20 Best Dropshipping Suppliers In Malaysia in 2025

Looking to start dropshipping in Malaysia in 2025? This guide reveals the best free suppliers, insider tips, and everything you need to build a profitable online business.

Whether you’re just starting or scaling up, you’ll find suppliers with fast shipping, no membership fees, and high-margin products tailored for Malaysia’s growing eCommerce market.

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Top Malaysian Dropshipping Suppliers Comparison Table

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20 Best Dropshipping Suppliers In Malaysia in 2025

Let’s name some of the best dropshipping suppliers in Malaysia that offer the best services for dropshipping. Here they are:

1. Zendrop

Zendrop

Best For: General merchandise, private label, automated fulfillment

Product Price Range: From $1.22 to $20+ depending on category

Shipping Times: 7–14 days to Malaysia

Zendrop is an excellent platform for those looking to start a private label dropshipping business.

They offer automated order fulfillment and custom branding options from both US and global suppliers. The shipping times range from 7 to 14 days, and there is no minimum order quantity.

Zendrop provides flexible options for businesses to test new products without heavy investments, offering plans that include a free option, as well as Pro and Plus plans.

Pricing Plans:

• Free: $0/month – Access to 1M+ products and unlimited orders.
• Pro: $49/month – Includes custom branding and automated fulfillment.
• Plus: $79/month – Adds features like live weekly coaching calls and Zendrop Academy access.

2. Heartbeat

These guys sell personalized gifts and offer 50% profit margins per product sold. You can resell tons of their gifts, such as:

• casings
• glass frames
• pill cases
• cushions
• mugs
• t-shirts
• keychains
• coasters, and much more.

Also, their product costs range between $5 and-50, depending on the product type. Furthermore, their shipping times and costs vary depending on location.👇

• They ship in West Malaysia, the shipping cost is around $2, and the shipping time is 3-5 days.
• For East Malaysia, the shipping costs are around $3, and the shipping time is 5-9 days.
• For Singapore, shipping costs are around $7, and the shipping time is around 8-12 days.

Furthermore, they offer multiple payment methods and collaborate with CIMB Bank, Maybank, Hong Leong Bank, HSBC, and others.

However, while a great personalized gift supplier – does not offer API/app integrations to automatically sync with Shopify or other stores.

Orders have to be placed manually on Heartbeat’s system. This was not explicitly stated in the original article.

Contact: order@HeartBeat.my
Address: No. 30, First Floor, Jalan Tiara 4, Bandar Baru Klang, 41150 Klang, Selangor D.E. (Near by Jusco, Bukit Raja)

3. Kime

The recipient of multiple Asian E-commerce awards, Kime, is considered one of Malaysia’s top dropshipping fashion dropshipping suppliers

Through their reselling program, you can find featured, best-selling products and special offers to dropship. They sell all sorts of clothing, including modern and hijab clothing, for all women.

Thus, their product costs range between $1 and-30. What’s more, they ship your orders with personalized branding. Also, as they claim, most dropshippers increase their prices by 45% or more.

Also, their average order processing time is 1-3 days. However, remember that you will have 2-3 days to make the payment; otherwise, their system will cancel the order.

Contact: pusatpakaiankime@gmail.com
Address: 12A, Jalan Laman Intan, Bandar Baru Teluk Intan, Teluk Intan, Perak

4. Asogo

Specializing in bikes and bike accessories, Asogo is one of the few dropshipping suppliers in this niche. This provides dropshippers with more profits, given the fact bicycles cost more than most other products.

Furthermore, their product costs range between $1 and $150. The average order processing time is 2-5 working days.

They use multiple online payment methods, including CIMB Clicks, Alliance Bank, RHB Bank, and others.

Contact: support@asogo.com
Address: Lot 2757, Jalan Raja Nong, Taman Sentosa, 41200 Klang, Selangor

5. Summerglitz

Yet another fashion clothing dropshipping supplier from Malaysia, Summerglitz, offers a wide range of wardrobe essentials for women of all ages.

There are profits to be made from all the maternity clothes, party dresses, formalwear, and clothing for any other occasion. What’s more, they welcome dropshippers, wholesalers, and other resellers at any time.

Furthermore, their product costs range between $2-20. They are also in the jewelry dropshipping products market.

