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FOZL Services

FOZL Services

Dedicated to being your reliable partner in the Malaysian market, helping you successfully launch your journey to success in Malaysia.

Construction

Construction is a major pillar of Malaysia’s economy, spanning infrastructure, residential, commercial, industrial, and civil engineering projects. The government regulates the sector through licenses and standards to ensure safety, construction quality, and regulatory compliance. All companies and contractors involved in construction-related activities must obtain the CIDB License to operate legally in Malaysia.

 

What is a CIDB License?
The CIDB License is a mandatory permit issued by the Construction Industry Development Board (CIDB) Malaysia, under the Construction Industry Development Board Act 1994 (Act 520). All contractors—whether local or foreign—must register and be licensed by CIDB before undertaking any construction projects in Malaysia.

 

Scope of the CIDB License:

  • Building Works: 
    Residential, commercial, industrial construction
  • Civil Engineering Works: 
    Roads, highways, bridges, waterworks
  • Mechanical & Electrical Works: 
    HVAC systems, piping, electrical installation

 

Why is the CIDB License Important?

  1. 1. Legal Compliance: 
    Ensures construction companies meet government regulations, avoiding fines, project delays, or legal risks.
  2. 2. Industry Recognition: 
    The CIDB license is a basic requirement for bidding on both public and private sector projects.
  3. 3. Contractor Grading (G1–G7): 
    CIDB classifies contractors from G1 (up to RM200,000) to G7 (no project value limit), determining the size and scope of eligible projects.

 

Sectors Requiring the CIDB License:

  • Building Construction: 
    Housing, apartments, commercial buildings, industrial facilities
  • Mechanical & Electrical Engineering: 
    Air-conditioning (HVAC), water systems, electrical work
  • Civil Engineering: 
    Roads, flyovers, MRT systems, airports, dams

 

Future Outlook of Malaysia's Construction Sector:

The government’s Construction Industry Transformation Programme (CITP 2030) aims to modernize the sector through:

  • Industrialised Building Systems (IBS): 
    To improve construction speed and quality
  • Green Building Initiatives: 
    To promote sustainable construction practices
  • Digitalisation & BIM (Building Information Modelling): 
    To improve project planning and efficiency

The CIDB License is not only essential for legal operations but also a vital credential for gaining competitive advantage in the construction sector.

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