Description
- The Manufacturing Licence is a mandatory approval issued under the Industrial Coordination Act 1975 for companies engaged in manufacturing activities in Malaysia. It is regulated by the Malaysian Investment Development Authority (MIDA) and is required to ensure proper control, compliance with national policies, and to facilitate incentives for manufacturers. Any company with shareholders’ funds of RM2.5 million and above OR employing 75 or more full-time employees must apply for a manufacturing licence.
GOV Department
- Malaysian Investment Development Authority (MIDA) (Under the Ministry of Investment, Trade and Industry – MITI)
License Name (Malay)
- Lesen Pengilang (Manufacturing Licence)
Details
- Required for:
- Companies with ≥ RM2.5 million in shareholders’ funds OR
- Companies employing ≥ 75 full-time staff
- Covers manufacturing activities, defined as “the making, altering, blending, ornamenting, finishing, or otherwise treating or adapting any article with a view to its use, sale, transport, delivery or disposal”.
- Application must be submitted through MIDA’s e-ML online system.
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Documents required:
- Company profile & SSM documents
- Business plan & project proposal
- Financial information & production capacity details
- Environmental & safety compliance documents
Important Rules
- Companies below the threshold (RM2.5 million funds & 75 employees) only need to apply for Exempted Status.
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Licence holders must comply with:
- Environmental regulations (DOE approvals, EIA if applicable)
- Labour regulations (Foreign worker approvals, local hiring requirements)
- Product standards & safety compliance
- Expansion of capacity or change of product line may require MIDA approval.
Compound & Punishment
- Operating a manufacturing business without a valid licence (when required) is an offence under the Industrial Coordination Act 1975.
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Penalties include:
- Fines up to RM2,000 for each day of default
- Possible closure or suspension of manufacturing operations
- Difficulty in obtaining future government approvals, incentives, or permits
Advisor
Licensing Advisor Ms Mira
Ms. Mira, your dedicated licensing advisor, offers expert guidance on business licenses, permits, and regulatory compliance. Simplify your licensing process today!