A notable shift is underway in Southeast Asia as multinational companies increasingly move portions of their operations from higher-cost, traditional destinations like Singapore to new destinations such as Malaysia.

Recent examples of movement away from Singapore were highlighted in the CNBC story, including H&M’s decision to relocate its Southeast Asia headquarters to Kuala Lumpur, Heineken’s transfer of production activities to Malaysia and Vietnam, and manufacturing consolidations by Gardenia and Yeo’s into Malaysia. Industry experts describe this as a clear acceleration of a trend that gained momentum throughout 2026. The drivers include lower labor and operating costs, attractive tax incentives, access to larger industrial sites, and opportunities to serve Malaysia’s larger domestic market, also available in regional hotspots including Indonesia, the Philippines, Thailand and Vietnam.

When companies relocate operations, people move too. As companies create regional hubs, manufacturing facilities and operational teams in Malaysia, Vietnam and beyond, consideration must be given to how best to support this talent being deployed or recruited to these new locations.

For mobility leaders, this shift is more than a regional real estate or cost story. It is a reminder that business-location decisions quickly become workforce decisions, and that early planning for immigration, relocation support, destination services and family needs can determine whether a move succeeds or becomes a costly retention risk.

Relocation support through the right benefit program can be mutually beneficial by protecting all parties and creating an experience that reinforces the brand as an employer of choice.

Immigration Services

It is easier to cross borders today than ever, which increases the challenge when managers and project leads want someone in a new location “today.” Because companies move fast, mobility teams need proper policies and channels for all cross-border movement, whether it involves a new hire or an internal transfer. These include traditional assignments and relocations, but with digital immigration systems implemented in countries such as Malaysia, Thailand and Indonesia, tracking and enforcement have become easier. Business travelers, remote workers and commuters need the same level of attention. There is less room for error, intentional or otherwise, and the repercussions for the company and employee are increasingly serious. By April of this year, the Immigration Department of Malaysia had levied over RM 6 million (USD $1,474,000) in fees on companies for immigration violations.

Immigration procedures are complex and involve employer sponsorship requirements in the destination as well as the employee qualifications.  The position will often also require things such as local labor market testing, minimum salary requirements, and role specificity.  A visa consultation at the earliest opportunity can help HR and Mobility teams prepare for the process and efficiently vet the candidate.

Employee Support as an Incentive and Facilitator

Convincing a job candidate or existing employee to uproot themselves and often their family can be difficult.  Individuals leave familiar surroundings, friends, and family.  Families feel the additional loss of schools, extracurricular activities, and support systems.  The costs associated with moving can also be a personal barrier.  Closing out a home in one location, then moving belongings and finding a new place to live, all come with unintended expenses incurred only because of the relocation or assignment.  Even shorter-term moves have increased costs for at least duplicate housing.  But costs of time and energy must also be considered.

Companies can remove the financial burden by implementing policies that pay for or reimburse these direct expenses.  The amount and manner of this support can help secure the employees’ acceptance.  It can also be used as leverage by hiring managers who are recruiting against another organization.  Care must be taken, as relocation financial benefits can also create a tax liability for the employee, and the company should consider whether it will provide the costly “gross-up” payment to cover the tax incurred.

Removing the employee’s immediate financial burden is critical, but maximizing that financial investment through a satisfied, happy employee who settles quickly and focuses on the job, not the relocation, is equally important.  This is where Destination Services enter the picture.

Destination Services is a suite of programs that help employees and their families arrive comfortably in their new location and quickly settle into their new home.  There is obvious support, such as temporary housing, and less obvious programs that provide employees with an experienced local advisor to fast-track the relocation process and guide them through unfamiliar local processes, drawing on local knowledge to ensure the best outcomes.

Typical Destination Services will include support to learn about the area through an Area Orientation, which can also be used to allay concerns before job acceptance in the form of a Recruitment Tour.  Figuring out which neighborhood will fit commuting and lifestyle needs is often the top concern unless there are children involved.  The School Search and Home Search programs are available in various forms to support those processes.   Lastly, learning how to live in the new location is heavily facilitated by Settling In services that get things connected, bank accounts opened and even instruct on getting a driving license or riding a bus.

A plethora of options are available beyond basic support, including cultural and language training for employees and family members.  Depending on local language skills, tools like tenancy management can help provide communication in case of issues with the new home.   In China, to ensure the correct tax document is collected in the correct amount, Fapaio Service can be used.  Even in cases where the employee is returning home or going to another new location, Departure Services help to ease the burden.

Improving the employee relocation experience not only demonstrates a company’s care for employees but, for recruits or current employees, can help create a positive impression that boosts retention.

As we see, in hotspots and growing areas, increased demand for housing and schools can cause local conditions to change rapidly. In Malaysia, housing availability has decreased, and costs have risen in response to higher demand. We will feature Malaysia in our Q3 Asia Situation Update to provide more detailed insights from our local team on the factors affecting relocating employees.