Professional Documents
Culture Documents
Acknowledgement
We are grateful to all of those with whom we have had pleasure to work during this
report. Each of the members of our group has provided extensive personal and
professional guidance and had got an opportunity to learn about “Relocation and
Compensation and Benefits plan for Nepali in Malaysia” during our report research.
As our module leader Mr. Kelvin Ng (MBA, University of Cambridge) who had design
such module for the better educational purpose of students and our module teacher Dr.
Vedeesh Chand Lal who had taught us more than we could ever give them credit for
here.
Nobody has been more important for us in the pursuit of this report than the member of
Merryland College, Biratnagar whose guidance, support and unending inspiration had
always been with us.
Table of Contents
Acknowledgement...........................................................................................................2
Executive Summary.........................................................................................................4
Chapter 1: Overview of Malaysia...................................................................................5
Key Information of Malaysia (Insight 2019/2020):.......................................................10
Cultural Differences in Business between Nepal and Malaysia:.................................15
Chapter 2: Proposed Relocation Details.....................................................................16
Visa Arrangements:......................................................................................................17
Relocation and Travel Arrangements:.........................................................................17
Key personal documents required:..............................................................................18
Key family arrangements required:..............................................................................18
Housing Market Research and Recommendation:......................................................19
Work Market Research:...............................................................................................19
Driving license:.............................................................................................................19
Estimated cost of relocation:........................................................................................20
Chapter 3: Proposed Compensation and Benefits....................................................21
Compensation and its components:............................................................................21
Home (Nepal) and Host (Malaysia) Country Taxation:................................................22
Bank account and payment details:.............................................................................24
Housing and Transportation Components:..................................................................24
Health Care and Insurance:.........................................................................................25
Estimated Cost of Total Compensation and Benefits:.................................................25
Conclusion.....................................................................................................................26
References......................................................................................................................27
[Group-4]
International Human Resource Management
Executive Summary
This report describes the relocation, compensation and benefit plan for a very young
Nepali Mr. Animesh Kant who have had B.Tech. in EEC, a reputed institute of India and
MBA from USA. Mr. Kant with his wife and two children were happily living in
Kathmandu, Nepal with a good earnings of couples above 2 lakhs.
Mr. Kant is recently teaching and in addition associated with the operations department
of MKIST, an affiliated university of Wales, London, that distribute courses of Bachelor
and Masters Level in Science, Technology and Management. MKIST has recently
signed an agreement with the University of Wales to start Bachelor Program in
Malaysia. CEO wants Animesh to lead this project and start program by August 2020.
So this report is about a Nepali who may face the differences in many ways while
migrating from the country Nepal to a Southeast Asia “Malaysia”. This report describes
Malaysia in short along with some places, cultural difference with Nepal, compensation
and benefits differences with Nepal, relocation details etc.
[Group-4]
International Human Resource Management
Malaysia is made up of two geographical regions which is divided by the South China
Sea. First one is the peninsular Malaysia/West Malaysia on the Malay Peninsula
bounded by Thailand on the north and Singapore in south. Similarly, the second one is
Malaysian Borneo/East Malaysia situated on the northern part of the island of Borneo in
the South China Sea at the edge of Indonesia surrounded by the Sultanate of Brunei.
Malaysia also has oceanic borders with the Philippines and Vietnam.
This country has total land area of 329,847 square kilometers, which is the 66 th largest
country in the world in terms of area. Mount Kinabalu with the height of 4,905 meter on
the island of Borneo is the highest peak of Malaysia. This Mount Kinabalu and Kinabalu
Park both are included in UNESCO World Heritage Site. Malaysia consists of population
of 32,191,104(in 2020). The largest and capital city both is Kuala Lumpur. Mostly
preferred spoken languages are Malay, Tamil, English and Chinese (Cantonese).
[ CITATION Nat20 \l 1033 ]
Background:
Throughout the 1970’s, 1980’s and 1990’s Malaysia drastically changed from being a
poor, agricultural country to a rich and industrial one by rising the standard of living of
Malaysian people. Today Malaysia is one of the prosperous and in the phase of being
developed country after the new development policy was introduced in 1991.
[ CITATION Tim191 \l 1033 ]
mosques, temples, shopping malls and crowded markets with excess of attractions and
energy is so exciting.
Internet TLD “.my” (Malaysia Top Level Domain) [ CITATION Wor20 \l 1033 ]
Country calling code +60[CITATION Pro20 \l 1033 ]
Malaysia has a hot and humid climate with annual southwest (Apr to Oct) and northeast
(Oct to Feb) monsoons. The figure below shows the detailed annual average climate of
Malaysia:
Electricity:
Malaysia has one of the lowest local electricity prices in the world. Malaysia’s low
domestic electricity price is most likely due to the government’s long term contract with
energy suppliers. The existing electricity tariff rate since 1st January 2018 is 38.53 Sen
per kilowatt jam (KWh) and this rate will persist through to 21 st December 2020. The
voltage used in Malaysia is 230/240 volts – 50 Hz.[ CITATION JES18 \l 1033 ]
Medical:
In case of hospital bills, it may differ among various institutions because every hospital
in Malaysia is known for particular proficiency and expertise. Medical bills are entirely
categorized by the level of treatment and choice of hospital’s management.
