A Complete Guide To Freelancing Online In Malaysia: How To Start, Find Jobs & Boost Income
All you need is a skill and an Internet connection.
Cover image via CanvaWhether you're seeking a weekend side gig, a way to monetise your hobbies, or aiming for a full-time income, freelancing offers flexibility and the opportunity to build something of your own
This comprehensive guide will walk you through the essentials of starting a freelance career in Malaysia legally, affordably, and practically, whether you're a beginner or looking to elevate your freelance journey.
What is freelancing?
Freelancing involves self-employed work where you offer services to clients on a project or contract basis. You're not tied to a single employer, allowing you to choose your clients, workload, and pricing.
In Malaysia, freelancers can operate part-time or full-time across various industries, including:
- Graphic design
- Copywriting and content creation
- Social media management
- Website and app development
- Translation
- Tutoring
- Virtual assistance
- AI prompt engineering
You can undertake freelance work during weekends, after work, or between classes. All you need is a skill and an Internet connection.
Check out these freelance jobs that are 100% remote in Malaysia.
Why are more Malaysians freelancing today?
Reports from the Department of Statistics Malaysia (DOSM) indicate a growing informal sector and increasing participation in diverse work arrangements. The gig economy, a significant part of freelancing, continues to expand in Malaysia. This trend is further fueled by escalating food, transport, and housing costs in 2024-2025.
Freelancing is appealing because it offers:
- Additional income without changing your full-time job
- Flexible hours that fit around your existing schedule
- Opportunities to monetise hobbies like writing, design, or tutoring
- A backup income stream in uncertain economic times
Is freelancing legal in Malaysia?
Yes, freelancing is legal, and you don't necessarily need a registered business (like an enterprise or SSM) to start. However, you're still responsible for:
- Declaring your freelance income to the LHDN (Inland Revenue Board)
- Filing your income tax annually
- Paying zakat (if applicable) and contributing to EPF and PERKESO voluntarily (optional but encouraged)
Tip: If your total annual income (including freelance and any other income) exceeds RM37,333 (after EPF deductions), you are required to register with LHDN and file taxes. You can do this online via e-Daftar on the MyTax portal.
What skills are in demand for freelancers in Malaysia?
You don't need to be a tech expert. Many online freelancers earn part-time income through everyday skills. Here are some in-demand categories:
Notably, AI Prompt Engineering has emerged as a high-demand freelance role. As AI technologies become more prevalent, businesses seek professionals who can craft effective prompts to train and optimise AI models.
This role is gaining traction in Malaysia, with increasing job listings and competitive salaries.
Here's how to start freelancing:
1. Identify what you can offer
Reflect on your existing skills, is it writing, organising, designing, teaching, or something else? Choose one to two services to start. If you're uncertain, browse platforms like Fiverr or Upwork for inspiration.
2. Set up a simple portfolio
Clients want to see your capabilities. Create a free portfolio using:
- Google Drive (upload samples or mock projects)
- Canva (design your service list, pricing, and visuals)
- Linktree (for a consolidated profile link)
- WordPress or Wix (if you desire a personal website)
- No experience? Develop two to three mock samples for hypothetical clients.
3. Register on freelance platforms
Popular sites in Malaysia:
- Upwork – Global, often for longer-term projects
- Fiverr – Gig-based, generally beginner-friendly for specific services
- JobStreet & Hiredly – Search "remote" or "freelance" for local opportunities
- MauKerja & FastJobs – Occasionally list gig opportunities
- Facebook groups – Join "Freelancer Malaysia," "Job Vacancy Malaysia," or niche-specific groups (e.g. "Graphic Designer Malaysia"). Do note these are highly competitive groups.
Bonus: Establish a LinkedIn profile and regularly post your availability and showcase your work.
4. Set your rates
Begin with a fair introductory rate that's sufficient to cover your time and effort, yet competitive.
Example starter rates:
- Blog post (500–800 words): RM50–RM150
- Social media post design: RM25–RM50
- 1-hour tutoring: RM40–RM100
- Resume writing: RM80–RM150
As you accumulate experience and testimonials, incrementally raise your rates.
