• How to obtain a Manufacturing license Malaysia

What Is Considered Manufacturing Activity?

“Manufacturing activity” as the making, altering, blending, ornamenting, finishing or otherwise
treating or adapting any article or substance with a view to its use, sale, transport, delivery or
disposal; and includes the assembly of parts and ship repairing but shall not include any
activity normally associated with retail or wholesale trade.
There are however, activities that are exempted from ICA. These are milling of oil palm fresh
fruits into crude palm oil; the production and processing of raw natural rubber of all types
including latex, skim, sheets, scrap, technically-specified rubbers, non-standard and modified
rubber or any other unvulcanised form of natural rubber prepared by any patented or
technically specified procedure; and the milling of paddy into rice.

Duration To Obtain The Manufacturing License

  • 2 weeks preparing full information
  • 4 weeks Interim approval letter
  • 1 week submission of documents

2 to 3 months in total

Exemption From Manufacturing License

The Industrial Coordination Act, 1975 requires person(s) engaging in any manufacturing
activity with;

  • shareholders’ funds of RM2.5 million and above;
    or
  • employing 75 or more full-time paid employees;

to apply for a Manufacturing Licence.

Company can be considered for exemption from Manufacturing License if the company
employs less than 75 full-time workers and the company has less than RM2.5 million of
shareholders’ funds.

Eligibility Criteria For Manufacturing License

  • Companies with shareholders’ funds of RM2.5 million and above or engaging 75 or more
    full-time paid employees;
  • Project’s Capital Investment Per Employee (CIPE) is at least RM140,000.00;
    Capital investments (÷) total number of full-time employees
  • Total full-time workforce of the company comprises of at least 80% Malaysians*.
    Employment of foreign workers including outsourced workers is subject to current policies;
  • At least 25% of the company’s full time workforce are managerial, technical, and
    supervisory (MTS) staff with degree and/or diploma/certificate or product’s value added is at
    least 40%;
  • The project must be consistent with the national economic and social objectives and
    promotes an orderly development of manufacturing activities in Malaysia.

List Of Sensitive Industries

  • Sugar Refining
  • Tobacco Processing and Cigarette
  • Liquor and Alcoholic Beverages
  • Hazardous and Toxic Waste Collection, Storage, Treatment and Disposal
  • Motor Vehicle Industry
  • Defence and Security (e.g drones, rocket for military application)
  • Pineapple
  • Palm Oil Refining
  • Explosives
  • Weapons and Ammunitions
  • Clinker & Cement Industry
  • Fabrics and Apparel of Batik
  • Gaming
  • Waste Recycling Activities
  • Project to be located at Sarawak
  • Activity involving Radioactive Materials
  • Petroleum Refining
  • Petroleum Products including Petrochemicals
  • Petrochemical
  • Solar
  • Pharmaceutical
  • Medical Device
  • Pharmaceutical and Medical Devices (for raw materials which contain radioactive)
  • Activities related to Mineral & Geoscience
  • Iron and Steel Industry

Cost

Our license application costing is as follows:
RM 6,600 for 15 man hours (12 junior staff hours + 3 managerial staff hours)

And additional hours required will be billed according to:
RM 450 per managerial staff hour
RM 250 per junior staff hour

The above fees are not including any reimbursements or government fees.
Consultation: RM250/hour, minimum 1 hour

We hope the above information will aid you in your planning. Please do not hesitate to contact
us for further discussion.
Alternatively, you can post any questions you have on our forums

FAQs

How Significant is the foreign presence across Malaysia’s Restaurants?2020-04-27T14:49:22+08:00

The majority of those who work in restaurants in Malaysia are foreigners. This is due to the fact that many Malaysians are uninterested in working in restaurants. Many of these foreigners are from countries such as Myanmar, Indonesia, India, and Bangladesh.

How many tourists enter Malaysia every year?2020-04-27T14:48:38+08:00

The latest statistics show that in 2018, approximately 25.83 million tourists entered Malaysia. The five countries which contributed the most to this total were Singapore, Indonesia, China, Thailand, and Brunei. However, this figure represents a slight decline; the total number of tourist arrivals in Malaysia in 2017 was 25.95 million.

What is the current status of Malaysia’s food and beverage (F&B) Industry?2020-04-27T14:47:46+08:00

Malaysia’s F&B industry has been trending in a positive direction. In 2018, the industry’s total revenue was approximately US$34 million. This total represents an annual growth rate of around 7.6%.

Are Business Licenses from Malaysia also valid in other Countries?2020-04-27T12:34:30+08:00

Business licenses issued in Malaysia only pertain to businesses which have been set up there. Therefore, such licenses are not valid in countries other than Malaysia. 

What is a DP10 Work Permit?2020-04-27T12:33:54+08:00

In Malaysia, a DP10 work permit is also known as a Professional Work Permit Visa. It is valid for two years but can have its validity extended by up to 10 years. It is meant for foreigners deemed to be skilled workers.

What are the Primary purposes of SSM?2020-04-27T12:33:06+08:00

SSM was established in 2002. It is a statutory body that functions under the auspices of the Malaysian government. Its primary purposes are those of assisting in company incorporation and business registration as well as providing information about companies and businesses in Malaysia to the public.

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