Malaysia has over 600 Industrial Estates throughout the country with world-class infrastructure and excellent connectivity, making Malaysia as the most sought-after, sustainable and conducive workplace for locals as well as foreign investors. One of the main advantages of an Industrial Estate in Malaysia is the ability for different businesses to be located near each other. This is known as clustering and is an essential component in the success of many Industrial Estates. Clustering approach allowing companies to work together and support each other business development.
Specialised industrial estates have been developed in Malaysia to cater the needs of specific industries such as small-scale industries, Halal industries, furniture park, biotechnology park, technology-intensive industries and R&D activities. Kulim Hi-Tech Park and Batu Kawan Industrial Park in the northern part of Peninsular Malaysia, the country’s first, fully integrated high technology park, i-Park Johor has created a unique concept of an ‘industrial resort’ and Selangor Halal Hub in the Pulau Indah, Westport focusing on Halal products activities. Built on an idea that fuses a resort-like or industrial-city concept integrated with amenities such as shopping centre, hospital, educational institutions and recreational facilities entice investors to come and invest in Malaysia.
A Free Zone is an area in any part of Malaysia declared by the Minister of Finance under the provision of Section 3(1) of the Free Zones Act 1990 to be a Free Commercial Zone or Free Industrial Zone. It is mainly designed to promote entreport trade and specially established for manufacturing companies that produce or assemble products mainly for export.
Free Commercial Zones (FCZs)
A Free Zone allocated for carrying out of commercial activities which include trading (except retail trading), breaking bulk, grading, repacking, relabeling, transhipment and transit.
To-date there are 21 FCZs located at North, South and West Port of Port Klang, Port Klang Free Zone, Pulau Indah MILS Logistic Hub, Butterworth, Bayan Lepas, KLIA, Rantau Panjang, Pengkalan Kubor, Stulang Laut, Johor Port and Port of Tanjung Pelepas.
Free Industrial Zones (FIZs)
Other than minimal customs formalities, FIZs enable export-oriented manufacturing 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.
To-date there are 22 FIZs located at Pasir Gudang, Tanjung Pelepas, Batu Berendam I, Batu Berendam II, Tanjung Kling, Telok Panglima Garang, Pulau Indah (PKFZ), Sungai Way I, Sungai Way II, Ulu Kelang, Jelapang II, Kinta, Bayan Lepas I,II, III, IV, Seberang Perai and Sama Jaya.
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
Licenced Manufacturing Warehouses
To enable companies to enjoy FIZ facilities in areas where it is neither practical nor desirable to establish FIZs, companies can set up Licenced Manufacturing Warehouses (LMWs). 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.
Payment of Duty
Effective 1 January 2011, FIZ and LMW companies are eligible to enjoy import duty exemptions equivalent to ATIGA (ASEAN Trade in Goods Agreement) rates if they comply with the following conditions;
Water supply and services in Peninsular Malaysia and the Federal Territory of Labuan is under the concurrent jurisdiction of the Federal Government of Malaysia. In order to increase the country’s water services quality particularly protecting consumers’ rights, two Federal legislative frameworks; namely the Suruhanjaya Perkhidmatan Air Negara 2006 Act (Act 654) and Water Services Industry Act 2006 (Act 655) have been enforced since 2007 and 2008 respectively. With a well-regulated water services in place, this will help to promote efficiency and long term sustainability of the water industry to benefit the consumers, investors as well as the operators. Consumers in Peninsular Malaysia and the Federal Territory of Labuan enjoy continuous water supply which is reliable and safe. Close monitoring and routine testing are carried out by the Ministry of Health (MOH) to ensure all water operators comply with the World Health Organization (WHO) guidelines for drinking water quality. All domestic, commercial and industrial users are metered. Water tariffs vary from state to state.
Core Business & Focus
i. Smart Services (Intelligent and devices & Automated Systems)
ii. Turn On Services (Modular)
iii. Value Added Services (Enhances IT performance & provides better communication experience)
iv. Connectivity (Basic amenities required by all buildings)
Ports in Malaysia can be classified as federal ports and state ports. All federal ports are under the jurisdiction of the Ministry of Transport. At present there are seven major federal ports, namely, Port Klang, Penang Port, Johor Port, Port of Tanjung Pelepas, Kuantan Port, Kemaman Port, Labuan Port and Bintulu Port. All these federal ports are equipped with modern facilities. Bintulu Port is the only port which handles liquefied natural gas.
In tandem with the expansion of the economy and trade, ports in the country registered impressive growth in recent years. Two of the ports; Port Klang and the Port of Tanjung Pelepas, are ranked among the top 20 container ports in the world.
The government's policy on ports focuses on:
|a. Being supply-driven, i.e. the provision of ample capacity in ports to ensure that there is zero waiting time for ships.|
b. Enhancing the utilisation of ports through:
|c. Load centering, Port Klang has been made the national load centre and the transshipment centre. Whereas the Port of Tanjung Pelepas has been recognised as a regional transshipment hub.|
Various companies provide comprehensive containerised cargo transportation services in Malaysia. These include container haulage, freight forwarding, warehousing, bunkering, distribution related services, port and customs clearance, container repair, leasing and maintenance.
