malaysia

Transcription

malaysia

M A L AY S I A
Guidebook on
Business and
Professional
Services
Malaysian Industrial Development Authority
www.mida.gov.my
Stockholm
London
Vancouver
Paris
Chicago
Boston
New York
Amsterdam
Cologne
Frankfurt
Vienna
Zurich
Milan
Rome
Istanbul
Beijing
San Jose
Seoul
Tokyo
Osaka
Los Angeles
Shanghai
Cairo
New Delhi
Karachi
Taipei
Hongkong
Vientiane
Yangon
Manila
Phnom
Bangkok Penh H.C. Minh City
MALAYSIA
Kuala
Lumpur
Singapore
B.S.Begawan
Jakarta
Sydney
Cape Town
Buenos Aires
Auckland
PERLIS
KEDAH
PENANG
FACTS ON MALAYSIA
KELANTAN
M
PERAK
A L A Y S I A
SABAH
TERENGGANU
TOTAL AREA
330,000 square kilometres
(127,000 square miles)
MAJOR RELIGIONS
Islam, Buddhism,
Christianity, Hinduism
POLITICAL STRUCTURE
A federation of 13 states
TIME
GMT + 8 hours
US Eastern Standard Time
+ 13 hours
PAHANG
SELANGOR
Kuala Lumpur
NEGERI
SEMBILAN
SYSTEM OF
GOVERNMENT
Parliamentary democracy
with a constitutional
monarch
FEDERAL CAPITAL
Kuala Lumpur
ADMINISTRATIVE
CENTRE
Putrajaya
POPULATION
26 million
MAJOR ETHNIC GROUPS
Malays, Chinese, Indians,
Kadazans, Ibans
MAJOR LANGUAGES
Malay (official language),
English, Mandarin, Tamil
CLIMATE
Tropical - warm and sunny
throughout the year.
Daily temperatures range
from 33oC (90oF) in the
afternoon to 22oC (70oF)
during the night.
MALACCA
SARAWAK
JOHORE
THE LOCATION
Malaysia lies just above the equator, right in the heart of
CURRENCY
Ringgit Malaysia (RM)
South-East Asia. Peninsular Malaysia, with 11 states, is at the
southernmost tip of the Asian Continent, while the states of
EXCHANGE RATE
The Ringgit was pegged at
US$1 to RM3.80 on 2
September 1998 by
Malaysia's central bank,
Bank Negara Malaysia.
However, on 21 July 2005,
the Ringgit was unpegged
from the US$ and
switched to a managedfloat system against a
basket of key foreign
currencies.
Sabah and Sarawak are located on the northern and western
coasts of the island of Borneo.
• Location of MIDA’s offices
February 2006
Disclaimer
No part of this book may be reproduced, stored in a retrieval system
in any form by any means, including electronic, photocopying,
recording or otherwise, without the prior written permission of the
Malaysian Industrial Development Authority (MIDA).
MIDA has made every effort to ensure that all information is up-todate and correct at the time of printing. We cannot take any
responsibility for any incorrect information or omission published in
this guidebook.
For latest updates, please visit MIDA’s website www.mida.gov.my
© MIDA - All rights reserved.
The Ministry of International Trade & Industry
(MITI) spearheads the development of industrial
activities to further enhance Malaysia’s
economic growth. As an agency under MITI,
the Malaysian Industrial Development Authority
(MIDA) is in charge of the promotion and
coordination of industrial development in the
country.
MIDA is the first point of contact for investors
who intend to set up projects in the
manufacturing and services sectors in Malaysia.
With its headquarters in Malaysia’s capital city
of Kuala Lumpur, MIDA has established a
global network of 16 overseas offices covering
North America, Europe and the Asia Pacific to
assist investors interested in establishing
manufacturing projects and services activities
in Malaysia. Within Malaysia, MIDA has 10
branch offices in the various states to facilitate
investors in the implementation and operation
of their projects.
If you wish to investigate investment opportunities
in Malaysia, please contact MIDA for more
information as well as assistance in your decisionmaking (please see the last page of contact
details of MIDA’s headquarters and state and
overseas offices.)
Contents
1 INTRODUCTION
2
2 LEGAL SERVICES
6
3 ACCOUNTING, AUDITING AND TAXATION SERVICES
22
4 ARCHITECTURAL CONSULTANCY SERVICES
48
5 SURVEYING CONSULTANCY SERVICES
68
6 MEDICAL AND HEALTH CARE SERVICES
94
7 ENERGY CONSULTANCY SERVICES
118
8 MANAGEMENT CONSULTANCY SERVICES
142
9 MARKET RESEARCH SERVICES
162
10 ADVERTISING
178
APPENDICES:
196
A.
B.
C.
D.
E.
F.
G.
H.
Methods of Conducting Business in Malaysia
Taxation
Immigration Procedures
Manpower for Industry
Banking, Finance and Exchange Administration
Intellectual Property Protection
Environmental Protection
General Agreement on Trade in Services
USEFUL ADDRESSES
196
204
211
220
229
245
248
254
258
Section 1
Introduction
1.1
Types of Services Covered
•
•
1.2
Accredited Professional Services
Non-Accredited Professional Services
Accredited Professional and Business
Services: Capitalising on the Prospects
in Business Process Outsourcing
1
INTRODUCTION
1.1 Types of Services Covered
This Guidebook covers selected accredited professional services and business services
(BPS). It is intended to assist and facilitate investors in understanding the rules and
regulations with respect to setting up a practice or business in Malaysia. Clear guidelines
are important in the process of setting up a business and they are also integral to the
business environment since transparency in rules is valued by investors. Selected services
covered are outlined below.
Accredited Professional Services
Accredited professional services comprise the following:
2
•
Legal services include advice and representation in civil, criminal and other cases.
Also included are activities in connection with patents and copyrights, the
preparation of deeds, wills, trusts, etc., and activities of notary public, arbitrators,
examiners and referees.
•
Accounting, auditing and taxation services cover activities involving the recording of
commercial transactions for business or others, the preparation of financial accounts,
the examination of these accounts and the certification of their accuracy and the
preparation of personal and business income tax returns. Included are related
advisory activities and representation (other than legal representation) on behalf of
clients before tax authorities.
•
Architectural services provide consulting for building design and drafting and
supervision of construction, town and city planning and landscape architecture.
•
Surveying services refer to geological and prospecting activities utilising surface
measurements and observation designed to yield information on subsurface structure
and the location of petroleum, natural gas and mineral deposits and of ground water.
This may involve airborne geophysical surveys, hydrological surveys, and etc. Also
included are map making and related land surveying activities.
•
Medical and healthcare services include the consultation and treatment activities of
general physicians and medical specialists in general medicine, dentistry and
pharmacy. Medical services provided by the nurses and midwives are within the
purview of health care services.
•
Energy consultancy services refer to the advisory and consultative engineering
services in the energy sector. It includes the provision of assistance, advisory and
recommendation services concerning engineering matters; and the undertakings of
preparatory technical feasibility studies and project impact studies in the energy
sector.
Introduction
Non-Accredited Professional Services
Non-accredited professional services comprise the following:
•
Management consultancy services cover the provision of advice, guidance or
operational assistance to businesses.
•
Market research services include the investigation services designed to secure
information on the prospects and performance of an organisation's products in the
market.
•
Advertising services refer to services provided by advertising agencies which include
creating and placing advertisement in periodicals, newspapers, radio, television and
outdoor advertising; media representation, aerial advertising, distribution or delivery
of advertising materials or samples, and renting of spaces for advertisement.
1.2 Accredited Professional and Business Services: Capitalising on the
Growth and Prospects in Business Process Outsourcing
The selected services covered in this guidebook are services that could benefit from the
phenomenal growth in business process outsourcing (BPO) that is causing a paradigm shift
in the way business activities are being organised. Malaysia, ranked the third most
attractive destination for outsourcing activities by A. T. Kearney is in a position to benefit
from the huge global market estimated at US$500 billion by 2008. Service functions that
can be offshored or outsourced are found in all sectors of an economy and hence the
potential of BPO that transcends industries and geographical boundaries. From the initiail
advantage of cost savings, companies are now adopting BPO as a strategic move that
allows for the exploitation of technological expertise that would otherwise be unavailable.
BPO is also a strategic orientation that enables companies to take advantage of human
capital available offshore. In addition, the new trend in BPO is to move towards a
partnership with outsource business partners to drive enterprise transformation for
competitive advantage.
Many of the services covered in this guidebook are activities regarded as back office
operations (e.g. accounting, book-keeping, auditing and taxation) or essential activities
(e.g. legal services) which should seize the opportunity in the BPO market. As corporations
have evolved, back office operations have also become complex with highly customised
applications and processes supported by infrastructures. The main value-added in this
strategic move is to gain efficiency improvements besides the cost-saving that initially
motivated companies to outsource back office operations. Malaysian service providers as
third party service providers for such activities could differentiate their services by building
in efficiency improvements in order to win in the competitive market of BPO.
Activities such as market research and consultancy are services that provide value-added
that could be leveraged to provide competitive advantage to companies. Malaysian service
providers must be able to find niches that they excelled as India and China (ranked first
and second respectively, by A. T. Kearney) remained strong while other countries such as
Singapore, Canada, Ireland and the Philippines are strong competitors to Malaysia as
service providers in BPO. In short, the growth prospect of BPO is phenomenal but the
competition has also become increasingly more intense.
Introduction
3
Section 2
Legal Services
2.1
Licensing and Registration
•
•
•
•
2.2
Equity Policy
•
2.3
•
•
•
•
Financial Assistance for Small and
Medium Enterprises (SMEs)
Majlis Amanah Rakyat (MARA)
Financing Scheme for Professionals
Tabung Usahawan Siswazah (TUS) /
Graduate Entrepreneur Scheme
Brand Promotion Grant (BPG)
Market Development Grant (MDG)
Tax Incentives
•
•
2.6
Expatriate Posts Specific to Legal Services
Financial Assistance
•
2.5
General Agreements on Trade in Services (GATS) and
ASEAN Framework Agreement on Services (AFAS)
Specific Immigration Procedures
•
2.4
Registration with Companies Commission of Malaysia/
Sabah Law Association/Advocates’ Association of Sarawak
Registration with the Bar Council of Malaysia
Registration with Ministry of Finance
Service Tax Licence
Double Deduction on Promotion of Export of Services
Tax Exemption on the Value of Increased Exports
Application Procedures
2
LEGAL SERVICES
Legal services (classified under code 74110 of the Malaysia Standard Industrial
Classification) include advice and representation in civil, criminal and other cases, i.e.
representation of one party’s interest against another party, whether or not before courts or
other judicial bodies. These activities are generally performed by, or under supervision of,
persons who are members of the bar. Also included are activities in connection with
patents and copyrights, with the preparation of deeds, wills, trusts, etc., and activities of
notary public, arbitrators, examiners and referees. However, it excludes law court activities
which are classified in item 75235: Judiciary and legal service.
2.1 Licensing and Registration
Registration with Companies Commission of Malaysia/Sabah Law Association/Advocates’
Association of Sarawak
Legal firms are not corporate entities and are not required to register with Companies
Commission of Malaysia (CCM).
Registration with the Bar Council of Malaysia
The Bar Council of Malaysia is the body that regulates the provision of legal services in
Peninsular Malaysia. The provision of legal services in the State of Sabah is regulated by
the Advocates Ordinance of Sabah while the provision of legal services in the Sate of
Sarawak is regulated by the Advocates Ordinance of Sarawak. An advocate and solicitor
can practice either on his own account as a sole proprietor, or in partnership, or employed
as a legal assistant.
The requirements for setting up a legal practice in Peninsular Malaysia are as follows:
Types of
Establishment
Sole Proprietorship
and Partnership
6
Legal Services
Requirements
•
The advocate and solicitor must practice under an
approved firm name
•
The advocate(s) and solicitor(s) must write to the Bar
Council seeking approval to set up a firm with the
proposed name of the firm, date of commencement,
address, telephone and fax numbers.The letter shall be
signed by the sole proprietor/partners.
•
The proposed firm name shall be in accordance with
Section 85 of the Legal Profession Act, 1976
•
Once the firm name is approved, the firm shall obtain the
mandatory Professional Indemnity Insurance cover
Types of
Establishment
Setting up a
branch office
Merger
Requirements
•
In setting up a branch office, the firm must comply with
Rule 59 of the Legal Profession (Practice and Etiquette)
Rules, 1978
•
The firm must write to the Bar Council with the details of
the branch that they propose to set up with the name of
the resident lawyer and an undertaking to comply with
Rule 59 of the Practice and Etiquette Rules. The letter shall
be signed by all the partners/sole proprietor of the firm
•
The Bar Council must be notified of a merger. The letter
informing the Bar Council shall be signed by all the
partners/sole proprietors of the firms that are merging
To set up a practice in the legal service, it is a pre-requisite that one is required to possess
the Annual Certificate from the Bar Council of Malaysia and Practising Certificate from the
High Court of Malaya.The Annual Certificate and the Practising Certificate expires on 31st
December of each year and must be renewed before 31st December. Applications for
renewal are normally made in the month of September of the preceding year.
