What Is a Manufacturing License in Malaysia – and Who Needs One?


Planning to start a factory or manufacturing operation in Malaysia? Then the Manufacturing License is something you cannot overlook.


What Is the Manufacturing License?
The Manufacturing License is a mandatory business license issued by the Malaysian Investment Development Authority (MIDA) under the Industrial Coordination Act 1975 (ICA 1975). It ensures your operations comply with national industrial policies, safety regulations, and environmental standards.


Who Needs to Apply?
Your company is required to obtain a Manufacturing License if you meet either of these criteria:
•    Annual production value exceeds RM2.5 million
•    You employ more than 75 workers
This applies across multiple sectors—electronics, machinery, chemicals, plastics, food processing, and more.


Why Is It Important?
•    Operate legally and compliantly to avoid fines, shutdowns, or legal risk
•    Access to government incentives such as Pioneer Status and Investment Tax Allowance (ITA)
•    Banking and international compliance for financing, loans, and B2B client validation


Contact FOZL today to ensure your business is licensed, compliant, and ready for growth in the Malaysian market.

 

Relevant Knowledge

Contact Us

Learn how to help you successfully start your international journey.

Leave us a message