Consignees and clients in Malaysia enjoy speedy, efficient and reliable cargo transportation through a network of local branches and offices. Most companies also offer a good international network of agents
The Malaysian government regulates inland container haulage through Land Public Transport Agency.
Sixty two hauliers cater to varied cargo needs through a diversified fleet of trailers and prime movers which also include modified vehicles. Some equipped with modern tracking systems to enable contact with haulage vehicles on the road.
Numerous other medium and small-sized operators truck conventional cargoes to destinations in the country. Meanwhile, a block rail feeder service operates to specific destinations and a freight liner service takes care of container deliveries to outstation clients.
This multi-modal (road and rail) transportation system assures prompt delivery of cargo.
Hundreds of freight forwarding agents stationed throughout Malaysia offer nationwide freight forwarding services, while cargo bound for international destinations can be forwarded through various international freight forwarders.
Freight forwarders can also provide assistance to manufacturers in the processing of applications for required permits, licences and duty/tax exemption for the clearance of goods from the Customs authorities.
The Malaysian Highway Authority supervises and executes the design, construction, regulation, operation and maintenance of inter-urban highways in Malaysia. These comfortable expressways link all major townships and potential development areas, and have catalysed industrial growth by enabling efficient transportation.
The country's successful privatisation programme coupled with its strong economic growth has also induced more highway development projects in the last few years.
Today, the North-South Expressway together with the Penang Bridge, the Kuala Lumpur-Karak Highway and East Coast Highway form the backbone of Malaysia's road infrastructure, contributing to the country's rapid socio-economic development.
Keretapi Tanah Melayu Bhd (KTMB), which operates in Peninsular Malaysia, is a corporation wholly-owned by the Malaysian government. As the single largest transport organisation in the country, KTMB has the capacity to transport several classifications of goods, ranging from grains to machinery.
Its network runs the length and breadth of Peninsular Malaysia from the northern terminal in Padang Besar to Pasir Gudang, Johor in the south. The same northerly line serves wharves and port facilities in Penang.
MSC Malaysia was established by the Malaysian government to accelerate the growth of the nation’s Digital Economy, the MSC Malaysia status provides eligible ICT-related businesses, both local and foreign, with a wide range of incentives, rights and privileges to promote continued growth. Since its inception in 1996, the MSC Malaysia programme has managed to drive the nation’s Digital Economy to new heights.
With over 2,000 companies and counting, the MSC Malaysia status is a designation that is highly sought after by many IT establishments in the country. Being recognised as a MSC Malaysia Status Company provides a company access to exclusive incentives that can give them the edge necessary in the hyper-competitive IT industry.
MSC MALAYSIA CYBERCITIES AND CYBERCENTRES
MSC Malaysia Cybercities and Cybercentres are designated MSC Malaysia areas with conducive business environment that provides the ecosystem to attract ICT investors and promote the growth of local ICT companies, in which companies from the same sector are placed together to spur rapid growth.
These companies are housed within a conductive ecosystem to grow their businesses within the framework of Malaysia’s developed Digital Economy vision. An environment fostering healthy competition will encourage innovation and development while increasing competencies on national and regional levels.
As of July 2019, there are 61 MSC Malaysia Cybercities & Cybercentres as per below list:
|1.||Cyberjaya||25.||Technology Park Malaysia|
|3.||KL Tower||27.||KL Sentral|
|4.||i-City||28.||TM Cybercentre Complex|
|5.||Mid Valley City||29.||Bandar Utama|
|6.||Bangsar South City||30.||GTower|
|7.||Symphony House||31.||Quill 9|
|8.||The Intermark||32.||Wisma Hamzah Kwong Hing|
|9.||Jaya 33||33.||Puchong Financial and Corporate Centre|
|10.||Menara Worldwide||34.||Menara Binjai|
|11.||Persoft Tower||35.||Menara OBYU|
|12.||Menara Maybank||36.||UOA Damansara|
|13.||Capsquare Tower||37.||Sunway Resort City|
|14.||Damansara Uptown||38.||One City|
|17.||Luxor Tech Centre||41.||The Paradigm|
|18.||Oasis Damansara||42.||Menara Mesiniaga|
|19.||UOA Business Park||43.||Icon City|
|20.||Plaza Hap Seng||44.||Neo Damansara|
|21.||APM Technology Centre||45.||Menara Ken TTDI|
|22.||Wisma E & C||46.||Damansara City|
|23.||JKG Tower||47.||Nucleus Tower|
|1.||Menara MSC Cyberport|
|2.||Iskandar Malaysia Studios|
|Melaka International Trade Centre|
|Kulim Hi-Tech Park|
|Town Squre Bintulu|
Incentives for MSC Malaysia
The updates and more information on MSC Status is available in MDeC's website https://www.mdec.my/news/important-updates-and-changes-on-msc-malaysia-bog-5.