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TRANSCRIPT
ELECTRICAL & ELECTRONICS
INDUSTRY Regulatory Requirements
EEPN Secretariat [email protected] or [email protected]
Abstract This report establishes the regulatory requirement that may be imposed on the Electrical &
Electronics Industry Sector in Malaysia
Contents 1 Electrical and Electronics (E&E) Industry ........................................................................................ 1
1.1 Trade Performance 2018 ........................................................................................................ 1
1.2 Malaysia Productivity Blueprint .............................................................................................. 2
1.2.1 E & E Productivity Nexus ................................................................................................. 2
1.3 Undertaking Activities Matrix for Setting up an E&E Manufacturing Facility ......................... 3
2 Regulatory Framework in The Electrical & Electronics Sector ........................................................ 6
2.1 Regulatory Value Chain Framework ....................................................................................... 6
2.2 Government Agencies Regulatory Mapping Summary ........................................................... 7
3 Business Establishment Regulatory Framework ........................................................................... 11
3.1 Incorporating a Company ..................................................................................................... 13
3.2 Manufacturing Licence.......................................................................................................... 13
3.2.1 Guidelines for Approval of Industrial Projects .............................................................. 14
3.2.2 No-Objection-Letter for The Location of Projects ........................................................ 14
3.2.3 Equity Policy .................................................................................................................. 15
3.2.4 Investment Guarantee Agreements ............................................................................. 15
3.3 Environmental Safeguards .................................................................................................... 15
3.3.1 Environmental Impact Assessment (EIA) For Prescribed Activities .............................. 16
3.3.2 Site Suitability Evaluation for Non-Prescribed Activities .............................................. 16
3.4 Legislations Provision for Incentives ..................................................................................... 17
3.4.1 Promotion of Investments Act 1986 (PIA) .................................................................... 17
4 Pre-Operations Regulatory Framework ........................................................................................ 19
4.1 Building and Occupation Requirements ............................................................................... 21
4.1.1 Planning Permission and Building Plan ......................................................................... 21
4.1.2 Certificate of Compliance and Completion ................................................................... 21
4.1.3 Fire Certification ............................................................................................................ 21
4.1.4 Scheduled Waste Management .................................................................................... 22
4.2 Foreign Participation in the Distributive Trade ..................................................................... 22
5 Employment Regulatory Framework ............................................................................................ 23
5.1 General Employment Requirements .................................................................................... 26
5.2 Minimum Wage Policy .......................................................................................................... 26
5.3 Workers’ Insurance Coverage ............................................................................................... 27
5.4 Contributions to Employees Provident Fund (EPF) ............................................................... 27
5.5 Contributions to Social Security Organisation (SOCSO) ........................................................ 28
5.6 Occupational Safety and Health Requirements .................................................................... 28
5.7 Foreign Workers .................................................................................................................... 29
5.8 Expatriates ............................................................................................................................ 30
6 Operations Regulatory Framework ............................................................................................... 31
6.1 Business Premise and Signage Licences ................................................................................ 36
6.2 Machinery registration and certification .............................................................................. 36
6.3 Scheduled Wastes Management .......................................................................................... 37
6.4 Export Permits ....................................................................................................................... 38
6.5 Regulated Electrical Equipment ............................................................................................ 39
6.6 Communications Equipment/Devices ................................................................................... 41
6.6.1 Certification and Labelling ............................................................................................ 41
6.7 Legislations Provisions for Incentives ................................................................................... 42
6.7.1 Import Duty and/or Sales Tax Exemption ..................................................................... 42
6.7.2 Free Zones ..................................................................................................................... 42
6.7.3 Licensed Manufacturing Warehouses........................................................................... 42
6.7.4 Authorised Economic Operator Programme ................................................................ 43
6.7.5 Incentives for Exporters ................................................................................................ 43
6.7.6 Tax Incentives ................................................................................................................ 44
Appendices ............................................................................................................................................ 45
Appendix A Environmental Details ................................................................................................... 45
Appendix B Regulated Electrical Equipment .................................................................................... 48
Appendix C Promoted Activities and Products (E&E Sector) Which Are Eligible for Consideration of
Pioneer Status and Investment Tax Allowance Under the Promotion of Investment Act 1986 .......... 57
Appendix D Research Categories ...................................................................................................... 60
Appendix E Designated Premises for Fire Certificate ...................................................................... 61
Appendix F Glossary ......................................................................................................................... 62
Appendix G References .................................................................................................................... 66
Tables
Table 1-1: Structure of E&E Industry ...................................................................................................... 1
Table 2-1: Government Agencies, Legislations, International Conventions ........................................... 7
Table 3-1: Business Establishment Regulatory Framework .................................................................. 11
Table 4-1: Pre-Operations Regulatory Framework ............................................................................... 19
Table 5-1: Employment Regulatory Framework ................................................................................... 23
Table 5-2: Minimum Wages Rate as of 1 Jan 2019 ............................................................................... 27
Table 5-3: EPF Contribution Requirement ............................................................................................ 27
Table 6-1: Operations Regulatory Framework ...................................................................................... 31
Table 6-2: Strategic Items List ............................................................................................................... 38
Table 6-3: Excerpts of Strategic Items Category and Responsible Authority ....................................... 39
Table 6-4: Energy efficient performance standards ............................................................................. 40
Table A-1: List of Prescribed Activities Which Require Detailed EIA .................................................... 45
Table A-2: Scheduled Wastes ................................................................................................................ 45
Table B-1: List of Regulated Electrical Equipment ................................................................................ 48
Table C-1: Excerpts from General List of Promoted Activities and Products........................................ 57
Table C-2: Excerpts from List of Promoted Activities and Products for High Technology Companies . 58
Table C-3: Excerpts from List of Promoted Activities and Products for Small Scale Companies .......... 58
Table C-4: Excerpts from List of Promoted Activities & Products for Selected Industries ................... 59
Table D-1: Research Division and Category .......................................................................................... 60
Table E-1: Designated Premises as determined in Fire Services (Designated Premises) Order 1998 .. 61
Table F-1: Glossary of Prevailing Acts in E&E Sector............................................................................. 62
Figures
Figure 1-2: Undertaking Activities Matrix ............................................................................................... 3
Figure 2-1: Regulatory Value-Chain Overview ........................................................................................ 6
DISCLAIMER
Last updated: 11th September 2019
This report was commissioned by the Electrical & Electronics Productivity Nexus (EEPN), Malaysia
Productivity Corporation (MPC). This report has been completed in accordance with the terms of
reference.
The author has taken great care to ensure the material provided in this report is as correct and
accurate as possible. However, the author makes no warranty that the material contained in this
report will be free from error, or if used, will ensure compliance with the relevant requirements of the
relevant government agencies mentioned in this report.
All information in this report is provided “as is”, with no guarantee of completeness, accuracy,
timeliness or of the results obtained from the use of this information, and without warranty of any
kind, express or implied, including, but not limited to warranties of performance, merchantability and
fitness for a particular purpose.
This report may contain links to external websites that are not provided or maintained by or in any
way affiliated with MPC. Please note that MPC does not guarantee the accuracy, relevance, timeliness,
or completeness of any information on these external websites.
1 Electrical and Electronics (E&E) Industry The electrical and electronics (E&E) industry is a key driver of Malaysia's industrial development and
contributes significantly to GDP growth, export earnings, investment and employment.
The E&E industry in Malaysia can be classified into four sub-sectors namely, electronic components,
consumer electronics, industrial electronics, and electrical products. The structure of the E&E industry
sector as defined by the Malaysian Investment Development Authority (MIDA) is shown in the Table
1-1 below.
Table 1-1: Structure of E&E Industry
Sectors Sub-Sectors Products
Electronics Components
Semiconductors, passive components, printed circuit boards, metal stamped parts and precision plastic parts
Consumer
Audio visual products such as television receivers, portable multimedia players (PMP), speakers, cameras and electronic games
Industrial
Multimedia and information technology products such as computers and computer peripherals, telecommunications equipment and office equipment.
Electrical Electrical
Boards, panels and consoles, switching apparatus, lamps, air conditioners, vacuum cleaners, ovens, transformers, cables & wires, primary cells & batteries, solar cells and modules
Source: Malaysian Investment Development Authority (MIDA)
1.1 Trade Performance 20181 In 2018, exports of manufactured goods grew by 9.1% or RM69.62 billion to RM835.48 billion.
Manufactured exports accounted for a larger share of total exports at 83.7% compared to 81.9% in
2017.
E&E products held the biggest share of Malaysia’s exports composition in 2018, at 38.2% or RM380.81
billion, rising by 11% or RM37.74 billion. Increase in exports of E&E products over RM1 billion were
registered for, among others:
Electronic integrated circuits, increased by RM44.47 billion to RM172.63 billion;
Batteries and electric accumulators, increased by RM2.24 billion to RM4.59 billion;
Microphones, loudspeakers, headphones, earphones, amplifier sets, and parts, increased by
RM2 billion to RM6.45 billion;
Other units of computers and data processing equipment, increased by RM1.42 billion to
RM16.52 billion; and
Computers, increased by RM1.1 billion to RM6.9 billion.
1 Ministry of International Trade and Industry. (2019). Trade Performance 2018, Trade Performance For 2018 And December 2018, Malaysia External Trade Statistics. Media Release.
1.2 Malaysia Productivity Blueprint
1.2.1 E & E Productivity Nexus The main theme for the E&E Productivity Nexus of the Malaysia Productivity Blueprint is to Boost
Productivity of The Electrical and Electronics Sector, and which success should show,
Increase usage of technology to drive efficiency
Integrated, automated and optimized production flow in manufacturing to drive faster
turnaround time, remote monitoring, and increased quality
Digitisation to optimise operations
Big Data analytics to improve forecast’s precision
Cloud-based applications to reduce ICT cost
Trend to consolidate manufacturing base to build economies of scale at low-cost countries
and concentrate R&D at country with adequate talent and research environment
Increase adoption of lean manufacturing
Increase market liberalisation will spur competition and present both challenges and
opportunities
1.2.1.1 Priority initiatives for electrical and electronics subsector
1. Forging a robust Ecosystem
Enforce minimal guaranteed service levels for utilities and infrastructures in key areas.
Strengthen collaboration and knowledge sharing between industry players, through Centre of
Excellence
2. Building Workforce for the future
Strengthen collaboration between industry, government and universities to ensure supply of
industry-ready engineers.
Up-skill workers to prioritise innovative thinking to foster productive culture.
3. Driving Digitalisation and Innovation
Promote higher value add activities, including Research, Development and Design (R&d&D)
1.3 Undertaking Activities Matrix for Setting up an E&E Manufacturing Facility Figure 1-1 below shows an overview of activities advised to be undertaken for the setting up a
manufacturing facility in the E & E sector.
Figure 1-1: Undertaking Activities Matrix
Phase 1 activities comprises of;
1. Business Registration
Any persons that desires to do business in Malaysia is required to incorporate or register the
business in Malaysia whether it be a local company, joint-venture company, or a branch of a
foreign company.
2. Opening of bank account
It is required that in doing business in Malaysia to open an account with a bank in Malaysia
whether it being a local bank or a foreign bank established in Malaysia.
3. Searching for a location for setting up a factory.
The location may be of a ready-built factory/warehouse facility within a prescribed zone. Or it
may be of land which may be prescribed within a defined zone or not.
4. Site suitability evaluation
This is a requirement to ensure that the site chosen for a particular industrial activity is
evaluated in terms of its compatibility with respect to the gazetted structure/local plans,
surrounding land use, provision of set-backs or buffer zones, the capacity of the area to receive
additional pollution load, and waste disposal requirements.
5. Applying for a No Objection Letter
A ‘No Objection Letter’ from the State Government is required to be obtained before a project
can be established.
6. Applying for a Manufacturing Licence
A Manufacturing Licence is required to be obtained before a factory can start to be
established. The Manufacturing Licence need only be applied by manufacturing companies
with shareholders’ funds of RM2.5 million and above or engaging 75 or more full-time
employees.
7. Applying for Tax Incentives
Qualified companies may apply for direct or indirect tax incentives in the form of tax
exemption for a specified period on commencement of the project.
Phase 2 activities includes;
1. Applying for approval for the plan of the build
2. Applying for permit to start construction/renovation of the building
3. Applying for Utilities such as electricity, water supply and waste disposal.
4. Registration of factory and machinery
5. Applying for Business premise (factory licence) and signage licences
6. Applying for Fire Certificate
Phase 3 – Organization & Resource Management activities consist of;
1. Applying for Work Permits and Visa if the manpower constitutes foreigners whether for
Management
Non-management
Workers
2. Identify Supplies
3. Determine the Logistics
4. Identify Ports for Import and Export activities
Phase 4 – Operations activities includes;
1. DagangNet registration
Facilitate customs’ procedures with the Royal Malaysian Customs Department (RMCD)
2. Applying for Certificate of Registration
manufacture and import of regulated electrical equipment
3. Applying for Certificate of Approval
manufacture, import, sell, display, and advertisement of regulated electrical equipment
4. Product Testing
Testing of electrical equipment so as to ensure it meets the standards applied in Malaysia
5. Registration of Sales and Service Tax
Sales tax will be levied on taxable goods that are imported into, or manufactured in, Malaysia.
Only companies with an annual turnover exceeding RM500,000.00 threshold are required to
be registered. Currently, the sales tax rate is at 5%, 10% or on a specific rate.
6. Applying for Tax Incentives
Reinvestment Allowance, Accelerated Capital Allowance, Accelerated Capital Allowance (ACA)
and Automation Equipment (AE)
7. Applying for Import duty exemption on machinery, equipment, and spare parts.
8. Applying for Import duty exemption on raw materials/components
9. Employment Registration
Contributions to the Employees Provident Fund (EPF)
Contributions to Employees’ Social Security (SOCSO)
10. Applying for Patent and Registration of Trade Mark
11. Applying Preferential Certificate of Origin (PCO) or Non-Preferential Certificate of Origin (NPCO)
12. Applying for Import and Export Permits
13. Scheduled waste management
2 Regulatory Framework in The Electrical & Electronics Sector The preceding chapters outlines the regulatory framework that may be imposed on the E&E sector
industries especially the manufacturing sector.
2.1 Regulatory Value Chain Framework Figure 2-1 below shows the proposed Regulatory Value Chain for which the E & E sector may be
imposed of by regulations in Malaysia. The Value Chain composes of 4 sections namely Business
Establishment, Pre-Operations, Employment, and Operations frameworks.
Figure 2-1: Regulatory Value-Chain Overview
2.2 Government Agencies Regulatory Mapping Summary Table 2-1 below summarizes the government agencies that is responsible for administering the regulations that may affect the E&E industry directly or
indirectly.