Contact: sales@summerglitz.com.my
Address: E-10-1, Putra Walk, 43300 Seri Kembangan, Selangor

6. SaveValue2u

This wholesaler and dropshipping supplier is undoubtedly one of the best in Malaysia, offering products in several categories.

They offer special prices on certain products, some of which can be very profitable. To increase sales, the company has integrated its inventory within Shopee and Lazada, Malaysia’s biggest e-commerce platforms, similar to Amazon and eBay.

Furthermore, if you want to check on the pricing, you must log in first.

Contact: savevalue@hotmail.com
Address: 60, Jalan LP 1a/5, Lestari Perdana, 43300 Seri Kembangan, Selangor

7. DropshipMalaysia

DropshipMalaysia is a niche supplier of home and lifestyle products. Thus, some of the products they offer include laundry baskets, smart mugs, and notepads.

However, if you want to learn the pricing, you must log in first. Plus, registration is free

Furthermore, this dropshipping supplier integrates with Lazada and Shopee

In addition, the payment methods that they support are:

• Visa
• MasterCard
• FPX
• KiplePay

The delivery services they support are Shopee Express and J&T Express.

8. CJDropshipping

You’ve probably heard about CJDropshipping by now. Thus, it is a general dropshipping store offering every piece of product you can imagine.

But did you know that they have a warehouse in Malaysia? Well, they do! So, when you buy products from the Malaysia warehouse catalog, your customers will receive their orders quickly.

However, if you can’t find the product you need, CJdropshipping can help you find it and add it to their catalog with their sourcing service. Also, the average order processing time is 1-3 days.

Furthermore, CJDropshipping integrates with:

• Shopee
• Lazada
• Shopify
• WooCommerce
• eBay
• ShipStation

👉 Check out the CJ Dropshipping Review: How Does It Work? Pros & Cons, Comparison & Features.

Moreover, this supplier does not charge any monthly membership fees.

9. Dropezada (Lazada Shopping)

Dropezada is a top choice if you want to dropship in Malaysia on Lazada. It works for Shopee too, but it is primarily designed for the Lazada platform. This makes it a great partner for Malaysian dropshipping because many suppliers in this system are based in Malaysia.

With Dropezada, you can offer free shipping worldwide. They ship not only to Malaysia but also to many other countries.

You can ask the Dropezada team to build a dropshipping store for you, so you don’t have to sell exclusively on Lazada or Shopee.

The platform integrates seamlessly with both Lazada and Shopee.

Pricing Options

This supplier offers two membership options:

VIP Members:

• Monthly Fee: RM10.00
• Sign-up Fee: RM29.00

Dropezada Membership:

• Monthly Fee: RM10.00

The app syncs with Lazada and Shopee, offering a wide range of product categories. You get a 30-day window for refunds, and they provide free shipping worldwide. However, the pricing for the store setup is not transparent.

Dropezada is ideal for Lazada because the suppliers here will ship products in less than 24 hours, ensuring you meet Lazada’s shipping service level agreement (SLA).

10. Kumoten

Kumoten is another excellent option, especially if you want more variety in your inventory. It’s highly recommended for Malaysian dropshippers who need a broad selection of products.

The system integrates with Lazada and Shopee and offers numerous product categories from which to choose. The company accepts several payment methods, making it easy to fulfill orders.

It also offers automated dropshipping processes and allows you to sell on different marketplaces.

Kumoten offers a membership plan for dropshippers which costs RM69.90 for 6 months.

Delivery can take up to a month, and the dropshipping fee is not clearly stated.

However, Kumoten allows you to deposit money into your account, which you can use to pay for orders. This benefits those who want to dropship without a credit card.

11. AliDropship

AliDropship is a plugin for WooCommerce and is perfect for dropshippers in Malaysia looking to tap into the vast product range of AliExpress. AliDropship connects you with thousands of AliExpress suppliers, allowing you to source products from a vast range of categories.

You can request the AliDropship team to build a store for you, including hosting, for around $300. The WooCommerce plugin provides access to millions of products from AliExpress and offers the convenience of replicating a successful store.

You can only import products from AliExpress, but AliDropship offers direct access to AliExpress products and a plugin that works well with WooCommerce.

12. Shein

Shein is a major player in the fashion industry and is ideal for those wanting to dropship Malaysia clothing. They offer fast shipping times at low prices.

