FAQ General Accordion

A company with shareholder’s fund of RM2.5 million and above OR full-time manpower of 75 people or more can apply for a Manufacturing Licence.

According to MIDA’s Client Charter, the Manufacturing License will be approved within seven days (fast track) or 60 [1] days (normal track) upon receiving complete information.

Upon receipt of applications, MIDA will issue an acknowledgment letter that includes the names of the relevant officers from the Industry Division. Applicants are advised to contact these officers for updates on their application status.

All online applications can be tracked via the InvestMalaysia portal .

The applicant may obtain a ‘Confirmation Letter for Exemption from Manufacturing License’ by submitting their application via http://investmalaysia.mida.gov.my/ and should submit a copy of the following documents:-

• Memorandum and Articles of Association/ Corporate profile from Companies Commission of Malaysia (CCM)
• Business Licence from the Local Authorities (if applicable)
• Manufacturing Process Flow Chart

Applications can be submitted via  http://investmalaysia.mida.gov.my/

No. Applications for the Manufacturing Licence and ICA10 can only be made online via http://investmalaysia.mida.gov.my/

There are two major tax incentives for the manufacturing and services sectors:

• Pioneer Status (PS) – Income tax exemption of 70% – 100% of statutory income for 5 to 10 years. Unabsorbed capital allowances and accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer status of the company.
• Investment Tax Allowance (ITA) – An allowance of 60% – 100% on qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within 5 to 10 years from the date the first qualifying capital expenditure is incurred.

Pioneer Status:

• An income tax exemption between 70% – 100% of statutory income for 5 to 10 years

Investment Tax Allowance:

• An allowances between 60% – 100% on qualifying capital expenditure incurred within a period of 5 to 10 years. This allowance can be offset against 70% – 100% of its statutory income for each year of assessment.

For projects that involve significant capital expenditure and have a longer gestation period, it is more beneficial to opt for the Investment Tax Allowance.

Companies should study the options before applying either Pioneer Status or Investment Tax Allowance.

Applications can be submitted via http://investmalaysia.mida.gov.my/.

No. Applications for Incentives can only be made online via http://investmalaysia.mida.gov.my/.

A company exempted from a Manufacturing Licence is eligible to apply for Pioneer Status/Investment Tax Allowance if the products/activities are promoted and the project has fulfilled other related criteria.

To access the list of promoted activities, click here.

For further information, visit Forms and Guidelines or refer to relevant publications here .

The processing and decision of the application will be completed within six weeks from the date of receiving complete information.

Upon receipt of applications, MIDA will issue an acknowledgment letter that includes the names of the relevant officers from the Industry Division. Applicants are advised to contact these officers for updates on their application status.

All online applications can be tracked via the InvestMalaysia portal .

Key Post:
– held indefinitely by a foreigner based on the foreign ownership of the company.
– dependent on the amount of foreign paid-up capital of at least RM1 million.
– approval subject to a minimum foreign paid-up capital of the company of at least RM1 million or foreign paid-up capital stated in eSSM (whichever is higher); and a minimum basic salary of RM5,000.00 or proposed by the company (whichever is higher).

Term Post:
– post approved for up to 5 years for executive posts that require professional qualifications and practical experience; and for non-executive posts that require technical skills and experience.
– approval subject to a minimum basic salary of RM5,000.00; and minimum academic qualification and working experience in related fields (i.e. degree + at least 3 years working experience / diploma + at least 5 years working experience / certificate + at least 10 years working experience).
– subjected to the unavailability of Malaysians to fill up the post and Malaysians must be trained to eventually take over the post after the expiry of the term.

Companies situated in Peninsular Malaysia, with approved status in the manufacturing and selected services sectors, are eligible to apply for expatriate posts and Employment Passes (EP) through the Xpats Gateway System, accessible via the Immigration’s ESD Online System at https://xpatsgateway.com.my/. This revamped process ensures that applications are routed to MIDA for the issuance of the Expatriate Post Approval and EP Support Letter.

For companies in the manufacturing and selected services sectors located in Sabah and Sarawak, the application process for expatriate post applications can be made through the InvestMalaysia portal at https://investmalaysia.mida.gov.my.

