Q&A on Manufacturing License in Malaysia
| Q: | What is a Manufacturing License? |
| A: |
A Manufacturing License is an approval issued under the Industrial Coordination Act 1975 by the Ministry of Investment, Trade and Industry (MITI). It authorises a company to carry out manufacturing activities in Malaysia and ensures compliance with national industrial policies. |
| Q: | Who needs to apply for a Manufacturing License? |
| A: |
A company must apply for a Manufacturing License if it meets both of the following conditions:
Companies below these thresholds are exempted but may apply for confirmation of exemption from MITI. |
| Q: | What activities are considered “manufacturing”? |
| A: |
Under the Industrial Coordination Act 1975, “manufacturing” refers to the making, altering, blending, ornamenting, finishing, or otherwise treating or adapting any article or substance with a view to its sale or use. Examples include food processing, electronics assembly, furniture production, metal fabrication, and chemical processing. |
| Q: | Are foreign-owned companies eligible to apply for a Manufacturing License? |
| A: |
Yes. Foreign-owned companies (with more than 51% foreign equity) are eligible to apply for a Manufacturing License in Malaysia. |
| Q: | Can a company with multiple factory locations use one Manufacturing License? |
| A: |
No. Each manufacturing premises requires its own license. If a company operates multiple factories at different locations, it must obtain separate Manufacturing Licenses for each premises from MITI. |