Shein has products in almost every category, including swimwear, blouses, pants, and gym wear.

They offer refunds within 30 days, except for intimate goods like lingerie. The company frequently has sales, allowing you to buy items at lower prices and achieve higher margins.

There is no app for integration, so processes are manual. However, Shein’s vast range of categories, fast and affordable shipping, and reasonable refund policy make it a great choice for fashion dropshipping.

Also, Shein’s shipping, while affordable, can take 1-2 weeks to Malaysia, which is slower than local suppliers.

13. Megagoods

Megagoods specializes in consumer electronics and charges a $1.50 fee per order with no minimum purchase requirement, making it efficient for dropshipping.

They offer a wide variety of electronics, including Bluetooth accessories, audio equipment, televisions, kitchen appliances, and office tools.

Based in California, they ship domestically and have no minimum purchase requirement, which is ideal for businesses in this niche.

14. Wholesale Central

Wholesale Central offers a no-cost way to search for dropshipping options. The website reviews and screens all suppliers to ensure legitimacy.

They offer products across popular categories like apparel, beauty, and electronics from over 60 dropshipping suppliers. The suppliers are US-based, with varying shipping times, providing a wide range of options for finding reliable dropshipping suppliers.

15. Modalyst

Modalyst is an automated dropshipping app that includes products from luxury brands like Calvin Klein and Dolce & Gabbana.

They have an official API partnership with AliExpress, providing access to millions of products.

The app supports integration with online stores through a Google Chrome extension and offers high-end brands and a vast product range.

16. Shopee

Shopee is perfect for a mobile-centric dropshipping business. Its user-friendly interface and engaging shopping features make it popular among tech-savvy users.

Shopee prioritizes the mobile shopping experience, offers integrated payment solutions with ShopeePay, and provides sellers with analytics and marketing tools. Shopee also features interactive games and live streams for customer engagement.

Shopee provides various shipping options, including standard delivery and overseas warehouses, ensuring faster delivery times.

17. Sweet Home Planet

From home and body accessories to electronics and toys, Sweet Home Planet provides dropshippers with the best deals for all ages and genders. Hence, you have more than 400 products to choose from.

Thus, their product costs range between $1-20. Moreover, the payment methods they support are MOLPay and PayPal.

Furthermore, they ship their products only in Malaysia within one day.

Also, if you want to start dropshipping, you need to register first. Next, send your email via WhatsApp so that the owners can set dropshipping prices for you.

18. Printcious

If you’re targeting the personalized gift niche in Malaysia, Printcious is a local leader you can’t afford to skip.

Known for its customizable gifts, this platform allows customers to design everything from mugs and T-shirts to puzzles and cushions—making it ideal for birthdays, weddings, and corporate gifting.

What makes Printcious stand out is its built-in design tool and user-friendly dropshipping integration, which lets you run a print-on-demand store without worrying about inventory.

The dropship program is free to join, with no monthly fees, though you’ll need to create an account and get approved.

In terms of pricing, most items start around RM 15 to RM 40, while premium products can go up to RM 80 depending on customization.

Shipping within Malaysia is fast, generally 2 to 5 business days, and starts at RM 8, with free shipping promotions often available for larger orders.

Whether you’re building a custom gift store or just want to test the niche, Printcious offers one of the best localized solutions for Malaysian entrepreneurs.

19. DropshipMurah

DropshipMurah is a well-established name. It offers an extensive catalog, ranging from fashion, beauty, home items, kitchen tools, electronics, to baby products—making it a top choice for general store owners.

The standout feature is their affordable wholesale pricing. Products can range from as low as RM 3 for accessories or beauty tools, up to RM 50+ for more premium or bulky items like cookware or small electronics. This gives dropshippers room to mark up prices and still remain competitive.

Their dropship membership is completely free, though they do offer paid plans with added perks like faster processing or bulk discounts.

Shipping within Malaysia typically takes 3 to 7 days, and delivery fees start around RM 6 to RM 10, depending on product weight and destination.

If you’re looking to build a store with locally sourced items and affordable margins, DropshipMurah is a solid go-to option, especially when compared to similar platforms like SaveValue2u or DropshipMalaysia.