Private hospitals are managed/operated by larger groups and some of them are
autonomously managed. Some of the top hospitals with their own good services are
listed below:[ CITATION Fam20 \l 1033 ]
Embassy Information:
Nepal is 12.8% economical than Malaysia. So if Mr. Kant will migrate from Nepal to
Malaysia, he has to pay 37.7% less for local restaurant, 47.9% more for groceries, 3.0%
more for transportation, 2.2 times more for accommodation, 63.2% more for
entertainment and sports and 57.6% more for clothing.[ CITATION Myl19 \l 1033 ]
While travelling to the foreign country for business purpose, one must know about
business culture of that country to be prepared for obstacles and challenges which
might occur later on. Some of the cultural differences in business between Nepal and
Malaysia are listed below:
Greetings: All greetings in Malaysia begin with the word “selamat” (sounds like
"suh-lah-mat"), which also means "safe." [ CITATION Tri19 \l 1033 ]While in
Nepal, people usually join hands and do “Namaste” for greeting people.
culture is followed and the high rank person may directly reject his/her root
managers without considering their feelings.
Decision Making: In Malaysia everybody knows what their job is, and they work
accordingly but in Nepal due to hierarchical issues the decision takes time to be
taken.
Dress Code: In Nepal official dress are emphasized (Shirt, Pant, and Shoes at
least leather for men and sari/blouse, kurta suruwal or pant shirt is preferred for
women). While in Malaysia men generally choose smart formal clothes, with long
sleeve shirts and ties while women are seen with trousers, skirts working blouses
or dresses.
Work Law: The laws of working culture in Malaysia seems relatively established
but in Nepal law have now been started to get implemented but is slow in
process.
Visa Arrangements:
Single entry visa: Generally, this is issued to foreign residents who requires a
visa to enter Malaysia for a social visit. This single entry visa is valid for a period
of three months from the date of issue.
Multiple entry visa: This is issued to foreign nationals who require a visa to
enter Malaysia primarily for business or government related issues. It is valid for
a period within three months to twelve months from the date of issue. The validity
of the Multiple Entry Visa is one year where each entry is for 30 days only and
the extension of stay is not permitted.
Transit Visa: This is issued to foreign nationals who require a visa to enter
Malaysia on transit to other countries. Foreign nationals on transit without leaving
the airport area and who will continue their journey to the next destination with
the same flight would not need a transit visa. [CITATION imi20 \l 1033 ]
Mr. Kant must apply for multiple entry visa and some of the condition he must follow
are:
Different airways travel from Nepal to Malaysia and back to Nepal like Thai lion Air,
Malindo Air, Indigo Airlines, Nepal Airlines, Malaysia Airlines, etc. While travelling from
Nepal to Malaysia (Direct) we would recommend Mr. Kant to travel through Nepal
Airlines from (Tribhuvan International Airport, Kathmandu) to (Kuala Lumpur
International Airport, Kuala Lumpur) which would cost him RM1150 to RM1350
[ CITATION Che20 \l 1033 ] depending upon months occupying 5(min)-6(max) hours
and while returning back to Nepal (Direct) from Malindo Airlines in a same price and
time.
While travelling to foreign country one must have a proper structured document in order
for their own safety. So Mr. Kant while travelling to Malaysia, he should also carry the
following documents with him:
Passport
Return ticket
Current Valid Visa
Birth Certificate
Citizenship Card
Passport size photos
Driving License
After being well settled in Malaysia if Mr. Kant wishes to bring his parents, wife and
children to Malaysia he must arrange and should require following documents:
Passport, Valid visa, Citizenship card and return tickets for parents.
Passport Valid visa, Citizenship card, return tickets and marriage certificate for
wife.
Only birth certificate and return tickets for children as their children are below 18.
As per the city the cost of housing may vary and the location of university is still in
controversy. The housing prices and overall prices will go on in an increasing order.
While in Malaysia the cost of 1-bedroom apartment in downtown area is RM 1,146.59,
1-bedroom apartment outside city center is RM 706.04. [ CITATION Myl20 \l 1033 ]The
negotiability would be staying in outside city center enjoying the peace nature rather
than suffocating in the heavy traffic and congested concrete building. So as per his
salary we would recommend Mr. Kant to stay in apartment outside city as the
transportation facilities in Malaysia is well developed and fast. As staying in foreign
country for the communication purpose he must have an internet access to
communicate with his family. So joining all the housing, utensils and internet prices as
per 2020 Mr. Kant might pay around RM1000.
