Keep the fruits with YOU!

Local Authority Approvals

In Malaysia, several Local Authority Approvals must be granted before commencement of your business. These applications should be submitted to relevant authorities once you had occupied a premise as Operating Center.

MIDA Approvals

The Industrial Co-ordination Act 1975 (ICA) was introduced with the aim to maintain an orderly development and growth in the country’s manufacturing sertor. The ICA requires manufacturing companies with shareholders’ funds of RM2.5 million and above or engaging 75 or more full-time paid employees to apply for a Manufacturing License by the Ministry of International Trade and Industry (MITI).

Tax Incentives & Duties Exemption

In Malaysia, tax incentives, both direct and indirect, are provided for in the Promotion of Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act 2018, Service Tax 2018, Excise Act 1976 and Free Zones Act 1990. These Acts covered investments in the manufacturing, agriculture, tourism (including hotel) and approved service sectors as well as R&D, training and environmental protection activities.

The direct tax incentives grant partial or total relief from income tax payment for a speficied period, while indirect tax incentives are in the form of exemptions from import duty, sales tax and excise duty.

Customs Facilities

In Malaysia, manufacturer of taxable goods are required to be licensed under the Sales Tax Act 2018, Customs Act 1967 or Excise Act 1976 according to the nature of business. Licensed manufacturers are taxed on their output unless it has been exempted.

Work Permits

If there are shortage of trained Malaysian workers, companies are allowed to bring in expatriate personnel i.e. “Key Post” or “Time Post”.

Key Post are posts that are permanently filled by foreigners whereby Time Post are position filled on specified time.

Key Post are high level managerial posts in foreign-owned private companies operation in Malaysia.Time Posts are intermediate level of managerial and professional posts and required professional qualifications, practical experience, skills and expertise related to respective jobs.