Professional Indemnity Insurance
Once the firm name is approved, the new firm shall obtain the mandatory Professional
Indemnity Insurance cover. Under the Legal Profession (Professional Liability) (Insurance)
Rules, 1992, it is an obligation of each and every advocate and solicitor to be insured
under the Professional Indemnity Insurance (PII) Master Policy, taken out by the Bar
Council in the name of the Malaysian Bar. The purpose of the cover is to provide
indemnity against such classes of professional liability stipulated under the Master Policy
and Certificate of Insurance (COI). The current PII Policy is a claims-made Policy and the
terms of the Policy and COI are reviewed by the Bar Council annually to ensure efficiency
and equitability. Possession of PII cover is a pre-requisite to the issuance of the Annual
Certificate.
Under the terms of the Master Policy 2006, each firm is required to obtain a mandatory
cover of RM250,000. This mandatory cover has not increased since the inception of the
PII Scheme in 1992. Where necessary, according to the nature and quantum of work
undertaken, the firm may purchase top-up insurance coverage from either the insurers
under the Master Policy or any other insurers.
In the event a new firm is established or merged, a fresh cover must be obtained under the
new firm name. Likewise, when a firm is closed, the insurance cover will be cancelled,
with appropriate refunds of premium, where applicable.
Any legal services firms wishing to tender for government contracts shall register with the
Ministry of Finance (MOF) under code 241400 for Legal Services.
Legal Services
7
(a)
Conditions that must be fulfilled for registration with MOF (of general applicability):
(i)
Firm with accumulated/paid-up capital as follows:
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
(ii)
The firm needs to have a legitimate office address, either leased or own property.
(iii)
The firm needs to have at least one sub-professional and clerk (excluding the Office
Manager) under permanent employment and who contribute to the Employee
Provident Fund (EPF) account.
(iv)
The firm needs to have an active bank current account.
(v)
The field of expertise submitted for registration with the MOF must be consistent
with the practising licence issued by the respective Professional Boards.
(vi)
Owner of the firm needs to possess professional qualification in the field of expertise
applied for registration, in accordance to the provision of laws and regulations. The
applicant is required to submit his/her CV/work experience.
(vii) All shareholders or partners are required to possess at least five (5) years of working
experience upon obtaining their academic degree.
(viii) For professions whose ethics of service are governed by the Professional Boards, the
shareholders or partners of partnerships need to be registered with their respective
Professional Boards. The field of expertise to be registered with the MOF will be the
expertise approved by the Professional Boards.
(ix)
The consulting firm is also required to forward permits/approvals from the respective
Professional Boards in compliance with the provisions of the Act that governs the
respective Professional Boards.
(x)
The firm that applied for registration with MOF must have at least one shareholder,
one sub-professional and one clerk who are in full-time employment.
(b) Registration Policy
(i)
The registration with MOF can take place upon the registration of the firm and the
(ii)
There are two (2) classes of registration:
•
Ordinary Registration - This applies to wholly-owned Malaysian firms. All
shareholders, Board of Directors, management and staff are Malaysian
citizens.
•
Local-foreign Joint-venture - Firms have to be incorporated in Malaysia where
foreign shares cannot be more than 30% and Bumiputera shares cannot be less
than 30%. The composition of the Board of Directors, management and staff
must be of the same proportion.
Application must be made only through www.eperolehan.com.my
8
Legal Services
Service Tax Licence
The Service Tax Act, 1975 shall apply throughout Malaysia excluding Langkawi, Tioman,
Labuan, Free Zones and “Joint Development Area”. Under the Service Tax Act, 1975 and
the Service Tax Regulation, 1975, companies that provide legal services that generate a
total annual sales turnover of RM150,000 or more are required to obtain a Service Tax
Licence. The rate of the service tax is 5% on the value of the services rendered.
Professional services provided by a company to companies within the same group will be
exempted from the current service tax of 5%. In addition, the provision of legal services
in connection with business organisation situated outside Malaysia is also exempted from
service tax.
Application for Service Tax Licence should be submitted to the Royal Customs
Department.
2.2 Equity Policy
The Companies Act, 1965 does not stipulate any equity conditions on Malaysian
incorporated companies. However, a legal firm registered with the Bar Council of Malaysia
is required to maintain a 100% Malaysian equity ownership. Foreign legal services
suppliers are not allowed to practise in Malaysia except the Federal Territory of Labuan and
then only with respect to certain areas of law.
General Agreement on Trade in Services (GATS) and ASEAN Framework Agreement on
Services (AFAS)
Under the Schedule of Specific Commitments of General Agreement on Trade in Services
(GATS), there is no limitation with regards to cross border supply (mode 1) and
consumption abroad (mode 2) for foreign firms. For commercial presence (mode 3),
foreign legal practice can operate only through a corporation incorporated in the Federal
Territory of Labuan. For the supply of services through the movement of natural persons
(mode 4), it is not open except as indicated in the horizontal section, GATS.
2.3 Specific Immigration Procedures
Foreign legal services suppliers are only allowed to practise in the Federal Territory of
Labuan, Malaysia.
Legal firms providing legal services in Federal Territory of Labuan may employ expatriates.
The legal firm must submit its application for Employment Pass to the Immigration
Department.
Before applying for the employment pass for expatriates, the legal firm in Federal Territory
of Labuan must apply for approval of the related post from Expatriate Committee of the
Immigration Department.
Upon approval of the expatriate posts, legal firm in Federal Territory of Labuan should
forward their application for Employment Pass to the Immigration Department for
endorsement.
Legal Services
9
Spouses and children of the expatriates can apply for dependant passes once the
expatriates have been issued with an employment pass. The dependant pass may be
applied together with the application before the employment pass or after the employment
pass is approved. Spouses and children of the expatriates who enter the country on a visit
(temporary employment or professional) will be issued a visit pass (social).
Expatriate Posts Specific to Legal Services
Except for practice in the Federal Territory of Labuan, expatriates are not allowed to
practise in Malaysia as one of the requirements for admission as an advocate and solicitor
in Malaysia is that one must be either a Federal citizen or a permanent resident of
Malaysia.
2.4 Financial Assistance
Financial Assistance for Small and Medium Enterprises (SMEs)
The government provides an enabling environment for the growth and development of
globally competitive and resilient SMEs. Initiatives and programmes by the government are
directed towards addressing constraints and enhancing capabilities of SMEs in areas such
as financial accessibility, advisory services, marketing, technology and ICT.
Financial assistance in the form of grants and soft loans are provided by the Ministry of
International Trade and Industry (MITI) and its agencies. Apart from the government, funds
are also channeled through commercial financial institutions.
Five different types of financial schemes are available for SMEs:
(a)
Grant for Business Planning and Development (ITAF 1)
(b)
Grant for Product and Process Improvement (ITAF 2)
(c)
Grant for Productivity and Quality Improvement and Certification (ITAF 3)
(d)
Soft Loan for ICT Adoption
(e)
Soft Loan for SMEs
Qualifying criteria are as follows:
(i)
For the services sector, businesses must be incorporated under the Registration of
Business Ordinance, 1956 under CCM with an annual sales turnover of not
exceeding RM5 million or full-time employees not exceeding 50
(ii)
At least 60% of equity must be held by Malaysians
(iii)
Possess valid premise licence
Agencies that are responsible for the administration of these financial assistance schemes
are presented below.
10
Legal Services
(i)
Small and Medium Industries Development Corporation (SMIDEC)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
(a) Grant for Business
Planning and
Development
(ITAF 1)
The scheme provides
assistance to SMEs to
undertake studies in business
planning, technology and
market development.
Assistance is given in the form
of a matching grant where
50% of the approved project
cost is borne by the
government and the
remainder by the applicant.
The maximum grant allocated
per company is RM40,000.
(b) Grant for Product
and Process
Improvement
(ITAF 2)
The scheme provides
assistance to SMEs to improve
and upgrade existing product,
product design and processes.
50% of approved project cost
is borne by the government
and the remainder by the
applicant. The maximum
grant allocated per company
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
assistance to SMEs for
productivity and quality
improvement and to comply
with international quality
standards and certification.
is RM250,000.
Application should be submitted to SMIDEC. Please refer Section 2.6 for contact details.
Legal Services
11
(ii) Malaysian Industrial Development Finance Berhad (MIDF)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
(a) Soft Loan for ICT
Adoption
This scheme provides
assistance in the form of soft
loan for SMEs to adopt ICT to
improve competitiveness,
efficiency and productivity.
Loan:
- minimum loan RM20,000
- maximum loan RM250,000
- interest rate: 3% per annum
- repayment period:
up to 5 years
Not to be used for refinancing
of existing loan
Percentage of financing up to
75%
(b) Soft Loan for SMEs
This soft loan scheme is to
assist existing as well as new
start-up companies in project,
fixed assets and working
capital financing.
Minimum : RM50,000
Maximum :
- Project Financing - RM5
million (including
preoperational expenses of
up to RM250,000)
- Fixed Assets Financing RM2.5 million; and
- Working Capital Financing
- RM1 million
Interest rate: 4% p.a.
Application should be submitted to MIDF. Please refer Section 2.6 for contact details.
Majlis Amanah Rakyat (MARA) Financing Scheme for Professionals
MARA is the agency that administers a scheme known as General Financing Scheme for
Professionals. Under this scheme, Bumiputera entrepreneurs who are members of
professional bodies and who would like to start up business or to expand their venture
capital to upgrade business are eligible to apply for assistance. This financing scheme
covers business sectors that are not in conflict with the Islamic concept. The amount of
financing for each applicant is to a maximum of RM250,000. Each applicant is eligible for
the facility for two (2) times only. The applicant must fulfil the requirements as listed
below:
12
(i)
Malaysian citizens; Malay or Bumiputera
(ii)
18 years of age
(iii)
Knowledgeable and experienced in business
(iv)
Conduct business full time
(v)
Capital contribution: 10% of total project cost must be borne by the applicant
Legal Services
(vi)
Possess licence/permit/consent letter from relevant authorities
(vii) Submit sufficient collateral
(viii) Must undergo Entrepreneurship Course if applicant has less than six months of
experience in the relevant field(s)
Application should be submitted to MARA. Please refer Section 2.6 for contact details.
Tabung Usahawan Siswazah (TUS) / Graduate Entrepreneur Scheme
The SME Bank provides funding assistance of a minimum of RM20,000 to up to
RM250,000 to part finance business ventures by graduates. The eligibility criteria for this
fund are:
(i)
Sole proprietorship/Partnership/Private Limited companies registered under the
Companies Act, 1965 (majority of equity must be held by graduates)
(ii)
Graduates must have completed tertiary level studies - diploma/bachelor/PhD
(iii)
Successfully attended courses provided by the Ministry of Entrepreneur and Cooperative Development (MECD)
(iv)
Graduates must not be more than 35 years old during registration with MECD
Application should be submitted to the SME Bank. Please refer Section 2.6 for contact
details.
The objective of BPG is to develop and promote in the international market brand names
owned by Malaysian companies for products and services originating from Malaysia.
Companies can obtain 100% reimbursable grants of up to a maximum of RM1 million per
company per brand (for SMEs only), or 50% reimbursable grant of up to a maximum of
RM2 million per company per brand (for non-SMEs).This scheme is extended to all
services. The BPG will only be granted to eligible brands identified to be assisted by the
Brand Grant Approval Committee.
(i)
Incorporated under the Companies Act, 1965
(ii)
At least 60% equity is owned by Malaysians
(iii)
Companies own the brand and is the registered approved owner of the trademark
registered in any country and has rights to it
(iv)
Annual sales turnover of not more than RM250 million (based on the latest financial
report)
(v)
For 100% reimbursable grant, annual sales turnover not exceeding RM5 million or
with full time employees not exceeding 50
Legal Services
13
(vi)
Products/services are already exported with at least 20% of the sales from export. For
companies that do not meet the 20% export condition, the application may be
considered based on the export potential and commitment of the company to
develop the brand into an international brand
(vii) Products/services should originate from Malaysia
Eligible expenses:
(i)
(ii)
(iii)
(iv)
Branding/marketing strategy consultancy (subject to maximum limit of not more than
10% of grant approved):
•
Brand strategy, creation and development
•
Marketing strategy and implementation
•
Media strategy
•
Brand communication strategy
•
Brand management system
•
Brand manual and information system
Brand Development:
•
Logo design and redesign
•
Product design and redesign
•
Packaging design and redesign
•
Intellectual property matters, including registration and trademark
Brand Promotion:
•
Customer relationship management system to monitor brand
•
Advertising and Promotion (maximum 50% of grant approved)
•
Enhancement of Brand Website (maximum grant RM50,000)
Brand Market Research/Service:
•
Brand Audit/Valuation
•
Research
•
Brand Tracking
Application should be submitted to Malaysia External Trade Development Corporation
(MATRADE). Please refer Section 2.6 for contact details.
14
Legal Services
In order to assist SMEs in developing their export markets, matching grants of up to
RM100,000 per company are provided. This grant is extended to accounting, engineering,
construction, architectural, education, healthcare, printing and publishing, ICT, and legal
services.
(i)
Incorporated under Companies Act, 1965 or under Business Ordinance, 1956
(ii)
Annual sales turnover of not more than RM5 million or not more than 50 full time
employees
(iii)
At least 60% equity held by Malaysians
Eligible activities:
(i)
Participation in trade missions, specialised selling missions, international trade fairs,
industry related international conference
(ii)
Participation in Malaysian trade centres overseas
(iii)
Participation in meetings related to negotiations on Mutual Recognition Agreement
by representatives of the Trade and Industry and Professional Services Association
(iv)
Setting up sales promotion office overseas to promote exports of Malaysian services
(v)
Participation in overseas international tenders
Application should be submitted to MATRADE. Please refer Section 2.6 for contact details.
2.5 Tax Incentives
The general tax incentives applicable to professional services are presented below. All
claims relating to tax incentives shall be submitted to the Inland Revenue Board (IRB).