20. Gatti

For those interested in tapping into the fitness and athleisure market, Gatti brings a refreshing, focused alternative.

This Malaysia-based sportswear brand specializes in gym apparel, activewear, and outdoor gear—all designed with comfort, durability, and modern aesthetics in mind.

Gatti has carved a niche in the local market, with its products often highlighted in fitness circles and 2025 supplier rankings for activewear.

Their collection includes leggings, compression shirts, hoodies, joggers, and sports hijabs, with prices ranging from RM 29 to RM 99, depending on the item.

The brand offers a dropshipping program that is free to join, but interested partners are usually required to fill out an application form or get in touch for B2B onboarding.

Shipping times are fast within Malaysia, typically 2 to 4 working days, and shipping fees start at RM 8, depending on order size and location.

What’s great about Gatti is that it gives you a chance to stand out with a niche-specific brand instead of selling generic clothing.

With the growing demand for locally made fitness gear, Gatti is a must-consider for health and wellness-focused dropshipping stores in 2025.

Is Dropshipping In Malasyia Profitable in 2025?

Absolutely, yes!

With a population of over 35.9 million, Malaysia is a great market to start dropshipping. How come? Well, its economy is fast-growing and the IT infrastructure is already set.

In fact, Kuala Lumpur is one of the most developed cities in Asia, thus many IT companies and corporations have set up HQs there.

Also, In 2025, Malaysia’s eCommerce market is projected to hit a total revenue of $8.95 billion, and it’s not slowing down.

Over the next four years, the market is expected to grow at a CAGR of 9.76%, which means by 2029, it could reach nearly $12.99 billion.

Plus, let’s talk money spent per customer — because this matters if you want a profitable store. The average revenue per user (ARPU) is expected to be around $770.56.

That means Malaysian consumers aren’t just browsing — they’re actually spending.

👉 Find the best products to ship from CJ Dropshipping.

How To Start A Dropshipping Business In Malaysia in 2025?

When they decide to dropship in Malaysia, there are a couple of things drop shippers can do. We’ll name a few of them to get you started.

This doesn’t apply exclusively to this country’s dropshipping industry; it can be practiced anywhere.

Thus, what should you know when starting an online dropshipping business in Malaysia? You’ll need to create a business plan, follow the steps, contact a few dropshipping suppliers, and make sure you’re recognized.

Below, you can see a few important segments of how your online business works.

Step 1- Start a Dropshipping Business Plan

It’s not just about creating a business plan and starting out. Think about it this way – what are you enthusiastic about? Do you often read about the latest smartphones or technology and gadgets? Are you a bike lover and go to work with it?

Thus, all these will help you if you’re already a fan of a dropshipping niche category. How? The answer is more than obvious.

Knowing more about the topic will help you get better prices from your supplier, improve your marketing skills, and put yourself in your customers’ shoes, among many other benefits.

As for the dropshipping business plan, you will need to sit down, write any idea that comes to your mind, and define a budget.

💡 Tip: Learn how to make a Dropshipping Business Plan: Tips for Creating A Short Business Plan.

Next, divide that budget between marketing, maintenance, and additional costs. However, none of these will matter if you don’t do proper research first. To help with this, we’ve already defined most of your audience at the beginning of the article.

You’ll already know the market size, mobile users, and other useful information. Start from there, and continue researching.

For instance, If you’d like to sell smartphones, try to find out how many of these mobile users have bought Samsung, iPhone, or Huawei smartphones in the past year or so.

Also, make sure to calculate profits if you plan on decreasing the prices to put your competitors out of business. This leads us to the next segment of the ‘How to dropship in Malaysia’ tutorial.

Step 2 – Choose Your Dropshipping Niche

Start by identifying a market or product category you’re passionate about. Think about your target audience and what products would catch their eye.

Spend time exploring online stores for inspiration. Tools like Google Trends are great for finding popular items for your dropshipping store.

For instance, sportswear is very popular this year. To see local trends, search for a keyword like “polo shirt” and set the region to Malaysia.

You can also use tools like Adserea, Minea, or PipiAds to get insights into market trends.

I use Minea to find winning products and analyze their sales, profit margins, revenue, sellers, and customer engagement.