Table 2-1: Government Agencies, Legislations, International Conventions
Government Agency Principal Legislation Subsidiary Legislation Standards / Guidelines / Policies Energy Commission (Suruhanjaya Tenaga) 1. Energy Commission Act 2001
2. Energy Commission (Amendment) Act 2010
3. Electricity Supply Act 1990 [Act 447] 4. Electricity Supply (Amendment) Act 2015
[Act A1501]
1. Electricity Regulations 1994 2. Electricity (Amendment) Regulations
2013 P.U.(A)151 3. Electricity (Amendment) Regulations
2014 P.U.(A)73 4. Electricity (Amendment) (No.2)
Regulations 2014 P.U.(A)136 5. Electricity Supply (Compounding of
Offences) Regulations 2001: P.U. (A) 408
6. Licensee Supply Regulations, 1990 7. Efficient Management of Electrical
Energy Regulations 2008 [P.U.(A)444] 8. Electricity Supply Act 1990: Exemption
Under Section 54: P.U.(B)324 9. Electricity Supply Act 1990: Exemption
Under Section 54: P.U.(B)342 10. Electricity Supply Act 1990: Electricity
Supply (Exemption) Notification 1994: P.U. (B) 156
1. Standards for Electrical Equipment that Requires Certificate of Approval to Manufacture, Import, Display, Sell or Advertise
Electricity (license) 1. Guidelines on Licensing Under Section
9 of the Act [Electricity Supply Act 1990 (Act 447)]
2. Garis Panduan Permohonan Provisional Licence
Electricity (Meter) Guideline for Electricity Meters: Approval, Testing and Initial Verification Requirements Electricity (Equipment) 1. List of Regulated Electrical Equipment 2. Information Booklet on Approval of
Electrical Equipment (Electricity Regulation 1994)
Electricity (Safety) 1. Non-Domestic Electrical Installation
Safety Code 2. Guideline for The Design, Installation,
Inspection, Testing, Operation and Maintenance of Water Heater Systems
3. Guideline on Electrical Safety Management Plan and Programme
4. Guidelines for Electrical Wiring in Residential Building 2008
Government Agency Principal Legislation Subsidiary Legislation Standards / Guidelines / Policies 5. Pemasangan Pagar Elektrik Mengikut
Prosedur Yang Ditetapkan Oleh Suruhanjaya Tenaga
Energy Efficiency 1. Guide on Minimum Energy
Performance Standard (MEPS) Requirement for Washing Machine
2. Guide on Minimum Energy Performance Standard (MEPS) Requirements for Refrigerator
3. Guide on Minimum Energy Performance Standard Requirements for Air Conditioner with Cooling Capacity ≤ 7.1kw
Ministry of International Trade and Industry (MITI)
1. Industrial Co-ordination Act 1975 [Act 156];
2. Countervailing and Anti-Dumping Duties Act 1993 [Act 504]
3. Safeguards Act 2006 [Act 657] 4. Promotion of Investment Act 1986 [Act
327] 5. Strategic Trade Act 2010 [Act 708] 6. Malaysian External Trade Development
Corporation Act 1992 [Act 490]
1. Strategic Trade Regulations 2010 2. Strategic Trade (United Nations Security
Council Resolutions) Regulations 2010 3. Strategic Trade (Strategic Items)
(Amendment) Order 2018
Malaysian Investment Development Authority (MIDA)
1. Industrial Co-ordination Act 1975 [Act 156] 2. Promotion of Investment Act 1986 [Act
327]
1. Industrial Co-Ordination (Exemption) Order 1976
Malaysia External Trade Development Corporation (MATRADE)
1. Malaysian External Trade Development Corporation Act 1992 [Act 490]
Department of Standards Malaysia (JSM) 1. Standards of Malaysia Act 1996 [Act 549] 1. Standards of Malaysia (Fees) Regulations 2018
Malaysian Communications and Multimedia Commission
1. Communications and Multimedia Act 1998 [Act 588]
2. Strategic Trade Act 2010 (STA) [Act 708]
1. Communications and Multimedia (Technical Standards) Regulations 2000
2. Communications and Multimedia (Licensing) Regulations 2000
Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC)
1. Technologists and Technicians Act 2015 [Act 768]
2. Sustainable Energy Development Authority Act 2011 [Act 726]
Government Agency Principal Legislation Subsidiary Legislation Standards / Guidelines / Policies 3. Renewable Energy Act 2011 [Act 725] 4. Energy Commission Act 2001 [Act 610] 5. Electricity Supply Act 1990 [Act 447] 6. Environmental Quality Act 1974 [Act 127]
Ministry of Foreign Affairs 1. Chemicals Weapons Convention Act 2005 [Act 641]
1. Chemical Weapons Convention Regulations 2007
Ministry of Domestic Trade and Consumer Affairs
1. Direct Sales and Anti-Pyramid Scheme Act 1993 [Act 500]
2. Franchise Act 1998 [Act 590] 3. Optical Discs Act 2000 (as at 1-1-2006) 4. Trade Descriptions Act 2011 [Act 730] 5. Price Control and Anti-Profiteering Act
2011 [Act 723] 6. Trade Marks Act 1976 [Act 175] 7. Patents Act 1983 [Act 291] 8. Industrial Designs Act 1996 [Act 552] 9. Layout-Designs of Integrated Circuits Act
2000 [Act 601] 10. Competition Act 2010
Guidelines on Foreign Participation In The Distributive Trade Services Malaysia
Local Governments 1. Local Government Act 1976 (Act 171) 2. Street, Drainage and Building Act 1974
[Act 133]
• Trade, Business and Industrial By-Laws (premise license)
• Advertisement By-Laws
• Uniform Building By-Laws
• Earthworks By-Laws
State Government’s Town and Country Planning Department
1. Town and Country Planning Act 1976 [Act 172]
2.
• Development Plans (Structure and Local Plans) Rules
• Planning Control (General) Rules
Fire and Rescue Department of Malaysia 1. Fire Services Act 1988 [Act 341] • Fire Services (Designated Premises) Order 1998
• Fire Services (Fire Certificate) Regulations 2001
Ministry of Human Resource 1. Employment Act 1955 [Act 265] 2. National Wages Consultative Council Act
2011 [Act 732]
• Minimum Wages Order (Amendment) 2018
Social Security Organisation (SOCSO) 1. Employees’ Social Security Act 1969 [Act 4] (As at 1 October 2016)
2. Self-Employment Social Security Act 2017 [Act 789]
• Employees’ Social Security (General) Regulations 1971
Government Agency Principal Legislation Subsidiary Legislation Standards / Guidelines / Policies 3. Employment Insurance System Act 2017
[Act 800]
Employees Provident Fund (EPF) 1. Employees Provident Fund Act 1991 [Act 452]
1. Employees Provident Fund (Amendment) Regulations 2016
2. Employees Provident Fund (Amendment of Third Schedule) Order 2018
3. Employees Provident Fund Rules (Amendment) 2018
3 Business Establishment Regulatory Framework Figure 3-1 below depicts the regulations for establishing an E & E business in Malaysia. Among the government agencies that is involve are the State
Governments, the Companies Commission of Malaysia (Ministry of Domestic Trade and Consumer Affairs), The Department of Environment (Ministry of
Energy, Science, Technology, Environment & Climate Change), and the Malaysian Investment Development Authority (Ministry of International Trade and
Industries).
Table 3-1: Business Establishment Regulatory Framework
Authorities Regulations Forms/Links 1. Incorporating a Company Companies Commission of
Malaysia (SSM) • Companies Act 2016 [Act
777]
• Registration of Businesses Act 1956 [Act 197] Section 5
• Limited Liability Partnerships Act 2012 [Act 743]
• MyCoID
− https://mycoid2016.ssm.com.my/
• ezbiz Online
− https://ezbiz.ssm.com.my/?0
• MyLLP
− https://www.myllp.com.my/
2. Manufacturing Licence Malaysian Investment Development Authority (MIDA)
• Industrial Co-ordination Act 1975 [Act 156] Section 3
− Industrial Co-Ordination (Exemption) Order 1976
• FORM ICA/JA-1 (New Manufacturing Project)
− http://www.mida.gov.my/home/administrator/system_files/modules/photo/uploads/20171227102524_ICA-JA%201%20(1.9.2017n).docx
• FORM ICA/JA-3 (High Technology / Strategic Project for New Manufacturing Activity)
− http://www.mida.gov.my/home/administrator/system_files/modules/photo/uploads/20180803162045_ICA-JA3(01092017n)-02.docx
3. No-Objection Letter for The Location of Projects
State Government • National Land Code (Act 56 of 1965) Division I: Part 3
• NOL e-form
− http://www.investselangor.my/nol-e-form/?a=signup
− https://jsic.gov.my/nol/
4. Preliminary site suitability assessment
Department of Environment (DOE)
• Environmental Quality Act 1974 [Act 127]
• AS PAT 1-12 - Preliminary Site Assessment for Development Project
− https://www.doe.gov.my/portalv1/wp-content/uploads/2016/02/AS-PAT-1-12-Preliminary-Site-Assessment-For-Development-Project.pdf
5. Environmental Impact Assessment reports
Department of Environment (DOE)
• Environmental Quality Act 1974 [Act 127] Section 34A
− Environmental Quality (Prescribed Activities)
• EIA Report
− http://eia.doe.gov.my/escv8/login.php
Authorities Regulations Forms/Links
(Environmental Impact Assessment) Order 1987
Incentives by Legislations
6. Pioneer Status Malaysian Investment Development Authority (MIDA) Inland Revenue Board of Malaysia (IRBM)
• Promotion of Investments Act 1986 [Act 327] Section 6
• Income Tax Act 1967 [Act 53] Section 127
• FORM ICA/JA-1
7. Investment Tax Allowance Malaysian Investment Development Authority (MIDA) Inland Revenue Board of Malaysia (IRBM)
• Promotion of Investments Act 1986 [Act 327] Sections 26 and 27
• Income Tax Act 1967 [Act 53] Schedule 7B
• FORM ICA/JA-1
3.1 Incorporating a Company In Malaysia, a business may be conducted by:
(a) a locally incorporated company or by a foreign company registered under the provisions of
the Companies Act 2016, or
(b) an individual operating as a sole proprietor, or
(c) two or more (but not more than 20) persons in partnership
The Companies Act 2016 governs all companies in Malaysia. Sections 14 and 15 of the Act stipulates
the requirements for a person – in order to engage in any business activities in Malaysia – must apply
for registration of a company with the Companies Commission of Malaysia (SSM).
Section 10 of the Act provides for three types of companies, i.e.,
(a) a company limited by shares;
(b) a company limited by guarantee; or
(c) an unlimited company.
All sole proprietorships and partnerships in Malaysia must be registered with the Companies
Commission of Malaysia (SSM) under the Registration of Businesses Act 1956 [Act 197] Section 5. In
the case of partnerships, partners are both jointly and severally liable for the debts and obligations of
the partnership should its assets be insufficient. Formal partnership deeds may be drawn up governing
the rights and obligations of each partner but this is not obligatory.
Another form of incorporation of a business is the Limited Liability Partnership (LLP). LLP combines
the characteristics of a private company and a conventional partnership. LLP provides limited liability
status to its partners and offers the flexibility of internal arrangement through an agreement between
the partners.2 The Limited Liability Partnerships Act 2012 [Act 743] governs LLPs of which Sections
10 and 11 stipulates the requirements for the application for registration of an LLP.
3.2 Manufacturing Licence The Industrial Co-Ordination Act 1975 [Act 156] (ICA) – an Act to provide for the co-ordination and
orderly development of manufacturing activities in Malaysia – is the principal Act that governs all
manufacturing activities in Malaysia. The Malaysian Investment Development Authority (MIDA) – an
agency under the Ministry of International Trade and Industry (MITI) – is the government's principal
agency for the promotion of manufacturing and services sectors in Malaysia.
Section 3 (1) of the Act 156 states that “No person shall engage in any manufacturing activity unless
he is issued a licence in respect of such manufacturing activity.”
The main criteria of setting up a manufacturing facility is a local incorporated company. There are no
restrictions in the equity holdings of the local incorporated entity. The ICA’s subsidiary legislation
Industrial Co-Ordination (Exemption) Order 1976 only requires manufacturing companies with
shareholders' funds of RM2.5million and above or engages 75 or more full-time paid employees to
apply for a manufacturing licence for approval by the Ministry of International Trade and Industry
(MITI). Applications for the manufacturing licence are to be submitted to MIDA for evaluation and
approval. Manufacturers which does not conform to the above requirements are exempted from
applying for a manufacturing licence.
2 Companies Commission of Malaysia. (n.d.). Limited Liability Partnership. Kuala Lumpur.
Furthermore, manufacturing companies below the threshold may apply for a ‘Confirmation Letter for
a Company Exempted from Manufacturing Licence’ (Form ICA-10) from MIDA which may be used to
facilitate for application of other business activities pursuant to the manufacturing such as tax
incentives and foreign workers intake.
3.2.1 Guidelines for Approval of Industrial Projects3 The government's guidelines for approval of industrial projects in Malaysia are based on the following
criteria:
Projects must have Capital Investment Per Employee (CIPE) of at least RM140,000.00;
Total full-time workforce of the company must comprise at least 80% Malaysians.
Employment of foreign workers including outsourced workers is subjected to current policies;
Total number of managerial, technical and supervisory levels (MTS) is at least 25% of total
employment or having a value added (VA) of at least 40%
A licensed company which desires to expand its production capacity or diversify its product range by
manufacturing additional products is required to apply to MIDA for its expansion activities.
3.2.2 No-Objection-Letter for The Location of Projects4 Land matters in peninsular Malaysia is under the purview of the State Governments. The National
Land Code (Act 56 of 1965), Division 1, Part Three (Rights And Powers Of The State Authority),
Chapter 1 (Property In Land And Powers Of Disposal), Section 40 (a) states “There is and shall be
vested solely in the State Authority the entire property in all State land within the territories of the
State;”. Furthermore, Section 42 sub-section (1)(c) states “Subject to sub-section (2), the State
Authority shall have power under this Act to permit the occupation of State land, reserved land and
mining land under temporary occupation licences issued in accordance with the provisions of Chapter
2 of Part Four;”.
Thus, all manufacturing projects (except expansion project at the same location) are required to obtain
approval from the State Government for the location of a project. Approval in the form of a ‘No-
Objection-Letter’ from the State Government to verify the location of project in the designated zone
can be obtained by applying to the respective State. The no-objection letter needs to be subsequently
submitted to MIDA for the issuance of the manufacturing licence.
3.2.2.1 Sample Guidelines from Invest Selangor5
The Selangor State Government through its Invest Selangor website provides for easier application of
a “No-Objection letter (NOL)”. A user needs only to sign-up to apply through the NOL e-form page.
Subsequently, filling up the form and uploading the required supporting documents (documents must
be certified by Company Secretary or Commissioner of Oath) such as,
Form 9, 24 and 49
3 Getting Started: General Guidelines & Facilities: Starting Up Business. (2019). Retrieved April, 2019, from Official Website Malaysia Invesment Development Authority: http://www.mida.gov.my/home/starting-up-business/posts/ 4 Malaysia Investment Development Authority. (2008). Book 2 Approval and Licensing. In Guide For Malaysian Manufacturers (p. 2). Kuala Lumpur. 5 http://www.investselangor.my/NOL/#ApplicationGuidelinesNOLeForm, accessed 12/05/19
A list of products (end products) or attached the products catalogue if available
A copy of the Letter of Manufacturing License Approval from MITI / MIDA
A copy of Land Title / Land Conversion Approval
A copy of Certificate of fitness
A copy of Sale & Purchase / Tenancy Agreement
A copy of business licence from the local authority
3.2.3 Equity Policy6 Since June 2003, foreign investors could hold 100% of the equity in all investments in new projects, as
well as investments in expansion/diversification projects by existing companies, irrespective of the
level of exports and without excluding any product or activity.
A company whose equity participation has been approved will not be required to restructure its equity
at any time as long as the company continues to comply with the original conditions of approval and
retain the original features of the project.
3.2.4 Investment Guarantee Agreements7 Malaysia’s policy of protecting foreign investment can be seen by the government’s readiness to
conclude Investment Guarantee Agreements (IGAs). This is a testimony of the government's desire to
increase foreign investor confidence. IGAs will:
Protect against nationalisation and expropriation
Ensure prompt and adequate compensation in the event of nationalisation or expropriation
Provide free transfer of profits, capital and other fees
Ensure settlement of investment disputes under the Convention on the Settlement of
Investment Disputes of which Malaysia has been a member since 1966.
3.3 Environmental Safeguards In the promotion of environmentally sound and sustainable development, the Government of
Malaysia has established the necessary legal and institutional arrangements such that environmental
factors are considered at the early stages of project planning. With reference to the licensing
requirements for establishment of business/industry in the country, environmental requirements and
assessment constitute the second level of approval that need to be obtained after a business or
industry has been registered.8
The main legislation for the safeguards of the environment is the Environmental Quality Act 1974
(EQA) [Act 127]. Factories and industries to be built must undergo several measures to ensure these
industries does not have any adverse impact on the surrounding environment. Under Section 34A of
the EQA, industries are required to undertake an Environment Impact Assessment (EIA) before any
development commences especially for prescribed activities. These prescribed activities are described
6 7 Malaysian Investment Development Authority (MIDA). (July, 2019). Starting Up Business. Retrieved from Official Website of the Malaysian Investment Development Authority: http://www.mida.gov.my/home/starting-up-business/posts/ 7 8 Department of Environment, Ministry of Natural Resources and Environment. (2010). Environmental Requirements: A Guide For Investors. Putrajaya.
in detail in the Environmental Quality (Prescribed Activities) (Environment Impact Assessment)
Order 2015 (refer to Table A-1 of Appendix A).
