MIDA Manufacturing License in Malaysia: Requirements, Benefits, and Application Guide

Manufacturing companies in Malaysia may need to obtain a Manufacturing License from the Malaysian Investment Development Authority (MIDA) before starting operations.
March 9, 2026 by
MIDA Manufacturing License in Malaysia: Requirements, Benefits, and Application Guide
CONZLAB BERHAD 202301040401 (1534320P), Mira

What Is a MIDA Manufacturing License?

A MIDA Manufacturing License is an approval issued by the Malaysian Investment Development Authority for companies engaged in manufacturing activities in Malaysia.

Under the Industrial Co-ordination Act, manufacturing refers to activities such as:

  • Making or assembling products
  • Processing or finishing materials
  • Altering or adapting goods for sale or distribution

The license ensures that manufacturing businesses operate in compliance with government regulations and contribute to Malaysia’s industrial growth.

Companies that meet certain operational thresholds must obtain this license before starting production.

Who Needs a Manufacturing License?

Not every manufacturing business is required to apply for a MIDA Manufacturing License. However, companies that meet certain thresholds must obtain one.

A manufacturing company must apply for the license if it has:

  • Shareholders’ funds of RM2.5 million or more, or
  • 75 or more full-time employees.

In addition to the threshold requirement, companies must meet several criteria, including:

  • At least 80% Malaysian employees in the workforce
  • Capital Investment Per Employee (CIPE) of at least RM140,000
  • At least 25% managerial, technical, or supervisory staff, or a minimum 40% value-added production.

These requirements help ensure that manufacturing projects contribute to local employment, technological development, and economic growth.

Application Process for a MIDA Manufacturing License

Companies applying for a manufacturing license must submit their application to MIDA through its online system.

The general application process typically includes:

Step 1: Prepare Company Information

Applicants must prepare documents such as company details, business plans, and financial information.  

Step 2: Submit Application via MIDA Portal

Applications are submitted through MIDA’s InvestMalaysia portal along with supporting documents.

Step 3: Review by MIDA

MIDA evaluates whether the project meets the eligibility criteria and aligns with national development policies.  

Step 4: Approval or Additional Requirements

If approved, the company will receive a manufacturing license or an interim approval letter.

Approval timelines can vary, but MIDA may issue responses within several weeks once complete information is submitted.

Manufacturing License Exemption

Manufacturers that do not meet the licensing threshold may apply for an Exemption from Manufacturing License.

Companies may qualify for an exemption if they:

  • Have shareholders’ funds below RM2.5 million, and
  • Employ fewer than 75 full-time employees.

Instead of a license, these companies receive an Exemption Letter confirming that they are not required to obtain the manufacturing license.

Even with the exemption, businesses may still apply for certain government incentives and facilities if they meet the relevant conditions.

Incentives and Benefits for Licensed Manufacturers

Obtaining a MIDA Manufacturing License may provide access to several government incentives aimed at supporting industrial development.

Common incentives include:

  • Pioneer Status, which offers 70%–100% income tax exemption for five to ten years
  • Investment Tax Allowance (ITA) that allows companies to claim allowances on qualifying capital expenditures.

These incentives are usually granted to companies engaged in promoted manufacturing activities that contribute to economic growth, innovation, or export development.

Manufacturers must typically choose between these incentives, as both cannot usually be claimed simultaneously.

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Understanding the eligibility requirements, application procedures, and potential incentives can help manufacturers plan their operations more effectively and remain compliant with Malaysian industrial regulations.

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MIDA Manufacturing License in Malaysia: Requirements, Benefits, and Application Guide
CONZLAB BERHAD 202301040401 (1534320P), Mira March 9, 2026
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