Prior to submitting an application for an expatriate post approval to MIDA, the company is required to obtain the approval from Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM) for the employment of expatriates under Section 60(K) of Akta Kerja 1955. Starting 1 March 2023, companies can submit the applications for Kelulusan Penggajian Pekerja Asing approval letter from JTKSM through the Sistem Pengurusan Pekerja Asing Bersepadu (ePPAx) under the Pegawai Dagang category via https://www.eppax.gov.my/eppax/. The companies will receive digital decision letters from JTKSM in the form of email. The Kelulusan Penggajian Pekerja Asing approval letter issued by JTKSM is valid for a period of 6 months and the employer must obtain a new approval if the validity period expires.

The company is also required to advertise their job vacancies for a minimum of 30 days in the MYFutureJobs. Tportal and to conduct interview processes to source local talents. The company must also comply with the Social Security Organisation (SOCSO) guidelines. For any inquiries on MYFutureJobs portal, please contact SOCSO’s Customer Services Centre at 1-300-22-8000 / 03- 8091 5300 or email [email protected].

Yes, exemptions from advertising of job vacancies are given to the following categories:

1. Important positions (C-Suite & Key Posts)
2. Expatriate/s with a monthly income of RM15,000 and above
3. Representative Office/ Regional Office (RE/RO)
• This refers to the Representative Office/Regional Office of overseas organisations/companies in the manufacturing and services sectors that are established in Malaysia to carry out activities for the company/organisation headquarters. These RE/ROs are not involved in any commercial activities. For the operational representative/regional office, employers are not required to register under the Companies Act 1965.
• An approval/confirmation letter from MIDA is required for the company to employ expatriates under this category.
4. Investors/Shareholders/Owners
• This refers to investors who are individuals that invest funds in Malaysia to achieve return on investments and are directly involved in the company’s operations.
• Meanwhile, shareholders refers to individuals that hold at least a 30% equity in the company and are appointed as the company’s Director and/or hold position of interest in the company.
5. Corporate Transfers/ Placements / Trade Agreements
• This refers to expatriates who are assigned by the parent company to work in a branch company in Malaysia or a group of companies for the purpose of training or knowledge/experience sharing between companies, and to meet the company’s manpower requirement.

 

Specialised skilled positions are not automatically excluded from advertising the vacancies in MYFutureJobs portal . Specialised skilled positions include specific and/or unique skills as well as strategic competencies to carry out tasks stipulated by the company.

Application for the exemption of advertising in MYFutureJobs portal can be done by completing the PDKK Form via http://bit.ly/PDKKPERKESO. Reasons for exemption are required to be indicated in the form.

Exemption will be granted after being approved by SOCSO via email : [email protected] and the company may proceed to apply for the expatriate post.

If the application is rejected, the company will be requested to advertise the vacancy in MYFutureJobs portal for a minimum of 30 days and conduct interviews to source local talents as stated. Companies need to submit the Expatriate Employment Committee (JPPD) Certificate from SOCSO when applying for the expatriate position to the Approving Agency.

However, companies do not require to advertise the expatriate positions or to obtain exemption of advertising in MYFutureJobs if; C-Suite & Key Posts / Minimum basic salary of RM15,000 and above / Investors or Shareholders or Owners of the company / Corporate Transfers or Placements or Trade Agreements / Representative Office Regional Office (RERO) status.

Companies in the manufacturing and selected services sectors situated in Peninsular Malaysia, are eligible to apply for extension or additional expatriate posts and Employment Passes (EP) through the Xpats Gateway System, accessible via the via the Immigration’s ESD Online System at https://xpatsgateway.com.my/.

For companies in the manufacturing and selected services sectors located in Sabah and Sarawak, the application process for extension or additional expatriate post applications can be made through the InvestMalaysia portal at https://investmalaysia.mida.gov.my.

Companies situated in Peninsular Malaysia, MIDA will process the application for expatriate post and Employment Pass (EP) support letter and a decision will be granted within 3 working days for FastTrack applications (Tier1 / Tier2); or within 10 working days for Normal rack applications (Tier3 / Tier4 / Tier5) upon submission of completed required information via the Immigration’s ESD Online System at https://xpatsgateway.com.my/.

For companies located in Sabah and Sarawak will be processed and a decision will be made within 30 working days upon receiving complete information through the InvestMalaysia portal at https://investmalaysia.mida.gov.my.