The Environmental Quality Act, 1974 (EQA), and various regulations made under it, require that the
carrying out of any activity which is likely to result in the release or discharge or emission of any
pollutant which is likely to have an impact to the environment, is required to obtain the relevant
comment, consent or approval of the Director General of Environmental Quality of the Department
of Environment (DOE). These consent or approvals are in respect of:9
A. Site suitability assessment
• for an industrial plant or prescribed activity)
B. Environmental Impact Assessment (EIA) report
• for prescribed activities (Section 34A of the EQA)
C. Written permission
• to construct a prescribed premise (Section 19 of the EQA)
D. Written approval
• for installation of incinerator, fuel burning equipment and chimney (the
Environmental Quality (Clean Air) Regulations 1978); and
E. License
• to use and occupy prescribed premises and prescribed conveyances (Section 18 of the
EQA), or for contravention of the acceptable conditions specified (Section 21 of the
EQA).
3.3.1 Environmental Impact Assessment (EIA) For Prescribed Activities10 All prescribed activities are required to obtain an Environmental Impact Assessment (EIA) approval
from the Director General of Environment prior to the giving of approval by the relevant Federal or
State Government authority for the implementation of an industrial or manufacturing project. The
Approving Authority is the Government Authority that has the task of deciding, whether or not a
project should proceed.
If the proposed venture is categorised as a “prescribed activity” (refer to Table A-1) under the
Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015 (EIA
Order 2015), an EIA study needs to be conducted. And the EIA report has to be submitted to the
Director General of Environmental Quality for approval. Any industrial and manufacturing
development project is not allowed to proceed unless approval of the EIA report has been granted.
3.3.2 Site Suitability Evaluation for Non-Prescribed Activities11 One of the most important procedures which have an immediate bearing on the period of processing
and condition of approval on environmental grounds is the site suitability for a proposed industrial or
manufacturing project. Irrespective of whether the proposed industrial activity is to be sited within an
industrial estate or otherwise, it should be developed and managed with environmentally sound
control measures. Therefore, all potential industrial sites for the establishment of new industrial
9 DOE, 2012, Guidelines for the Siting and Zoning of Industry and Residential Areas 10 Department of Environment, Ministry of Natural Resources and Environment. (2010). Environmental Requirements: A Guide for Investors. Putrajaya. 11 Department of Environment, Ministry of Natural Resources and Environment. (2010). Environmental Requirements: A Guide for Investors. Putrajaya.
activities which are not subject to EIA Order 2015, particularly the Small and Medium Scale Industries
(SMIs), are advised to refer to the Department of Environment for consideration and advice on site
suitability.
In considering the suitability, the site is evaluated in terms of its compatibility with respect to the
gazetted structure/local plans, surrounding land use, provision of set-backs or buffer zones, the
capacity of the area to receive additional pollution load, and waste disposal requirements. Details on
the appropriate buffer zone with respect to a specific category of industry can be obtained from
“Guidelines for the Siting and Zoning of Industries” prepared by the Department of Environment
Malaysia.
For potentially hazardous type of industries, the project proponent may be required to submit a risk
assessment study to the Department of Environment as part of the site consideration, in accordance
with the “EIA Guidelines for Risk Assessment 2004”, established by the DOE.
3.4 Legislations Provision for Incentives
3.4.1 Promotion of Investments Act 1986 (PIA) Under the Promotion of Investments Act 1986 (PIA), it has been legislated that corporations are able
to be provided with tax incentives specifically for those activities that has been identified as priority
or promoted activities or producing priority or promoted products. Section 5 provides for the
application of a ‘Pioneer Status’(PS). Whereas, Sections 26 and 27 provides for an application of an
‘Investment Tax Allowance’ (ITA). Refer to Appendix C (Tables C-4 to C-7) for lists of priority activities
and products within the E&E sector.
The ‘Pioneer Status’ provisions for an income tax exemption of 70% - 100% of statutory income for 5
to 10 years. Any 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.
For the ‘Investment Tax Allowance’, an allowance of 60% - 100% on qualifying capital expenditure
which may include factory, plant, machinery or other equipment used, within 5 to 10 years from the
date the first qualifying capital expenditure is incurred.
3.4.1.1 Tax Incentives for Malaysian-Owned Companies
Under the PIA, the main criteria for a company to enjoy tax incentives is that the company must be
‘desirous’ in establishing or participating in a promoted activity or producing a promoted product and
has not started production. Tax exemptions equivalent to Pioneer Status or Investment Tax Allowance
will be based on the prevailing rates under the PIA. Furthermore, these incentives are provisioned
under Section 127 (3)(b) of the Income Tax Act 1967 and application will be considered by the
National Committee on Investment (NCI).
Domestic Investment Strategic Fund (DISF)12
The Government of Malaysia has established a Domestic Investment Strategic Fund (DISF) to assist
Malaysian-owned companies accelerate the shift towards high value-added, high technology,
knowledge-intensive and innovation-based industries of targeted industries. The DISF is under the
12 Malaysian Investment Development Authority. (2018). Guidelines Domestic Investment Strategic Fund. Kuala Lumpur.
purview of MIDA Customised Incentive Scheme and provisioned under Section 127 of the Income Tax
Act 1967.
Companies producing promoted products or engaged in promoted activities in the following priority
sectors are eligible for the DISF:
A. Manufacturing
(i) Aerospace;
(ii) Medical Devices;
(iii) Pharmaceuticals;
(iv) Advanced Electronics;
(v) Machinery and Equipment;
(vi) Other industries, on a case by case basis.
B. Services
(i) Design and Development
(ii) Research and Development
(iii) Testing / Calibration
(iv) Quality and Standard Certification
(v) Architectural / Engineering Services
(vi) Technical and/or skills training
(vii) Logistics Service Providers (3PL)
(viii) ICT Solutions Providers related to Automation and Industry 4.0
(ix) Integrated Green Technology Project
4 Pre-Operations Regulatory Framework
Table 4-1: Pre-Operations Regulatory Framework
Authorities Regulations Forms/Links 1. Planning Permission • Local Government
• State Government’s Town and Country Planning Department
• Town and Country Planning Act 1976 [Act 172] Section 19
− Development Plans (Structure and Local Plans) Rules
− Planning Control (General) Rules
2. Building construction permit Local Government • Street, Drainage and Building Act 1974 [Act 133] Section 70
− Uniform Building By-Laws
− Earthworks By-Laws
3. Fire safety requirements and certification
Fire and Rescue Department of Malaysia
• Fire Services Act 1988 [Act 341] Sections 27, 28, 29
− Fire Services (Designated Premises) Order 1998
− Fire Services (Fire Certificate) Regulations 2001
• Street, Drainage and Building Act 1974 [Act 133] Subsection 133 (xxi)
− Uniform Building By-Laws 1984 (Amendment 2012) Part VII, VIII, Tenth Schedule
• Form I (Fire Services (Fire Certificate) Regulations 2001, Regulation 2)
− http://www.bless2.gov.my/
− http://www.bomba.gov.my/bomba/resources/user_1/UploadFile/Orang%20Awam/Perkhidmatan/borang_I.pdf
Authorities Regulations Forms/Links
4. Licence to occupy prescribed premises and prescribed conveyances
Department of Environment (DOE)
• Environmental Quality Act 1974 [Act 127] Section 18
− Environmental Quality (Prescribed Conveyance) (Scheduled Wastes) Order 2005
5. Approval for foreign participation in the Distributive Trade in Malaysia
Ministry of Domestic Trade and Consumer Affairs
• Guidelines on Foreign Participation in the Distributive Trade in Malaysia (https://www.kpdnhep.gov.my/kpdnkk/wp-content/uploads/2017/04/WRT_Guideline.pdf)
• Form WRT 1
− https://www.kpdnhep.gov.my/kpdnkk/wp-content/uploads/2017/04/Borang-WRT1-as-at-8-Mei-2012.pdf
− https://www.kpdnhep.gov.my/kpdnkk/wp-content/uploads/2017/04/SENARAI-SEMAK-PERMOHONAN-WRT-8-Mei-2012.pdf
4.1 Building and Occupation Requirements
4.1.1 Planning Permission and Building Plan Under the Town and Country Planning Act, 1976 (Act 172) Section 19 (Prohibition of development
without planning permission), no physical development can be undertaken unless a planning
permission has been given by the local planning authority. An application for planning permission in
respect of a development and use of all lands and buildings should be made to the Local Authority
(identified as the local planning authority as stated in Act 172 Section 5) of the locality of which the
development is proposed.
Under the Street, Drainage and Building Act 1974 (Act 133) Section 70 (Buildings), construction or
renovation of buildings including factories can only be undertaken with the written approval of the
local authority. Manufacturers and industries who wish to construct any building are required to
submit building plans to the Local Authority as stipulated by Act 133 and its subsidiary Uniform
Building By-laws 1984.
Every plan, drawing or calculation in respect of the building must be submitted by a ‘qualified person’
defined as an architect or a registered building draughtsman or an engineer. Applications for approval
of building plan should be made to the One-Stop-Centre (OSC) which has been established at every
local authority.
If any earthworks are to be done before the construction of buildings, under Act 133 Section 70A and
its subsidiary Earthworks By-Laws 1984 which determines that a written approval issued by the Local
Authority is required.
4.1.2 Certificate of Compliance and Completion Upon completion of the construction of any building, a Certificate of Completion and Compliance
(CCC) is required to be issued by the Principal Submitting Person authorised by the Local Authority as
stipulated upon by Act 133 subsection 70(20). Furthermore, Act 133 subsidiary legislation Uniform
Building By-laws 1984 by-law 25(1) prescribes the requirements and procedures of which the CCC is
to be issued.
4.1.3 Fire Certification All designated premises such as factories are required to obtain a Fire Certificate from the Fire and
Rescue Department of Malaysia as per requirement as stated in The Fire Services Act 1988 [Act 341]
Sections 27, 28 and 29. The Fire Certificate must be renewed annually as per required under
Subsection 28 (2) of the Act 341.
The subsidiary regulations that governs the designated premises and the procedural requirements for
fire certification are,
Fire Services (Designated Premises) Order 1998
Fire Services (Fire Certificate) Regulations 2001
Refer to Table E-1 of Appendix E which shows the list of designated premises of which a Fire
Certification is required.
Additionally, the Uniform Building By-Law 1984 by-laws 133-224, and by-laws 225-253, and the Tenth
Schedule describes the basic requirements of a fire system.
4.1.4 Scheduled Waste Management If any prescribed premises intend to construct any scheduled wastes treatment and disposal facilities,
a written approval from the Department of Environment is forthcoming under the Environmental
Quality Act 1984 Section 19 and its subsidiary regulations the Environmental Quality (Scheduled
Wastes) Regulations 2005.
For the installation of an incinerator, a fuel burning equipment and a chimney, a written approval from
the same department is also required as described under the Environmental Quality (Clean Air)
Regulations 1978 Sub regulation 4 (2). All of the said equipment above must follow the Limit Values
and Technical Standards as prescribed in the Second and Third Schedules of the Clean Air Regulations.
Whereas, the Fifth Schedule of the Regulations prescribed the Limit Values and Technical Standards
for handling hazardous substances.
Factories with scheduled waste management are required to obtain a licence before a prescribed
premise or conveyance are allowed to be occupied for operations. License (to use and occupy
prescribed premises and prescribed conveyances) under Section 18 of the EQA, or for contravention
of the acceptable conditions specified under Section 21 of the EQA.
In summary, for scheduled waste management, approval is required to construct a waste
management facility and a licence is required to operate the said facility.
4.2 Foreign Participation in the Distributive Trade Foreign companies who desires to participate in the Distributive Trade in Malaysia is require to apply
for approval to set-up operations from the Ministry of Domestic Trade and Consumer Affairs (MDTCA).
The guidelines are laid out in the guidebook “Guidelines on Foreign Participation in The Distributive
Trade Services Malaysia13”. As identified by the MDTCA, the types of distributive trade establishments
include;
wholesalers,
retailers,
franchise practitioners,
direct sellers,
suppliers, who channel their goods in the domestic market, and
commission agents or other representatives including those of international trading
companies.
The objectives of facilitating foreign participation in the distributive trade services is to;
a) ensure an orderly and fair development of the industry, while ensuring the growth of local
businesses;
b) encourage the modernization and increase the efficiency of the industry and its continued
contribution to the growth of the economy; and
c) increase Bumiputera participation in the economic sector, in line with the National
Development Policy.
13 Can be accessed at https://www.kpdnhep.gov.my/kpdnkk/wp-content/uploads/2017/05/guidelines-on-foreign-participation-in-the-distributive-trade-services-malaysia.pdf
5 Employment Regulatory Framework
Table 5-1: Employment Regulatory Framework
Authorities Regulations Forms/Links 1. General employment
requirements Ministry of Human Resource (MoHR)
• Employment Act 1955 [Act 265]
2. Minimum wage requirement Ministry of Human Resource (MoHR)
• National Wages Consultative Council Act 2011 [Act 732]
– Minimum Wages Order (Amendment) 2018
• Minimum Wages Portal
– http://minimumwages.mohr.gov.my/en/index.php
3. Contributions to the Employees Provident Fund
Employees Provident Fund (EPF)
• Employees Provident Fund Act 1991 [Act 452] Sections 41, 45
• i-Akaun
− https://secure.kwsp.gov.my/employer/employer/login?service=contribution
4. Contributions to Employees’ Social Security
Social Security Organisation (SOCSO)
• Employees' Social Security Act 1969 [Act 4] Section 6
− Employees’ Social Security (General) Regulations 1971 – Regulations 10, 12, 12A
• Borang 1 – Pendaftaran Majikan
− https://www.perkeso.gov.my/images/borang2017/Borang_Pendaftaran_Caruman/Pendaftaran_Majikan_Pekerja/Borang_1_Pendaftaran_Majikan.pdf
• Borang 2 – Borang Pendaftaran Pekerja
− https://www.perkeso.gov.my/images/borang2017/Borang_Pendaftaran_Caruman/Pendaftaran_Majikan_Pekerja/Borang_2_Pendaftaran_Pekerja.pdf
5. Worker’s Insurance coverage Social Security Organisation (SOCSO)
• Employment Insurance System Act 2017 [Act 800] Section 16
− Employment Insurance System (Registration and Contribution) Regulations 2017 – Regulations 2(1), 4
• Borang SIP 1 - Borang Pendaftaran Majikan
− https://www.perkeso.gov.my/images/borang2017/Borang_SIP/Borang_SIP_1-Borang_Pendaftaran_Majikan.pdf
• Borang SIP 2 - Borang Pendaftaran Pekerja
− https://www.perkeso.gov.my/images/borang2017/Borang_SIP/Borang_SIP_2-Borang_Pendaftaran_Pekerja.pdf
• EIS Portal
− https://eis.perkeso.gov.my/eisportal/insured/appl/instruction
Authorities Regulations Forms/Links 6. Occupational safety and
health requirements Department of Occupational Safety and Health (DOSH)
• Occupational Safety and Health Act 1994 [Act 514]
− Occupational Safety and Health (Noise Exposure) Regulations 2019
− Occupational Safety and Health (Classification, Labelling and Safety Data Sheet of Hazardous Chemicals) Regulations 2013
− Occupational Safety and Health (Notification of Accident, Dangerous Occurrence, Occupational Poisoning and Occupational Disease) Regulations 2004
− Occupational Safety and Health (Use and Standards of Exposure of Chemicals Hazardous to Health) Regulations 2000
− Occupational Safety and Health (Safety and Health Officer) Regulations 1997
− Occupational Safety and Health (Safety and Health Committee) Regulations 1996
− Occupational Safety and Health (Control of Industrial Major Accident Hazards) Regulations 1996
− Occupational Safety and Health (Employers' Safety and Health General Policy Statements) (Exception) Regulations 1995
− Occupational Safety and Health (Prohibition of Use of Substances) Order 1999
− Occupational Safety and Health (Safety and Health Officer) Order 1997
7. Foreign workers work permit • Ministry of Home Affairs (MOHA)
• Immigration Department of Malaysia
• Employment (Restriction) Act 1968 [Act 796] – (Revised 2017) Sections 5 and 6
• Immigration Act 1959/63 [Act 155]
− Immigration Regulations 1963
• PK(O).KDN.PA.01(L1a) Lampiran 1 (a)
− http://www.moha.gov.my/images/borang/borang_sektor_perkilangan.pdf
• VDR application
− https://fwcms.com.my/evdr.html
Authorities Regulations Forms/Links 8. Expatriates post work
permit/visa • Malaysian Investment
Development Authority (MIDA)
• Immigration Department of Malaysia
• Talent Corporation Malaysia Berhad (TalentCorp)
• MDeC
• Immigration Act 1959/63 [Act 155]
− Immigration Regulations 1963 – Reg. 8(3)
• ESD Portal
− https://esd.imi.gov.my/portal/
The Department of Labour Peninsular Malaysia, Ministry of Human Resource, is responsible for the
administration of labour laws in Peninsular Malaysia. Sabah and Sarawak’s labour administration are
the responsibilities of the Department of Labour Sabah, and the Department of Labour Sarawak
respectively. The labour laws stipulate the minimum requirements that apply to all types of
employment. Flexibility in the operation of businesses is facilitated by application for exemption to
the Director of Labour.