Please refer Section 2.6 for contact details.
Effective from Year of Assessment 2003, this incentive is extended to legal services
registered as partnership or sole proprietorship under the Registrar of Business (ROB).
Companies engaged in legal services are given tax exemption on the statutory income
equivalent to 50% of the value of increased exports.
Legal Services
15
2.6 Application Procedures
Application
Where to Apply
Form(s)
Licensing and
Registration
• Annual Certificate
Malaysian Bar Council
No. 13, 15, & 17, Leboh Pasar Besar
50050 Kuala Lumpur
Tel : (603) 2031 3003
Fax : (603) 2026 1313
Website: www.malaysianbar.gov.my
Email : council@malaysianbar.org.my
-
• Practising
Certificate
High Court of Malaya
Palace of Justice
Precint 3
60506 Putrajaya
Tel : (603) 8880 3500
Website : www.kehakiman.gov.my
-
• Sole Proprietorship
Bar Council of Malaysia
-
Registration Unit
Government Procurement
Management Division
Ministry of Finance Malaysia
Ground Floor, North Block
Ministry of Finance Complex
Precint 2
Federal Goverment
Administrative Centre
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Website : www.eperolehan.com.my
Application must be
made through
www.eperolehan.com
.my
• Partnership
• Setting up a
Branch Office
• Merger
• Government
Procurement
• Signboard Licence
16
Legal Services
State Local Authority
Prescribed Form
Application
• Service Tax
Licence
Where to Apply
Royal Malaysian Customs
Block 2G1B
Precint 2
Federal Government
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Website : www.customs.gov.my
Email : kastam@customs.gov.my
Form(s)
Form JKED 1
Equity Policy
Trade Practices Division
Ministry of International
Trade and Industry
12th Floor Block 10
Government Offices Complex
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
Website : www.miti.gov.my
-
• Expatriate Post
Immigration Department
of Malaysia
Level 1-7 (Podium) Block 2G4
Precint 2
Federal Government
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Website : www.imi.gov.my
Email : pro@imi.gov.my
Form DP10
• Endorsement of
Employment Pass
Immigration Department of Malaysia
Form DP11
Or
Or
Immigration Department Office
Form IM8 & IM38
• General
Agreement on
Trade in Services
(GATS)
Specific Immigration
Procedures
Form DP 8
Legal Services
17
Application
Where to Apply
Form(s)
• Grant for Business
Planning and
Development
(ITAF 1)
ITAF 1 Form
• Grant for Product
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
• Soft Loan Scheme
for ICT Adoption
• Soft Loan for SMEs
18
Small and Medium Industries
Development Corporation
(SMIDEC)
Level 8 , Tower C, Uptown 5
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Selangor Darul Ehsan
Tel : (603) 7628 7400
Fax : (603) 7660 1919
Website : www.smidec.gov.my
Email : info@smidec.gov.my
Legal Services
Malaysian Industrial Development
Finance Berhad (MIDF)
Bangunan MIDF
195A, Jalan Tun Razak
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
Website : www.midf.com.my
Email : inquiry@midf.com.my
MIDF
Loan Enquiry Form
Loan Enquiry Form
Application
Where to Apply
Form(s)
• MARA Financing
Scheme
21, Jalan Raja Laut,
50609 Kuala Lumpur
Tel : (603) 2691 5111
Fax : (603) 2691 3620
Website : www.mara.gov.my
Form RP 2P (3 Copies)
• Graduate
Entrepreneur
Scheme
Bank Perusahaan Kecil & Sederhana
Malaysia Berhad (SME Bank)
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Website : www.smebank.com.my
Email : eng_y@smebank.com.my
Register for
Entrepreneur Training
Scheme
• Brand Promotion
Grant (BPG)
Malaysia External Trade Development
Corporation (MATRADE)
7th Floor, Wisma Sime Darby
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Website : www.matrade.gov.my
Email : info@matrade.gov.my
Form BPG1/05
• Market
Development
Grant
MATRADE
Form MDG 1/05
Tax Incentives
• Double Deduction
on Promotion of
Export of Service
• Tax Exemption on
the Value of
Increased Exports
The Inland Revenue Board of
Malaysia (IRB)
15th Floor, Block 9
Jalan Duta, P.O. Box 11833
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
Website : www.hasilnet.org.my
Email : lhdn@hasilnet.org.my
IRB
Form
DD/POE/PS/2003-1
Form EX/AIES/2003-1
Legal Services
19
Section 3
Accounting, Auditing
and Taxation Services
3.1
•
•
•
•
•
•
3.2
Equity Policy
•
•
•
3.3
•
•
•
•
Tax Incentives
•
•
3.6
Expatriate Posts Specific to Accounting, Auditing and
Taxation Services
•
3.5
Foreign Investment Committee Guidelines
General Agreement on Trade in Services (GATS)
•
3.4
Registration with Companies Commission of Malaysia
Registration with the Malaysian Institute of Accountants
Setting Up A Practice In Malaysia
Signboard Licence Issued by State Authorities
Service Tax Licence
3
ACCOUNTING, AUDITING AND
TAXATION SERVICES
Accounting, book-keeping, auditing and tax consultancy services (classified under code
74120 of the Malaysia Standard Industrial Classification) include activities involving the
recording of commercial transactions for business or others, the preparation of financial
accounts, the examination of these accounts and the certification of their accuracy and the
preparation of personal and business income tax returns. Included are related advisory
activities and representation (other than legal representation) on behalf of clients before tax
authorities. However, accounting and auditing services exclude the following:
(a)
Data processing and tabulation activities which are classified in item 72300: Data
processing services.
(b)
Activities involving management consultancy, by units that do not provide
accounting or auditing which are classified in item 74142: General management
consultancy services.
(c)
Bill collection which is classified in item 74999: Other business activities.
The setting up of an accounting, auditing and tax consultancy practice requires the
intended professional to register with Companies Commission of Malaysia (CCM) under
the Registration of Business Ordinance, 1956, or incorporate a company under the
Companies Act, 1965. A foreign company cannot carry on business in Malaysia unless it
incorporates a local company or registers the company in Malaysia with CCM. Foreign
company means a company, corporation, society, association or other body incorporated
outside Malaysia which under the law of its place of origin may sue or be sued. For a
foreign company to register a company in Malaysia, the same registration procedures
pertaining to the registration of a locally incorporated company apply.
Registration with the Malaysian Institute of Accountants
The Malaysian Institute of Accountants (MIA) is the body that regulates the practice of
accounting and auditing in Malaysia. According to the MIA (Membership and Council)
Rules, 2001 which was approved on 7 November 2001, a member shall not hold himself
out as a member in public practice unless he holds a valid practising certificate issued by
the Institute.
As a signatory to the General Agreement on Trade in Services (GATS), Malaysia allows
foreign professionals to practise in Malaysia subject to the Schedule of Specific
Commitments. For commercial presence (mode 3), a foreign supplier of accounting and
auditing is allowed to practice only through a locally registered partnership with Malaysian
accountants or Malaysian accounting firms. The same rule applies to foreign supplier of
taxation services. Under ASEAN Framework Agreement on Services (AFAS), the same set
of rule applies.
22
Accounting, Auditing and Taxation Services
For the purpose of registration with the MIA, qualifying examination for foreign
professionals who intend to hold himself as a member in public practice in order to
determine the competence and ability to supply the service will be conducted by MIA. The
examination will be conducted in the English language.
The requirements and conditions for the certificate and licences to practise are as follows:
Practising Certificate for Chartered Accountant
Requirements
Conditions
• At least three (3) years experience in
the service of:
• Member must commence public
practice within six months from the
date of issuance of the practising
certificate and practise on a full time
basis
(i) a chartered accountant who is in
public practice;
(ii) an accountant practising public
certificate outside Malaysia who
is a member of one of the
recognised bodies specified in
Part II of the First Schedule of the
Act; and
(iii) an accountant in public practice
overseas who is a member of any
other professional bodies as may
be recognised by the Council
from time to time
OR
• The certificate will be renewed
automatically on a year to year basis
for a period of twelve months on the
1st of July
• The annual fee for practising certificate
is RM250
• All practising certificate holders shall
enclose documentary evidence of
having a valid professional indemnity
insurance (PII) for the renewal of
practising certificate
• At least three (3) years of such other
experience in any areas of the public
practice services as may be approved
by the Council
Audit Licence for Auditor
Requirements
• Must be a Chartered Accountant
registered with MIA with a valid
Practising Certificate issued;
• Have continuous three (3) years of
auditing experience post to their
membership with MIA; and
Conditions
• Licence is renewable every 2 years
• Application for renewal must be made
at least 3 months before the expiry
date
• Have attended a “Public Practice
Programme” organised by MIA
(Effective 1 January 2006)
23
Liquidator Licence for Liquidator
Requirements
Conditions
• Applicant must be an Audit Licence
holder with a valid practising
certificate
• The person must have obtained the
audit licence for at least a year prior
to the application
date
Tax Licence for Tax Agent
Requirements
• Member of any accounting body
recognised by the Malaysian
government as stated in Part II of the
First Schedule of the Accountants
Act, 1967 (please refer Section 3.6)
and with 5 years practical experience
in tax with either the public or
private sector
• An individual with any qualification
as stated in Part 1 of the First
Schedule of the Accountants Act,
1967 (please refer Section 3.6) and
with 5 years practical experience in
tax with either the public or private
sector
• An individual with a higher
qualification in business, economics,
or any related fields, and has 5 years
of practical experience in tax with
either the public or private sector
• An individual who qualified in the
opinion of the Director General of
the Inland Revenue Board which is
equivalent to the qualifications
mentioned above with 10 years
practical experience in tax with
either the public or private sector
• An individual who has passed the
Advanced Course examination
organised by the Inland Revenue
Board with 5 years practical
experience in tax with either the
public or private sector
24
Conditions
date
Tax Licence for Tax Agent
Requirements
Conditions
• An individual who has passed the
Beginner Course examination organised
by the Inland Revenue Board, and is
holding the position of Examiner and
above during the employment with
the Inland Revenue Board with 10
years practical experience in tax with
either public or private sector
• An individual who has passed the Tax
Agent Course conducted by the Inland
Revenue Board (Skim Latihan Khas)
• A member of the Malaysian Institute
of Taxation with 5 years of practical
experience with either public or
private sector
• A member of the Malaysian Association
of the Institute of Chartered Secretaries
and Administrator (MAICSA) with 5
years practical experience with either
the public or private sector
Note:
Beginning 1 January 2006, any person
who wishes to perform taxation service
is required to obtain a tax agent licence.
The proposal includes licensed auditors.
However, a licensed auditor who has
acquired an audit licence prior to 1 January
2006 shall be allowed to continue to be
a tax agent. The proposal is effective
from 1 January 2006.
Application for audit licence, liquidator licence or tax licence will have to be submitted to
Bahagian Analisa Cukai, Ministry of Finance. Please refer to Section 3.6 for further details.
Setting Up a Practice in Malaysia
SETTING UP A FIRM IN MALAYSIA
AUDIT FIRM
NON-AUDIT FIRM
CA + PC + AL
(Offers all public practice services)
CA + PC
(Offers all public practice services except
audit & tax)
CA:
PC:
AL:
TL:
Chartered Accountant
Practising Certificate
Audit Licence
Tax Licence
CA + PC + TL
(Offers all public practice services except audit)
25
The requirements for setting up a practice in Malaysia are as follows:
Types of
Establishment
Requirements
Audit Firm
Sole proprietor or partners must be Chartered Accountants
registered with MIA, with valid practising certificates and valid
audit licences
Branch Office
(of an Audit Firm)
Branch office of an audit firm must be managed by a member of
MIA
Non-Audit Firm
Sole proprietor or partners must be Chartered Accountants or
Licenced Accountants registered with MIA with valid practising
certificates
Branch Office
(of a Non-Audit Firm)
Branch office of a non-audit firm must be managed by a
member of MIA
Annual Returns
All firms registered with MIA are required to update their records with MIA by submitting
an annual return on particulars of their firm and branch/branches (where applicable) on a
yearly basis. Submission of the annual return to the Institute is MANDATORY, as stated in
the By-Law B-2.5 (1)(d) of the Institute’s By-Laws (on Professional Conduct and Ethics).
Annual return form will be sent (by MIA) to all member firms on a yearly basis.
Professional Indemnity Insurance
Every member in public practice shall comply with By-Law B-10 (Professional Indemnity
Insurance) of the Institute's By-Laws to ensure that his firm carries and maintains a policy
of professional indemnity insurance, purchase policies from local insurance companies,
obtain a policy of professional indemnity insurance with a minimum coverage of
RM100,000 within three (3) months from the date of commencement of public practice.
If a member in public practice carries on his practice under more than one firm, he is
required to have separate policies of professional indemnity insurance with a minimum
coverage of RM100,000 for himself in each of the firms in which he practises.
Any accounting, auditing and taxation services firms intending to tender for government
contracts must register with the Ministry of Finance (MOF) using the codes specified by
MOF.
26
Code
Description
240900
Accounting
241000
Auditing
240800
Taxation
(a) Conditions that must be fulfilled for registration with MOF:
(i)
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
Private limited company
-
RM20,000 and above
(ii)
The firm must have a legitimate office address, either leased or own property.
(iii)
Manager) under permanent employment and who contributes to the Employee
(iv)
(v)
The field of expertise submitted for registration with MOF must be consistent with
the practising licence issued by the respective Professional Boards.
