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Q&A on Manufacturing License in Malaysia

Q&A on Manufacturing License in Malaysia KAIZEN啓源
2025-11-14
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01
What is a Manufacturing License?

A Manufacturing License is an approval issued under the Industrial Coordination Act 1975 by the Ministry of Investment, Trade and Industry (MITI). It authorises a company to carry out manufacturing activities in Malaysia and ensures compliance with national industrial policies.

02
Who needs to apply for a Manufacturing License?

A company must apply for a Manufacturing License if it meets both of the following conditions:

  1. The company’s shareholders’ funds are RM2.5 million or more; or

  2. The company employs 75 or more full-time employees.


Companies below these thresholds are exempted but may apply for confirmation of exemption from MITI.

03
What activities are considered “manufacturing”?

Under the Industrial Coordination Act 1975, “manufacturing” refers to the making, altering, blending, ornamenting, finishing, or otherwise treating or adapting any article or substance with a view to its sale or use.


Examples include food processing, electronics assembly, furniture production, metal fabrication, and chemical processing.

04
Are foreign-owned companies eligible to apply for a Manufacturing License?

Yes. Foreign-owned companies (with more than 51% foreign equity) are eligible to apply for a Manufacturing License in Malaysia.

05
Can a company with multiple factory locations use one Manufacturing License?

No. Each manufacturing premises requires its own license. If a company operates multiple factories at different locations, it must obtain separate Manufacturing Licenses for each premises from MITI.

Kaizen, together with its associate firms in Malaysia, can help the clients to perform these compliances formalities so as to maintain the Malaysia company in good standing. Please call and talk to our professional accountants in Kaizen for further clarification.











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Kaizen CPA Limited

Wechat:kaizencpa



If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at 

www.kaizencpa.com

or contact us through the following and talk to our professionals: 

Email:info@kaizencpa.com

Tel: +852 2341 1444

Mobile :+852 5616 4140

+86 152 1943 4614

WhatsApp/ Line/ WeChat: 

+852 5616 4140

Skype: kaizencpa


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