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Corporate Service - Malaysia

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Q&A on Manufacturing License in Malaysia

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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:

  1. The company’s shareholders’ funds are RM2.5 million or more; or
  2. The company employs 75 or more full-time employees.

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.

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