Step 3 – Choose a Reliable Supplier For Dropshipping In Malaysia

How do you find the perfect Malaysian supplier? Here are some methods and tools to find dropshipping suppliers that you can rely on. Even though most will offer countless discounts, the cheapest isn’t necessarily the best.

Sure, you’d think it would earn you big profits, but think about it in the long run. For example, what if their customer support sucks?

Better yet, what if it takes 15 days for their orders to be shipped and delivered?

The Dropshipping.com supplier directory can help you find Malaysian dropshipping suppliers. It allows you to filter options by product category and supplier location.

You can also filter by shipping costs and other criteria to find the best dropshipping suppliers in Malaysia.

You’ll find details like minimum order requirements, product pricing, order processing times, and contact information.

Also, you should consider some of the following things:

Some Malaysian dropshipping suppliers are members of the eBAM (eBusiness Association Malaysia), which means they’re legally certified to practice online business. So, make sure that the supplier you choose is legal.

Furthermore, other indicators include e-commerce platform integration with Malaysia’s e-commerce platforms such as Shopee, Zalora, and Lazada. Thus, choose the dropshipping supplier that will provide some of these integrations.

In addition. If any of these e-commerce marketplaces have allowed access to your wholesale dropshipping supplier’s inventory, it means they are good.

Generally speaking, if you can’t find what you’re looking for in Malaysia, your online store still needs an Asian-based supplier. So, a good idea would be to conduct research on the neighboring countries, such as Indonesia, Thailand, and the Philippines

Most importantly, you’ll need to find a supplier with great profit margins. Usually, you can find tons of them in Malaysia, but you’ll also need to check out the reviews.

This way, you’ll learn a good deal about the supplier, coming straight from a customer’s perspective.

Step 4- Set Up Your Online Store

Creating your digital storefront is essential. A user-friendly and visually appealing website will attract and keep customers.

Make sure your online store has clear navigation, detailed product descriptions, and high-quality images or videos. Choose an e-commerce platform that fits your needs.

I prefer Shopify because it’s easy to use, flexible, and offers many SEO optimization tools. You can select custom templates and customize them with their drag-and-drop editor.

Moreover, Dropshipping.com offers an AI-generated Shopify Store service for just $1. This service sets up your Shopify store, stocks it with top-performing products in your niche, and creates pages optimized for dropshipping profits.

Simply choose a niche, and their AI will set up your store with high-quality products, ready for you to start selling.

Step 5 – Turn Your Online Store Into a Brand

Most dropshippers forget one important thing. In order to bring their online store to the next level, they need to make it a brand somehow.

Effective marketing is key to attracting customers and boosting ecommerce sales.

So, engage with your target market through social media platforms like Facebook, Instagram, or TikTok.

Remember to confidently partner with influencers or bloggers to extend your reach.

Moreover, create highly engaging content, such as videos and blog posts related to your niche, to boost your SEO and drive substantial traffic to your store.

Plus, I suggest you use the Meta Ads library to confidently find competitor ad copy and identify what’s working for dropshipping in Malaysia.

Set the region to Malaysia, choose an ad category, and confidently type in a keyword to get started.t an ad category, and enter a keyword to begin your search.

Thus, most of them earn profits, so this important segment of dropshipping is being largely neglected.

👉 Check out the Top 10 Shoes Wholesale & Dropshipping Suppliers + Product Ideas

Also, there are a few key points you need to follow, as indicated below.👇

• Offer great customer support and simplicity of purchase
• Be kind and polite at all times because the customer is always right
• Include your customers in loyalty programs (discounts) to keep them coming back
• Offer multiple payment methods to increase sales
• Include great product descriptions as well as clear images of products, not just stock images
• Create a logo and a slogan, and make it sound and look as original as possible

Top 5 Products To Dropship In Malaysia in 2025

Bamboo Fiber Baby Pajamas

Now here’s a smart pick if you’re targeting parents — bamboo baby pajamas. These are super soft, breathable, and people love the “eco-friendly” angle. In Malaysia, I’ve seen a growing number of parents actively searching for safer, chemical-free options for their kids, and bamboo-based clothing ticks every box.

If you find a reliable supplier, you can source them for around $5–$8 (RM23–RM37). You can comfortably price them between $20–$30 (RM93–RM140). That gives you a solid profit margin of 60% to 75% — not bad for something so easy to brand.