5.1 General Employment Requirements The Employment Act 1955 [Act 265] is the main legislation that is applied to all employees in
Peninsular Malaysia and the Federal Territory of Labuan whose monthly wages do not exceed
RM1,500 and all manual labourers irrespective of their wages. Employers may draw up a contract of
service but it should not contravene the minimum benefits stipulated under the Act.
Some of the obligations of an employer under the Employment Act 1955 are:
i. Every employee must be given a written contract of service containing the terms and
conditions of the employment, including provisions relating to the termination of contract.
ii. Maintaining of labour register pertaining to personal particulars of employees, payment of
wages and deduction of wages.
iii. Special provisions for the protection of female employees pertaining to night work and
maternity benefits.
iv. Normal hours of work and other provisions relating to numbers of working hours.
v. Entitlement of paid annual leave, sick leave and public holidays.
vi. Rate of payment for overtime and extra work.
5.2 Minimum Wage Policy The Minimum Wages Policy was established following a study conducted in 2009 that showed that
33.8% of workers in the private sector earned less than RM700 per month, relative to the country’s
Poverty Line Income (PLI) level of RM800.
The objectives of Minimum Wages Policy are:
(i) ensuring the basic needs of workers and their families are met;
(ii) providing sufficient social protection to workers;
(iii) encouraging industry to move up the value chain by investing in higher technology and
increase labour productivity; and
(iv) reducing the nation’s dependence on unskilled foreign labour.
The Minimum Wages Policy would encourage employers to move up the value chain by increasing the
productivity of their employees by using technology and other innovations. The establishment of a
floor wage for all employees in Malaysia would also ensure that all layers of the Malaysian society
enjoy the fruits of development, which in turn will further spur the economic activity.
The Minimum Wages Order (Amendment) 2018 sets the minimum wage that has come into operation
on the 1st January 2019 (refer Table 5-2 below).
Table 5-2: Minimum Wages Rate as of 1 Jan 2019
Minimum wages rate
Monthly Daily Hourly
RM1,100,00
6 working days RM42.31
RM5.29 5 working days RM50.77
4 working days RM63.48
5.3 Workers’ Insurance Coverage The Employment Insurance System Act 2017 [Act 800] sets out the implementation of an
employment insurance system (EIS/SIP) to be administered by the Social Security Organisation
(SOCSO). By virtue of Subsection 14 (1) of the Act, companies are required to register with SOCSO.
Whereas, Subsection 16 (1) stipulates that every employee of a company shall be registered within
the system and provided insurance coverage by its employer.
The EIS Act acts as a safety net for employees in the event that the business closes shop. It ensures
that insured employees are able to be provided a stipend for a certain period of between three to six
months to enable the employee to seek other job opportunities.
5.4 Contributions to Employees Provident Fund (EPF) The Employees Provident Fund Act 1991 [Act 452] stipulates a compulsory contribution for
employees. Under the Act, all employers and employees (except foreign workers and those who are
listed under the First Schedule of the Act) must contribute to the Employees Provident Fund (EPF). All
employers must register their employees with EPF immediately upon employment except for those
who are exempted under the Act.
With effect from 1 February 2008 the rate of contributions is as follows: -
Table 5-3: EPF Contribution Requirement
Employee Category Applicable Rate
Employers Employees
1. Employees who are Malaysian citizens, Permanent Residents and non-Malaysian Citizens who have elected to contribute to EPF before 1 August 1998 and who have not attained the age of fifty-five years (Refer to Part A of the Third Schedule)
Minimum of 12% of the employees’ monthly wages
Minimum of 11% of the employees’ monthly wages
2. Employees who are Malaysian citizens, Permanent Residents and non-Malaysian Citizens who have elected to contribute to EPF before 1 August 1998 AND have attained the age of fifty-five years (Refer to Part C of the Third Schedule)
Minimum of 6% of the employees’ monthly wages
Minimum of 5.5% of the employees’ monthly wages
3. Employees who are not Malaysian Citizens but elect to contribute to EPF on or after 1 August 1998 and who elect to contribute under paragraph 3 and 6 of the First Schedule of the EPF Act 1991, (Refer To Part B of The Third
RM5.00 (US$1.33) per employee per month
11% of the employees’ monthly wages
Employee Category Applicable Rate
Employers Employees
Schedule) and who have not attained the age of fifty five years
4. Employees who are not Malaysian Citizens but elect to contribute to EPF on or after 1st August 1998 and who elect to contribute under paragraph 3 and 6 of the First Schedule of the EPF Act 1991 AND who have attained the age of fifty-five years, (Refer to Part D of The Third Schedule)
RM5.00 (US$1.33) per employee per month
5.5% of the employees’ monthly wages
5.5 Contributions to Social Security Organisation (SOCSO) The Employees’ Social Security Act 1969 [Act 4] was enacted to serve as a social security and safety
net for workers in all industries (having one or more employees). Section 3 of the Act 4 stipulates such
a requirement. Section 6 of the Act compel both employer and employee to contribute to the Social
Security Organisation (SOCSO) who is the authority to administer, implement and enforce the Act 4
and its subsidiary regulation, the Employees’ Social Security (General) Regulations 1971.
Under the Act, SOSCO provides for two social security schemes, namely the Employment Injury
Scheme and the Invalidity Scheme. These schemes allow SOCSO, in the event of workplace accidents
or disease contracted in the course of an employees’ work which reduces an employee capability
and/or capacity to work or being incapacitated, to provide free medical treatment, facility for physical
or vocational rehabilitation, and financial assistance to the said employee.
Since 1st January 2019, foreign workers are also covered under the Act 4, in line with the Equality of
Treatment (Accident Compensation) Convention, 1925 (No.19) and Conference Committee on the
Application of Standard under the International Labour Organisation (ILO), which the government of
Malaysia has ratified. Foreign workers are only eligible for the Employment Injury Scheme.
5.6 Occupational Safety and Health Requirements The Department of Occupational Safety and Health (DOSH), under the Ministry of Human Resources,
has been assigned the responsibility of administrating and enforcing legislation related to
occupational safety and health (OSH). This is to ensure that safety, health and welfare of people at
work as well as others are protected from hazards resulting from occupational activities in the various
sectors which include manufacturing; mining and quarrying; construction; agriculture, forestry and
fishing; utilities (gas, electricity, water and sanitary services); transport, storage and communication;
wholesale and retail trades; hotels and restaurants; finance, insurance, real estate and business
services; public services and statutory authorities.
The Occupational Safety and Health Act (OSHA) 1994 [Act 514] provides the legislative framework to
promote, stimulate and encourage high standards of safety and health at work. The aim is to promote
safety and health awareness, and establish effective safety organisation and performance through
self-regulation schemes designed to suit the particular industry or organisation. The long-term goal of
the OSHA is to create a healthy and safe working culture among all Malaysian employees and
employers.
There are seven regulations under OSHA 1994 that are enforced by DOSH:
1. Employers' Safety and Health General Policy Statements (Exception) Regulations 1995
2. Control of Industrial Major Accident Hazards Regulations 1996
3. Classification, Packaging and Labelling of Hazardous Chemicals Regulations 1997
4. Safety and Health Committee Regulations 1996
5. Safety and Health Officer Regulations 1997
6. Use and Standards of Exposure of Chemicals Hazardous to Health Regulations 2000
7. Notification of Accident, Dangerous Occurrence, Occupational Poisoning and Occupational
Disease Regulations 2004
5.7 Foreign Workers Foreigners are only allowed to work in Malaysia if they are provided with a work permit issued by the
Immigration Department of Malaysia applied by their employers. Employers are required to apply for
foreign workers quota through the Ministry of Home Affairs before applying for the foreign workers
permit to the Immigration Department of Malaysia.
In the Employment (Restriction) Act 1968 – (Revised 2017) [Act 796] paragraph 5(1)(a) states “No
non-citizen referred to in the Schedule shall be employed in any business in Malaysia or accept
employment in any business in Malaysia unless there has been issued in respect of such non-citizen a
valid employment permit.”
Furthermore, Subsection 6(1) states “Every non-citizen referred to in the Schedule shall before
commencing any employment or business described in that Schedule apply for an employment permit
to the Director General and the application shall be in such form and shall contain particulars as may
be prescribed.”
Recruitment Terms and Conditions of Foreign Workers14
• Only permitted to work in the Manufacturing, Construction, Plantation, Agriculture and
Services sectors;
• Quota of foreign workers must be obtained by employers / companies from Ministry of
Home Affairs, One Stop Centre (OSC);
• Age of not less than 18 years and not more than 45 years at the time of application;
• Certified PASS for Immigration Security Clearance (ISC) at the source country;
• Certified as fit and healthy by the approved medical centre in the source countries;
• Not listed as foreign individuals who are prohibited from entering this country under
Section 8 (3) of the Immigration Act 1959/1963;
14 Immigration Department of Malaysia (Ministry of Home Affairs). (2016). Foreign Worker. Retrieved 2019, from Official Portal of Immigration Department of Malaysia (Ministry of Home Affairs): https://www.imi.gov.my/index.php/en/main-services/foreign-workers.html
5.8 Expatriates As manufacturing activities is under the purview of MIDA, manufacturers are required to apply to
MIDA for expatriate posts desired. Expatriate post can only be considered for manufacturers with the
following minimum paid-up capital;
100% Malaysian-owned company: RM250,000.
Jointly-owned by foreign and Malaysian: RM350,000.
100% foreign-owned company: RM500,000.
As such, there are two types of expatriate posts that is considered15;
a) Key Post
These are high level managerial posts in foreign-owned private companies and firms operating in
Malaysia. Key posts are posts essential for companies to safeguard their interest and investments.
The expatriates are responsible in determining the company’s policies in achieving its goal and
objectives.
b) Time Post
i. Executive Post
These are intermediate level of managerial and professional posts. The post requires
professional qualifications, practical experience, skills and expertise related to the respective
jobs. The expatriate is responsible in implementing the company’s policies and supervision of
staff.
ii. Non-Executive Post
These are posts for the performance of technical jobs that require specific technical or
practical skills and experience.
Upon approval of the expatriate posts by MIDA, the company must submit an application to the
Immigration Department of Malaysia for endorsement of the employment pass.
15 Malaysian Investment Development Authority (MIDA). (2019). Immigration Procedures. Retrieved 2019, from Official Website Malaysian Investment Development Authority: mida.gov.my/home/immigration-procedures/posts/
6 Operations Regulatory Framework Before the commencement of operations, businesses or industries, is required to apply for several licences and/or certificates. Table 6-1 below shows the
regulatory regime that may be imposed on E&E sector companies for their operations. The table also includes provision of incentives by legislations.
Table 6-1: Operations Regulatory Framework
Authorities Regulations Forms/Links 1. Business Premise licence and
Premise signage licence Local Government • Local Government Act 1976 [Act 171]
− Trade, Business and Industrial By-Laws
− Advertisement By-Laws
2. Machinery registration and certification
Department of Occupational Safety and Health (DOSH)
• Factories and Machinery Act 1967 [Act 139] Section 19
− Electric Passenger and Goods Lift Regulations 1970
− Fencing of Machinery and Safety Regulations 1970
− Notification, Certificate of Fitness and Inspection Regulations 1970
− Persons-In-Charge Regulations 1970
− Safety, Health and Welfare Regulations 1970
− Steam Boilers and Unfired Pressure Vessel Regulations 1970
− Administration Regulations 1970
− Lead Regulations 1984
− Asbestos Regulations 1986
− Mineral Dust Regulations 1989
− Noise Exposure Regulations 1989
• DOSH Approval and Authorization webpage
− http://www.dosh.gov.my/index.php/en/main-services/enforcement/approval-and-authorisation
3. Approved Permits (Import and Export Permits)
• Ministry of International Trade and Industry (MITI)
• Ministry of Foreign Affairs (MOFA)
• Customs Act 1967 [Act 235]
− Customs (Prohibition of Imports) Order 2017
− Customs (Prohibition of Exports) Order 2017
• Strategic Trade Act 2010 [Act 708]
• Chemical Weapons Convention Act 2005 [Act 641]
• ePermit
− http://newepermit.dagangnet.com.my/epermit/login/login.html
Authorities Regulations Forms/Links
− Chemical Weapons Conventions Regulations 2007
4. Import Permits • Malaysian Communications and Multimedia Commission (MCMC)
• Atomic Energy Licensing Board (AELB)
• Customs Act 1967 [Act 235]
− Customs (Prohibition of Imports) Order 2017
• Communications and Multimedia Act 1998 [Act 588]
− Communications and Multimedia (Licencing) Regulations 2000
• Atomic Energy Licensing Act 1984 [Act 304]
− Radiation Protection (Licensing) Regulations 1988
5. Scheduled waste management Department of Environment (DOE) • Environmental Quality Act 1974 [Act 127] Section 34B
− Environmental Quality (Scheduled Wastes) Regulations 2005;
− Environmental Quality (Prescribed Conveyance) (Scheduled Wastes) Order 2005;
− Environmental Quality (Prescribed Premises) (Scheduled Wastes Treatment and Disposal Facilities) Order 1989;
− Environmental Quality (Prescribed Premises) (Scheduled Waste Treatment and Disposal Facilities) Regulations 1989;
• eSWIS (Electronic Scheduled Waste Information System)
− https://eswis.doe.gov.my/
6. Export of scheduled wastes • Department of Environment (DOE)
• Royal Malaysian Customs Department
• Environmental Quality Act, 1974 [Act 127]
− Environmental Quality (Scheduled Wastes) Regulations (Amendment 2007)
• Customs Act 1967 [Act 235]
− Custom (Prohibition of Exports) Order (Amendment 2006)
• Basel Convention on the Transboundary Movements of Hazardous Wastes.
