Andrew Philp, CFO, activpayroll

Activpayroll is a global payroll and tax services provider that was founded in 2001 in Aberdeen, Scotland. We’ve had connections to Malaysia for over a decade through a long-standing partnership with local firm Propay Partners, which we ultimately acquired in 2022 to expand our Asia-Pacific footprint. Following this acquisition, we established a direct presence on the ground – our Kuala Lumpur office now serves as the hub for our Asia Pacific operations, reflecting our long-term commitment to the Malaysian market.

What are some of your organisation’s proudest moments/milestones in Malaysia?

Activpayroll receiving its Malaysia Digital Status certificate at the opening of its new Kuala Lumpur office, with MDEC’s CEO and Malaysia’s Deputy Digital Minister present.

One major milestone was the successful acquisition and integration of Propay Partners in 2022, which significantly cemented our presence in Malaysia. We also celebrated the grand opening of our new APAC headquarters in Kuala Lumpur in 2023 – an event officiated by Malaysia’s Deputy Minister of Digital – during which activpayroll was awarded the Malaysia Digital Status certification for our investment in the country. Additionally, we were proud to be named First Runner-Up for UK-Malaysian Business of the Year at the British Malaysian Business Excellence Awards, a recognition of our strong performance and growth in Malaysia.

Only for new investors in Malaysian market: Briefly share the reasons for choosing Malaysia. 

Malaysia offers a highly skilled, professional talent pool and a widespread use of English, which made it an ideal choice for our regional expansion. The country also boasts excellent technology infrastructure and a supportive, digitally-focused business environment, as well as a strategic location in Southeast Asia – all key factors that reinforced our decision to establish our APAC base here.

Describe your operations and total investments in Malaysia (value, staff strength, etc.) to date.

Our Malaysian operations are centered on a Global Support Services hub in Kuala Lumpur, which handles multi-country payroll, HR, and payment services for clients across the Asia Pacific region. We have invested significantly in Malaysia – including acquiring Propay Partners in 2022– and have grown our local workforce accordingly. In fact, our KL team has more than doubled in size within the past year to support rising demand. This expansion has been accompanied by an over 60% increase in our operational investment in Malaysia since late 2022, reflecting our commitment to this market and laying a strong foundation for future growth.

Based on your overall experience of doing business in Malaysia, name the advantages and challenges of doing business in Malaysia.

Advantages:

• Skilled Talent & Language: Malaysia has a highly skilled workforce with strong English proficiency, which makes it easier for an international business to operate and communicate.
• Infrastructure & Support: The country offers top-notch digital infrastructure and a conducive, business-friendly environment with government support for technology and investment.
• Strategic Location: Its strategic location in Southeast Asia serves as an ideal gateway to the APAC region, allowing us to manage regional operations efficiently.

Challenges:

• Regulatory Navigation: Like many newcomers, we initially had to navigate local regulatory and administrative requirements, which can be complex and bureaucratic.
• Cultural Integration: Integrating our global business practices into the local business culture required understanding and adaptation to Malaysian ways of working.
• Talent Scaling: Building up a specialised payroll expertise locally was a challenge – finding enough skilled talent quickly – which we addressed by investing in training and upskilling local professionals.

What did you do or are still doing to overcome these challenges?

We tackled these challenges by leaning on local expertise and continuously investing in our people. Early on, we partnered with Propay Partners – a trusted local firm – which gave us deep local knowledge and helped us smoothly navigate Malaysia’s regulatory landscape and business culture. Post-acquisition, we’ve continued to hire and develop local talent, including significant training programs to upskill our team in Malaysia. We also engage closely with local authorities and business networks to stay up-to-date on compliance matters and industry changes, ensuring we adapt quickly and maintain the high standards of our global operations in the Malaysian market.

What recommendation or advice would you give to other companies looking to invest or do in business in Malaysia?

My advice would be to do your homework and embrace the local environment. Take time to understand Malaysia’s regulations and business norms, and don’t hesitate to partner with local experts or hire experienced local staff who can guide you through the market. Leverage the networks and resources available – for example, joining organisations like the BMCC and engaging with agencies like MDEC – as they can provide valuable connections and support. Finally, be people-focused and adaptable: building strong relationships and respecting the local culture will go a long way in ensuring your business thrives in Malaysia’s vibrant economy.

What are the top 3 reasons for your organisation joining the BMCC?

• Networking and Connections: To engage with the British-Malaysian business community and connect with potential partners, clients, and industry peers.
• Knowledge and Support: To access BMCC’s events, insights, and guidance that help us navigate the Malaysian market (such as business seminars, updates on regulations, etc.).
• Visibility and Credibility: Being part of the BMCC raises our company’s profile and credibility within the industry, reinforcing that we are a committed member of the UK-Malaysia business ecosystem.

What is the top value you see for yourself or your organisation in being a member of the BMCC?

The greatest value for us is the networking opportunities the BMCC provides. Through the Chamber, we’ve been able to build meaningful relationships with other businesses and stakeholders, leading to new collaborations and business opportunities. This platform for connection and collaboration has directly benefited our growth in Malaysia.

In one sentence, how would you describe your own experience or your organisation’s experience as a member of the BMCC.

Being a BMCC member has been invaluable – it has provided us with a supportive community, vital insights, and rich opportunities that have significantly helped our business grow in Malaysia.