Category: Client Stories

Case Study: Streamlining Cross-border Payroll Solutions for Malaysia’s Manufacturing Sector

Case Study: Streamlining Cross-border Payroll Solutions for Malaysia’s Manufacturing Sector

Case Study: Streamlining Cross-border Payroll Solutions for Malaysia’s Manufacturing Sector

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Client Profile

BoardRoom Malaysia’s client is a multinational corporation operating in the Asia-Pacific region, specialising in the development, production, and sale of ingredients for fragrance, flavouring, food, cosmetics, and other functional products. With a diverse portfolio serving over 6,000 customers in 150 countries, the client has established a significant presence in multiple markets, including Singapore, Malaysia, Thailand, Indonesia, Philippines, and Vietnam.

To support its regional growth and enhance operational efficiency, the client required a unified cross-border payroll solution for its workforce in Asia, spread across seven countries. Given the complexities of managing a large-scale, multi-country operation, they sought a single point of contact for their payroll and HR needs, allowing seamless integration across jurisdictions and aligning with their strategic business priorities.

Challenges with Previous Vendor

The client, a prominent leader in the manufacturing sector with operations spanning multiple Southeast Asian countries, faced significant issues with their previous payroll provider.

These challenges hindered efficient payroll processing and HR management, causing operational setbacks:

Error-Prone Payroll System
The former vendor’s payroll system struggled with inaccuracies, often resulting in delayed or incorrect payments. Given the large number of employees across several countries, these errors significantly affected employee satisfaction and complicated payroll reconciliation.
Lack of a Centralised Point of Contact
High turnover among the vendor’s personnel made it difficult for the client to maintain consistent communication. The absence of a dedicated regional engagement manager meant that local payroll regulations were not always understood or adhered to promptly.
Poor Integration with Attendance Systems
In manufacturing, accurate attendance tracking is essential for payroll accuracy. The client’s previous system could not integrate with their existing attendance software, leading to manual data entry, increased chances of errors, and inefficiencies in payroll processing.

These challenges highlighted the client’s need for a reliable payroll partner who could provide a seamless, efficient, and compliant payroll process capable of addressing both their operational complexities and multi-country requirements.
Challenges with Previous Vendor

BoardRoom Malaysia’s 2-Step Payroll Solution Approach

To address the client’s needs, BoardRoom Malaysia adopted a two-step approach, combining payroll expertise with an integrated HRMS platform to deliver comprehensive payroll solutions. This strategy is designed to simplify complex payroll processes and enhance overall efficiency.

Payroll Expertise & Dedicated Engagement Manager

BoardRoom Malaysia leveraged its extensive cross-border payroll expertise, offering a deep understanding of regulations across multiple countries. A dedicated engagement manager was appointed as the single point of contact for all payroll-related matters across the client’s seven locations in Asia. This ensured:

  • Efficient Communication: The client could now navigate payroll processes smoothly, resolving issues quickly through a single point of contact.
  • Informed Compliance: With a regional specialist overseeing payroll, the client was assured of adherence to each country’s specific payroll regulations, reducing compliance risks.

Integrated Cloud-based HRMS Platform – Ignite

Recognising that the client’s payroll and attendance systems required seamless integration, BoardRoom implemented its cloud-based HRMS platform, Ignite. The multi-country payroll system provided:

  • Seamless Attendance Integration: Ignite’s time and attendance module integrated directly with the client’s clocking system, automating data transfer and eliminating manual input. The automation of attendance tracking not only improved accuracy but also sped up payroll processing.
  • Centralised Payroll Access Across Multiple Countries: The client could manage multi-country payroll operations across all their Asian countries from one platform, streamlining their administrative workload and improving overall payroll efficiency.

Through these two key capabilities, BoardRoom Malaysia offered the client a robust and reliable cross-border payroll solution that addressed their immediate needs while also enhancing the client’s ability to manage a multi-country workforce effectively.