(vi)
applied, in accordance with the provision of laws and regulations. The applicant is
required to submit his/her CV/work experience.
(viii) Application by firms with shareholding under nominee or corporate is not
acceptable except in the case of Higher Learning Institutions and Financial
Institutions.
(ix)
Shareholder must also be a full time executive Director.
(x)
For professions whose ethics of service are governed by professional boards, the
shareholders or partners of partnerships must register with their respective
professional boards. The field of expertise to be registered with the MOF will be the
expertise approved by the professional board.
(xi)
professional boards in compliance with the provisions of the Act that governs the
respective professional boards.
(xii) Any firm that applies for registration with MOF must have at least one shareholder,
(i)
The registration with MOF can take place upon the registration of the firm with the
Companies Commission of Malaysia (CCM) and the respective professional boards.
(ii)
Firms that register with MOF can be classified as:
•
citizens.
•
foreign shares cannot exceed 30% and share holdings of Bumiputera
(Malaysians of indigenous origins) cannot be less than 30%. The composition
of the Board of Directors, management and staff must be in the same
proportion.
Applications must be made only through www.eperolehan.com.my
27
Companies intending to set up an office are required to obtain a signboard licence from
the respective local authorities, depending on the nature of the business activity.
There are 147 local authorities in Malaysia. The requirements for obtaining a signboard
licence may vary according to the conditions set/requirements of each local authority.
Applicants are advised to contact the relevant local authority (based on the location of the
business premise) about the specific rules and regulations pertaining to signboard
registration. The fees for signboard registration may vary according to each of the local
authorities and are dependent on the size and type of the signboard. Applicants are
advised to contact the relevant local authority where the company is located.
Generally, application for a signboard licence must be accompanied by the following
documents:(i)
A copy of the company’s Memorandum and Articles of Association (M&A) and
Forms 9, 24 and 49
(ii)
A copy of either the rental agreement or the sales and purchase agreement of the
company’s business premise
(iii)
A copy of location plan of the company’s business premise
(iv)
Photographs showing the location of the company’s signboard
(v)
Samples of the signboard indicating its design and colours
Service Tax Licence
The Service Tax Act, 1975 shall apply throughout Malaysia but excluding Langkawi,
Tioman, Labuan, Free Zones and “Joint Development Area”. Under the Service Tax Act,
1975 and the Service Tax Regulation, 1975, companies that provide accounting, auditing
and taxation services that generate a total annual sales turnover of RM150,000 or more are
required to obtain a Service Tax Licence. The rate of the service tax is 5% on the value of
the services rendered. Professional services provided by a company to companies within
the same group will be exempted from the current service tax of 5%. In addition, the
provision of accounting, auditing, book-keeping, and consultancy services in connection
with business organisation situated outside Malaysia is also exempted from service tax.
Application for Service Tax Licence shall be submitted to the Royal Customs Department.
3.2 Equity Policy
incorporated companies. However, to increase local participation in business, the
government encourages joint-ventures between Malaysian and foreign investors. The
Foreign Investment Committee (FIC) has a set of “Guidelines on the Acquisition of
Interests, Mergers and Takeovers by Local and Foreign Interests” (Appendix A).
28
The Malaysian government has liberalised its policy on foreign equity participation in
businesses in Malaysia as one of its strategies to continuously attract new investments into
the country.
In 2004, the FIC has liberalised the Malaysian policy on foreign equity participation to
allow foreigners to hold up to 70% of the equity in a Malaysian company. Bumiputeras
have to hold at least 30% of the equity.
Companies which do not have any Bumiputera equity or having less than 30% Bumiputera
equity are required to increase the Bumiputera’s equity to at least 30%. The remaining
equity shareholding can be held either by local interest, foreign interest or by both.
Under the Schedule of Specific Commitments of the General Agreement on Trade in
Services (GATS), foreign investment in accounting and auditing services can be made only
through a locally registered partnership with Malaysian accountants or Malaysian
accounting firms and the aggregate foreign interests shall not exceed 30%. For taxation
services, foreign investment could also be made only through a locally registered
partnership or private limited company with Malaysian authorised tax agents/firms and the
aggregate foreign interests in the partnership shall not exceed 30%.
Under AFAS, foreign investment in accounting and auditing services can be made only
through a locally registered partnership with Malaysian accountants or Malaysian
accounting firms and the aggregate foreign interests shall not exceed 40%. For taxation
services, foreign investment could also be made only through a locally registered
partnership or private limited company with Malaysian authorised tax agents/firms and the
aggregate foreign interests in the partnership shall not exceed 35%.
Companies providing accounting, auditing and taxation services in Malaysia may employ
expatriates. The company must submit its applications for Employment Passes to the
Immigration Department.
Before applying for the employment pass, the company or organisation must apply for
approval of the related post from the Expatriate Committee of the Immigration Department.
Upon approval of the expatriate posts, companies shall forward their application for
Employment Passes to the Immigration Department.
In addition to the qualification requirements prescribed under the Accountants Act, 1967,
the expatriate must also meet the following residency guidelines as set by the MIA
Council:(i)
Must be in the country for at least one hundred and eighty two (182) days within one
(1) year at the point of application (must be supported by documentary evidence
such as passport entry and exit stamps)
29
(ii)
Must possess a working permit issued by the Malaysian Immigration Department
stating the position held and the commencement and expiry date of the permit
(iii)
Must have a residential address in Malaysia
employment pass is issued. The dependant pass may be applied together with the
application for employment pass or after the employment pass is approved. Spouses and
children of the expatriates who enter the country on a visit (temporary employment or
professional) will be issued a visit pass (social).
Expatriate Posts Specific to Accounting, Auditing and Taxation Services
Under GATS, supply of services through mode 4 (the movement of natural persons) is
unbound except as specified in the horizontal section. Section 1 (b) of the horizontal
section allows two specialists or experts per organisation being persons within the
organisation who possess knowledge at an advanced level of continued expertise and who
possess proprietary knowledge of the organisation’s new service products and technology,
research equipment and techniques or management.
Additional specialists or experts may be allowed subject to market test and the training of
Malaysians through an acceptable training program in the relevant services sector or subsector. Such persons must be employees of the foreign service supplier and who have been
in employment of that foreign service supplier for a period of not less than one year
immediately preceding the date of their application for a work permit and he is to serve in
at least a similar capacity.
Under 2(b) of the horizontal section, the condition that must be met is that professionals
being persons who possess necessary academic credentials, professional qualifications,
experience and/or expertise must be duly recognised by the professional bodies in
Malaysia and registered with the respective professional bodies.
Section 2 (c) covers business visitors being persons not based within Malaysia, receiving
no remuneration from a source located within Malaysia, who have been employed for at
least one year by a foreign service supplier, whose entry and temporary stay is for the
purpose of negotiating for the sale of services or entering into agreements to sell services
for that service supplier and who will not engage in direct sales to the general public. Entry
and stay of natural persons defined in categories specified above shall not exceed a total
of five years.
Under AFAS, for the supply of services through mode 4, five (5) specialists/experts are
allowed for each institution, subject to registration with MIA and having passed the
qualifying examination conducted by MIA as well as fulfillment of residency requirements.
Entry shall be limited to a maximum period of two years. Auditing services must be
authenticated by licenced auditor in Malaysia. For taxation services, two (2)
specialists/experts are allowed for each institution, subject to registration as a tax agent
under Section 153 of the Income Tax Act, 1967 and fulfillment of residency requirements.
Entry shall be limited to a maximum period of two years. Taxation services must be
authenticated by an authorised tax agent in Malaysia.
30
(a)
(b)
(c)
(d)
(e)
Soft Loan for SMEs
(i)
(ii)
(iii)
(i)
Small and Medium Industries Development Corporation (SMIDEC)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
government and the
31
Types of Financial
Assistance Schemes
Description
Forms of Assistance
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
is RM250,000.
Application should be submitted to SMIDEC. Please refer Section 3.6 for contact details.
(ii)
Malaysian Industrial Development Finance Berhad (MIDF)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
- repayment period:
up to 5 years
of existing loan
75%
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
32
Application should be submitted to MIDF. Please refer Section 3.6 for contact details.
financing for each applicant is up to a maximum of RM250,000. Each applicant is eligible
for the facility for two (2) times only. The applicant must fulfil the requirements as listed
below:
(i)
(ii)
18 years of age
(iii)
(iv)
(v)
(vi)
Application shall be submitted to MARA. Please refer Section 3.6 for contact details.
fund are:
(i)
(ii)
(iii)
(iv)
details.
33
(i)
(ii)
(iii)
Company owns the brand and is the registered approved owner of the trademark
(iv)
report)
(v)
(vi)
Eligible expenses:
(i)
(ii)
34
Branding/marketing strategy consultancy (subject to a maximum limit of not more
than 10% of grant approved):
•
•
•
Media strategy
•
•
•
Brand Development:
•
•
•
•
(iii)
(iv)
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
construction, architectural, education, healthcare, printing and publishing, ICT and legal
services.
(i)
Incorporated under Companies Act 1965, or under Business Ordinance, 1956
(ii)
employees
(iii)
(i)
(ii)
(iii)
Participation in meetings related to negotiations on Mutual Recognition
Arrangements by representatives of the Trade and Industry and Professional Services
Association
(iv)
(v)
35
3.5 Tax Incentives
claims relating to tax incentives shall be submitted to the Inland Revenue Board (IRB).
Double deduction on expenses for promotion of all services is only given to companies
registered with CCM. Effective from the Year of Assessment 2003, the incentive is extended
to accounting services (including taxation and management consultancy services)
registered as partnership or sole proprietors under Registrar of Business (ROB), CCM.
Companies engaged in accounting and taxation services are given tax exemption on the
statutory income equivalent to 50% of the value of increased exports.
Application
Where to Apply
Form(s)
Licensing and
Registration
• Practising
Certificate
36
Malaysian Institute of Accountants
(MIA)
Dewan Akauntan,
No. 2 Jalan Tun Sambathan 3
Brickfileds
50470 Kuala Lumpur
Tel : (603) 2279 9200
Fax : (603) 2274 1783
Website : www.mia.org.my
Email : mia@mia.org.my
Application Form and
payment of annual fee of
RM250 made payable to
“Malaysian Institute of
Accountants”
Application
• Audit Licence
Where to Apply
Ketua Setiausaha Perbendaharaan
Kementerian Kewangan Malaysia
Bahagian Analisa Cukai
Tingkat 7, Blok Tengah
Kompleks Kementerian Kewangan
Presint 2
62592 Putrajaya
Tel : (603) 8882 4308
Fax : (603) 8882 3885
Website : www.treasury.gov.my
Email : inna@treasury.gov.my
Form(s)
Form A (7 sets with original
signature on all sets)
7 sets of certified true
copy of the valid
practising certificate
Application will be
reviewed and applicant
will be called for an
interview arranged by MOF
within 3 to 4 months from
the date of a complete
application received.
Upon passing the interview,
the following are to be
submitted to MOF:
(i) A copy of a letter from
CCM on the
allocation of audit
firm number
(ii) A copy of the Form 5
submitted to the CCM
with proof of
lodgement and
(iii) Payment of RM100
payable to “AKAUNTAN
NEGARA MALAYSIA”
• Liquidator
Licence
Presint 2
62592 Putrajaya
Tel : (603) 8882 4308
Fax : (603) 8882 3885
Website : www.treasury.gov.my
Email : inna@treasury.gov.my
Form B (5 sets)
Application will be
reviewed and applicant
will be called for an
interview arranged by
MOF within 3 to 4 months
from the date a complete
application is received.
Payment of RM50 payable
to “AKAUNTAN NEGARA
MALAYSIA”
37
Application
• Tax Licence
Where to Apply
Presint 2
62592 Putrajaya
Tel : (603) 8882 3595
Fax : (603) 8882 3885
Website: www.treasury.gov.my
Email : abdulaziz@treasury.gov.my
Form(s)
Form D (3 sets)
The application will be
processed within 3
months from the date the
application is received.