Authorities Regulations Forms/Links 7. Export permits • Ministry of International Trade
and Industry (MITI)
• Malaysian Communications and Multimedia Commission (MCMC)
• Atomic Energy Licensing Board (AELB)
• Strategic Trade Act 2010 [Act 708] Section 9
− Strategic Trade (Amendment of Schedule) Order 2010
− Strategic Trade Regulations (Amendment) 2011
− Strategic Trade (Strategic Items) (Amendment) Order 2017
− Strategic Trade (Restricted End-Users and Prohibited End-Users) (Amendment) Order 2016
− Strategic Trade (United Nations Security Council Resolutions) Regulations 2010
8. Electrical equipment manufacturer / importer registration
Energy Commission • Electricity Supply Act 1990 [Act 447]
− Electricity Regulations 1994 Reg. 97 (C)
• e‐DIK (Pendaftaran Pengimport Pengilang Kelengkapan Elektrik)
− http://edik.st.gov.my/
9. Manufacturer/Importer Certificate of Conformity for regulated electrical equipment
Energy Commission • Electricity Supply Act 1990 [Act 447]
− Electricity Regulations 1994 Reg. 97 (D), 97 (E)
10. Certificate of Approval (COA) for the manufacturing / Importation of electrical equipment
Energy Commission • Electricity Supply Act 1990 [Act 447]
− Electricity Regulations 1994 Reg. 97
• ePermit
− https://epermit.dagangnet.com.my/epermit.jsp
11. Certificate of Approval (COA) for the display, selling or advertisement of electrical equipment
Energy Commission • Electricity Supply Act 1990 [Act 447]
− Electricity Regulations 1994 Reg. 97
12. Marking or labelling of approved equipment
Energy Commission • Electricity Supply Act 1990 [Act 447]
− Electricity Regulations 1994 Reg. 98
13. Registration of Trade Mark Intellectual Property Corporation of Malaysia (myIPO)
• Trade Marks Act 1976 [Act 175] Section 17 (1)
• IP Online
− https://iponline2u.myipo.gov.my/myipo/www/ 14. Application Filing for Patent Intellectual Property Corporation
of Malaysia (MyIPO) • Patents Act 1983 [Act 291] Sections 23, 29
and 30
15. Registration of Industrial Designs Intellectual Property Corporation of Malaysia (MyIPO)
• Industrial Designs Act 1996 [Act 552] Sections 10, 11, 14
16. Protection of Integrated Circuit Layout-Designs
Intellectual Property Corporation of Malaysia (MyIPO)
• Layout-Designs of Integrated Circuits Act 2000 {Act 601] Section 5
Authorities Regulations Forms/Links Incentives by Legislations
17. Free Zones • Malaysian Investment Development Authority (MIDA)
• Royal Malaysian Customs Department
• Free Zones Act 1990 [Act 438] Section 3(1)
• Customs Act 1967 [Act 235] Section 2(1A)
• Excise Act 1976 [Act 176] Section 2
− Customs Duties (Exemption) Order 2013
• Sales Tax Act 2018 [Act 806] Section 2
− Sales Tax (Persons Exempted from Payment of Tax) Order 2018
• Service Tax Act 1975 [Act 151] Section 2A
18. Licensed warehouse / licensed manufacturer warehouse (LMW) (Note: at least 80% of products stored should be for export)
• Malaysian Investment Development Authority (MIDA)
• Royal Malaysian Customs Department
• Customs Act 1967 [Act 235] Section 2 (1), Section 65/65A
• Sales Tax Act 2018 [Act 806]
− Sales Tax (Persons Exempted from Payment of Tax) Order 2018
• Excise Act 1976 [Act 176]
− Excise Duties (Exemption) Order 2017
19. Import duty exemption on raw materials / components / machinery / equipment
• Malaysian Investment Development Authority (MIDA)
• Royal Malaysian Customs Department
• Customs Act 1967 [Act 235]
− Customs Duties (Exemption) Order 2017
• Excise Act 1976 [Act 176]
− Excise Duties (Exemption) Order 2017
• MIDA Online Application System
− https://jpc.online.mida.gov.my/midawebpki/
20. Sales Tax exemption on raw materials / components / machinery / equipment
• Malaysian Investment Development Authority (MIDA)
• Royal Malaysian Customs Department
• Sales Tax Act 2018 [Act 806] Section 35(3)
− Sales Tax (Persons Exempted from Payment of Tax) Order 2018
• MySST Website
− https://mysst.customs.gov.my/
21. Reinvestment Allowance • Malaysian Investment Development Authority (MIDA)
• Inland Revenue Board of Malaysia
• Promotion of Investments Act 1986 [Act 327] Section 28A
• Income Tax Act 1967 [Act 53] Schedule 7A
22. Accelerated Capital Allowance • Malaysian Investment Development Authority (MIDA)
• Promotion of Investments Act 1986 [Act 327]
• Income Tax Act 1967 [Act 53]
• Form ACA
− https://www.mida.gov.my/env3/uploads/Forms/Others/31072013/ACA.pdf
Authorities Regulations Forms/Links
• Inland Revenue Board of Malaysia
23. Accelerated Capital Allowance (ACA) and Automation Equipment (AE)
Inland Revenue Board of Malaysia • Income Tax Act 1967 [Act 53]
− Income Tax (Accelerated Capital Allowance) (Automation Equipment) Rules 2017
Other Incentives
24. Preferential Certificate of Origin (PCO)
Ministry of International Trade and Industry (MITI)
• Free Trade Agreements ePCO
• http://www.dagangnet.com/trade-facilitation/epco/
25. Authorised Economic Operator (AEO)
Royal Malaysian Customs Department
• Mutual Recognition Arrangements (MRAs) • AEO (Authorized Economic Operator) Website
− http://customsgc.gov.my/index_aeo.html
26. Non-Preferential Certificate of Origin
Chambers of Commerce and Trade Associations authorized by MITI
•
6.1 Business Premise and Signage Licences Business are required to apply for a business premise licence and signage licence through the local
government as stated in the Local Government Act 1976 [Act 171] and its’ by-laws, namely the Trade,
Business and Industrial By-Laws and Advertisement By-Laws. Examples of the bylaws established
under Act 171,
Petaling Jaya City Council
• Trade, Business and Industrial By-Laws (MBPJ) 2007
• Advertisements By-Laws (MBPJ) 2007
Klang Municipal Council
• Trade, Business and Industrial Licensing Bylaw (MPK) 2007
• Advertisement Bylaw (MPK) 2007
The Local Government Act 1976 [Act 171] provides for the local government to establish by-laws for
the licensing of businesses and business’ signages. Act 171 Subsection 102 (s) states that “to control
and supervise, by registration, licensing or otherwise, including in proper cases by prohibition, a trade,
business or industry which is of an obnoxious nature or which could be a source of nuisance to the
public or a class of the public;”. Whereas, Subsection 102 (c) of the By-Law with regards to signages
states “to regulate, license, restrict, prevent or remove the exhibition of advertisements;”. As it is, all
local governments require industries to apply for licences for its operations. These licences are to be
renewed annually.
6.2 Machinery registration and certification Machinery used in factories to produce finished goods may be required to be registered and certified.
The registration and certification of these machinery is regulated by the Department of Safety and
Health (DOSH) of the Ministry of Human Resources. The registration and certification of these
machinery is guided by the Factories and Machinery Act 1967 [Act 139] (FMA).
The objective of the FMA is to provide for the control of factories on matters relating to the safety,
health and welfare of persons, and the registration and inspection of machinery. Some high-risk
machinery such as boilers, unfired pressure vessels, passenger lifts and other lifting equipment such
as mobile cranes, tower cranes, passenger hoists, overhead traveling cranes and gondolas, must be
certified and inspected by DOSH. All factories and general machinery must be registered with DOSH
before they can be installed and operated in Malaysia.16
The regulations enacted under the FMA that DOSH enforces which relates to machineries in factories
are:
1. Certificates of Competency – Examination 1970
2. Electric Passenger and Goods Lift Regulations 1970
3. Fencing of Machinery and Safety Regulations 1970
4. Notification, Certificate of Fitness and Inspection Regulations 1970
5. Persons-In-Charge Regulations 1970
6. Safety, Health and Welfare Regulations 1970
7. Steam Boilers and Unfired Pressure Vessel Regulations 1970
8. Certificates of Competency-Examinations Regulations 1970
16 Malaysian Industrial Development Authority. (2008). Book 7 - Employment Policies and Legislations. In Guide For Malaysian Manufacturers. Kuala Lumpur.
9. Administration Regulations 1970
10. Compounding of Offences Rules 1978
11. Compoundable Offences Regulations 1978
12. Lead Regulations 1984
13. Asbestos Process Regulations 1986
14. Building Operations and Works of Engineering Construction (Safety) Regulations 1986
15. Mineral Dust Regulations 1989
16. Noise Exposure Regulations 1989
17. Notification, Certificate of Fitness and Inspection (Amendment) Regulations 2004
Among the regulatory measures that DOSH enforces include,
(a) Approval and Authorisation
(b) Registration
(c) Certification
(d) Inspection
The design of steam boilers, unfired pressure vessels, and hoisting machinery requires the approval
and authorisation of the DOSH and to install general machinery in factories requires authorisation
from DOSH. These regulatory measures is as prescribed in the FMA Section 19 which states that a
certificate of fitness (CF) is required before any machinery can come into operation. Whereas, Section
36 of the FMA states that a written approval is required for those machinery requiring CF before the
said machinery can be installed.
Furthermore, a written approval from DOSH is required before a factory comes into operation as
stipulated in Section 34 of the FMA. Additionally, machinery that requires a CF are compel to register
said machinery as stipulated in Sections 37 and 38 of the Act.
6.3 Scheduled Wastes Management By virtue of Section 34B of the Environmental Act 1974, it is strictly prohibited to dispose of scheduled
wastes in any land or sea in Malaysia without the express written approval from the Director-General
of the Department of Environment. Scheduled wastes are only permitted to be disposed of in
prescribed premises. Scheduled waste is defined as any wastes that possess hazardous characteristics
and have the potential to adversely affect public health and the environment. The Environmental
Quality (Scheduled Wastes) Regulations 2005 First Schedule lists the types of scheduled wastes that
requires approval for proper disposal (refer to Table A-2 of Appendix A).
The management of wastes shall be in accordance with the provisions described in the following
regulations,
(a) Environmental Quality (Scheduled Wastes) Regulations 2005
(b) Environmental Quality (Prescribed Conveyance) (Scheduled Wastes) Order 2005
(c) Environmental Quality (Prescribed Premises) (Scheduled Wastes Treatment and Disposal
Facilities) Order 1989
(d) Environmental Quality (Prescribed Premises) (Scheduled Waste Treatment and Disposal
Facilities) Regulations 1989
(e) Customs (Prohibition of Exports) Order 2017
(f) Customs (Prohibition of Imports) Order 2017
6.4 Export Permits17 The Strategic Trade Act (STA) 2010 [Act 708], is the legislation that controls the export, transhipment,
transit and brokering of strategic items and technology, including arms and related material, as well
as activities that will or may facilitate the design, development, production and delivery of weapons
of mass destruction. This Act is consistent with Malaysia's international obligations on national
security.
Any person who is engages in the activities of export, transhipment, bringing in transit or brokering of
strategic items is bounded by the STA 2010. This includes exporters, traders, manufacturers, brokers
and others who have ownership of the product when it is exported.
Strategic items refer to goods and technology that are controlled under the STA 2010. A definitive and
comprehensive list of strategic items is prescribed in the Strategic Trade (Strategic Items) Order 2010.
The Order reflects the items currently required to be controlled under the international export control
regimes as well as the relevant United Nations Security Council Resolutions.
The items are categorized as shown in Table 6-2 below.
Table 6-2: Strategic Items List
Code Category Item Description
Category ML Military items
Category 0 Nuclear materials, facilities and equipment
Category 1 Special materials and related equipment
Category 2 Materials processing
Category 3 Electronics
Category 4 Computers
Category 5 Telecommunications and information security
Category 6 Sensors and lasers
Category 7 Navigation and avionics
Category 8 Marine
Category 9 Aerospace and propulsion
Under Section 9 of the STA 2010, any person that exports, transits, or bring in transits strategic items
are required to obtain either an export permit or special export permit from the relevant authority
before the items can be exported.
Types of permits available under the Act are as follows:
(i) single-use permit;
(ii) bulk permit;
(iii) multiple-use permit; and
(iv) special permit.
There are four government agencies that are responsible for issuing permits under STA 2010 as
follows:
17 Strategic Trade Act (STA) 2010. (2019). Retrieved June, 2019, from Official Portal of the Ministry of International Trade and Industry: https://www.miti.gov.my/index.php/pages/view/sta2010?mid=105
(i) Strategic Trade Secretariat, Ministry of International Trade and Industry (MITI);
(ii) Atomic Energy Licensing Board (AELB);
(iii) Malaysian Communications and Multimedia Commission (MCMC); and
(iv) Pharmaceutical Services Division (PSD), Ministry of Health.
For the E & E sector, the issuing authorities and its corresponding responsible strategic items category
is shown in the Table 6-3 below.
Table 6-3: Excerpts of Strategic Items Category and Responsible Authority
Category Government Agency
1. Category 3 – Electronics • Controller (MITI)
• Atomic Energy Licensing Board (AELB)
2. Category 4 – Computers • Atomic Energy Licensing Board (AELB)
• Malaysian Communications and Multimedia Commission (MCMC)
3. Category 5 – Telecommunications and information security
Malaysian Communications and Multimedia Commission (MCMC)
4. Category 7 – Navigation and avionics Controller (MITI)
6.5 Regulated Electrical Equipment Under the Electricity Regulations 1994 sub regulation 97 (1) no person is allowed to manufacture,
import, display, sell or advertise domestically electrical equipment without the prior approval from
the Energy Commission (Suruhanjaya Tenaga (ST)), an agency under the purview of the Ministry of
Energy, Science, Technology, Environment, and Climate Change (MESTECC). The ST regulates about
34 categories of electrical equipment (Please refer to Appendix B).
The ST will issue a Certificate of Approval (CoA) for the manufacturing, importation, sale, and for sale
and to advertise electrical equipment. Basically, the category of companies that are required to apply
for the certification are:
Importers, (Malaysian companies registered with the Companies Commission of Malaysia) of
electrical equipment under sub regulation 97(1) of the Electricity Regulations 1994.
Manufacturers who manufacture electrical equipment under regulation 97(1) of the
Electricity Regulations 1994
Exhibitors who display electrical equipment under sub regulation 97(1) of the Electricity
Regulations 1994.
Sellers and Advertisers of electrical equipment and to ensure that the electrical equipment
to be sold or advertised are in accordance with sub regulation 97(1), 97(2) and 98 of the
Electricity Regulations 1994.
The main objective for the issuance of the CoA is to ensure that the electrical equipment meets the
specified safety and efficient use of electricity requirements. These types of equipment include;
a) any domestic equipment;
b) any low voltage equipment which is usually sold directly to the general public; or
c) any low voltage equipment which does not require special skills in its operation,
Consumers’ interests in the use of electrical equipment is protected through the determination of the
equipment being:
a) compatible to Malaysian electricity supply system;
b) complying to standards;
c) tested by accredited laboratory;
d) labelled with SIRIM-ST’s label.
Under Regulations 97C and 97D of the Electricity Regulations 1994, manufacturers and importers of
electrical equipment are required to register with the ST on the commencement of operations which
is a requirement prior to obtaining the Certificate of Approval to manufacture or import of regulated
electrical equipment. The ST will issue a Certificate of Registration (CoR) in accordance with the
regulations. With the CoR, manufacturers and importers are required to submit tests reports and
Certificate of Conformity from accredited conformity assessment bodies to the ST for evaluation and
approval purposes. Additionally, Regulations 99 and 100 may require that the electrical equipment
be tested and examined by the Energy Commission.
Furthermore, under Regulation 98, approved electrical equipment may be required to be affixed with
a label or marking as determined by ST. Labelling or marking of regulated electrical equipment will
enable consumers to differentiate between the approved and non-approved regulated electrical
equipment. It also serves as a deterrent and a means to check for non-approved regulated electrical
equipment in the market.
Release Letter (RL)
The Energy Commission (ST) will issue a Release Letter to Customs as blanket approval for exemption
from Certificate of Approval (CoA) for importation of ST’s regulated electrical equipment. Release
Letter is applicable for Special Purpose, Concert, Factory Research, Quality Research, Re-Work and Re-
Export, Imported Components used for Equipment Manufactured for 100% Export or Local Market
and Transit. For non-regulated equipment, ST would provide Release Letter upon request for Customs
clearance purposes.
