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Q：
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What is a CIDB License?
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A：
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The Construction Industry Development Board (CIDB) License is a mandatory registration and certification for construction companies in Malaysia. It ensures that companies meet industry standards and are eligible to undertake construction projects. It helps promote quality, safety, and professionalism within Malaysia’s construction sector.
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Q：
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Who needs a CIDB License?
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A：
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Any company that intends to carry out construction activities in Malaysia, whether in building, civil engineering, mechanical, electrical, or specialised construction trades, must obtain CIDB registration. This requirement applies to both local and foreign companies operating within Malaysia. Without a valid CIDB license, companies are prohibited from participating in construction projects and may face penalties for non-compliance.
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Q：
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What types of CIDB registration are available for companies?
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A：
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CIDB registration is divided into Grades G1 to G7, with each grade determining the maximum contract value a company is permitted to undertake. The grade assigned reflects a company’s financial strength, technical capability, manpower, and project experience.
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Q：
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Is there a minimum paid-up capital requirement?
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Yes. Each CIDB grade has its own minimum paid-up capital requirement. The higher the grade, the higher the capital needed. This requirement ensures that companies have adequate financial resources to manage construction projects of larger scale and complexity.
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Q：
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Is a CIDB license mandatory for subcontractors?
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Yes. All subcontractors involved in construction works must register with CIDB even if they are not the main contractor. Subcontractors must hold the appropriate CIDB registration (e.g., G1–G7 category) before they can legally perform any work on-site.
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FAQ