The Malaysia Employment Act states work weeks as 48 hours, with a maximum of 8
working hours per day and 6 working days per week. So as per the Malaysian
Employment Act Mr. Kant should also adopt the same working hours schedule. Normal
Business hours in Malaysia are 9 a.m. to 5 p.m. Monday to Friday, with many
businesses and government agencies are also open until noon on Saturdays. Seniority
is one of the important factor in Malaysia, so Mr. Kant should always obey and respect
seniors along with respecting second person feelings.[ CITATION Jus20 \l 1033 ]
Driving license:
From 32 different country, citizens have a permission to convert their home country
driving license to Malaysian driving license with certain test and agreement with their
country embassy but among those 32 country Nepal do not include, so Mr. Kant should
go through the Malaysian procedure to issue a valid driving license. Obtaining a driving
license in Malaysia has following steps:
Once Mr. Kant pass the practical exam, he can be on his way to a full-fledged driving
license. All he need to do is ensure that he do not have his license revoked by demerit
points for a total of 2 years. After the completion of 2 years of LDL, the LDL license is
upgraded to Probationary Driving license (PDL) and then to Competent Driving License
(CDL) if he satisfied all the terms and policies of Jabatan Pengangkutan Jalan or Road
Transport Department of Malaysia (JPJ) and do not get his license revoked by demerit
points.
So the total monthly cost for Mr. Kant alone might be around RM3250(Jan 2020) and it
will increase with the number of an individual’s (parents, wife and children’s) if he
wishes to take his family to Malaysia for visit purpose or for the settlement.
Paid Vacation: In Malaysia, employees are paid for vacation on the basis of their
seniority and performance in the company. According to the Malaysian Labor
Law prescribes a minimum of 10 days of paid holidays in a year. So Mr. Kant
would also get the same paid vacation provided according to the law.
The Income TAX slab is hit by each and every country for the betterment of whole
nation as well as for the citizens of their nation. Personal and Family Income Tax slab of
both the home and host country in 2020 is given below:
Nepal: The tax rate for both individual and non-individual (couples/family)
according to their monthly income differ in Nepal. The direct tax for an individual
and non-individual is shown in table below:
Up to NPR 400,000 1%
Taxable Income > NPR 2,000,000 36% (20% additional tax on the
calculation made under 30% slab)
Malaysia: The tax rate in Malaysia for an individual is shown in below table:
Up to MYR 5,000 0%
So according to the comparison of Malaysia and Nepal taxation Mr. Kant has to pay
more tax in Malaysia than he was paying in Nepal.
statement from his employer (if possible), which makes the work easier and faster.
Along with his Malaysian bank account he can also apply for a credit card which will be
billed in Malaysian Ringgit. To obtain a credit card, he will have to provide documents
like your passport and permanent work permit, his pay slips and returned income tax
payments.
While living in a non-city area Mr. Kant must use transportation to travel from his
housing to the work area. For transportation purpose we would like to recommend Mr.
Kant to get the monthly public transit pass which would cost him around RM125 –
RM150. If Mr. Kant wishes to use traffic taxi it would cost him RM20 (8km/hrs.).
Health care and Insurance is the major issues for an employee working abroad.
Treatment for foreigner in Malaysia costs more than what Malaysian pays. As in Nepal
private hospitals are costlier than that of government hospitals in Malaysia. To protect
employees who face risk of retrenchment, the Malaysian government launched an
employment insurance scheme from 27 October 2017. The insurance scheme, which
Medical Insurance: This insurance can cover hospital visits, doctor visits,
surgeries, prescriptions and possibly vision and dental.
Life Insurance: If the employee dies, this insurance will provide financial
payment to the employee’s named beneficiaries; these benefits can help that
person’s family.
Disability Insurance: If the employee is injured or has a lengthy illness, this
insurance provides payment during the period employee cannot work.
The estimated cost of total consumption and benefits is shown in table below:
Conclusion
As the cost of living in Malaysia is high than that of Nepal but the lifestyle and the future
settlement is far better than that of Nepal. From the research Mr. Kant might face some
problems in starting due to business culture difference but with time he can settle down
the things and obstacles.
Overviewing as a whole we would recommend Mr. Kant to accept the job and go to
Malaysia as it is a developed country which would provide him an opportunity to learn
and develop his skills and knowledge. Along with that the compensation cost is also
very high as in Nepal, he has gross drawing of NRP150,000 which would be
NRP2226252. With this the living life style of his parents and wife will be better along
with the bright future of their children’s.
References
4. Home and host country taxation: 3E ACCOUNTING (for Malaysia) and Bajra
Technologies Blog (for Nepal) (online)
Source: (www.3ecpa.com.my/resources/Malaysian-taxation/individual-income-
tax/)
Source: (www.blog.bajratechnologies.com/brief-discussion-about-salary-tax-in-
nepal/)