Manufacturing Licence and Regulatory Approvals

Manufacturing in Malaysia is regulated mainly under the Industrial Coordination Act 1975 (ICA 1975), administered by the Ministry of International Trade and Industry (MITI). Applications are submitted to and reviewed by the Malaysian Investment Development Authority (MIDA), while the Manufacturing Licence (ML) itself is issued by MITI. Qualifying manufacturers must obtain an ML before commencing operations.

Under the ICA 1975, “manufacturing” broadly covers making, altering, blending, finishing or otherwise treating any article or substance for use, sale, transport, delivery or disposal, and includes the assembly of parts. Whether an activity qualifies depends on the actual production process.

Whether an ML is required depends first on size thresholds: shareholders’ funds of RM2.5 million or more, or 75 or more full-time employees. Meeting either one triggers the requirement. Companies below the thresholds are not automatically free of obligation — they must still confirm or apply for exemption status under MIDA’s exemption guide (ICA 10).

Depending on your stage, ML applications fall into four types, each with different documents and review focus:

The ML is an industry-level licence issued by MITI, with applications received and reviewed by MIDA, and is generally not conditional on the approvals below. But for a factory to use its premises and produce lawfully, a Business Licence (BL) is also needed at local-authority level, and a formal BL usually requires support from approvals such as Department of Occupational Safety and Health (DOSH), Fire and Rescue Department of Malaysia (BOMBA), Department of Environment (DOE) and the Certificate of Completion and Compliance (CCC) as prerequisites:

The ML and the BL are two parallel tracks with different dependencies: the ML is generally not conditional on local approvals; a formal BL usually needs DOSH, BOMBA, DOE and CCC support first; and ICA 10 exemption cases require a BL. Poor planning of site and process invites waiting, resubmission and rework, slowing the start of production and business commencement.

Yingke Malaysia supports Chinese companies from eligibility assessment through to obtaining each approval, coordinating your manufacturing set-up end to end. Our services include:

※Thresholds, conditions and procedures for the ML may change; please refer to the latest announcements by MIDA, MITI and the relevant authorities and consult a professional for your specific situation.