Interview session for new
application is conducted
on a continuous basis by
the Inland Revenue Board
Payment of RM50 payable
to “AKAUNTAN NEGARA
MALAYSIA”
Audit Firm
MIA
• Setting up an
Audit Firm
Companies Commission of
Malaysia (CCM)
2nd Floor, 10-18, Putra Place
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Website : www.ssm.com.my
Email : enquiry@ssm.com.my
MIA
Form MF - A
Form 5
Approval letter by MIA
and payment of RM500
made payable to
“PENDAFTAR SYARIKAT”
Form M1 and Form 5
(with proof of lodgement
with CCM)
Form MF - A
(change of name)
• Setting up of a
Branch Office
38
CCM
Form 5
MIA
Form 2 and Form 5 (with
proof of lodgement with
CCM)
Application
Where to Apply
• Registration of
Local /
Regional /
International
Affiliation
MIA
Form(s)
Form M1
Form M4
(Registration of Associated
Firms)
Form 5
with CCM)
• Closing of
Audit Firm
MIA
Form 5
with CCM)
Registration of Firm
Certificate (issued by MIA)
and Practising Certificate
(partners who are no
longer in practice) to be
returned to MIA
• Changes in
Firm Particulars
MIA
Form M1 and Form 5
with CCM)
• Changes of
Audit Firm
Name
MIA
Form MF - A
CCM
Form 5 and Approval
letter from MIA
MIA
Form M1 and Form 5
with CCM)
MIA
Form MF – A
• Conversion of
Audit Firm to
Non-Audit Firm
Form 3 and Form 5
with CCM)
Non-Audit Firm
• Setting up a
Non-Audit Firm
MIA
Form MF – A
Form M3
39
Application
Where to Apply
Form(s)
• Setting up of a
Branch Office
MIA
Form M2
• Registration of
Local /
Regional /
International
Affiliation
MIA
Form M3 and Form M4
(Registration of Associated
Firms)
• Closing of NonAudit Firm
MIA
Registration of Firm
Certificate and practising
certificate of partners who
are no longer in practice
to be returned to MIA
• Changes in
Firm Particulars
MIA
Form M3
• Changes of
Non-Audit Firm
Name
MIA
Form MF – A
• Conversion of
Non-Audit Firm
to Audit Firm
MIA
Form MF - A
CCM
Form 5
Form M3
Approval letter for the
proposed name from MIA
Payment of RM500 made
payable to “PENDAFTAR
SYARIKAT”
• Government
Procurement
40
MIA
Form M1 and Form 5
with CCM)
Registration Unit
Management Division
Precint 2
Federal Goverment
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Website: www.eperolehan.com.my
Application must
be made through
www.eperolehan.com.my
Application
• Signboard
Licence
• Service Tax
Licence
Where to Apply
Form(s)
Prescribed Form
Block 2G1B
Precinct 2, Federal Government
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Website: www.customs.gov.my
Form JKED 1
Foreign Investment Committee (FIC)
Economic Planning Unit
Prime Minister’s Department
Level 1 Block B5
Federal Government
60502 Putrajaya
Tel : (603) 8888 3333
(603) 8888 2944
(603) 8888 2916
Fax : (603) 8888 3917
Website: www.epu.jpm.my
Form FIC S2004
FIC
Form FIC R/2004
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of
time to comply
equity condition
imposed by FIC)
• General
Agreement on
Trade in
Services (GATS)
Ministry of International Trade
and Industry
12th Floor, Block 10
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
Forms Proforma I/2004
and/or Proforma II/2004
-
41
Application
Where to Apply
Form(s)
Specific
Immigration
Procedures
• Expatriate Post
Precint 2, Federal Government
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8881 2000
Form DP10
• Endorsement of
Employment
Pass
Or
Form DP11
Or
Form IM8 & IM38
Form DP 8
Financial
Assistance
42
• Grant for
Business
Planning and
Development
(ITAF 1)
Development Corporation (SMIDEC)
No.5, Jalan SS21/39
Damansara Uptown, Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
• Grant for
Product and
Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity
and Quality
Improvement
and Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
Application
• Soft Loan
Scheme for ICT
Adoption
• Soft Loan for
SMEs
Where to Apply
Form(s)
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
Loan Enquiry Form
MIDF
Loan Enquiry Form
• MARA
Financing
Scheme
50609 Kuala Lumpur
Tel : (603) 2691 5111
Fax : (603) 2691 3620
Form RP 2P (3 copies)
• Graduate
Entrepreneur
Scheme
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Register for Entrepreneur
Training Scheme
• Brand
Promotion
Grant (BPG)
Malaysia External Trade
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Form BPG1/05
43
Application
Where to Apply
MATRADE
• Market
Development
Grant
Form(s)
Form MDG 1/05
Tax Incentives
• Double
Deduction On
Promotion of
Export of
Services
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
• Tax Exemption
on the Value of
Increased
Exports
IRB
Form DD/POE/PS/2003-1
Form EX/AIES/2003-1
*PART I OF THE FIRST SCHEDULE OF THE ACCOUNTANTS ACT, 1967
-
Diploma in Accounting, University of Malaya
-
Bachelor of Accounting, University of Malaya
-
Bachelor of Accounting (Honours), Universiti Kebangsaan Malaysia
-
Advanced Diploma in Accountancy, MARA Institute of Technology
-
Bachelor of Accounting, Universiti Teknologi MARA
-
Bachelor of Accounting (Honours), Universiti Utara Malaysia
-
Bachelor of Accounting (Honours), Univeristi Pertanian Malaysia
-
Bachelor of Accounting (Honours), Universiti Putra Malaysia
-
Bachelor of Accounting (Honours), Universiti Islam Antarabangsa
-
Bachelor of Accounting (Honours), Universiti Sains Malaysia
-
Bachelor of Accounting (Honours) (Information System), Universiti Sains Malaysia
(for academic programme that commenced prior to Academic Year 2002/2003)
-
Bachelor of Accounting (Honours), Universiti Tenaga Nasional
(for academic programme that first commenced from Academic Year 2002/2003 and
onwards)
-
Bachelor of Accounting (Honours), Universiti Multimedia
(for academic programme that first commenced from Academic Year 2002/2003 and
onwards)
44
**PART II OF THE FIRST SCHEDULE OF THE ACCOUNTANTS ACT, 1967
-
Malaysian Association of Certified Public Accountants (Certified Public Accountant)
-
Institute of Chartered Accountants of Scotland (Chartered Accountant)
-
Institute of Chartered Accountants In England & Wales (Chartered Accountant)
-
Institute of Chartered Accountants in Ireland (Chartered Accountant)
-
Association of Chartered Certified Accountants (United Kingdom) (Associate
Member)
-
Institute of Chartered Accountants in Australia (Chartered Accountant)
-
Australian Society of Certified Practising Accountants (Certified Practising
Accountant) (Now known as CPA Australia)
-
New Zealand Chartered Accountants (Chartered Accountant) (Now known as
Institute of Chartered Accountants of New Zealand)
-
Canadian Institute of Chartered Accountants (Chartered Accountant)
-
Institute of Chartered Accountants of India (Chartered Accountant)
-
Chartered Institute of Management Accountants (United Kingdom) (Associate
Member)
The following is only applicable to applications for tax licence for tax agent.
-
*Association of International Accountants (AIA), UK
-
*Institute of Chartered Secretaries and Administrators, UK
* Institute recognised by the government to be equivalent with general degree from local
universities.
45
Section 4
Architectural
Consultancy Services
4.1
•
•
•
•
•
4.2
Equity Policy
•
•
4.3
•
•
•
•
Tax Incentives
•
•
4.6
Employment of Foreign Architectural Professional
Expatriate Posts Specific to Architectural Consultancy
Service
•
4.5
•
•
4.4
Registration as an Architectural Consultancy Practice with
the Board of Architects Malaysia
Registration with PETRONAS
Service Tax Licence
4
ARCHITECTURAL
CONSULTANCY SERVICES
Architectural consultancy services (classified under code 74211 of the Malaysia Standard
Industrial Classification) include consulting which concerns building design and drafting
and often supervision of construction, town and city planning and landscape architecture.
A more detailed description is given under the Architects Act, 1967. “Architectural
consultancy services” refer to the provision of architectural consultancy advice and
services pertaining to all or any of the following:
•
submission of plans or drawings to any person or local authority in Malaysia;
•
conceptualisation, research and development of any design for the built
environment
•
any survey, preparation of reports including environmental impact assessment
reports, or investigation relating to the built environment
•
project programming, construction and manufacturing programming, and product
design
•
planning and development services including interior design, financial advisory
services, project management, contract administration and landscaping
•
preparation of feasibility studies and cost estimates
•
preparation of plans and other means of presentation
•
all services in compliance with statutory requirements
•
any other activities relating to the creation, preservation and enhancement of the
built environment
Registration as an Architectural Consultancy Practice with the Board of Architects Malaysia
Under the Architects Act, 1967 “architectural consultancy practice” can be a sole
proprietorship, partnership or body corporate incorporated under the Companies Act,
1965 providing architectural consultancy services and is registered with the Board of
Architects Malaysia under section 7A or 7B. The Board of Architects is the body that
regulates the practice of architectural consultancy in Malaysia.
48
Architectural Consultancy Services
Only professional architects are allowed to provide architectural consultancy services in
Malaysia. Any candidate who applies for registration as a Professional Architect must fulfil
the following criteria:
(i)
Citizen or permanent resident of Malaysia
(ii)
Registered Architect
(iii)
Obtained the practical experience as prescribed by the Board
(iv)
Passed the Part III Professional Examination and
(v)
Corporate Member of the Malaysian Institute of Architects (PAM)
The certificate of registration for Professional Architect expires on 31st December of each
year and is renewable before 31st January of the following year.
As a signatory to GATS, Malaysia allows foreign professionals to provide architectural
consultancy service in Malaysia subject to the Schedule of Specific Commitments. There
is no restriction under cross border supply (mode 1) and consumption abroad (mode 2) but
the service must be authenticated by a registered architect in Malaysia.
Foreign architects are not allowed to set up an architectural consultancy practice through
commercial presence (mode 3). Architectural consultancy services may be supplied only
by a natural person subject to the horizontal commitment specified in GATS. Only an
architect who is a consultant to a project wholly financed by a foreign government or
implemented under a bilateral arrangement between governments subject to temporary
registration for a period of one year per temporary registration is allowed to provide
architectural consultancy services.
ASEAN Free Trade Agreement Commitments (AFAS)
For multi-disciplinary practices (Architecture, Engineering and/or Quantity Surveying),
foreign equity up to a maximum of 5% for joint-ventures by professionals who are
registered in the country of origin is allowed. Foreign directorship is not allowed.
For Urban Planning and Landscape Architectural services, Malaysia allows foreign
professional to practise in Malaysia subject to the Schedule of Specific Commitments.
There is no restriction under modes 1 and 2. For supply of services via mode 3, a foreign
company is allowed to practice only through a locally registered partnership with
Malaysian individuals or Malaysian controlled corporations or both and the aggregate
foreign shareholding in the joint-venture corporation shall not exceed 40%.
The Board of Architects Malaysia will conduct an examination for foreign professionals
with permanent resident status who intend to hold himself as a professional architect to
determine the competence and ability to supply the service for the purpose of registration
with the Board. The examination will be conducted in the English language.
49
The requirements for setting up an architectural consultancy practice in Malaysia are as
follows:
Types of
Establishment
Sole Proprietorship
Requirements
•
Being the sole principal of the firm, Professional Architects
shall preferably use their individual names in full
e.g. Arkitek Ahmad Bakar
Lim Ah Kow Architect
•
Professional Architects may also be allowed to use part of
their names:
e.g. Arkitek A. Bakar
AK Lim Architect
Partnership
•
All partners must be Professional Architects
Architectural Body
Corporate
•
The Board of Directors consists of Professional Architects
•
A minimum paid-up capital of RM50,000
•
The shares will be held by members of the Board of
Directors or any other persons who are Professional
Architects
•
The Board of Directors consists of Professional Architects,
Professional Engineers and/or registered Quantity
Surveyors
•
The shares shall be held by those mentioned above and
any of the following persons and/or bodies corporate
where:
Multi-Disciplinary
Body Corporate
•
50
(i)
The Professional Architects, Professional Engineers,
registered Quantity Surveyors, bodies corporate
providing architectural consultancy services, bodies
corporate providing professional engineering
services and/or bodies corporate practising as
consulting Quantity Surveyors hold a minimum
combined share of 70% of the overall equity of that
body corporate, of which the Professional Architects
and/or bodies corporate providing architectural
consultancy services hold a minimum share of 10%
and
(ii)
Any other persons including persons belonging to a
profession allied to architect, engineering or
quantity surveying, being a profession approved in
writing by the board regulating the profession of
architecture, engineering or quantity surveying,
respectively, hold a maximum share of 30% of the
overall equity of the body corporate.
The certificate of registration for Architectural Consultancy Practice expires on 31st
December of each year and is renewable before 31st January of the following year.
Other Requirements are:
(i)
The names of the companies should not be pretentious or ostentatious or of such
nature that may negatively affect the dignity of the profession or place negatively.
(ii)
The names of the companies shall preferably comprise of the actual names of the
partners or the acronyms of their initials.
Any architectural consultancy services firms intending to be considered for government
projects are required to register with the Ministry of Finance (MOF) under code 230700 for
Architectural Services.
(a)
Conditions that must be fulfilled for registration with MOF:
(i)
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
-
RM20,000 and above
(ii)
(iii)
(iv)
(v)
The field of expertise submitted for registration with MOF must be consistent with
the ‘licence to practice’, ‘certificate of registration’ and ‘authority to practise’ issued
by the respective Professional Boards.
(vi)
applied, in accordance to the provision of laws and regulations. The applicant is
required to submit his/her CV/work experience.
acceptable with the exception of Higher Learning Institution and Financial
Institution.
(ix)
(x)
For professions whose ethics of service are governed by Professional Boards, the
51
(xi)
(xii) The firm that applied for registration with MOF must have at least one shareholder,
(b)
Registration Policy
(i)
Companies Commission of Malaysia (CCM) and the respective Professional Boards.
(ii)
Firms that register with MOF are classified as:
•
citizens.
•
foreign shares cannot exceed 30% and share holdings of Bumiputera cannot
be less than 30%. The composition of the Board of Directors, management
and staff must be of the same proportion.
Architectural firms intending to provide architectural consultancy to PETRONAS are
required to register with its Licensing and Registration Department under code SC5 05 for
Architectural Services.
Requirements for registration with PETRONAS are as follows:
52
(i)
Registered with the CCM as a Private Limited Company or Limited Company. Sole
proprietorship or partnership will not be accepted except in the case of professional
consulting companies which must be registered with the Registrar of Business and
the relevant professional board.
(ii)
Paid-up capital of Private Limited or Limited Company in the form of ordinary shares
of not less than RM100,000.
(iii)
Companies must have stable financial status. For companies that have been
incorporated for more than eighteen (18) months, shareholder’s fund has to be at a
positive level.
