, and we confirm the current requirements in discovery.
The 2024 amendments, in force since 2025, make data processors directly subject to the security principle (1 Apr 2025) and add mandatory breach notification, DPO appointment and data portability (1 Jun 2025), so SaaS vendors acting as processors now carry direct liability. You choose where the system is hosted, access is role-based, and we work on test or masked data during development wherever possible.
Yes. Masters, ledgers, stock items and opening balances move across and are reconciled with your accountant before cutover, ideally at a year-end or quarter-end.
No AI-specific statute; MOSTI's voluntary National Guidelines on AI Governance and Ethics (2024) are the main official guidance. We design AI agents with logging, human oversight and clear disclosure from the start, which covers most current requirements.
Contact
Tell us about the process you want fixed in your Malaysia business. We reply within one working day.