Additional Eligibility Criteria for Manufacturing Licences

On 28 January 2019, Malaysia Investment Development Authority (MIDA) amended its Guideline on Application for Manufacturing Licence under the Industrial Coordination Act 1975 by introducing the following additional eligibility criteria[1] -
  1. The Capital Investment Per Employee (CIPE) for the project must be at least RM140,000.00;
  1. The total full-time workforce of the company must comprise at least 80% Malaysians. Employment of foreign workers including outsourced workers is subject to current policies; and
  1. At least 25% of the company’s full time workforce must be managerial, technical, and supervisory staff with degree and/or diploma/certificate or the product’s value added must be at least 40%;
The above requirements are in addition to the existing requirements that -
  1. The company must have shareholders’ funds of RM2,500,000.00 and above; or
  1. Employ 75 or more full-time paid employees.[2]

[1] The additional eligibility criteria had been announced by MIDA in the March 2018 issue of its Newsletter.
[2] The criteria set out in sub-paragraphs (a) and (b) do not apply to the manufacturing of optical discs.