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
Exemption From Manufacturing License
The Industrial Coordination Act, 1975 requires person(s) engaging in any manufacturing
- shareholders’ funds of RM2.5 million and above;
- 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
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
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
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)
Palm Oil Refining
Weapons and Ammunitions
Clinker & Cement Industry
Fabrics and Apparel of Batik
Waste Recycling Activities
Project to be located at Sarawak
Activity involving Radioactive Materials
Petroleum Products including Petrochemicals
Pharmaceutical and Medical Devices (for raw materials which contain radioactive)
Activities related to Mineral & Geoscience
Iron and Steel Industry
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