(iv)
Possess technical capability in aspects of employee management, skilled employees
and equipment for each service category to be applied.
(v)
Fulfil Bumiputera participation requirement at the level of equity, Board of Director,
management and employee of the company.
(vi)
Registered with accredited/professional bodies or government departments which
are related to the category to be applied.
advised to contact the relevant local authority where the company will be located.
Generally, an application for a signboard licence must be accompanied by the following
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
A copy of location plan of company’s business premise
(iv)
(v)
Service Tax Licence
The Service Tax Act, 1975 shall apply throughout Malaysia but excluding Langkawi,
Tioman, Labuan, Free Zones and “Joint Development Area”. Under the Service Tax Act,
1975 and the Service Tax Regulation, 1975, companies that provide architectural
consultancy services that generate a total annual sales turnover of RM150,000 or more are
provision of architectural services in connection with goods and land situated outside
Malaysia is also exempted from service tax.
Application for Service Tax Licence shall be submitted to the Royal Customs Department.
4.2 Equity Policy
53
the country. However, the ownership structure of architectural services remains protected
with Malaysian companies owning 100% equity with the exception of foreign equity
participation under AFAS.
Under AFAS, foreign investment can be made only through multi-disciplinary practices
that comprise architecture, engineering and/or quantity surveying. Foreign equity up to a
maximum of 5% for joint-ventures by professionals who are registered in the country of
origin is allowed. Foreign directorship is not allowed. For Urban Planning and Landscape
Architectural services, foreign investment could also be made only through a locally
registered partnership with Malaysian individuals or Malaysian controlled corporations or
both and the aggregate foreign shareholding in the joint venture corporation shall not
exceed 40%.
Employment of Foreign Professional
(1)
Under Section 10A(1) of the Architects Act, 1967 any foreign architect who is a
consultant to a project wholly financed by a foreign government or implemented
under a bilateral arrangement between governments, may be temporarily registered
by the Board.
(2)
A foreign architect may be considered for temporary registration if he satisfies the
Board that:
(3)
(a)
he possesses the necessary qualification which is recognised for the practice
of architecture as an architect in the country where he normally practises; and
(b)
he possesses the necessary expertise and his physical presence is required in
Malaysia for not less than one hundred and eighty days in one calendar year
or he is a resident representative of the foreign component of a joint-venture.
The Board may approve a temporary registration for a period not exceeding one
calendar year and may renew such temporary registration as it deems fit.
Foreign architects who wish to work in Malaysia need to obtain a letter of support from the
Board of Architects Malaysia before submitting their application for Employment Passes to
the Immigration Department.
Before applying for Employment Pass, the company or organisation must apply for
approval of the related post from Expatriate Committee of Immigration Department.
54
Upon approval of the expatriate posts, companies shall forward their applications for
Employment Passes to the Immigration Department for endorsement. Spouses and children
of the expatriates can apply for dependant passes once the expatriates have been issued
with employment pass. The dependant pass may be applied together with the application
for the employment pass or after the employment pass is approved. Spouses and children
of the expatriates who enter the country on a visit (temporary employment or professional)
will be issued a visit pass (social).
Expatriate Posts Specific to Architectural Consultancy Service
According to AFAS, under the movement of natural persons (mode 4), two (2)
specialists/experts per country are allowed and registration is subject to qualification of
registration and domestic regulations. The foreign specialists/experts will have to sit for the
qualifying examination to determine the competence and ability to supply the service for
the purpose of registration with the professional bodies. The examination is conducted in
the English language.
Five different types of financial schemes are available for SMEs.
(a)
(b)
(c)
(d)
(e)
Soft Loan for SMEs
(i)
(ii)
(iii)
55
(i) Small and Medium Industries Development Corporation (SMIDEC)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
government and the
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
is RM250,000.
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
- repayment period: up to 5
years
of existing loan
75%
56
Types of Financial
Assistance Schemes
Description
Forms of Assistance
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
Application should be submitted to the relevant agencies. Please refer Section 4.6 for
contact details.
below:
(i)
(ii)
18 years of age
(iii)
(iv)
(v)
(vi)
57
fund are:
(i)
(ii)
(iii)
(iv)
details.
(i)
(ii)
(iii)
Company owns the brand and is the registered approved owner of the trademark
(iv)
report)
(v)
(vi)
58
Eligible expenses:
(i)
(ii)
(iii)
(iv)
•
•
•
Media strategy
•
•
•
Brand Development:
•
•
•
•
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
construction, architectural, education, healthcare, printing and publishing, information
and communication technology, and legal services.
59
(i)
(ii)
employees
(iii)
(i)
(ii)
(iii)
Participation in meetings related to negotiations on Mutual Recognition
Arrangements by representatives of the Trade and Industry and Professional Services
Association
(iv)
(v)
4.5 Tax Incentives
claims relating to tax incentives should be submitted to the Inland Revenue Board (IRB).
Double deduction on expenses for promotion of all services is given only to companies
registered with CCM. Effective from year of assessment 2003, the incentive is extended to
architectural consultancy service (including town planning and landscaping services) that
are provided by partnership or sole proprietors registered with Registrar of Business (ROB)
under CCM.
Companies engaged in architecture services are given tax exemption of statutory income
60
Application
Where to Apply
Form(s)
Licensing and
Registration
• Partnership
• Body Corporate
Board of Architects
17th Floor, Block F
JKR Headquarters
Jalan Sultan Salahuddin
50582 Kuala Lumpur
Tel : (603) 2698 2878
(603) 2696 7087
Fax : (603) 2693 6881
Website : www.lam.org.my
Email : info@lam.gov.my
CCM
Form A
Board of Architects
Form I
CCM
Board of Architects
• Multi-Disciplinary
Body Corporate
CCM
Board of Architects
• Government
Procurement
Form I
Registration Unit
Management Division
Precint 2
Federal Government
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Form 13A
Form J
Form 13A
Form K
Application must
be made through
61
Application
• Registration with
PETRONAS
• Service Tax
Licence
Where to Apply
PETRONAS, Registration
& Licensing Department
Group Tenders & Contracts
Level 66, Tower 1
PETRONAS Twin Towers
50088 Kuala Lumpur
Tel : (603) 2331 4515
Fax : (603) 2331 2440
Website : www.petronas.com.my
Form(s)
Form BTK
Prescribed Form
Block 2G1B
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Form JKED 1
Level 1 Block B5
Federal Government
60502 Putrajaya
Tel : (603) 8888 3333
: (603) 8888 2944
: (603) 8888 2916
Fax : (603) 8888 3917
Website : www.epu.jpm.my
Form FIC S2004
FIC
Form FIC R/2004
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of time
to comply equity
condition imposed
by FIC)
62
Application
Where to Apply
Form(s)
Procedures
• Expatriate Post
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8881 2000
Form DP10
• Endorsement of
Employment Pass
Form DP11
Or
Or
Form IM8 & IM38
Form DP 8
Planning and
Development
(ITAF 1)
Level 8, Tower C, Uptown 5
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
63
Application
for ICT Adoption
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
MIDF
Form(s)
Loan Enquiry Form
Loan Enquiry Form
• MARA Financing
Scheme
50609 Kuala Lumpur
Tel : (603) 2691 5111
Fax : (603) 2691 3620
• Graduate
Entrepreneur
Scheme
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Register for
Entrepreneur
Training Scheme
• Brand Promotion
Grant (BPG)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Form BPG1/05
• Market
Development Grant
64
Where to Apply
MATRADE
Form MDG 1/05
Where to Apply
Form(s)
Tax Incentives
on Promotion of
Export of Service
the Value of
Increased Exports
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
IRB
Form
DD/POE/PS/2003-1
Form EX/AIES/2003-1
65
Section 5
Surveying
5.1
•
•
•
•
•
•
•
Registration as a Land Surveyor with the Land Surveyors
Board
- Registration as a Land Surveyor with the Land
Surveyors Board, Peninsular Malaysia
- Registration as a Land Surveyor with the Sabah
Surveyors Board
- Registration as a Land Surveyor with the Land
Surveyors Board, Sarawak
Registration as a Quantity Surveyor with the Board of
Quantity Surveyors Malaysia
Registration as Valuers, Appraisers and Estate Agents with
the Board of Valuers, Appraisers and Estate Agents
Malaysia
Service Tax Licence
5.2
Equity Policy
5.3
•
5.4
•
•
•
•
•
5.5
Tax Incentive
•
5.6
Employment of Foreign Quantity Surveyors
5
SURVEYING CONSULTANCY SERVICES
Land and quantity surveying consultancy service (classified under code 74213 of the
Malaysia Standard Industrial Classification) includes geological and prospecting activities
utilising surface measurements and observation designed to yield information on
subsurface structure and the location of petroleum, natural gas and mineral deposits and
of ground water. This may involve airborne geophysical surveys, hydrological surveys, and
etc. Also included are map making and related land surveying activities. However, it
excludes test drilling and test hole boring in connection with petroleum and gas extraction
which is classified in item 11200: Services activities incidental to crude oil and natural gas
extraction excluding surveying.
The practice of the surveyor’s profession involves a broad range of activities which may
occur on, above or below the surface of the land or the sea and may be carried out in
association with other professionals.
(i)
(ii)
Land Surveyors are involved in:
•
Cadastral surveying for the delineation of property boundaries and the
issuance and registration of title to land and building (property)
•
Geodetic surveying for the provision of major control system for national and
international mapping
•
Topographical surveying for the determination of the size, position, shape and
contour of the earth for the planning and executing of development projects
•
Engineering surveying and setting-out for construction and facilities
management
•
As-built and certification surveys
•
Aerial photography, photogrammetric mapping digital orthophotography and
remote sensing
•
Spatial, land and geoinformation sciences
•
Cartography and map production
•
Hydrographic surveying for coastal zone management, nautical charting and
offshore development
•
Oceanographic observation/measurement
•
Meteorological observation/measurement
Quantity Surveyors whose practices involve:
•
68
Preparing and submitting to any person, organisation or authority in Malaysia,
for construction projects, any feasibility study reports, preliminary estimates,
cost plans, documents and reports for pre-qualification of contractors, bills of
quantities and other tender documents, tender estimates and reports, contract
documents and valuation of works for interim payments, variation and final
account
Surveying Consultancy Services
•
(iii)
(iv)
Providing professional services such as project cost management, value
management, risk management, facilities management, project management,
construction management, construction claims management, dispute
resolution services, technical and construction cost auditing and condition
survey
Property Consultants and Valuation Surveyors are involved in:
•
The whole spectrum of property ownership, development, management,
investment and final disposal
•
Ensuring that the built environment is well managed and enhanced in value
and utility for posterity
•
Helping to ensure that the allocation of real estate is maximised through the
market mechanism acting as intermediaries
•
Providing valuations of real estate for the financial institutions to enable proper
and adequate collateral are available and that the risks to lending are
adequately covered
Building Surveyors are involved in matters relating to building and property
maintenance and development including:
•
Re-refurbishment and restoration of old and dilapidated buildings
•
Maintenance and repair of buildings
•
Building control, building law and regulation
The setting up of a land and quantity surveying consultancy practice requires the intended
professional to register with Companies Commissions of Malaysia (CCM) under the
Registration of Business Ordinance, 1965 or incorporate a company under the Companies
Act, 1965.
Registration as a Land Surveyor with the Land Surveyors Board
The Land Surveyor Board, Peninsular Malaysia is the body that regulates the practice of
land surveying service in Peninsular Malaysia, while the practice of land surveying service
in Sabah has to register with the Sabah Surveyors Board and the practice of land surveying
service in Sarawak is to register with the Land Surveyor Board Sarawak.
(a) Registration as a Land Surveyor with the Land Surveyors Board, Peninsular Malaysia
Under the Licensed Land Surveyors Act, 1958 “licence to practise” means a licence to
practise as a licensed land surveyor issued under section 10 and “licensed land surveyor”
means a person whose name has been placed upon the Register and to whom a licence to
practise has been issued by the Board.
69
A licensed land surveyor who intends to go into private practice (sole proprietorship and
partnership) in Peninsular Malaysia may apply for a “licence to practise” from the Board
if he or she fulfills the requirements outlined below:
(i)
Graduates in Land Surveying or Survey Science whose degrees have been
recognised by the Board and must be articled for a minimum period of two years as
articled qualified persons with a Licensed Land Surveyor who himself has been
registered with the Board for a minimum period of five years
(ii)
The articled qualified person must serve two years full-time office and field practice
in cadastral surveys (minimum of nine months on office work and minimum of
twelve months on field work)
(iii)
Pass the Board's examination in “Law and Regulations”
(iv)
Submit an urban survey and a rural survey (field work, computations and plan
drawing all carried out by the articled qualified person)
(v)
Submit particulars of all cadastral survey field and office work carried out by the
qualified person while under articleship
(vi)
The articled qualified person must pass the “Law and Regulations” paper before he
can submit his cadastral survey plans and other evidence of his work for examination
(vii) The articled qualified person will be called for an Oral and Practical Examination.
On passing his Oral and Practical Examination, the articled qualified person will
then appear for the "Viva Voce" before the Land Surveyors Board, and then be placed
on the Register as a Land Surveyor
After registration, the articled qualified person who intends to go into private practise (sole
proprietorship and partnership) in Peninsular Malaysia may then apply for a “licence to
practise”. The licence to practise has to be renewed before 31st December of each year.
