Document background
The Intercompany Shared Services Agreement is essential for Malaysian corporate groups implementing centralized service delivery models. It is typically used when a company within a group provides specialized or support services to other group entities, enabling operational efficiency and cost optimization. The agreement addresses key aspects such as service scope, performance standards, pricing mechanisms (compliant with transfer pricing regulations), governance structure, and risk allocation. Under Malaysian law, particular attention must be given to Companies Act 2016 requirements, tax implications, data protection compliance, and employment considerations. This document serves as the primary contractual framework for shared services arrangements, ensuring clear accountability, service quality, and regulatory compliance while facilitating efficient group operations.
