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<h2>Manufacturing Sector</h2>
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<td colspan="3">
<h3>Policies</h3>
</td>
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<td width="33">»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=incorporating-a-company" title="Incorporating a Company" >Local company incorporation</a></td>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=approval-of-projects" title="Approval of Manufacturing Projects" >Manufacturing license application</a></td>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=guidelines-on-equity-policy" title="Guidelines on Equity Policy" >No restriction on foreign equity ownership</a></td>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=employment-of-expatriate-personnel" title="Employment of Expatriate Personnel" >Liberal expatriate employment policy </a></td>
</tr>
<tr>
<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=exchange-control-practice" title="Foreign Exchange Administration Rules" >Free movement of funds for foreign investments in Malaysia</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=IP-protection" title="Intellectual Property Protection" >Protection of intellectual property rights</a></td>
</tr>
<tr>
<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=company-tax" title="Company Tax" >Company tax rate of 25% </a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=personal-income-tax" title="Personal Income Tax" >Individual tax rate from 0%-26%</a></td>
</tr>
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<td>»</td>
<td colspan="2">No minimum wages legislation</td>
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<td>»</td>
<td colspan="2">Minimum conditions of employment under the Employment Act 1955</td>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=industrial-relations" title="Labour Standards" >Responsible trade unions and harmonious industrial relations</a></td>
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<td>»</td>
<td colspan="2">Compulsory contributions:</td>
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<td></td>
<td width="35">•</td>
<td width="518">Employees Provident Fund (EPF)</td>
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<td></td>
<td>•</td>
<td>Social Security Organisation (SOCSO)</td>
</tr>
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<td></td>
<td>•</td>
<td><a href="http://www.hrdf.com.my" target="_blank">Human Resources Development Fund (HRDF)</a></td>
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<td></td>
<td>•</td>
<td> <a href="http://www.mida.gov.my/env3/index.php?page=guidelines-on-equity-policy" title="Guidelines on Equity Policy" >Investment guarantee agreements</a></td>
</tr>
<tr>
<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=double-taxation-agreement" title="Double Taxation Agreement" >Double taxation agreements</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=policy" title="Policy" >Controlled environmental management policy</a></td>
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<td></td>
<td colspan="2"></td>
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<td></td>
<td colspan="2"></td>
</tr>
</tbody>
</table>
<p> </p>
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<h3> <a href="http://www.mida.gov.my/env3/index.php?page=incentives-for-investment" title="Incentives for Investment" >Incentives</a></h3>
</td>
</tr>
</tbody>
</table>
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<td width="25" valign="top">»</td>
<td width="516" valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=manufacturing-sector-2">Incentives for the Manufacturing Sector</a></td>
</tr>
<tr>
<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=agricultural-sector">Incentives for the Agricultural Sector</a></td>
</tr>
<tr>
<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=aerospace-industry">Incentives for the Aerospace Industry</a></td>
</tr>
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<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=biotechnology-industry">Incentives for the Biotechnology Industry</a></td>
</tr>
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<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=shipping-and-transportation-industry"> Incentives for the Shipping and the Transportation Industry</a></td>
</tr>
<tr>
<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=multimedia-super-corridor">Incentives for MSC Malaysia</a></td>
</tr>
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<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=information-and-communication-technology">Incentives for Information and Communication Technology (ICT)</a></td>
</tr>
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<td valign="top">»</td>
<td valign="middle"><a href="http://www.mida.gov.my/env3/index.php?page=other-incentives"> Other Incentives</a></td>
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<p> </p>
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<td colspan="3">
<h3>Main  <a href="http://www.mida.gov.my/env3/index.php?page=manufacturing-sector-2" title="Incentives for the Manufacturing Sector" >Incentives</a></h3>
</td>
</tr>
<tr>
<td width="33">»</td>
<td colspan="2" width="553">Pioneer Status</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Full income tax exemption</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Investment tax allowance</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Accelerated capital allowance</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Incentive for relocating manufacturing activities</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Industrial building allowance</td>
</tr>
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<td>»</td>
<td colspan="2">Infrastructure allowance</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Reinvestment allowance</td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=other-incentives" title="Other Incentives" >Export incentives</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=other-incentives" title="Other Incentives" >Import duty exemption on raw materials, components, machinery and equipment</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=other-incentives" title="Other Incentives" >Group relief</a></td>
</tr>
</tbody>
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<p> </p>
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<td colspan="3">
<h3>Facilities</h3>
</td>
</tr>
<tr>
<td width="38">»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=manpower-development-2" title="Manpower Development" >Comprehensive system of vocational and industrial training</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=training" title="Incentives for Training" >Financial assistance for training of workers</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=banking-system" title="The Financial System in Malaysia" >Well-developed financial and banking sector providing credit to industry</a></td>
</tr>
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<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=export-credit-refinancing" title="Export Credit Refinancing" >Export credit refinancing</a></td>
</tr>
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<td>»</td>
<td colspan="2">Export credit insurance</td>
</tr>
<tr>
<td>»</td>
<td colspan="2"> <a href="http://www.mida.gov.my/env3/index.php?page=securities-market" title="The Securities Market in Malaysia" >Active and efficient stock exchange for raising capital</a></td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Fully developed industrial parks for industry</td>
</tr>
<tr>
<td></td>
<td>•</td>
<td>high-tech parks</td>
</tr>
<tr>
<td></td>
<td>•</td>
<td> <a href="http://www.mida.gov.my/env3/index.php?page=industrial-land" title="Industrial Land" >free zones for export industries</a></td>
</tr>
<tr>
<td></td>
<td width="39">•</td>
<td width="509"> <a href="http://www.mida.gov.my/env3/index.php?page=multimedia-super-corridor-2" title="MSC Malaysia" >MSC Malaysia</a></td>
</tr>
<tr>
<td>»</td>
<td colspan="2">Ample electricity and water supply at reasonable costs</td>
</tr>
<tr>
<td>»</td>
<td colspan="2">High quality telecommunications network and services</td>
</tr>
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<td>»</td>
<td colspan="2">Well-equipped seaports and airports connected to the world</td>
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<td>»</td>
<td colspan="2">Network of well-maintained highways and railways</td>
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Invest in Malaysia