In promoting energy efficient electrical products, Regulations 101A, 101B, and 101C sets out the
requirements and procedures for electrical equipment to be qualified and rated as an Energy
Efficiency Equipment. To meet the requirements of the Minimum Energy Performance Standard
(MEPS) the performance criteria that is tested using the relevant testing standards must be met (refer
to Table 6-4 below as reference).
Table 6-4: Energy efficient performance standards
Equipment Standards
1. Air Conditioner
2. Refrigerator
3. Domestic Fan MS 2574:2014
4. Lamps MS 2598:2014
5. Television MS 2576:2014
6. Washing Machine Source: Energy Commission
Products such as television, refrigerator, domestic fan and air conditioner are required to be affixed
with Energy Efficiency label before it can be sold to consumers.
6.6 Communications Equipment/Devices
6.6.1 Certification and Labelling In accordance with the Communications and Multimedia (Technical Standards) Regulations 2000
(which is a subsidiary legislation of the Communications and Multimedia Act 1998 [Act 588]),
Regulations 14 requires that communications equipment whether for network facilities or consumer
equipment be certified to a standard that has been determined by the Malaysian Communications
and Multimedia Commission (MCMC). This is to ensure that the equipment is safe, interoperable, does
not cause any frequency interference and provide protection for consumers. Currently, MCMC has
appointed SIRIM QAS International Sdn. Bhd. as the certifying body.
Network facilities are any equipment used for the provision of network services which includes;
public-switched telephony,
optical fibre equipment,
cellular and mobile equipment,
terrestrial, satellite and broadcasting equipment
Customer equipment are any equipment used on the customer side of a network service and all types
of wireless devices. Among the consumer equipment includes;
fixed-line or cellular phones,
fax machine,
modem,
wireless router and gateway,
optical transceiver,
satellite receiver,
mobile radio or walkie-talkie,
smart and digital television,
and any equipment or device using wireless technologies such as laptop, tablet, camera,
watches, drone, baby monitor, CCTV and others
All certified communications equipment shall bear a certification mark or label indicating that it is
certified in compliance with the prevailing standards. There are two types of label:
1. Wireless equipment to be operated under Class Assignment (licence exempt)
2. Wireless equipment to be operated under Apparatus Assignment (licence required) as well as
all telephony products such as fixed line telephones and fax machines.
Furthermore, importers are required to apply for import permits to import communications
equipment as prescribed in the Customs (Prohibition of Imports) Order 2017. The import permits are
issued by SIRIM Berhad.
6.7 Legislations Provisions for Incentives
6.7.1 Import Duty and/or Sales Tax Exemption Eligible manufacturers are provided with an incentive to apply for import duty and/or sales tax
exemption on the importation of raw materials, components, machinery, and equipment used in the
production of finished or semi-finished goods. These incentives are provided for under the Customs
Duties (Exemption) Order 2017, Sales Tax (Persons Exempted from Payment of Tax) Order 2018, and
Sales Tax (Exemption) Order 2018. MIDA and the RMCD are responsible for the evaluation and
approval of these tax exemptions.
To further facilitate the application for import duty and/or sales tax exemption, the authorities has
provided for a self-declaration mechanism for companies importing machinery and equipment for use
by manufacturers in the Principal Customs Area (PCA). Application of import duty exemptions are to
be submitted manually to the RMCD, whereas application for the exemption of sales tax should be
submitted online through the MySST microsite of the RMCD (https://mysst.customs.gov.my/).
6.7.2 Free Zones18 A Free Zone is an area declared by the Minister of Finance under the provision of Section 3(1) of the
Free Zones Act 1990. It is mainly designed to promote entrepôt trade and specially established for
manufacturing companies that produce or assemble products mainly for export. Under the Customs
Act 1967 Section 2(1A), Excise Act 1976 Section 2, Sales Tax Act 2018 Section 2, and the Services Tax
Act 2018 Section 2, Free Zones is identified as a location outside the Principal Custom Area (PCA).
There are two categories of free zone, namely
1. Free Commercial Zone (FCZ)
2. Free Industrial Zone (FIZ)
A Free Commercial Zone (FCZ) is established for commercial activities which include trading (except
retail trading), breaking bulk, grading, repacking, relabelling and transit. Whereas, a Free Industrial
Zone (FIZ) are for manufacturing activities which also includes warehousing.
The activities and industries therein are subject to minimal customs formalities except in respect of
Prohibition of Imports and Exports under Section 31 of the Customs Act 1967. Other than minimal
customs formalities, FIZs enable export-oriented companies to enjoy duty free import of raw
materials, component parts, machinery and equipment required directly in the manufacturing
process, as well as minimal formalities in exporting their finished products.
Companies can be located within FIZs when:
their entire production or not less than 80% of their products are meant for export
their raw materials/components are mainly imported. Nevertheless, the government
encourages FIZ companies to use local raw materials/components
6.7.3 Licensed Manufacturing Warehouses19 To enable companies to enjoy FIZ facilities in areas where it is neither practical nor desirable to
establish FIZs, companies can set up Licensed Manufacturing Warehouses (LMWs) with the approval
18 MIDA. (2009). Investment in The Manufacturing Sector - Policies, Incentives and Facilities. Kuala Lumpur. 19 MIDA. (2009). Investment in The Manufacturing Sector - Policies, Incentives and Facilities. Kuala Lumpur.
from the Royal Malaysian Customs Department as prescribed in of the Customs Act 1967 Sections 65
and 65A. Facilities accorded to LMWs are similar to factories operating in the FIZs.
Companies normally approved for LMWs are those:
whose entire production or not less than 80% are meant for export
whose raw materials/components are mainly imported
6.7.4 Authorised Economic Operator Programme20 The Royal Malaysian Customs Department (RMCD) has introduced the Authorised Economic Operator
(AEO) Programme to facilitate the import and exports of goods. The Authorised Economic Operator is
a concept introduced by the SAFE Framework of Standards to Secure and Facilitate Global Trade
introduced by the World Customs Organisation (WCO) (of which Malaysia is a member) referring to
operators involved in the movement of goods along the international trade supply chain who have
achieved the required security standards and are accredited by the member country. The AEO Scheme
developed by the RMCD is based on a similar concept.
Quite a number of companies in the E&E sector has enrolled in the AEO Programme as can be seen in
the RMCD micro site AEO (http://customsgc.gov.my/index_aeo.html).
6.7.5 Incentives for Exporters Preferential Certificate of Origin (PCO)21
Preferential Certificate of Origin (PCO) is a document to prove the origin status of a product. It also
acts as an import document to the customs of importing country in order for a product to enjoy tariff
concession.
A Preferential Certificate of Origin (PCO) allows Malaysia exporters pay lower customs duty or total
removal of customs duty under a Free Trade Agreement (FTA) or Scheme of Preferences. FTAs
implemented between Malaysia and other countries are as listed:
1. ASEAN-China Free Trade Agreement (ACFTA)
2. ASEAN-Korea Free Trade Agreement (AKFTA)
3. ASEAN-Japan Comprehensive Economic Partnership (AJCEP)
4. ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
5. ASEAN-India Free Trade Agreement (AIFTA)
6. ASEAN Trade in Goods Agreement (ATIGA)
7. Malaysia-Japan Economic Partnership Agreement (MJEPA)
8. Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA)
9. Malaysia-New Zealand Free Trade Agreement (MNZFTA)
10. Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA)
11. Malaysia-Chile Free Trade Agreement (MCFTA)
12. Malaysia-Australia Free Trade Agreement (MAFTA)
13. Malaysia-Turkey Free Trade Agreement (MTFTA)
20 RMCD. (n.d.). Information Guideline - Authorised Economic Operator (AEO). Putrajaya 21 Our Services: Preferential Certificate of Origin (PCO). (2019). Retrieved April, 2019, from Official Portal of the Ministry of International Trade and Industry: https://www.miti.gov.my/index.php/pages/view/3911?mid=95
6.7.6 Tax Incentives Tax incentives can be continued for qualified manufacturers after the period of the initial incentives
(PS and ITA) have ended. These tax exemptions include;
Reinvestment Allowance (RA),
Accelerated Capital Allowance (ACA),
Accelerated Capital Allowance and Automation Equipment (ACAAE).
These incentives are as stated in the Promotion of Investments Act 1986 [Act 327] Section 28A,
Income Tax Act 1967 [Act 53] Schedule 7A, Income Tax Act 1967 [Act 53] (Income Tax (Accelerated
Capital Allowance) (Automation Equipment) Rules 2017)
The Income Tax Act 1967 [Act 53] Schedule 7A (Section 133A) provisions a Reinvestment Allowance
(RA) that is made available to existing manufacturing companies that reinvest for the purposes of
expansion, automation, modernisation or diversification into any related products within the same
industry. The RA is given at the rate of 60% on the qualifying capital expenditure incurred by the
company, and can be offset against 70% of its statutory income for the year of assessment. Any
unutilised allowance can be carried forward to subsequent years until fully utilised.22 The RA would be
given for a period of 15 consecutive years beginning from the year the first reinvestment is made.
After the 15-year period of eligibility for the RA, companies that reinvest in the manufacture of
promoted products are eligible to apply for Accelerated Capital Allowance (ACA). The ACA provides a
special allowance, where the capital expenditure is written off within three years, i.e., an initial
allowance of 40% and an annual allowance of 20%.23 The Income Tax (Accelerated Capital
Allowances) (Reinvestment in a Qualifying Project) Rules 2000 provisions the ACA. Furthermore,
companies that has upgraded and adopted new and advanced technology in the production of
promoted products are provided with tax relief under the Income Tax (Accelerated Capital
Allowance) (Automation Equipment) Rules 2017 and the Income Tax (Exemption) (No. 8) Order
2017. The tax relief as an Automation Capital Allowance of 200% will be provided on the first RM2
million expenditure incurred within five (5) year of assessment.24
22 23 24 Malaysian Investment Development Authority (MIDA). (July, 2019). Incentives. Retrieved from Official Website of the Malaysian Investment Development Authority: http://www.mida.gov.my/home/incentives-in-manufacturing-sector/posts/ 23 24
Appendices
Appendix A Environmental Details
Table A-1: List of Prescribed Activities Which Require Detailed EIA
Prescribed Activities
1. Iron and steel industry. 2. Pulp and paper mills. 3. Cement plant. 4. Construction of coal fired power plant. 5. Construction of dams for water supply and hydroelectric power schemes. 6. Land reclamation. 7. Incineration plant (scheduled wastes & solid wastes). 8. Construction of municipal solid waste landfill facility (including municipal solid waste
transfer station). 9. Project involving land clearing where 50% of the area or more having slopes exceeding
25 degrees (except quarry). 10. Logging covering an area exceeding 500 hectares or more. 11. Development of tourist or recreational facilities on islands in surrounding waters which
are gazetted as national marine parks. 12. Construction of recovery plant (off-site) for lead-acid battery wastes. 13. Scheduled wastes recovery or treatment facility generating significant amount of
wastewater which is located upstream of public water supply intake. 14. Non-ferrous - primary smelting. 15. Petrochemicals - all sizes. 16. Construction of oil refineries. 17. Prescribed activity using radioactive material(s) and generating radioactive waste(s).
Source: Department of Environment
Table A-2: Scheduled Wastes
Code Description
SW 1 Metal and metal-bearing wastes
SW 101 Waste containing arsenic or its compound
SW 102 Waste of lead acid batteries in whole or crushed form
SW 103 Waste of batteries containing cadmium and nickel or mercury or lithium
SW 104 Dust, slag, dross or ash containing arsenic, mercury, lead, cadmium, chromium, nickel, copper, vanadium, beryllium, antimony, tellurium, thallium or selenium excluding slag from iron and steel factory
SW 105 Galvanic sludges
SW 106 Residues from recovery of acid pickling liquor
SW 107 Slags from copper processing for further processing or refining containing arsenic, lead or cadmium
SW 108 Leaching residues from zinc processing in dust and sludges form
SW 109 Waste containing mercury or its compound
Code Description
SW 110 Waste from electrical and electronic assemblies containing components such as accumulators, mercury-switches, glass from cathode-ray tubes and other activated glass polychlorinated biphenyl-capacitors, or contaminated with cadmium, mercury, lead, nickel, chromium, copper, lithium, silver, manganese or polychlorinated biphenyl
SW 2 Wastes containing principally inorganic constituents which may contain metals and organic materials
SW 201 Asbestos wastes in sludges, dust or fibre forms
SW 202 Waste catalysts
SW 203 Immobilized scheduled wastes including chemically fixed, encapsulated, solidified or stabilized sludges
SW 204 Sludges containing one or several metals including chromium, copper, nickel, zinc, lead, cadmium, aluminium, tin, vanadium and beryllium
SW 205 Waste gypsum arising from chemical industry or power plant
SW 206 Spent inorganic acids
SW 207 Sludges containing fluoride
SW 3 Wastes containing principally organic constituents which may contain metals and inorganic materials
SW 301 Spent organic acids with pH less or equal to 2 which are corrosive or hazardous
SW 302 Flux waste containing mixture of organic acids, solvents or compounds of ammonium chloride
SW 303 Adhesive or glue waste containing organic solvents excluding solid polymeric materials
SW 304 Press cake from pre-treatment of glycerol soap lye
SW 305 Spent lubricating oil
SW 306 Spent hydraulic oil
SW 307 Spent mineral oil-water emulsion
SW 308 Oil tanker sludges
SW 309 Oil-water mixture such as ballast water
SW 310 Sludge from mineral oil storage tank
SW 311 Waste oil or oily sludge
SW 312 Oily residue from automotive workshop, service station oil or grease interceptor
SW 313 Oil contaminated earth from re-refining of used lubricating oil
SW 314 Oil or sludge from oil refinery plant maintenance operation
SW 315 Tar or tarry residues from oil refinery or petrochemical plant
SW 316 Acid sludge
SW 317 Spent organometallic compounds including tetraethyl lead, tetramethyl lead and organotin compounds
SW 318 Waste, substances and articles containing or contaminated with polychlorinated biphenyls (PCB) or polychlorinated triphenyls (PCT)
SW 319 Waste of phenols or phenol compounds including chlorophenol in the form of liquids or sludges
SW 320 Waste containing formaldehyde
SW 321 Rubber or latex wastes or sludge containing organic solvents or heavy metals
SW 322 Waste of non-halogenated organic solvents
SW 323 Waste of halogenated organic solvents
SW 324 Waste of halogenated or unhalogenated non-aqueous distillation residues arising from organic solvents recovery process
SW 325 Uncured resin waste containing organic solvents or heavy metals including epoxy resin and phenolic resin
SW 326 Waste of organic phosphorus compound
Code Description
SW 327 Waste of thermal fluids (heat transfer) such as ethylene glycol
SW 4 Wastes which may contain either inorganic or organic constituents
SW 401 Spent alkalis containing heavy metals
SW 402 Spent alkalis with pH more or equal to 11.5 which are corrosive or hazardous
SW 403 Discarded drugs containing psychotropic substances or containing substances that are toxic, harmful, carcinogenic, mutagenic or teratogenic
SW 404 Pathogenic wastes, clinical wastes or quarantined materials
SW 405 Waste arising from the preparation and production of pharmaceutical product
SW 406 Clinker, slag and ashes from scheduled wastes incinerator
SW 407 Waste containing dioxins or furans
SW 408 Contaminated soil, debris or matter resulting from cleaning-up of a spill of chemical, mineral oil or scheduled wastes
SW 409 Disposed containers, bags or equipment contaminated with chemicals, pesticides, mineral oil or scheduled wastes
SW 410 Rags, plastics, papers or filters contaminated with scheduled wastes
SW 411 Spent activated carbon excluding carbon from the treatment of potable water and processes of the food industry and vitamin production
SW 412 Sludges containing cyanide
SW 413 Spent salt containing cyanide
SW 414 Spent aqueous alkaline solution containing cyanide
SW 415 Spent quenching oils containing cyanides
SW 416 Sludges of inks, paints, pigments, lacquer, dye or varnish
SW 417 Waste of inks, paints, pigments, lacquer, dye or varnish
SW 418 Discarded or off-specification inks, paints, pigments, lacquer, dye or varnish products containing organic solvent
SW 419 Spent di-isocyanates and residues of isocyanate compounds excluding solid polymeric material from foam manufacturing process
SW 420 Leachate from scheduled waste landfill
SW 421 A mixture of scheduled wastes
SW 422 A mixture of scheduled and non-scheduled wastes
SW 423 Spent processing solution, discarded photographic chemicals or discarded photographic wastes
SW 424 Spent oxidizing agent
SW 425 Wastes from the production, formulation, trade or use of pesticides, herbicides or biocides
SW 426 Off-specification products from the production, formulation, trade or use of pesticides, herbicides or biocides
SW 427 Mineral sludges including calcium hydroxide sludges, phosphating sludges, calcium sulphite sludges and carbonates sludges
SW 428 Wastes from wood preserving operation using inorganic salts containing copper, chromium or arsenic of fluoride compounds or using compound containing chlorinated phenol or creosote
SW 429 Chemicals that are discarded or off-specification
SW 430 Obsolete laboratory chemicals
SW 431 Waste from manufacturing or processing or use of explosives
SW 432 Waste containing, consisting of or contaminated with, peroxides
SW 5 Other wastes
SW 501 Any residues from treatment or recovery of scheduled wastes Source: Environmental Quality (Scheduled Wastes) Regulations 2005, First Schedule
Appendix B Regulated Electrical Equipment
Table B-1: List of Regulated Electrical Equipment
No Category Description of Regulated Equipment Detail of Equipment
1 Plug Top/Plug (a) Plug
• makes a detachable connection between the contacts of a socket-outlet and the conductors of a flexible cord;
• has insulating sleeves on the line and neutral plug pins for insertion into a socket-outlet; and
• has a maximum rating of 15 A;
Flat Non-Rewireable Two Pole Plug with supply cord (max. 2.5A)
13 A Fused Plug 15 A Plug
(b) Coupler
• is for attachment to a flexible cord; and
• makes a detachable connection between the conductors of the cord and the pins or contacts of any low voltage appliance or equipment of a type intended or generally used for household applications
Appliance Coupler Interconnection Coupler
(c) Adaptor
• extends supply from a socket-outlet;
• incorporates one or more integral socket outlets; and
• has insulating sleeves on the line and neutral plug pins.
