Business cost savings through EOR.
Singapore businesses are constantly looking for ways to optimize costs while maintaining a high-quality workforce. With rising operational expenses and manpower constraints, hiring Malaysian talent through an Employer of Record (EOR) has emerged as a cost-effective and efficient solution.
By leveraging Employer of Record services, Singapore companies can access top-tier Malaysian professionals while significantly reducing hiring expenses. In this article, we break down the salary differences, operational savings, and how an Employer of Record Singapore helps companies cut costs.
Salary Differences: Lower Workforce cost Without Compromising Quality
One of the biggest cost advantages of hiring Malaysians is the significant salary difference compared to Singaporean employees.
For example:
- A Singapore-based Customer Service Executive of 2-3 Years Experience earns 3000SGD per month, while a Malaysian employee with the same skills and experience only cost 1000SGD per month. You may check out our EOR calculator to find out more.
- This salary gap extends across industries, including IT, finance, engineering, and customer service.
By hiring through an Employer of Record in Singapore, companies can reduce payroll expenses while still attracting skilled talent.
Lower Operational Costs: No Need for a Malaysian Entity
Setting up a legal entity in Malaysia comes with high administrative costs, compliance risks, and time-consuming paperwork. This includes:
✅ Business registration & licensing
✅ Local office setup & maintenance
✅ Legal & HR compliance costs
✅ In-house payroll & tax processing
With an Employer of Record, companies skip these expenses entirely. The EOR becomes the legal employer, handling all compliance, payroll, and HR functions—allowing Singaporean businesses to focus on operations and growth.
Payroll and Tax Savings: Seamless Compliance
Managing payroll across borders can be costly, especially when navigating:
- Statutory deductions (CPF vs. EPF, SOCSO, and PCB taxes)
- Multi-currency salary processing
- Labor law compliance
An Employer of Record (EOR) ensures:
✅ Accurate payroll processing in compliance with Malaysian laws
✅ Elimination of fines & penalties for mismanaged taxes
✅ No need for internal HR or finance teams to handle international payroll
This translates to direct cost savings and reduced administrative burden.
Faster Hiring, Lower Recruitment Costs
Recruiting foreign employees involves significant costs, including:
- Work visa & permit processing fees
- Legal fees for employment contracts
- Time & money spent on lengthy hiring processes
With an Employer of Record in Singapore, businesses can hire Malaysian employees within days instead of weeks or months. The EOR takes care of:
✔️ Employment contracts
✔️ Work permit approvals
✔️ Onboarding & HR support
This reduces recruitment costs while ensuring business agility and scalability.
Partner with Elitez for Employer of Record
If you’re looking to hire top Malaysian talent with ease, our Employer of Record services can help. Contact us today to learn how we can support your hiring needs!
In addition to Employer of Record services, businesses can benefit from working with Elitez, the leading recruitment agency in Singapore. We offer the best talent sourcing and placement. For specialized or high-level positions, our executive search firm can help identify the best candidates to drive business success. Contact us for more information.
