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Manufacturing Sector

Policies

Local company incorporated

Manufacturing Licence application

No restriction on foreign equity ownership

Liberal expatriates employment policy

Free movement of funds for foreign investments in Malaysia

Protection of intellectual property rights

Company tax rate 24%

Individual tax rate from 0% - 30%

Minimum conditions of employment under the Employment Act 1955

Responsible trade unions and harmonious industrial relations

Compulsory contributions:

  • Employee Provident Fund (EPF)
  • Social Security Organisation (SOCSO)
  • Human Resource 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 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


Facilities

Wide selection of vocational and industrial training

Financial assistance for development of talents

Well-developed financial and banking sector 

Export credit refinancing & insurance

Active and efficient stock exchange for raising capital

Fully developed industrial parks 

  • High-tech parks
  • Free zones for export-based industries
  • Economic Regional Corridors

Electricity and water supply at reasonable costs

High quality telecommunications network and services

Well-equipped international seaports and airports connected to the world

Network of well-maintained highways and railways

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Services Sector

Costs of Doing Business

Last Updated : Thursday 22nd October 2020