5. Manage payments
For local clients:
- Accept bank transfers (DuitNow, FPX)
- Use invoices via Google Docs, Canva, or Excel
For international clients:
- PayPal (convenient but higher fees)
- Wise (formerly TransferWise) – Lower fees, swift transactions
- Payoneer – Particularly useful for Upwork users
Pro tip: Always agree on clear payment terms (e.g. front-end deposit, full payment upon completion, etc.) before commencing any project.
Where to find freelance clients in Malaysia
Here's where Malaysians discover paying gigs:
- Facebook groups – Search for "graphic designer Malaysia," "writer Malaysia," or industry-specific terms
- LinkedIn – Regularly post your skills and portfolio; connect with potential clients and industry professionals
- Carousell – Some freelancers advertise services here
- Instagram – Create a professional service account, share tips, and showcase work samples
- Networking events – Attend industry events, workshops, or online webinars to meet potential clients and collaborators
- Referrals – Encourage satisfied clients, as well as colleagues and friends who have seen your work, to recommend your services to others
- Cold outreach – Contact small businesses via email or direct message with a tailored offer
Example: "Hi, I noticed your Instagram hasn't been updated recently. I'm a part-time content creator, would you be interested in a simple monthly content package to boost your online presence?"
How to stay organised and productive
Balancing freelancing with other commitments? These tips can help:
- Use Google Calendar or a dedicated planner to allocate specific freelance time
- Track projects with tools like Notion, Trello, or a simple spreadsheet
- Set boundaries. Prevent burnout by limiting the number of clients or projects you accept.
- Automate invoices or maintain a straightforward spreadsheet for payments and expenses
How to pay tax as a freelancer in Malaysia
As a freelancer, you are considered a self-employed individual by LHDN. This means you are responsible for your own tax declarations and payments.
When to file:
Annually. The deadline for self-employed individuals with business income (using Form B) is June 30th (with an extended deadline of July 15th for e-filing).
If you are a part-time freelancer with a primary employment income and have NOT registered your freelance work as a business with SSM, you may file your primary employment income under Form BE (deadline April 30th / May 15th for e-filing) and declare your freelance income as "other gains and profits" or "statutory income from interest, discounts, royalties, pensions, annuities, other periodical payments, and other gains and profits" within that form.
However, if your freelance work is consistent and resembles a business operation, LHDN may deem it as business income, making Form B more appropriate. It's generally safer to consult LHDN or a tax advisor if unsure.
How to file:
- Register with e-Daftar LHDN: Obtain a tax file number if you don't have one
- Maintain detailed records: Keep comprehensive records of all freelance income (invoices, receipts of payments) and expenses (Internet, software, equipment, professional development courses, etc.). These expenses can be claimed as deductions if you file under Form B, potentially lowering your taxable income.
- File via e-Filing LHDN: Submit your annual tax return through the MyTax portal
- Claim available tax reliefs: Freelancers are eligible for many of the same personal tax reliefs as salaried individuals (e.g. lifestyle, medical, education, EPF/PRS voluntary contributions, PERKESO self-contributions, etc.)
What are the pros and cons of freelancing in Malaysia?
Pros:
- Flexible schedule
- Additional income utilising your skills
- Remote work from home
- Can commence with minimal capital
Cons:
- No mandatory EPF/PERKESO unless self-contributed
- Income isn't guaranteed
- You're responsible for all aspects (payments, deadlines, clients, marketing)
- Potential for isolation and lack of structured support
While it may be tempting to quit your full-time job to become a full-time freelancer, do take note of the risks involved. It may be more beneficial to freelance on the side for additional income, rather than making it your sole source of income.
Here are some tools that can help make freelancing online easier for you:
Freelancing in Malaysia has become a viable avenue for earning additional income, especially in today's economic climate
Start modestly, offer your skills, and maintain consistency. Remember, many full-time freelancers began with just one side gig.
Whether you're aiming to settle debts, save for the future, or eventually transition from your day job, freelancing can facilitate your goals.