Here’s what works best: set up your store with a clean, baby-safe aesthetic and use phrases like “hypoallergenic,” “organic,” and “sustainably made.” Trust me, those words convert.

According to Google Trends, searches for bamboo baby clothes have been rising steadily in Malaysia, and they peak around gift-giving seasons. That’s your signal to run promotions during holidays or baby expos.

Smart Wi-Fi Plugs

Let’s talk tech — smart plugs are still underrated. With smart home devices booming, Malaysians are starting small by automating their plugs. You don’t need to go full smart home — just help people turn off their lights from their phones and they’re hooked.

You’ll find suppliers offering these for $6–$10 (RM28–RM47). You can flip them for around $20–$35 (RM93–RM163), with 50% to 70% profit margins if you keep your ads efficient.

From experience, this product performs best when you create content that shows the plug in action — turning off lights, switching on the coffee maker remotely, that kind of thing. People need to see how it improves their lives. Bundle two together and market them as a “Smart Starter Kit” — that angle helps you sell more per order.

Also, Google Trends confirms it: search interest for “smart plug” has been climbing in Malaysia year over year. That’s your green light.

Personalized Wooden Name Puzzles

If you’re after emotional purchases, this one’s gold. Custom wooden name puzzles sell great as birthday, baby shower, or newborn gifts. Malaysians love anything personalized — it shows effort, and that’s what gift buyers want.

I’ve seen these sourced for $8–$12 (RM37–RM56) and resold between $25–$40 (RM117–RM187). That’s up to 70% profit margin, depending on how premium your designs are.

To succeed, don’t just offer a name puzzle — tell a story. “A keepsake your child will cherish forever” sounds way better than “custom toy.” Use mockups to show different names, offer options in Malay, Chinese, or Tamil — it shows inclusivity, and that builds trust.

When I checked Google Trends, I noticed “personalized baby gifts” spike during festive months like November and December. That’s when you go hard with ads, influencer shoutouts, and bundles.

Pet Grooming Gloves

If you’ve ever sold pet products, you know how loyal that customer base is. Pet grooming gloves are a sleeper hit — they let owners brush pets while petting them, which sounds simple but solves a real hassle. People love the bonding, and pets actually enjoy it too.

Your supplier price will sit around $2–$4 (RM9–RM19). Retail it between $10–$15 (RM47–RM70), giving you up to 80% margins. That’s massive for a product this easy to ship.

Here’s the trick: create TikToks or Reels of people using the glove with cats and dogs, and watch them go viral.

Better yet, bundle the glove with a pet shampoo or deshedding comb, and you’ve got a full grooming kit. You can even target specific pet breeds with your ads — “Perfect for fluffy Golden Retrievers” works better than generic copy.

Right now, Google Trends shows strong interest in “pet grooming” across Malaysia, especially in urban centers where pet owners are more likely to buy convenience tools online.

Resistance Band Sets

Lastly, I always recommend something in the fitness niche — it’s evergreen. But instead of heavy gym gear, go for resistance band sets. They’re light, portable, and perfect for Malaysians doing home workouts.

You can get a full set from suppliers at around $5–$10 (RM23–RM47) and sell it for $20–$35 (RM93–RM163). That’s a clean 50%–70% margin.

I’ve seen success when sellers include a free workout eBook or video course with purchase. That adds value and positions your brand as more than just a reseller. Also, target beginners — people who want to lose weight or tone up without going to the gym.

Google Trends shows that “home workout” and “resistance band” searches spike in January and mid-year (post-Ramadan). That’s your best time to launch.

Legal and Compliance Requirements for Dropshipping in Malaysia (2025)

Dropshipping in Malaysia remains a profitable and relatively easy business to start—but only if you stay legally compliant.

In 2025, there are specific business registration steps, tax rules, import regulations, and product restrictions every dropshipper must understand.

Here’s everything you need to know to protect your business and build it on solid legal ground.

1. Business Registration with SSM

Do I Need to Register My Dropshipping Business?

Yes. In Malaysia, all business activities, including online stores, must be registered with the Companies Commission of Malaysia (SSM).

This legal requirement applies whether you’re operating from Shopee, TikTok Shop, Shopify, or just doing dropshipping via Facebook.