SWP streamlines the process of obtaining Support Letters for expatriate post and Employment Pass applications for companies located in Peninsular Malaysia and RE/RO with approved status by integrating Approving Agencies and Regulatory Bodies, including MIDA. This comprehensive solution simplifies the application process for companies seeking Support Letters when hiring expatriates via SWP Portal known as https://xpatsgateway.com.my/ at esd.imi.gov.my

SWP, also referred to as the Xpats Gateway System, leveraging the existing ESD Online System to simplify the application process. It integrates and streamlines systems, facilitating the acquisition of the Support Letter from MIDA and Employment Pass approval from the Immigration Department Malaysia. SWP ensures improved coordination among Approving Agencies, Regulatory Bodies, and the Immigration Department Malaysia through a unified platform.

SWP was officially launched on 15 June 2023.

SWP only processes Employment Pass for expatriates.

Approved companies in the Manufacturing Sector, Selected Services Sector, and Representative Office/Regional Office (RE/RO) with Status under MIDA in Peninsular Malaysia can now use the Xpats Gateway System. This system, accessible through the ESD Online System at https://esd.imi.gov.my, enables them to apply for expatriate posts and Employment Passes efficiently.

For companies based in Sabah and Sarawak, as well as those applying for RE/RO Status approval, the application process for expatriate post support letters can be continued through MIDA InvestMalaysia portal at https://investmalaysia.mida.gov.my/

DigiCert must obtain other approvals via MIDA InvestMalaysia portal, such as Manufacturing license / Incentive / Status Approval / Grant / Exemption Letter from Manufacturing License. One of these documents is mandatory in the checklist on the Single Window Platform to obtain the MIDA Support Letter,serving as evidence that the company operates in a sector under MIDA’s purview (item 15).

SWP enables companies to obtain the Support Letter from MIDA, Employment Pass approval from the Immigration Department of Malaysia through the ESD Online system and Employment Pass endorsement, all in a single platform.

1. Manufacturing sector:

• All Sub-Sectors

2. Selected services sectors:

• Operational Headquarters (OHQ)
• Regional Distribution Centre (RDC)
• International Procurement Centre (IPC)
• Principle Hub (PH)
• Global Operation Hub
• Representative Office / Regional Office (RE/RO)
• R&D company
• Hotel & Tourism Projects
• Technical & Vocational Training Institutions & Other Services
• Medical Device Testing Laboratory

3. Other services (with MIDA incentives):

• Oil & Gas Services
• Clean Technology & Environment Management)
• International Procurement Centre (IPC)
• Integrated Logistics Services (ILS)
• Integrated Market Support (IMS)
• Central Utility Facilities (CUF)
• Cold Chain Facilities (CCF)
• Premium Outlets

MIDA Support Letter processing times: 3 working days for Fast Track and 10 working days for Normal Track.

Through SWP, incomplete applications will not be considered for MIDA Support Letter.

Applications submitted to SWP are for expatriate positions, including the incumbents.

MIDA will evaluate and approve for the expatriate post; and evaluate and recommend the incumbent for Employment Pass approval. However, MIDA does not validate the incumbent on security matters i.e. their status (blacklisted/suspect list), outstanding taxation matters, passport details etc.

MIDA Support Letter will be digitally sent to company and the company will have a maximum duration of six (6) months to initiate for Employment Pass application via the
ESD Online System at https://esd.imi.gov.my.

No, there are no restrictions on the number of expatriate posts that a company can apply based on the company’s requirement.

The validity of a MIDA Support Letter is six (6) months upon issuance date.

Companies are required to re-apply for MIDA Support Letter via SWP for a new letter.

Companies are required to upload the following documents:

a)Approval of Manufacturing
License(ML)/Incentive/Grant/Status/Letter of Exemption from ML

b) Advertisement with MyFutureJobs. However, it is exempted if:

1. Important positions (C-Suite & Key Posts) and expatriate(s) with monthly income of RM15,000 and above;
2. Representative Office/ Regional Office (RERO);
3. Investors/Shareholders/Owners;
4. Corporate Transfers/ Placements / Trade Agreements

c) JTK approval under Section 60K, Employment Act 1955

d) The latest Organisation Chart that clearly indicates the existing expatriate(s) and the expatriate post/s being applied for.

e) Copy of Passport: All Pages (Full Booklet with Front & Back Pages)

f) Resume of the Expatriate

g) Certificates of Academic Qualifications (Certified True Copy)

h) Training schedule to localised the term post

i) Copy of Employment Contract that clearly indicates the expatriate’s salary and terms

j) Letter to justify the requirements of the position(s) with company letterhead.

k) Copy of Previous MIDA Expatriate Approval Letter(s) (if any)

Companies can proceed to initiate the Employment Pass application with the following steps:

• Log in to the ESD Online System at esd.imi.gov.my
• Click on the “List of Supporting Letter Application”tab.
• Complete the application for final approval by the Immigration Department of Malaysia.