Manufacturing Sector

Policies
»	Local company incorporation
»	Manufacturing license application
»	No restriction on foreign equity ownership
»	Liberal expatriate employment policy
»	Free movement of funds for foreign investments in Malaysia
»	Protection of intellectual property rights
»	Company tax rate of 25%
»	Individual tax rate from 0%-26%
»	No minimum wages legislation
»	Minimum conditions of employment under the Employment Act 1955
»	Responsible trade unions and harmonious industrial relations
»	Compulsory contributions:
	•	Employees Provident Fund (EPF)
	•	Social Security Organisation (SOCSO)
	•	Human Resources Development Fund (HRDF)
	•	Investment guarantee agreements
»	Double taxation agreements
»	Controlled environmental management policy

Incentives

»	Incentives for the Manufacturing Sector
»	Incentives for the Agricultural Sector
»	Incentives for the Aerospace Industry
»	Incentives for the Biotechnology Industry
»	Incentives for the Shipping and the Transportation Industry
»	Incentives for MSC Malaysia
»	Incentives for Information and Communication Technology (ICT)
»	Other Incentives

Main Incentives
»	Pioneer Status
»	Full income tax exemption
»	Investment tax allowance
»	Accelerated capital allowance
»	Incentive for relocating manufacturing activities
»	Industrial building allowance
»	Infrastructure allowance
»	Reinvestment allowance
»	Export incentives
»	Import duty exemption on raw materials, components, machinery and equipment
»	Group relief

Facilities
»	Comprehensive system of vocational and industrial training
»	Financial assistance for training of workers
»	Well-developed financial and banking sector providing credit to industry
»	Export credit refinancing
»	Export credit insurance
»	Active and efficient stock exchange for raising capital
»	Fully developed industrial parks for industry
	•	high-tech parks
	•	free zones for export industries
	•	MSC Malaysia
»	Ample electricity and water supply at reasonable costs
»	High quality telecommunications network and services
»	Well-equipped seaports and airports connected to the world
»	Network of well-maintained highways and railways

^ Back to Top

Invest in Malaysia

Manufacturing Sector

Policies

Incentives

Main Incentives

Facilities