Q：
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What kind of company need to apply for a manufacturing license?
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A：
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Companies that are in manufacturing business and fulfill one of the following criteria:
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Company with a shareholder's fund of RM2.5 million or more; or
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Full-time workforce of 75 or more.
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Q：
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What should a manufacturing company do if it does not meet the criteria mentioned above?
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A：
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The company is required to apply for exemption from manufacturing license by submitting an online application to Malaysian Investment Development Authority (MIDA). The function of the exemption letter serves the same purpose as the manufacturing license. It can be used to apply various facilities from the government such as import duty exemptions for machinery and equipment and raw materials as well as the investment incentives subject to meeting the required criteria and conditions.
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Q：
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What are the additional eligibility criteria for application of a manufacturing license?
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A：
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Project’s Capital Investment Per Employee (CIPE) is at least RM140,000.
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The company’s full-time workforce comprises of at least 80% Malaysians.
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At least 25% of the company’s full time workforce are managerial, technical, and supervisory (MTS) staff with a degree and/or diploma/certificate or product value added is at least 40%.
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Q：
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How long does it take to approve a manufacturing license?
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A：
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According to MIDA’s Client Charter, an interim approval letter will be issued within 4 weeks of receiving the complete information. Thereafter, the company is required to furnish the requisite documents listed in the said letter for MIDA to issue the manufacturing license. The whole process will usually take 3 to 6 months.
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Q：
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What will be the consequence of doing any manufacturing activity without a manufacturing license?
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A：
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Anyone conducting manufacturing activity without a manufacturing license is guilty of an offence and is liable to a fine of up to RM2,000 or a term of imprisonment not exceeding six months, as well as an additional fine of up to RM1,000 for each day of default.
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Q：
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What kinds of incentives and benefits may a manufacturing license holder receive?
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A：
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The major tax incentives are Pioneer Status, Investment Tax Allowance and Reinvestment Allowance, import duty exemptions for machinery and equipment and raw materials etc.
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FAQ