No. Companies will be required to re-apply for the new MIDA Support Letter.

Companies can submit the application to SWP via Xpats Gateway System under new category.

The MIDA expatriate post Approval Letter approved before the implementation of the SWP remains valid for the Key Post. Companies can upload in SWP to obtain the Employment Pass.

Companies can choose New category for additional applications and Renew category for extension applications.

Yes, the rejected notification will be digitally sent to the company.

There is no waiting period to reapply for a new Support Letter.

Yes, companies can reuse the valid MIDA Support Letter to re-apply through the ESD Online System

For any clarification, please do not hesitate to contact MIDA through;

• InvestMalaysia portal; or
• The Industry Talent Management & Expatriate Division, MIDA, via email at [email protected] or at +603-2267 3633.

The contact information is available on SWP at Xpats Gateway System, accessible via the ESD Online System at
https://esd.imi.gov.my (Contact Us);

• [email protected] or +603-7839 7171

For more FAQs on Single Window Platform please click here.

Applications for import duty and/or tax exemption can be made via https://investmalaysia.mida.gov.my.

Applications for import duty and/or sales tax exemption which involve the following need to be submitted online via https://investmalaysia.mida.gov.my:

• Import duty and/or sales tax exemption on machinery/equipment for selected activities in the Agriculture Sector
• Import duty and/or sales tax exemption on raw materials/component for Manufacturing Sectors
• Import duty and/or sales tax exemption on machinery, equipment and material for companies in selected services sectors as follows;
  1. Research & development (R&D) 
  2. Private higher education institution 
  3. Private higher training institution (science, technical or vocational) 
  4. Tourism project (without accommodation)

Application for MIDA Confirmation Letter or Surat Pengesahan MIDA (SPM) to claim import duty and/or sales tax exemption from the Royal Malaysian Customs Department on machinery/equipment/spare parts/prime movers/container trailers/specialised tools/components/materials/specialised consumables goods for the following:

• Manufacturers in Principal Customs Area (PCA)
• Companies Engaged in Hotel Business
• Haulage Operators
• Aerospace Maintenance, Repair & Overhaul (MRO) companies

The decision will be made within 4 weeks upon receiving complete information.

A company applying for the exemption should submit a copy of the following documents:

• Manufacturing Licence issued under the Industrial Coordination Act 1975 or Confirmation Letter for a company exempted from Manufacturing Licence under the Industrial Coordination Act 1975
• Tax incentive approval under the Promotion of Investment Act, 1986 (PIA) or Income Tax Act, 1967 (if applicable)
• Registration certificate or the letter of acknowledgement if the application for the registration certificate is pending for approval from the Department of Occupational Safety and Health (DOSH) (if applicable)
• Company profile (latest printout) generated from Companies Commission of Malaysia (SSM) e-Info Services)
• Flow chart of manufacturing process
• The layout plan for the machinery and equipment in the approved manufacturer’s premise and to indicate where the machinery and equipment will be located

Kindly refer here for the application guidelines and procedures.

Manufacturing companies operating in the Free Industrial Zones (FIZ)/Licensed Manufacturing Warehouse (LMW) seeking duty exemption for the sale of their finished goods to the Principal Customs Area (PCA) must submit their applications directly to the Royal Malaysian Customs Department or the nearest Customs station.

Companies undertaking the following selected services or activities may apply for status and/or incentives and/or expatriate:

• Research and Development Activities;
• Principal Hub;
• Integrated Logistics Services (ILS);
• International Integrated Logistics Services (IILS);
• Representative Office/ Regional Office (RE/RO);
• Technical/Vocational/Science Training Institutes;
• Hotels/Tourism Projects;
• Mines Wellness City (MWC);
• Green Technology;
• Private Healthcare Facility;
• Cold Chain Facilities; and
• Other Services Activities Promoted under the Promotion of Investments Act, 1986 and Income Tax Act, 1967

Companies undertaking the following selected services or activities may apply for additional products and/or expatriate:

• Operational Headquarters (OHQ)/ International Procurement Centres (IPC) / Regional Distribution Centres (RDC);

For more detailed information, please refer to the ‘Malaysia: Investment in the Services Sector’ guidebook here .

All applications can be made online via https://investmalaysia.mida.gov.my.