Adaptor (Multiway) Integrated Adaptor Travel Adaptor
(d) Connector
• Connecting devices for the connection of two or more electrical copper conductors.
Electrical Connector (connecting device)
Connecting device with screw type clamping unit
Connecting device with screw-less type clamping unit
Connecting device with insulation piercing clamping units
Twist-on connecting device Connecting boxes
2 Switch And Dimmer • is an air-break switch
• is for connection to the wiring of an electric installation;
• is primarily for mounting on a vertical surface
• is manually opened and manually closed; and
• has a rating up to 63A.
General Purpose Switch Door Bell & Chime Electronic Switch Remote-control Switch Time Delay Switch Cooker Control Unit
3 Socket Outlet (a) Socket Outlet
• is for fixing at a point at which fixed wiring terminates;
• provides a detachable connection with the pins of a plug;
• has two, or more contacts; and has a maximum rating of 15 A;
• with switch and without switch socket outlet.
Electric Shaver Socket Outlet
13A switch & unswitch socket outlet
15A socket outlet & Plug Portable 2 pin socket outlet
class II
No Category Description of Regulated Equipment Detail of Equipment
(b) Portable
• A device comprising a flexible cable or cord attached to a reel so constructed that the flexible cable may be completely wound onto the reel, and provided with a plug and one or more socket outlets.
Portable cable reel
4 Fluorescent Lampholder /
Starter Holder
(a) Lamp Holder
• Holds tubular fluorescent lamp but does not include: A lamp holder which by design is restricted to specific appliances.
Lamp holder for tubular
fluorescent lamp
(b) Starter Holder
• to hold a glow starter but does not include: a starter holder which by design is restricted to specific appliances.
Starter holder for tubular
fluorescent lamp
5 Ceiling Rose • a terminal for connection to a lamp holder via a cable.
Ceiling Rose
• Edison Screw Lamp holder with Edison screw thread E14, E27 and E40, designed for holding and connecting to the supply of lamps.
Edison Screw Lamp holder
6 Bayonet Cap And Multiway
Adaptor
• holds a bayonet cap lamp, bayonet cap adaptor
but does not include:
• a lamp holder, which by design, is restricted to specific appliances
• a lamp holder which is for incorporation in an industrial equipment
Bayonet cap Lamp holder Bayonet Lamp Adaptor
7 Lamp Fitting (a) Luminaires
• provides illumination;
• incorporate electric light sources for operation from supply voltage up to 1000V.
Fixed general purpose Luminaires (excluding Tube/Bulb),
Batten Luminaires (excluding Tube/Bulb),
Luminaires with self-ballasted fluorescent lamp.
Recessed Luminaires (excluding Tube/Bulb)
(b) Glow Starter
• is for starting preheat type fluorescent lamps;
• is a glow-start type; and
• has an enclosure of insulating material
• holds a light source or bulb.
Glow-starter for tubular
fluorescent
(c) Self-ballasted Compact Fluorescent Lamp (CFL)
• Lamp which cannot be dismantled without being permanently damaged, provided with a lamp cap incorporating a light source and any elements necessary for starting and stable operation of the light source.
with Edison screw or bayonet
caps
(d) LED Lighting Lamp control gear: Particular requirements for D.C. or A.C. supply
No Category Description of Regulated Equipment Detail of Equipment
electronic control gear for LED modules
Lamp holder (Connectors for LED modules)
Self-ballasted LED Modules for general Lighting services by voltage > 50V
Self-ballasted double capped LED Lamps for general lighting services by voltage > 50V (to retrofit linear fluorescent lamp)
Self-ballasted single capped LED-lamps for general lighting services by voltage > 50V
8 Capacitor for Fluorescent
Lamp
• is used together with a ballast in a lamp circuit.
Capacitors for use in tubular
fluorescent lamps and other
circuits.
9 Ballast / Control Gear /
Driver For Lamp
(a) Ballast
• is for controlling the magnitude of current flowing through the discharge path of a fluorescent lamp,
• is of the independent or built-in type intended for use with luminaires (portable or fixed); or
• is of the integral type such that it forms a non-replaceable part of a fluorescent lamp/ballast combination; or
• is of the adaptor type such that it allows the insertion of a fluorescent lamp into the ballast by the user;
but does not include:
• a ballast which is incorporated in luminaires certified for compliance with the requirements for electrical equipment with increased safety type protection (Explosive) for use in hazardous locations.
Magnetic Ballast for tabular fluorescent lamp
Electronic Ballast for fluorescent lamp
(b) Control Gear
• General safety for lamp control gear for use on D.C. supply up to 250V and or A.C. supply up to 1000 V
Control Gear
10 Circuit Breaker Including
Ac Current Operated Earth
Leakage Circuit Breaker
and Miniature Circuit
Breaker
(a) Residual Current Device (RCD)
• isolates or initiates a tripping signal to isolate a low-voltage supply to protected circuits, socket-outlets or equipment in the event of a current flow to earth which exceeds a pre-determined level;
• has a rated residual current less than 300mA for devices intended for connection to fixed wiring or 10mA for other devices; and
• has a rated load current not exceeding 125 A for devices intended for
Residual Current Circuit Breaker (RCCB)
Residual Current Breaker with Overcurrent Protection (RCBO)
No Category Description of Regulated Equipment Detail of Equipment
connection to fixed wiring or 20 A for other devices.
but does not include: -
• a device intended to be used with a particular circuit-breaker other than a miniature overcurrent circuit breaker; or
• a device intended to protect an electricity supply authority distribution system.
(b) Fuse
• is an enclosed air- break switch;
• opens a low voltage circuit automatically under pre-determined conditions of overcurrent;
• has a nominal rating not exceeding 125 A and has a current breaking capacity of up to 10kA.
• is by the fusion of one or more of its specially designed and proportioned components, opens the circuit in which it is inserted and breaks the current when this exceeds a given value for a sufficient time. The fuse comprises all the parts that form the complete device.
Miniature Circuit Breaker (MCB)for A.C. supply
Miniature Circuit Breaker (MCB)for A.C. & D.C. supply
Fuse Base & Carrier up to 32A
Fuse/Fuse Link up to 63A Switch fuse up to 63A.
11 Portable Luminaire Lamp • is a household type;
• provides illumination or for decorative purposes, produces light;
• is fitted with a supply flexible cord, an appliance inlet socket or a power supply unit with integral pins for insertion into a socket outlet;
• is for standing on a table or floor, or is fitted with a clamp or similar for attachment to vertical or horizontal surfaces;
• is for use with tungsten filament, tubular fluorescent or other discharge lamps; and
• is constructed to represent a model, person or animal and is likely to be treated by a child as a toy; or
• has metal parts which are required to be earthed or double insulated from live parts (excluding live parts of an all insulated lamp holder)
Standing Lamp with detachable or nondetachable mains supply flexible cord,
Standing Lamp & adaptor, Table lamp with detachable
or nondetachable mains supply flexible cord,
Table Lamp & adaptor, Portable LED Lamp Night Lamp integral with
direct in plug.
• is for inspection purposes using illumination;
• holds a light source or bulb; and
• is hand held;
but does not include
• hand lamp with a magnification facility.
Hand Lamp & adaptor,
No Category Description of Regulated Equipment Detail of Equipment
12 Kettle Including Heating
Elements If Supplied
Separately
• is a household type;
• is portable;
• has a capacity not exceeding 15L; and
• heats liquid for: – humidifying room air; or – hot beverage; or – cooking purpose
Warming Plate Deep Fryer Heating Liquids such as:
– Coffee / Tea Maker, – Food Steamer, – Egg Boiler, – Jug, – Slow Cooker, – Pressure Cooker, – Steam Boat, – Kettle, – Airpot, – Bottle Warmer, – Sterillizer.
Multi-purpose cooker Water Dispenser /Filter /
Ionizer / Hydrogen Water Dispenser - Hot Water Dispenser - Cold Water Dispenser – Hot and
Cold (If the hot water boils) Water Dispenser – Hot and
Cold (if the hot water does not boil)
Water Dispenser – Hot and Cold (if the water heater is instantaneous and the water does not boil)
13 Kitchen Machine • is a household type;
• is for the preparation of food by mechanical means; or
• is for opening cans; or
• is for sharpening of knives
Blender, Chopper, Food Processor, Juice Extractor, Grinder,
Mixer.
14 Toaster / Oven (Cooking
Appliance)
• is a household type; and
• is for toasting bread or similar food;
• is for cooking or warming food by electrical energy;
• applies heat to food, liquid or other substances in a chamber by means of high-frequency electromagnetic radiation.
Stationary type: - – Electric Oven, – Induction Hob, – Induction Cooker, – Cooking Range, – Grill.
Portable type: - – Bread Maker, – Bread Toaster, – Portable Oven, – Induction Cooker, – Grill, – Sandwich Maker, – Waffle Maker, – Roaster, – Barbeque, – Pop-corn maker.
Microwave Oven
15 Rice Cooker • is a household type; and
• is used for cooking rice
But does not include –
• a type, promoted exclusively to industry / commercial sector.
Rice Cooker
16 Refrigerator • is a household type; and
• cools and stores food.
Refrigerator, Freezer,
No Category Description of Regulated Equipment Detail of Equipment
But does not include –
• a type, promoted exclusively to industry / commercial sector.
Minibar, Chest Freezer.
17 Immersion Water Heater • is a household type;
• is for heating liquid in which it may be immersed; and
• is self-contained;
and includes –
• aquarium type immersion heaters
Fixed Immersion Heater Portable Immersion Heater
18 Water Heater Including
Heating Elements If
Supplied Separately
(a) Storage
• is for heating and storage of water for bathing, washing or similar purposes;
• incorporates a heating element; and
• has a storage capacity not less than 4.5 L or not more than 680 L.
Storage Water Heater
(b) Instantaneous
• is for heating water;
• is of the instantaneous type; and
• incorporates live parts in contact with water.
Instantaneous Water Heater
19 Washing Machine • is a household type; and
• is used for washing/drying clothes.
but does not include –
• a type, promoted exclusively to industry/commercial sector.
Washing Machine with dryer
Washing Machine with separate spin container
Tumbler Dryers Cloth Dryers (on rack
located)
• household type;
• for washing and rising dishes.
Dish Washer and other utensils.
20 Fan • is a household type;
• has a primary function of moving air in its vicinity; and
• is self-contained;
Moving-louver fan, Ceiling fan, Auto fan, Pedestal fan, Table fan, Wall fan & applies to their
separate regulators and with blade.
Ventilating fan, Decorative fan & applies to their separate regulators and fan without blade.
Range Hood Cleaning Appliances (e.g.
Air Purifier, Fruit & vegetable washer / ozone)
Humidifiers (e.g. Air Cooler, water diffuser)
21 Hand Operated Hair Dryer
/ Haircare / Skin Care
• is a household type or a commercial handheld type; and
• is for drying, styling or the caring of human hair.
Hair Dryer, Hair Styling Set, Hand Dryer, Ionic Facial Steamer or
similar to it.
22 Iron • is a household type; Iron Fabric Steamer,
No Category Description of Regulated Equipment Detail of Equipment
• is for smoothening or pressing fabric by the application of heat or steam;
• is hand held except for any separate steam generator; and includes:
• any associated equipment
Garment Steamer
23 Shaver • is a household type; and
• shaves, cuts or trims human hair.
Shaver, Hair Clippers.
24 Vaporiser • is a household type; and
• Purpose as air fresheners and insect repellers.
Mosquito Matt Vapor, (e.g. Air
Freshener, Insect repeller).
25 Vacuum Cleaner • is a household type;
• is portable; and
• removes dust, dirt or moisture and the like from floor coverings by suction; or
• removes garden refuse from lawns or paths and the like by suction.
but does not include –
• a type, promoted exclusively to industry/commercial sectors.
Vacuum Cleaner, Water Suction Cleaning.
26 Hi-Fidelity Set • is a household type;
• is for reproduction of sound, with little distortion, connected to the supply mains as the only energy source, intended for domestic and similar general indoor use with a rated supply voltage not exceeding 250 volts rms.
• An electronic device for reproduction of audio/video, connected to the supply mains, either directly or indirectly and intended for domestic and similar general indoor use
Sub-woofer, Amplifier, Cassette Player, Equalizer / Mixer, Hi-Fi System, Karaoke, PA System, Portable Hi-Fi System, Portable Radio Cassette, Player / Recorder, Radio, Radio Alarm, Tuner / Receiver, Turn
tables / Record Players, Compact Disc Player,
Audio/Video Recorder up to 4 channels.
27 Video and Visual Display
Unit
• is for household use;
• is for receiving and displaying information from a transmitting station or local source
• is for the display of public or subscription television broadcasts.
Electronic appliances such as: LCD,
LED, Plasma, CRT, Internal Antenna / Booster,
and similar to it.
28 Audio and Video Player
Unit
• is a household type;
• is for video recording and playback or for playback only, connected to the supply mains either directly or indirectly and intended for domestic and similar general indoor use.
VCD, Laser Disc, Video Cassette Recorder, DVD, Video Rewinder, Children Video Game,
PlayStation, and similar to it.
29 Massager • Is a household type. Foot Massagers, Massage Bed, Massage Chair, Massage Pads, Handheld Massagers, Massage Belts, Water filled
foot massager.
No Category Description of Regulated Equipment Detail of Equipment
30 Air Conditioner (Cooling
Capacity Of 32,000 Btu/Hr
& Below)
• An electrical assembly to provide delivery of conditioned air to an enclosed space, room or zone, including an electrically operated refrigeration system for cooling and possibly dehumidifying the air.