Dedicated Engagement Manager

Results and Recommendations

The implementation of BoardRoom’s cross-border payroll solutions led to notable improvements for the client, driving efficiency and supporting smoother HR operations, such as:

Enhanced Accuracy and Timeliness
Automating attendance data integration into payroll significantly reduced errors, ensuring employees received accurate and timely payments.
Streamlined Communication and Quick Issue Resolution
The dedicated Engagement Manager allowed for direct and efficient communication, fostering rapid issue resolution and adherence to country-specific compliance requirements.
Improved Operational Efficiency
A unified multi-country payroll and attendance system enabled the client to achieve a more streamlined payroll process, reducing administrative overhead and enabling HR teams to focus on strategic business priorities.

The client’s successful transition to BoardRoom Malaysia’s payroll system demonstrates the impact that a well-integrated and reliable solution can have on a manufacturing company’s HR processes. With BoardRoom’s support, the client could efficiently navigate the complexities of cross-border payroll across multiple jurisdictions, enhancing overall business operations.

In the context of the Malaysian manufacturing sector, this case reinforces the importance of seamless payroll management to support business growth. For an in-depth look at payroll strategies within the manufacturing industry, BoardRoom’s article on mastering payroll in the manufacturing industry offers further insights into advanced solutions for managing a global workforce. Companies seeking tailored payroll expertise can also explore BoardRoom’s payroll services in Malaysia.

About BoardRoom

BoardRoom Malaysia’s commitment to providing customised payroll solutions has become a driving force for its clients, where the company’s services offer seamless integration with existing systems, greater accuracy, and comprehensive HR operational support. With their ability to understand industry-specific needs and deliver solutions that enhance business efficiency, BoardRoom continues to be a trusted partner for payroll outsourcing services and the leading provider of multi-country HRMS solutions in Malaysia.

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Case Study: Optimising Tax Efficiency in Profits Repatriation

Case Study Optimising Tax Efficiency in Profits Repatriation

Case Study: Optimising Tax Efficiency in Profits Repatriation

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Client Profile

BoardRoom’s client, a multinational conglomerate with a diverse portfolio, operates through subsidiaries in various jurisdictions, including Indonesia, Malaysia, Philippines, Thailand and Vietnam. As part of its corporate strategy, the client is exploring tax-efficient options for repatriating profits via dividends and royalties from its operating subsidiaries.

Specifically, the client is evaluating two jurisdictions—Singapore (SINGCO) and Hong Kong (HKCO)—for establishing the Investment Holding Company and the Intellectual Property (IP) ownership in order to maximize tax efficiency in profit repatriation.

BoardRoom Group’s 2-Step Tax Approach

In assisting the client to achieve its tax-efficiency objectives, BoardRoom adopted a two-step approach:

The first step involved the assessment of the tax regimes of Singapore (SINGCO) and Hong Kong (HKCO) to determine the tax-optimal location for establishing the Investment Holding Company and IP ownership.

Key considerations included corporate tax rates, availability of tax incentives and exemptions, application of tax treaties, as well as economic substance requirements.

In the second step, BoardRoom evaluated the corporate income tax implications of repatriating profits via dividends and royalties from the operating subsidiaries to SINGCO and HKCO. The assessment focused on domestic and treaty withholding tax rates, tax exemptions and the overall tax burden associated with each jurisdiction.

About BoardRoom

850
Dedicated Team Members

BoardRoom offers leading business solutions, including corporate and advisory services, in the Asia-Pacific region. We provide accurate, prompt and reliable corporate solutions for every element of your business.

Over 50
Year Proven Track Record

BoardRoom takes your business further, faster, at all stages, with an integrated suite of corporate solutions driven by innovation and technology.

7,300+
Clients Globally

Our team of experienced professionals has the comprehensive local knowledge and commercial experience you need to grow your business in the Asia-Pacific region.

Recommendation: Overall Consideration of Tax and Non-Tax Factors

Based on BoardRoom’s tax assessment, recommendations were given to the client on a tax-optimal location for establishing the Investment Holding Company and IP ownership, as well asthe tax-optimal strategy for repatriating profits. BoardRoom’s assessment has considered both Singapore (SINGCO) and Hong Kong (HKCO) from various tax angles, including corporate tax rates, tax incentives, treaty benefits and the overall tax burden associated with profit repatriation.

The final decision also considered non-tax factors such as the client’s strategic business requirements and specific operational priorities, as well as the business ecosystem, regulatory environment and geopolitical stability in Singapore versus Hong Kong.