As for applications for the Replacement of Expatriate Post for RE/RO and Annual Compliance Assesment Form for PH should be submitted manually in three (3) sets using the relevant form and submit to:

Chief Executive Officer

Malaysian Investment Development Authority (MIDA)

MIDA Sentral

No. 5, Jalan Stesen Sentral 5

Kuala Lumpur Sentral

50470 Kuala Lumpur

The application will be processed and a decision will be made within six weeks upon receiving complete information.

The application for Pioneer Certificate should be submitted to MIDA within 24 months from the date of the incentive approval letter. Upon submission of the application, the applicant company should fulfil one of the following requirements:

• To achieve a minimum 30% of its installed production capacity within three (3) consecutive months (applicable for mass production-based companies) or
• To have the first sales invoice of the approved product (applicable for customized order-based companies)

The application for Pioeneer Status Certificate can be made via https://investmalaysia.mida.gov.my.

The Production Date of the Pioneer Certificate will be determined based on the followings:

• For mass production-based company
  Based on the first date of the month that the company has reached the minimum 30% of its installed production capacity within three (3) consecutive months.
• For customised order-based company
  Based on the date of the company’s first sales invoice.

The application will be processed within 30 days upon receiving complete information.

An extension to obtain the Pioneer Certificate can be made to MIDA within 24 months from the date of the incentive approval letter by providing valid reasons. Each application will be evaluated based on the merits of each case.

The process of incentive withdrawal will be initiated, please contact the Investment Compliance Division here.

The application must be submitted within 24 months of the date of the approval letter via https://investmalaysia.mida.gov.my.

The application will be processed within 30 days upon receiving complete information.

The application for the Verification of Compliance to Investment Tax Allowance should be submitted to MIDA within the designated incentive period. Prior to making a tax claim with the Inland Revenue Board (IRB), the company must obtain approval for the verification. The application process can be completed via https://investmalaysia.mida.gov.my.

The application will be processed within 30 days upon receiving complete information.

For any amendment/changes on Manufacturing Licence (change of co. name, change of factory location, duplication and consolidation of ML etc.), application can be submitted via https://investmalaysia.mida.gov.my.

Applications to update or waive certain conditions (equity and export conditions etc.) may be submitted via https://investmalaysia.mida.gov.my.

The application will be processed within 30 days upon receiving complete information.

1^st December 2023.

Invest Malaysia Facilitation Centre (IMFC) establishment is an enhancement to the existing advisory service center at MIDA, with the primary objective of expediting the process of various approvals.

Main function of the IMFC is to provide advisory services and guidance to the business community and investors.

IMFC is represented by

• Ministry of Foreign Affairs
• Ministry of Transport
• Inland Revenue Board
• Malaysian Immigration Department
• Malaysian Royal Customs Department
• Malaysian Communications and Multimedia Commission (Telekom Malaysia)
• Department of Labour Peninsular Malaysia
• Tenaga Nasional Berhad
• Social Security Organisation (SOCSO)

IMFC office is located at Level 16, MIDA Sentral, KL Sentral. IMFC members can be contacted through the list of IMFC Representatives at MIDA.

The role of IMFC is to facilitate and expedite the affairs of the business community and investors’ journey in the manufacturing and selected services sectors.

The Malaysia–Singapore Third Country Business Development Fund (MSBDF) is an innovative initiative designed to fuel collaboration between businesses and associations from Malaysia and Singapore. Its mission is to facilitate Joint Trade Missions and Joint Feasibility Studies in third countries and Joint Pilots between Malaysia and Singapore, paving the way for exploring and seizing business and investment opportunities in third countries.

The primary aim of the MSBDF is to strengthen the bonds of cooperation between Malaysia and Singapore’s private sectors. It supports joint ventures and collaborative initiatives, harnessing the combined strengths of both countries to explore and establish a presence in third-country markets.

The Cross Border Investment Division (CBI) at MIDA is responsible for the evaluation of the MSBDF, ensuring each application aligns with the fund’s goals and criteria.

Companies keen on applying should complete the BDF – 2024 application form, available for download [here] (insert link). Applications must be submitted via email to [email protected] and [email protected]. It’s important to note that we do not accept hardcopy submissions to streamline the process and maintain efficiency.

The evaluation process for the MSBDF application is comprehensive, taking up to eight (8) weeks from the receipt of complete information. This ensures a thorough and fair consideration for each submission.

For updates and inquiries about your application’s status, please reach out directly to the CBI Division at MIDA. They will provide you with the latest information and guidance.