Split Air-conditioner, Portable Air conditioner,
Ceiling Air-conditioner
31 Christmas Light • is for decorative,
• display or illumination purposes; and
• consists of – – lamps or lamp holders
interconnected by flexible cord of less than 2.5mm² cross-sectional area; or
– lamps within a flexible enclosure; and includes – any integral power supply or control device.
Lighting Chain, Rope Light, Decorative / Festive Light.
32 Domestic Power Tools
(Portable Type)
• is for machining, drilling, sawing, or surface preparation;
• may be entirely supported by hand during operation;
• a tool, portable type.
but does not include -
• promoted exclusively to the industry/commercial sector.
Drill / Impact Drill (Drill bit size up to 15 mm)
Grinder (up to 100 mm) Sander / Polisher (up to 300
W) Circular Saw and circular
knife (Cutting Blade up to 160 mm)
Spray gun for non-flammable liquid (up to 100 bars)
Jig and Sabre Saw / reciprocating saw (up to 60 mm)
Planer (up to 500 W) Trimmer (up to 300 W) Hedge trimmer and Grass shears (up to 750 W) Router and trimmer (up to
500 W) High Pressure Cleaner
• is a household type; and
• is for stitching fabric or other material
Sewing Machine
• is for the application or removal of solder; and
• is hand held;
but does not include –
• a soldering iron promoted exclusively to industry
Portable Heating Tool such as: – Soldering Gun, – Soldering Iron, – Heat Gun,
Hot Air Firelighters, Glue gun.
33 Adapter / Charger • is a household type;
• is for charging batteries other than those of the automotive type;
• is self-contained;
• is for charging one or more batteries for use in other equipment;
• is for charging battery for use in mobile phone/PDA.
• Is imported or manufactured separately (detachable).
Portable Battery Charger (up to 12 V) Adapter for IT Equipment
(up to 20V)
A.C. - D.C. Adapters General electrical appliances
No Category Description of Regulated Equipment Detail of Equipment
• A device to supply A.C. or D.C. power supply from an A.C. or D.C. source, either by itself or as part of an accessory, for domestic and similar general indoor use
Electronic Isolating Transformer Switching mode power
supply Electric toys Audio video equipment IT & Office products Baby Cradle, Breast Pump, Electric Heated Pillow
34 Wire / Cable / Cord
(Nonarmoured) 0.5mm² to
35mm²
• is unscreened and flexible;
• is designed for use at low voltage;
• consists of two or three elastomer or PVC insulated cores of multistrand construction;
• has a cross-sectional area of each conductor from 0.5mm² not exceeding 35mm²
Polyvinyl chloride (PVC) Insulated flexible cord and cable
Rubber insulated cord and flexible cables
PVC-insulated cable (non-armoured) for electric power and supply: - non-sheathed
PVC-insulated cable (non-armoured) for electric power and supply: - sheathed
Source: Energy Commission (EC (ST))
Appendix C Promoted Activities and Products (E&E Sector) Which
Are Eligible for Consideration of Pioneer Status and
Investment Tax Allowance Under the Promotion of
Investment Act 1986
Table C-1: Excerpts from General List of Promoted Activities and Products
Manufacture of electrical and electronics products and component AND parts thereof and related services
1. Semiconductor a) Wafer fabrication b) Semiconductor assembly c) Semiconductor components and parts:
i) advanced substrates ii) solder materials iii) bond pads
d) Semiconductor tools i) wafer carriers ii) integrated circuit (IC) carriers iii) photomask and mask blank
e) Semiconductor related services i) Dies or wafer level preparation ii) Integrated circuit (IC) testing iii) wafer probing or sorting iv) wafer bumping
2. Advanced display products and parts a) advanced display products b) advanced display modules c) backlighting systems
3. Information and Communication Technology (ICT) products systems or devices
a) digital convergence products or devices b) data storage systems or devices
4. Digital entertainment or Infotainment products
a) Digital TV b) Digital home theatre system or products
thereof c) Digital audio or video or image
recorders or players
5. Optoelectronic equipment, systems, devices or components
a) Photonics devices or components b) Optoelectronics equipment or systems,
devices or components c) Optical fibres or optical fibre products
6. Electronic tracking or security systems or devices
a) Voice or pattern or vision recognition or synthesis equipment or systems or devices
b) Electronic navigational and tracking equipment or systems or devices
c) Radio frequency identification (RFID) systems or devices
7. Electronic components a) Multilayer or flexible printed circuit boards
b) Advanced connectors
8. Alternative energy equipment, products, systems, devices or components
a) Solar cells or panels or module or systems
b) Rechargeable batteries or storage systems
c) Fuel cells
9. Energy saving lighting
10. Electrical products a) Uninterruptible power supplies b) Inverters or converters
Table C-2: Excerpts from List of Promoted Activities and Products for High Technology Companies
Activity Product
1. Design, development and manufacture of advanced electronics and computing
a) High-density modules or systems b) Advanced display c) Advanced semiconductor devices d) Advanced connectors e) Data storage devices or systems f) Advanced substrates g) Information and telecommunication products, systems
or devices h) Digital entertainment or infotainment products i) Optoelectronic equipment, systems or devices j) Electronic security and surveillance systems or devices k) Electronic machines and equipment system or devices l) Advanced electronic components
2. Alternative energy technology
Design, development and manufacture of products, equipment, systems, devices or components for use in alternative energy sectors
3. Design and Development and services* * N.B. A new activity category to be included in 2019
a) Integrated Circuit Design b) IC Packaging Design c) Embedded System Design d) Test and Engineering Design Services for E&E clusters
and its connecting supply chain ecosystem
Table C-3: Excerpts from List of Promoted Activities and Products for Small Scale Companies
Manufacture of electrical and electronic products, components and parts thereof
1. Consumer electrical products, parts and components
2. Consumer electronic products, parts and components
3. Industrial electrical products, parts and components
4. Industrial electronic products, parts and components
Table C-4: Excerpts from List of Promoted Activities & Products for Selected Industries
Product
1. Machinery and equipment i) Machine tools ii) Material handling equipment iii) Robotic and factory automation equipment iv) Modules and components for machine tools, material
handling equipment and robotic and factory automation equipment
2. Specialised machinery and equipment
i) Specialised process machinery or equipment for specific industry
ii) Packaging machinery iii) Modules and components for specialised process
machinery or equipment for specific industry and packaging machinery
Appendix D Research Categories
Table D-1: Research Division and Category
No. Division Description Category Description
1. Biotechnology Biotechnology
2. Agriculture and Forestry • Agricultural Science and Technology
• Forestry Sciences and Technology
3. Engineering and Technology • Applied Sciences and Technologies
• Engineering and Technology
4. Information, Computer and
Communication Technology (ICT)
Information, Computer and Communications Technology
(ICT)
5. Medical and Health Sciences Medical and Health Sciences
Appendix E Designated Premises for Fire Certificate
Table E-1: Designated Premises as determined in Fire Services (Designated Premises) Order 1998
No. Use of Premises Size Location
1 Libraries More than 1000 square metres (total floor area). Throughout
Malaysia
2 Hospitals and
Nursing Homes
i. 3 storeys and over where each floor area exceeds 250 square metres.
ii. 5 storeys and over.
Throughout
Malaysia
3 Hotels i. Open design balcony approach a) 4 storeys and over with more than 50 rooms. b) 6 storeys and over.
ii. Other design – 21 rooms and over
Throughout
Malaysia
4 Hostels and
Dormitories
i. 4 storeys and over where each floor area exceeds 250 square metres.
ii. 6 storeys and over.
Throughout
Malaysia
5 Offices Exceeding30 metres in height or 10,000square metres
and over (total floor area).
Throughout
Malaysia
6 Shops 2001 square metres and over (total floor area). Throughout
Malaysia
7 Factories i. Single storey 2001square metres and over where the automatic sprinkler systems are installed.
ii. 2 storeys where each floor is built as a separate compartment, single or terrace construction exceeding 1000 square metres (total floor area).
iii. 3 storeys and over. iv. Flatted Factories Block Development Open Balcony
Approach 2 storeys and over where each compartment exceeds 7000 cubic metres.
v. Special Structure: a) Factory complexes such as palm-oil mill
complex, oil refinery, cement works, etc. b) Hazardous processes.
Throughout
Malaysia
8 Places of
Assembly
i. Building, without central air-conditioning system 2000 square metres and over.
ii. Building with central air-conditioning system exceeding 1000 square metres or with capacity of 1000 persons and above.
Throughout
Malaysia
9 Storage and
General
i. Underground car-park structures exceeding 1000 square metres.
ii. More than 7000 cubic metres. iii. 2 storeys and over with more than 1000 square
metres (total floor area).
Throughout
Malaysia
Appendix F Glossary
Table F-1: Glossary of Prevailing Acts in E&E Sector
Act Title Description
1. Act 127 Environmental
Quality Act 1974
An Act relating to the prevention, abatement, control of
pollution and enhancement of the environment.
2. Act 133 Street, Drainage and Building Act 1974
An Act to amend and consolidate the laws relating to street, drainage and building in local authority areas in Peninsular Malaysia, and for purposes connected therewith.
3. Act 155 Immigration Act 1959/63
An Act relating to immigration.
4. Act 341 Fire Services Act 1988
An Act to make necessary provision for the effective and efficient functioning of the Fire Services Department, for the protection of persons and property from fire risks and for purposes connected therewith.
5. Act 139 Factories and Machinery Act 1967
An Act to provide for the control of factories with respect to matters relating to the safety, health and welfare of person therein, the registration and inspection of machinery and for matters connected therewith.
6. Act 156 Industrial Co-ordination Act 1975
An Act to provide for the co-ordination and orderly development of manufacturing activities in Malaysia, for the establishment of an Industrial Advisory Council and for other matters connected therewith or incidental thereto.
7. Act 171 Local Government Act 1976
An Act to revise and consolidate the laws relating to local government.
8. Act 172 Town and Country Planning Act 1976
An Act for the proper control and regulation of town and country planning in Peninsular Malaysia and for purposes connected therewith or ancillary thereto.
9. Act 175 Trade Marks Act 1976
An Act to make better provisions in the law relating to trade marks and for other matters connected therewith.
10. Act 176 Excise Act 1976 An act to amend and consolidate the law relating to excise in Malaysia.
11. Act 197 Registration of Businesses Act 1956
An Act to provide for the registration of businesses.
12. Act 235 Customs Act 1967
An Act relating to customs.
13. Act 265 Employment Act 1955
An Act relating to employment.
14. Act 291 Patents Act 1983
An Act to make better provisions in the law relating to patents and for other matters connected therewith.
15. Act 304 Atomic Energy
Licensing Act
1984
An Act that regulates and controls activities related to
atomic energy to protect employees, public and the
environment.
Act Title Description
16. Act 327 Promotion of Investment Act 1986
An Act to make provision for promoting by way of relief from income tax the establishment and development in Malaysia of industrial, agricultural and other commercial enterprises, for the promotions of exports and for incidental and related purposes.
17. Act 341 Fire Services Act 1988
An Act to make necessary provision for the effective and efficient functioning of the Fire Services Department, for the protection of persons and property from fire risks and for purposes connected therewith.
18. Act 4 Employees' Social Security Act 1969
An Act to provide social security in certain contingencies and to make provision for certain other matters in relation to it.
19. Act 438 Free Zones Act 1990
An Act to provide for the establishment of free zones in Malaysia or promoting the economic life of the country and for related purposes.
20. Act 447 Electricity
Supply Act 1990
An Act that stipulates all legislation relating to the
electricity supply industry such as licensing, efficient use of
electricity and investigation and arbitration.
21. Act 452 Employees Provident Fund Act 1991
An Act to provide for the law relating to a scheme of savings for employees’ retirement and the management of the savings for the retirement purposes and for matters incidental thereto.
22. Act 490 Malaysian External Trade Development Corporation Act 1992
An Act to provide for the establishment of a body corporate by the name of the Malaysia External Trade Development Corporation, and for other matters connected therewith.
23. Act 514 Occupational Safety and Health Act 1994
An Act to make further provisions for securing the safety, health and welfare of persons at work, for protecting others against risks to safety or health in connection with the activities of persons at work, to establish the National Council for Occupational Safety and Health, and for matters connected therewith.
24. Act 552 Industrial Designs Act 1996
An Act to provide for the registration of industrial designs in Malaysia and for matters connected therewith.
25. Act 56 of 1965
National Land Code
An act to amend and consolidate the laws relating to land and land tenure, the registration of title to land and of dealings therewith and the collection of revenue therefrom within the States of Johore, Kedah, Kelantan, Malacca, Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor, Terengganu and the Federal Territory of Kuala Lumpur, and for purposes connected therewith.
26. Act 588 Communications and Multimedia Act 1998
An Act to provide for and to regulate the converging communications and multimedia industries, and for incidental matters.
Act Title Description
27. Act 601 Layout-Designs of Integrated Circuits Act 2000
An Act to provide for the protection of layout-designs of integrated circuits in Malaysia and for related matters.
28. Act 610 Energy
Commission Act
2001
An Act that provides for the establishment of the Energy
Commission (EC) with powers to regulate the energy
supply activities in Malaysia and to enforce the energy
supply laws.
29. Act 641 Chemicals Weapons Convention Act 2005
An Act to implement the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, and to provide for other matters connected therewith.
30. Act 708 Strategic Trade Act 2010
An Act to provide for control over the export, transhipment, transit and brokering of strategic items, including arms and related material, and other activities that will or may facilitate the design, development and production of weapons of mass destruction and their delivery systems and to provide for other matters connected therewith, consistent with Malaysia’s national security and international obligations.
31. Act 725 Renewable
Energy Act 2011
An Act that provides for the establishment and
implementation of a special tariff system to catalyst the
generation of renewable energy to develop the renewable
energy (RE) generation industry in the country. Through
this act, feed – in tariff – FiT has been introduced to
stimulate the growth of RE industry from various sources of
generation such as solar energy, mini hydro, biogas and
biomass.
32. Act 726 Sustainable
Energy
Development
Authority Act
2011
An Act that provides for the establishment of the
Sustainable Energy Development Authority (SEDA)
Malaysia to enable SEDA to conduct its functions as the
regulatory energy authority.
33. Act 730 Trade Descriptions Act 2011
An Act for the purpose of promoting good trade practices by prohibiting false trade descriptions and false or misleading statements, conduct and practices in relation to the supply of goods and services and to provide for matters connected therewith or incidental thereto.
34. Act 732 National Wages Consultative Council Act 2011
An Act to establish a National Wages Consultative Council with the responsibility to conduct studies on all matters concerning minimum wages and to make recommendation to the Government to make minimum wages orders according to sectors, types of employment and regional areas, and to provide for related matters.
35. Act 743 Limited Liability Partnerships Act 2012
An Act to provide for the registration, administration and dissolution of limited liability partnerships and to provide for related matters.
Act Title Description
36. Act 768 Technologists
and Technicians
Act 2015
An Act that provides for the establishment of Malaysia
Board of Technologist (MBOT) and for the registration and
recognition of Professional Technologist and Certified
Technicians in providing technology and technical services.
37. Act 777 Companies Act 2016
An Act to provide for the registration, administration and dissolution of companies and corporations and to provide for related matters.
38. Act 796 Employment (Restriction) Act 1968 – (Revised 2017)
An Act to provide for the restrictions of employment in certain business activities in Malaysia of non-citizens and the registration of such non-citizens and for matters connected therewith
39. Act 800 Employment Insurance System Act 2017
An Act to provide for the Employment Insurance System administered by the Social Security Organization to provide certain benefits and a re-employment placement programme for insured persons in the event of loss of employment which will promote active labour market policies, and for matters connected therewith.
40. Act 806 Sales Tax Act 2018
An Act to provide for the charging, levying and collecting of sales tax, and matters connected therewith.
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http://www.mida.gov.my/home/starting-up-business/posts/
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