(b) Registration as a Land Surveyor with the Sabah Surveyors Board
Subject to the provisions of Surveyors Ordinance, 1960 and Surveyors Regulations, 1989
a land Surveyor can apply for registration and licence to practise in Sabah if he or she
fulfils the requirements as follows:
(i)
Has attained the age of 21 years and is of good character
(ii)
He/she is a Malaysian Citizen and is prepared to stay in Sabah for not less than 6
months in a calendar year
(iii)
He/she possesses a degree or certificate prescribed by the Board
(iv)
He/she has passed the Board’s examination relevant to the local Ordinance &
Regulations and has obtained the certificate of competency issued by the Board after
complying with the requirement for articleship under a Licensed Surveyor in Sabah
(v)
He/she has paid the fees for registration/licence as required
The licence to practise in Sabah has to be renewed before 31st December of each year.
(c) Registration as a Land Surveyor with the Land Surveyors Board, Sarawak
A licensed land surveyor who intends to go into private practice (sole proprietorship and
partnership) in Sarawak may apply for a “licence to practise” if he or she fulfills the
requirements as follows:
70
(i)
He/she is a Malaysian citizen who is permanently residing in Sarawak and
(ii)
Has attained the age of 21 years
Provided that the Board may in its discretion grant to any person exemption from any of
the requirements in paragraph (i) or (ii) on such terms and conditions as it deems fit.
(iii)
Possesses a degree or equivalent qualification in land surveying from a list of
universities or educational institutions published in the Gazette by the Board
OR
Has passed the examinations prescribed by the Board
OR
Has passed the professional examination recognised by the Board as carrying
exemption from the Board's examinations and has passed such further examination
as the Board may prescribe
(iv)
Has obtained a Certificate of Competency issued by the Board as provided for under
rules made under Section 31
(v)
Has duly paid the fees for registration as set out in the Second Schedule
The licence to practise in Sarawak has to be renewed before 31st December of each year.
Registration as a Quantity Surveyor with the Board of Quantity Surveyors Malaysia
Under the Quantity Surveyors Act, 1967 “a firm or body corporate practising as consulting
Quantity Surveyors” means a sole proprietorship, partnership or body corporate
incorporated under the Companies Act, 1965 which is approved by the Board to practise
as consulting Quantity Surveyors under Section 7A or 7B.
The Board of Quantity Surveyors Malaysia is the body that regulates the practice of
quantity surveying consultancy in Malaysia. Only registered Quantity Surveyors are
allowed to provide surveying consultancy service in Malaysia.
Registered Quantity Surveyor include registered Quantity Surveyor, registered graduate
Quantity Surveyor, temporary registered Quantity Surveyor and a firm or body corporate
approved in writing and issued with a valid permit to practise as consulting Quantity
Surveyors by the Board. Any candidate who applies for registration as a registered Quantity
Surveyor must fulfil the following criteria:
(i)
He or she is a registered graduate Quantity Surveyor
(ii)
He or she has obtained the practical experience as prescribed under Section 10(1)(b)
of the Quantity Surveyors Act, 1967
(iii)
He or she has passed a test of professional competence or other professional
assessment examination conducted or sanctioned by the Board
A quantity surveyor or consulting Quantity Surveyor must apply for a “Registration of
Certificate” or “Permit to Practise” from the Board if he/she intends to go into private
practice. The “Registration of Certificate” or “Permit to Practise” for registered Quantity
Surveyor expires on 31st December of each year and must be renewed before 31st January
each year.
71
The requirements for setting up a quantity surveyor practice in Malaysia are as follows:
Types of
Establishment
Sole Proprietorship
Partnership
Body Corporate
72
Requirements
•
Being the sole principal of the firm, the proprietor must be
a registered Quantity Surveyor
•
Shall have a minimum of 5 years of working experience to
the satisfaction of the Board after registration as registered
Quantity Surveyor under Section 10(2) of the Quantity
Surveyors Act, 1967
•
Every application shall be accompanied with a processing
fee for the amount of RM100 and a registration fee for the
amount of RM1,000 in money order/bank draft/cheque
made payable to the Board
•
The majority of the partners, in terms of number of
partners and equity, shall have a minimum of 5 of years
working experience to the satisfaction of the Board after
registration as registered Quantity Surveyors under
Section 10(2) of the Quantity Surveyors Act, 1967
•
•
•
The directors shall be registered Quantity Surveyors, and
the majority of the directors, in terms of number of
directors and equity, shall have a minimum of 5 years of
working experience to the satisfaction of the Board after
registration as registered Quantity Surveyors under
Section 10(2) of the Quantity Surveyors Act, 1967
•
Types of
Establishment
Multi-Disciplinary
Body Corporate
Requirements
•
The Board of Directors consists of registered Quantity
Surveyors, Professional Engineers and/or Professional
Architects
•
The shares shall be held by those mentioned above and
any of the following persons and/or corporate bodies
where:
(i) The registered Quantity Surveyors, Professional
Engineers and/or Professional Architects, bodies
corporate practising as consulting Quantity Surveyors,
bodies corporate providing professional engineering
services and/or bodies corporate providing
architectural consultancy services hold a minimum
combined share of 70% of the overall equity of that
body corporate, of which the registered Quantity
Surveyors and/or bodies corporate practising as
consulting Quantity Surveyors hold a minimum share
of 10%
(ii) Any other person, including persons belonging to a
profession allied to quantity surveying, engineering or
architecture, being a profession approved in writing by
the board regulating the profession of quantity
surveying, engineering or architecture respectively
hold a maximum share of 30%, of the overall equity of
the body corporate
(iii) Has a minimum paid-up capital which shall be an amount
to be determined by the Minister (Ministry of Work).
Currently the amount determined is RM150,000
•
Registration as Valuers, Appraisers and Estate Agents with the Board of Valuers,
Appraisers and Estate Agents Malaysia
The Board of Valuers, Appraisers and Estate Agents is the body that regulates the practice
of valuers, appraisers and estate agent consultancy in Malaysia.
Under Section 23 of the Valuers, Appraisers and Estate Agents Act, 1981 no registered
valuer, appraiser or estate agent shall practise valuation, appraisal or estate agency or has
the right to recover in any court any fee, charge or remuneration for any professional
advice or services rendered by him pursuant to his practice unless he practises as a sole
proprietor of a sole proprietorship, a partner of a partnership, a shareholder or director of
a body corporate registered with the Board, or as an employee of such sole proprietorship,
partnership or body corporate.
73
The minimum practical training and experience required for a candidate to be registered
as a valuer are:
(i)
That he passed the Test of Professional Competence set by the Board
(ii)
That he has either:
•
Two years post-qualifying practical training and experience in Malaysia under
a registered valuer after the date of the coming into force of the Act or
•
Three years experience lecturing in a recognised local institution of higher
learning with either:
-
A minimum of 1,600 hours of practise on a part-time basis in a valuation
establishment in Malaysia under a registered valuer within those three
years or
-
A minimum of one year’s continuous full-time employment in a
valuation establishment in Malaysia under a registered valuer within
those three years
The minimum practical training and experience required for a candidate to be registered
as an estate agent are:
(i)
That he has passed the Test of Professional Competence set by the Board
(ii)
That he has two years post-qualifying practical training and experience in Malaysia
under a registered estate agent in a registered estate agency firm
The requirements for setting up a valuer, appraiser or estate agents practice in Malaysia are
as follows:
Types of
Establishment
Sole Proprietorship
74
Requirements
•
Being the sole principal of the firm, he/she must be a
registered valuer or registered appraiser or registered
estate agent
•
Every application shall be accompanied by the processing
fee of RM75 to the Board
Types of
Establishment
Partnership
Requirements
•
All partners of the partnership are:
(i) in the case of a valuation practice, solely registered
valuers
(ii) in the case of an appraisal practice, solely registered
appraisers
(iii) in the case of an estate agency practice, solely
registered estate agents
•
The shares in the partnership are held:
(i) in the case of the valuation practice, solely by
registered valuers
(ii) in the case of an appraisal practice, solely by
registered appraisers
(iii) in the case of an estate agency practice, solely by
Body Corporate
•
Satisfies all the conditions specified by the Board
•
In the case of a partnership, an application shall be
accompanied by a copy of the partnership agreement
•
•
All directors and shareholders of the body corporate are:
(i) in the case of a valuation practice, solely registered
valuers
(ii) in the case of an appraisal practice, solely registered
appraisers
(iii) in the case of an estate agency practice, solely
•
The shares in the body corporate are held:
(i) in the case of the valuation practice, solely by
registered valuers
(ii) in the case of an appraisal practice, solely by
registered appraisers
(iii) in the case of an estate agency practice, solely by
•
Satisfies all the conditions specified by the Board
•
In the case of a body corporate incorporated under the
Companies Act, 1965 an application shall be
accompanied by a copy of the Memorandum and Articles
of Association (M&A)
•
75
A valuer, appraiser or estate agent must apply for an “authority to practise” from the Board
if he/she intends to go into private practice. The “authority to practise” for Valuer,
Appraiser and Estate Agent Consultancy Practice expires on 31st December of each year
and is renewable before the 31st of December.
A firm shall not be registered by a name that, in the opinion of the Board, is:
(i)
A name that is undesirable
(ii)
A name or a name of a kind that is likely to deceive or cause confusion to the public
or would be contrary to law
(iv)
A name that is identical with a name belonging to a different registered firm and
entered in the Register of Firms in respect of that firm or
(v)
A name that so nearly resembles a name belonging to a different registered firm as it
is likely to deceive or cause confusion
Any land and quantity surveying consultancy service firms that intends to tender for
government contracts must register with the Ministry of Finance (MOF) using the codes
specified by MOF.
Code
Description
230900
Land Surveying
230800
Quantity Surveying
231000
Valuers Surveying
(a) Conditions that must be fulfilled for registration with MOF are as follows :
(i)
76
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
-
RM20,000 and above
(ii)
(iii)
Manager) under permanent employment and who contributes to the Employee
(iv)
(v)
with the ‘licence to practise’, ‘certificate of registration’ and ‘authority to practise’
issued by the respective Professional Boards under the land and quantity surveying
consultancy service.
(vi)
Owner of the firm has to possess professional qualification in the field of expertise
applied for registration, in accordance with the provision of laws and regulations.
The applicant is required to submit his/her CV/work experience.
Institution.
(ix)
(x)
(xi)
(xiii) Land surveying practice is compulsory to have a permanent surveying team that
comprises surveyors, technicians and draftsmen.
(i)
The registration with the MOF can take place upon the registration of the firm with
the Companies Commission of Malaysia (CCM) and the respective Professional
Boards.
(ii)
•
citizens.
•
advised to contact the relevant local authority where the company will be located.
77
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
(iv)
(vi)
Service Tax Licence
the Service Tax Regulation, 1975 companies that provide land and quantity surveying
consultancy service that generate a total annual sales turnover of RM150,000 or more are
provision of land and surveying consultancy service in connection with business
organization situated outside Malaysia is also exempted from service tax.
Application for Service Tax Licence should be submitted to the Royal Customs Department.
5.2 Equity Policy
incorporated companies. However, a registered practice in land and quantity surveying
consultancy service registered with the respective Boards is required to maintain a 100%
Malaysian equity ownership.
Employment of Foreign Quantity Surveyors
Under section 10A (1) of the Quantity Surveyors Act, 1967 a foreign Quantity Surveyor
may apply to the Board to be registered as a temporary registered Quantity Surveyor in
such manner as may be prescribed by the Board.
Under section 10A (6) of the Quantity Surveyors Act, 1967 a foreign Quantity Surveyor
means a Quantity Surveyor who is not a citizen or a permanent resident of Malaysia.
Foreign Quantity Surveyor who wishes to work in Malaysia needs to obtain a letter of
support from the Board of Quantity Surveyors Malaysia before submitting application for
Employment Pass to the Immigration Department.
78
The requirements for obtaining temporary registration are as follows:
Requirements
Academic
qualification
Possesses the qualification that is recognised by the Board
Working experience
Possesses the necessary expertise in Malaysia
Physical presence in
Malaysia
A requirement of not less than 180 days a year
Employment
He is a resident representative of the foreign component of a
joint-venture
Before applying for the Employment Pass, the company or organisation must apply for
approval of the related post from the Expatriate Committee of the Immigration Department.
Upon approval of the expatriate posts, companies should forward their applications for
Employment Passes to the Immigration Department for endorsement.
expatriates have been issued with employment pass. The dependant pass may be applied
together with the application for the employment pass or after the employment pass is
approved. Spouses and children of the expatriates who enter the country on a visit
globally competitive and resilient SMEs. Initiatives and programs by the government are
Financial Assistance in the form of grants and soft loans are provided by the Ministry of
are also channelled through commercial financial institutions.
(a)
(b)
(c)
(d)
(e)
Soft Loan for SMEs
79
(i)
(ii)
(iii)
80
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
government and the
(a) Grant for Product
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
is RM250,000.
Application should be submitted to the SMIDEC. Please refer Section 5.6 for contact
details.
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
- interest rate: 3% per annum;
years
of existing loan
75%
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
Application should be submitted to the MIDF. Please refer Section 5.6 for contact details.
below:
(i)
(ii)
18 years of age
(iii)
(iv)
81
(v)
(vi)
The SME Bank provides funding assistance of a minimum of RM20,000 to up to RM250,000
to part finance business ventures by graduates. The eligibility criteria for this fund are:
(i)
(ii)
(iii)
(iv)
Application should be submitted to the SME Bank. Please refer Section 5.6 for contact details.