You have a few business structure options, depending on your goals:

Sole Proprietorship (Enterprise)

This is the easiest and cheapest way to start. You can register under your personal name for RM30 per year or choose a custom business name for RM60 per year. This setup is ideal for most beginner dropshippers.

Partnership

Suitable if you’re starting a business with someone else. You’ll both be equally liable for the business.

Private Limited Company (Sdn Bhd)

More suitable once your business grows. Incorporating allows for limited liability, access to financing, and a more professional image, but also brings more administrative and tax obligations.

How To Register Your Business In Malaysia?

You can register either:

• Online through the SSM BizFile portal, or
• In person at an SSM counter

Once approved, you’ll receive a business registration number and certificate.

This number must be displayed on your website or selling page as required by law.

Important: You must register within 30 days of starting business operations to avoid penalties.

2. Taxes and the 2025 De Minimis Rule

Income Tax Obligations

If you’re running a dropshipping business as a Malaysian resident, your profits are subject to personal income tax. Here’s how it works:

• Sole proprietors report business profits as personal income.
• Malaysia uses a progressive tax rate, ranging from 0% to 30%, depending on your income bracket.
• You’ll file taxes using the B Form if you’re self-employed or have business income.

Pro Tip: Keep proper records of all your business expenses (ads, product costs, hosting, etc.) to reduce your taxable income.

If you incorporate (Sdn Bhd), your company pays a flat corporate tax rate of 24%, and you’ll be taxed separately on any salary or dividends you receive.

What If You Work a Full-Time Job?

Even if you’re employed elsewhere, you still need to declare your side hustle income.

The Inland Revenue Board (LHDN) may penalize you for not reporting earnings.

3. Sales Tax, Service Tax & Dropshipping

Malaysia abolished GST in 2018 and replaced it with Sales and Service Tax (SST):

• Service Tax does not apply to dropshippers unless you provide services (e.g., design, consulting).
• Sales Tax is charged at 5% or 10%, but typically only at the import or manufacturing stage, not at the retail level.

So, you usually don’t have to collect SST from customers if you’re just acting as a retailer.

The 2025 De Minimis Rule: Low Value Goods Tax (LVG)

What Changed?

Previously, imported goods valued under RM500 were exempt from tax—this was known as the de minimis threshold.

That changed on 1 January 2023, and now in 2025, Low Value Goods (LVG) under RM500 are taxed at 10% if bought from overseas.

How the New LVG Tax Works

• Applies to goods under RM500 sold by overseas sellers to Malaysian consumers.
• The 10% tax is collected at checkout by sellers or marketplaces registered with Malaysian Customs (if they exceed RM500,000 in sales per year).
• Taxed parcels are labeled with the seller’s LVG registration number to avoid extra import charges on arrival.

What Happens If the Seller Doesn’t Charge the Tax?

If the 10% tax isn’t paid at checkout:

• The package may be held by customs.
• The recipient will be asked to pay the 10% tax (and possibly import duties) before the parcel is released.
• This often leads to delays and unhappy customers.

What About High-Value Items Over RM500?

If the order is above RM500, the LVG tax does not apply. Instead, the shipment is subject to standard import duties and sales tax, usually handled by the courier service.

Does Shipping Method Matter?

Yes. The RM500 de minimis threshold only applies to air courier or postal services. If goods are shipped by sea or land, the exemption does not apply—tax is due regardless.

Dropshipping in Malaysia FAQs

Conclusion

If you’re serious about dropshipping in Malaysia, now’s the time to act.

The market is booming, with projected revenue nearing $9 billion in 2025, and users spending over $770 each on average.

That’s your signal — people are buying, and you need to position your store in front of them.

Here’s what I recommend:

• Start with local suppliers like Heartbeat, Kime, or DropshipMurah if you want fast shipping and lower risk.
• For a broader product range, platforms like CJdropshipping or AliDropship are great options, especially if you’re looking to expand globally.
• Just make sure you check product costs, processing times, and integration options before committing.

Don’t skip the legal side either — register with SSM, keep your taxes in check, and understand the new 2025 Low Value Goods tax rules if you’re importing.

And most importantly: don’t just sell products—build a brand. Set up your store properly, create trust through customer service, and offer real value. If you do that, you won’t just make sales—you’ll build something sustainable.

Ready to make it happen? Scroll back, pick your supplier, and get started today.