Cost of Doing Business
in Kedah (2026)

Company incorporation via SSM (Private Limited / Sdn. Bhd. up to RM100K share capital)

SSM incorporation fee: RM1,000
Name reservation: RM50
Source: MIDA – Registration of Business Entity

Business Setup & Registration

Company incorporation via SSM (Private Limited / Sdn. Bhd. up to RM100K share capital)

SSM incorporation fee: RM1,000
Name reservation: RM50
Source: MIDA – Registration of Business Entity

Legal / corporate secretarial services in Kedah

Estimated: RM1,500 – RM5,000
Includes incorporation documentation, constitution drafting, company secretary retainer, annual compliance filing
Source: 3E Accounting Malaysia – Company Secretary Fees

Accounting / tax advisory setup

Estimated: RM1,500 – RM6,000 initial setup
Includes bookkeeping setup, payroll setup, tax registration and advisory
Source: Tetra Consultants – Accounting Services Malaysia

Licensing fees

Estimated: RM300 – RM5,000+ depending on industry and local authority requirements
Includes business premise license, signboard license, manufacturing approvals
Source: MIDA – Business Licenses in Malaysia

Professional services (business advisors, consultants, lawyers)

Estimated consulting rates: RM150 – RM800/hour
Source: MIA – Recommended Practice Guide on Professional Fees

Office & Industrial Space Costs

Office Rental (Per Month)

Alor Setar city centre office rental

Estimated: RM1.80 – RM4.50 per sq ft/month
Source: iProperty Commercial Listings – Alor Setar Offices

Outskirts / industrial area office rental

Estimated: RM1.00 – RM2.50 per sq ft/month
Source: PropertyGuru Commercial Listings Kedah

Kulim Hi-Tech Park office / industrial mixed space rental

Estimated: RM2.80 – RM3.00 per sq ft/month
Source: EdgeProp – Kulim Hi-Tech Park Factory Listings

Prime office space (per m²)

Estimated: RM19 – RM27 per m²/month
Source: MIDA – Industrial & Commercial Space

Industrial Property (Warehouses / Factories)

Median industrial warehouse/factory rental price in Kedah

Estimated: RM1.00 – RM3.00 per sq ft/month
Source: EdgeProp Kedah Industrial Listings

Kulim Hi-Tech Park ready-built factories rental

Large facilities: RM273,000 – RM518,000/month
SME/light industrial factories: RM8,000 – RM18,000/month
Source: EdgeProp – Kulim Hi-Tech Industrial Listings

Kulim Hi-Tech Park industrial land rental rates

Estimated: RM2.80 – RM3.00 per sq ft/month
Source: Kulim Hi-Tech Park Official Site

Employment & Labor Costs

Statutory employer contributions

EPF: 12%–13%
SOCSO: ~1.75%
EIS: 0.2%
HRDF levy (where applicable): 1%

Source:

KWSP (EPF) Employer Contribution Rates
PERKESO Contribution Table
HRD Corp Levy Information

Average monthly net salary in Kedah / Alor Setar

Estimated: RM3,670/month net
Source: Numbeo – Cost of Living in Alor Setar

Cost of Living Impact (2026)

General cost-of-living index (Malaysia 2026 benchmark)

Estimated index: 35 – 39
Source: Numbeo Malaysia Cost of Living Index

Cost of living for one person (without rent)

Estimated: RM1,300 – RM1,450/month
Source: LivingCost.org – Alor Setar

Cost of living for one person (including rent)

Estimated: RM2,350 – RM2,650/month
Source: LivingCost.org – Alor Setar

Family of 4 including rent

Estimated: RM5,700 – RM6,400/month
Source: LivingCost.org – Alor Setar

Typical Rentals & Utilities

3-bedroom apartment in Alor Setar city centre

Estimated: RM1,900/month
Source: Numbeo – Alor Setar Housing Costs

3-bedroom apartment outside city centre

Estimated: RM1,450/month
Source: Numbeo – Alor Setar Housing Costs

Basic utilities (electricity, water, cooling, garbage)

Estimated: RM178/month
Source: Numbeo – Utilities in Alor Setar

Internet (60 Mbps+)

Estimated: RM105/month
Source: Numbeo – Internet Costs in Alor Setar

Summary Table — Cost of Doing Business in Kedah (2026)

Category	Item	Estimated Cost (RM)	Source
Business Setup	SSM incorporation (Sdn. Bhd.)	RM1,000 + RM50 name reservation	MIDA – Registration of Business Entity
	Legal & secretarial services	RM1,500 – RM5,000	3E Accounting Malaysia
	Accounting & tax setup	RM1,500 – RM6,000	Tetra Consultants
	Licensing fees	RM300 – RM5,000+	MIDA – Business Licensing
	Professional advisors	RM150 – RM800/hour	MIA Practice Guides
Office Costs	Alor Setar city office	RM1.80 – RM4.50 psf/month	iProperty Commercial Listings
	Outskirts / industrial office	RM1.00 – RM2.50 psf/month	PropertyGuru Kedah Commercial
	Kulim Hi-Tech Park office/industrial	RM2.80 – RM3.00 psf/month	EdgeProp Kulim Hi-Tech Park
	Prime office space	RM19 – RM27 per m²/month	MIDA – Space & Premises
Industrial Property	Warehouse/factory rental	RM1 – RM3 psf/month	EdgeProp Kedah Industrial Listings
	SME factory rental in Kulim	RM8,000 – RM18,000/month	EdgeProp Kulim Industrial
	Large ready-built factory	RM273K – RM518K/month	EdgeProp Kulim Hi-Tech Park
Labor Costs	EPF employer contribution	12% – 13%	KWSP Employer Rates
	SOCSO employer contribution	~1.75%	PERKESO Contribution Table
	EIS employer contribution	0.2%	PERKESO EIS
	HRDF levy	1%	HRD Corp
	Average net salary	~RM3,670/month	Numbeo Alor Setar
Cost of Living	1 person excl. rent	RM1,300 – RM1,450/month	LivingCost.org Alor Setar
	1 person incl. rent	RM2,350 – RM2,650/month	LivingCost.org Alor Setar
	Family of 4 incl. rent	RM5,700 – RM6,400/month	LivingCost.org Alor Setar
	3-bedroom apartment (city centre)	~RM1,900/month	Numbeo Housing Costs
	Utilities	~RM178/month	Numbeo Utilities
	Internet	~RM105/month	Numbeo Internet Costs

Key Insights

Kedah remains a lower-cost business destination compared with Kuala Lumpur, Selangor, and Penang.

Alor Setar is suitable for:

SMEs
shared services
back-office operations
retail/service businesses

Kulim Hi-Tech Park is the premium industrial cluster:

semiconductor
E&E manufacturing
data centres
advanced manufacturing

Typical SME setup budget in Kedah:

RM10K – RM30K initial setup
RM2K – RM8K monthly operating office costs

Employer statutory burden is approximately:

15%–18% above gross salary

Cost of Doing Businessin Kedah (2026)