By incorporating both tax and non-tax factors into its decision-making process, the client can confidently move forward with its tax-efficient repatriation strategy, while ensuring compliance and minimizing tax risks.

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BoardRoom People Expertise: Payroll Client Story

Payroll Expertise

BoardRoom People Expertise: Payroll Client Story

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Client Profile

The Client is a multinational company that owns some of the world’s most iconic beverage brands that are enjoyed globally.

The Asia-Pacific branches make up almost one-fifth of their operations, where BoardRoom is currently the payroll outsourcing provider for 10 countries – Singapore, Australia, Japan, Korea, China, Taiwan, Thailand, Vietnam, Indonesia and Myanmar. In total, we are responsible for 100% of their APAC workforce, which totals 1687 employees.

Payroll Challenges

One of the challenges MNCs face when expanding or maintaining payroll operations within Asia-Pacific is the lack of understanding between subtle nuances across labour governance frameworks in the region.

About BoardRoom

17
Countries

We provide Payroll Outsourcing services across 17 countries, including Singapore, Malaysia, Australia, Hong Kong & Mainland China

24,000
employees

We take care of the payrolls of almost 24,000 employees across Asia Pacific

100%
first-time accuracy

100% first-time accuracy for payroll processing

01 Ensuring Compliance to Latest Payroll Regulations

With its diverse cultural landscape, Asia-Pacific is well-known for its intricate payroll needs that often require specialised knowledge. Payroll regulations change frequently, which can prove challenging for HR teams to keep track of, especially if they’re unfamiliar with the country’s labour laws. This lack of knowledge can negatively impact companies through payroll fines and dissatisfied employees that experience payroll miscalculations.

This is especially challenging for larger companies due to their diverse employee payroll profile which requires an in-depth knowledge of the different payroll calculations and deductions for each employee. As a result, some HR teams in MNCs can struggle to ensure payroll compliance while also performing administratively heavy tasks such as checking and dispersing wages.

02 Impact on Productivity

When operating across multiple countries, payroll processing can often be done in siloes by individual payroll teams resulting in a lack of standardization across processes and workflow. Moreover, as companies expand into new markets, it can be challenging for the HR management to maintain oversight with every country and or states unique legal and social landscape. This can reduce productivity of HR teams as more effort is required to check errors and ensure accuracy.

Companies with rapid expansion plans might find it hard to build their HR administrative operations within the quick timeframe required to meet growth ambitions. The Client recognised this fact and identified the need for an experienced regional payroll outsourcing partner who could support their growth across Asia-Pacific.

The Solution

With the above challenges in mind, BoardRoom focused on how we could streamline their payroll operations. With our expertise in processing payroll for large multi-national companies across the Asia-pacific region, we support them as they continue to grow.

01 Ready Access to Regulatory Advice

The first step was ensuring that they could access the depth of regional knowledge and expertise that the BoardRoom team possesses. Companies spanning multiple jurisdictions require timely guidance on regulatory updates or necessary deductions, which BoardRoom provides. From advice on ad-hoc bonus payouts and the deductions required or what reliefs for payroll-related taxes that the company can qualify for, BoardRoom has the expertise to advise accordingly. In addition, our team’s experience and expertise enables us to analyse existing HR frameworks and optimize processes for the best payroll performance.

02 Standardised Framework

Next, we looked into centralizing standard payroll operations across the APAC branches, meaning they were able to shift away from siloed payroll processing. Through analysis of existing structures, BoardRoom made informed recommendations to assist in streamlining of processes. This helped boost efficiency of their regional payroll processing and provide more control and foresight for planning.

Capitalise on BoardRoom’s Asia-Pacific payroll experience today

As a global company, payroll compliance is challenging to maintain consistently across the APAC region. That’s why picking the right payroll outsourcing partner is essential to keeping your payroll processing as compliant as possible. A reliable partner like BoardRoom will be able to:

  • Guide you on specific local payroll advice across the region
  • Advise you on regulatory concerns and relevant updates
  • Help you standardize processes across the region

Are you interested in engaging our expertise to optimize your regional payroll processing? Reach out to us to discuss in greater detail how you can capitalise on our experienced regional payroll experts.

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