82
(i)
(ii)
(iii)
(iv)
report)
(v)
(vi)
Eligible expenses:
(i)
(ii)
(iii)
(iv)
•
•
•
Media strategy
•
•
•
Brand Development:
•
•
•
•
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
83
(i)
(ii)
employees
(iii)
(i)
(ii)
(iii)
(iv)
(v)
Application shall be submitted to MATRADE. Please refer Section 5.6 for contact details.
5.5 Tax Incentive
registered with CCM. Effective from Year of Assessment 2003, the incentive is extended to
valuation and quantity surveying service that are provided by partnerships or sole
proprietors registered with Registrar of Business (ROB) under CCM.
All claims relating to tax incentives shall be submitted to the Inland Revenue Board (IRB).
84
Application
Where to Apply
Form(s)
Licensing and
Registration
• Licensed Land
Surveyor,
Peninsular
Malaysia
(i) Sole
Proprietorship
Companies Commission of Malaysia
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Form A
Land Surveyors Board
Peninsular Malaysia
2735, 1st Floor
Jalan Permata 4, Taman Permata
Ulu Kelang
533300 Kuala Lumpur
Tel : (603) 4108 5191
Fax : (603) 4108 5178
Website : www.jupem.gov.my/
lsb.html
Email : secretary@ljt.org.my
(ii) Partnership
CCM
-
Form A
Land Surveyors Board
Peninsular Malaysia
-
• Licensed Land
Surveyor Sabah
(i) Sole
Proprietorship
CCM
Sabah Surveyors Board
Level 3, East Wing
Wisma 2020, Karamunsing
88100 Kota Kinabalu, Sabah
Tel : (088) 240 801
: (088) 260 492
Fax : (088) 224 160
Website : www.ljs.com.my
Email : ljs@tm.net.my
Form A
Write In
85
Application
(ii) Partnership
Where to Apply
CCM
Form(s)
Form A
Sabah Surveyors Board
-
• Licensed Land
Surveyor, Sarawak
(i) Sole
Proprietorship
CCM
Form A
Land Surveyors Board, Sarawak
Lot 474 1st Floor, Jalan Nanas
93400 Kuching, Sarawak
Tel : (082) 417 920
Fax : (082) 246 149
Email : lsbs@tm.net.my
(ii) Partnership
CCM
-
Form A
Land Surveyors Board, Sarawak
-
• Quantity Surveyor
Consultancy
Practice
(i) Sole
Proprietorship
(ii) Partnership
(iii)Body Corporate
(iv)MultiDisciplinary
Body Corporate
86
CCM
Form A
Board of Quantity Surveyors Malaysia
17th Floor, JKR Headquarters
50582 Kuala Lumpur
Tel : (603) 2696 7999
Fax : (603) 2692 5680
Website : www.bqsm.gov.my
Email : bqs1@jkr.gov.my
ljbm@streamyx.com
Form G
CCM
Form A
Form G
CCM
Form A
Form G
CCM
Form A
Form G1
Application
Where to Apply
Form(s)
• Valuers, Appraisers
and Estate Agency
(i) Sole
Proprietorship
CCM
The Board of Valuers, Appraisers
and Estate Agents Malaysia
Suite 3B-10-3A,
Level 10 Block 3B, Plaza Sentral 5
Kuala Lumpur Sentral,
50470 Kuala Lumpur.
Tel : (603) 2273 7839
(603) 2273 7862
(603) 2273 5584
Fax : (603) 2273 1808
Website : www.lppeh.gov.my
Email : lppeh@po.jaring.my
(ii) Partnership
(iii)Body Corporate
• Government
Procurement
Form A
Form N
CCM
Form A
Form N
CCM
Form A
Form N
Registration Unit
Management Division
Precint 2
Federal Goverment
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Application must
be made through
Prescribed Form
87
Application
Where to Apply
Form(s)
Block 2G1B
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Form JKED 1
• Expatriate Post
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Form DP10
• Endorsement of
Employment Pass
Form DP11
Or
Or
Form IM8 & IM38
• Service Tax
Licence
Procedures
Foreign Quantity
Surveyor
Form DP 8
Planning and
Development
(ITAF 1)
88
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
Where to Apply
Form(s)
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 2 Form
for ICT Adoption
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
MIDF
Loan Enquiry Form
Loan Enquiry Form
• MARA Financing
Scheme
50609 Kuala Lumour
Tel : (603) 2691 5111
Fax : (603) 2691 3620
• Graduate
Entrepreneur
Scheme
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Register for
Scheme
89
Application
• Brand Promotion
Grant (BPG)
• Market
Development
Grant
Where to Apply
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
MATRADE
Form(s)
Form BPG1/05
Form MDG 1/05
Tax Incentive
on Promotion of
Export of Service
90
Malaysia (IRB)
15th Floor, Block 9
Jalan. Duta, P.O. Box 11833
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
Form
DD/POE/PS/2003-1
Section 6
Medical and Health
Care Services
6.1
•
•
•
•
•
•
•
•
6.2
Equity Policy
•
•
•
6.3
•
•
•
of
of
of
of
of
Foreign
Foreign
Foreign
Foreign
Foreign
Medical Practitioners
Dental Practitioners
Pharmacists
Nurses
Midwives
Tax Incentives
•
•
6.6
Employment
Employment
Employment
Employment
Employment
•
6.5
•
•
•
•
•
6.4
Registration of Medical Practitioners with Malaysia
Medical Council
Registration of Dentists with Malaysian Dental Council
Registration of Pharmacists with Pharmacy Board of
Malaysia
Registration of Nurses with Nursing Board Malaysia
Registration of Midwives with Midwives Board Malaysia
Service Tax Licence
6
MEDICAL AND
HEALTH CARE SERVICES
The medical and health care services in this Guidebook only cover general medical
services, dental services, pharmacy services1, nurses and midwives. It does not include
medical speciality services (classified under code 93122, Central Product Classification).
Medical services (classified under code 85121, Malaysia Standard Industrial Classification)
refer to the consultation and treatment activities of general physicians and medical
specialists. It involves activities of doctors of general medicine or medical specialists or
surgeons in health institutions (including hospital outpatient clinics and departments of
prepaid groups of physicians) or private practice. It includes activities carried out in clinics
such as those attached to firms, schools, houses for the aged, labour organisation and
fraternal organisations as well as in patient's homes. Patients are usually ambulatory and
can be referred to specialists by general practitioners. It excludes in-patient hospital
activities which are classified in item 85110 Hospital services and para-medical activities
such as those of midwives, nurses and physiotherapists which are classified in the
appropriate items of Class 8519.
Dental services (classified under code 85122, Malaysia Standard Industrial Classification)
refer to the general or specialised in nature and can be carried out in a practice as stand
alone clinics or clinics in schools or hospitals.
Pharmacy, nursing and midwives (classified under code 8519, Malaysian Standard
Industrial Classification) are under other human health activities. It refers to all activities
for human health not performed by hospitals or by medical doctors or dentists.
The setting up of a medical and health care practice requires the intended practitioner to
register with Companies Commission of Malaysia (CCM) under the Registration of Business
Ordinance, 1956, or incorporate a company under the Companies Act, 1965. A foreign
company cannot carry on business in Malaysia unless it incorporates a local company or
registers the company in Malaysia with CCM. Foreign company means a company,
corporation, society, association or other body incorporated outside Malaysia which under
the law of its place of origin may sue or be sued. For a foreign company to register a
company in Malaysia, the same registration procedures pertaining to the registration of a
locally incorporated company apply.
1
Refers to forensic medicine, nuclear medicine, geriatrics, micro vascular surgery, neurosurgery, cardiothoracic
surgery, plastic surgery, clinical immunology and oncology, traumatology, anaesthesiology, intensive care
specialist, child psychiatry and physical medicine
94
Medical and Health Care Services
Registration of Medical Practitioners with Malaysia Medical Council
Medical practitioners intending to practise medicine in Malaysia are required to register
with Malaysia Medical Council (MMC), in accordance with the Medical Act, 1971. Only
medical undergraduates from recognised institutions as listed in the Schedule 2 of the
Medical Act, 1971 are eligible for registration. There are three types of registration allowed
under the law:
(a)
Registration as Provisionally Registered Medical Practitioners (Section 13
Medical Act, 1971)
Under the Medical Act, 1971 newly qualified medical undergraduates wishing to practice
medicine are required to be provisionally registered before undergoing internship.
Provisional registered practitioners need to obtain experience for a period of not less than
one year in Medical Qualifying Board (MQB) approved hospitals in three compulsory
disciplines comprising Paediatrics or Medicine, Surgery or Orthopaedic and Obstetrics &
Gynaecology.
(b)
Registration as Fully Registered Medical Practitioners
Upon completion of internship and to the satisfaction of the MQB, practitioners who have
been provisionally registered with the MMC as well as those who have been provisionally
or fully registered with other Medical Councils can apply for full registration.
Under Section 14 of the Medical Act, 1971 there are two types of full registration allowed:
Registration under Section 14 (1):
Section 14 (1) to the Medical Act, 1971 states:
(1)
Subject to the provisions of this Act, no person shall be entitled to be fully
registered as medical practitioner under this Act unless:
a)
He has been provisionally registered under Section 12
b)
He furnishes proof of having satisfied the provisions of Section 13
For Malaysian practitioners who have completed internship training locally, their
respective employers must process and submit their application within one month of their
completion.
For Malaysian practitioners who completed internship overseas, the Evaluation Committee
(EC) appointed by the MMC will determine whether their internship training can be
exempted, upon the application made by individual applicants.
95
Registration under Section 14 (1):
Section 14 (3) to the Medical Act, 1971 states:
(3)
Notwithstanding anything to the contrary contained in this Act, any person may be
fully registered under this section subject to such restriction and conditions as may
be stipulated by the Minister, provided that the person seeking registration under this
subsection possesses a qualification with respect to which the Minister, after
consulting the Council, is satisfied that it is adequate.
For non-citizens who wish to practice in Malaysia, registrations are approved only for a
limited period and limited place of practice. All applications are to be made through their
employer and duly screened by the Evaluation Committee. Eligible applicants will be
forwarded to the Minister of Health for approval for registration under Section 14 (3) of the
Medical Act, 1971.
Under the law, every fully registered practitioners must serve within public services for a
period of not less than three years or what is normally known as the “compulsory service”
before they are allowed to set up a private practice.
(c)
Temporary Registration under Section 16
Temporary registration is only applicable to medical practitioners who wish to practise in
Malaysia. This type of registration is only approved for the purpose of postgraduate study
or attachment training, demonstration during conference or research with institutions,
universities or even private hospitals. The registration is renewable on a 3 monthly basis.
To be eligible for temporary registration:
•
the practitioner must be registered with foreign Medical Council
•
the practitioner holds an insurance to cover his practice in Malaysia
•
the local practitioner acting as a guarantor for the application holds a valid and
current Annual Practising Certificate issued by the MMC
The practitioner applying for the temporary registration need not possess a medical degree
from recognised institutions as listed in the Schedule 2 of the Medical Act, 1971.
Under the law, whilst holding the temporary registration, practitioners are not allowed at
all times to operate or even set up a private practice.
Registration of Dentists with Malaysian Dental Council
Dental practitioners intending to practise dentistry in Malaysia are required to register with
the Malaysian Dental Council (MDC), in accordance with Section 12 of the Dental Act,
1971. Only Malaysians and spouses of Malaysians can register with the MDC.
96
(a)
Registration as Dental Practitioners
Dental practitioners are registered in compliance with the provisions under Section 12 of
the Dental Act, 1971. After registration, every dental practitioner is required to serve not
less than 3 years compulsory government service.
(b)
Annual Practising Certificate (APC)
APC is only issued to dental practitioner who is registered with the MDC. All applications
should be submitted to the MDC. Upon approval, the MDC will issue an Annual Practising
Certificate (APC) to the applicant as per Section 19(2) of the Dental Act, 1971. The APC
expires on 31st December of every year. APC needs to be renewed annually and are issued
upon request.
(c)
Temporary Practising Certificate (TPC)
TPCs are issued to foreign dental practitioners who come to Malaysia for the purpose of
employment, training or research with government institutions, or to conduct short
courses. The applicant must have a registerable qualification. Foreign dental practitioners
who hold a TPC are not allowed to set up their own private practice in Malaysia. TPCs
need to be renewed every 3 months.
Registration of Pharmacists with Pharmacy Board of Malaysia
Pharmacy graduates intending to practise pharmacy in Malaysia are required to register
with the Pharmacy Board of Malaysia (PBM), in accordance with the Registration of
Pharmacists (Amendment) Act, 2003. Only Malaysians and few groups of foreigners can
register with PBM. There are three types of registration with PBM:
(a)
Registration as Provisionally Registered Pharmacist
Under Section 6, Registration of Pharmacists (Amendment) Act, 2003 a pharmacy graduate
need to register as a provisionally registered pharmacist and obtain experience for a period
of not less than one year to the satisfaction of PBM before the pharmacist can be registered
as a fully registered pharmacist in Malaysia. At the same time, he/she needs to apply to
Public Service Commission (SPA) for employment in the government sector or other public
services.
For the pharmacist graduates from recognised universities who are registered overseas on
or after 2nd September 2004, he/she should apply for Provisional Registration and Full
Registration from PBM and at the same time he/she needs to apply to SPA for employment
in government sector or other public services. This category of pharmacists can obtain
exemption from “employment as pharmacists to gain experience while under provisional
registration” as mentioned under Section 6A (7) Registration of Pharmacists (Amendment)
Act, 2003.
97
(b)
Registration as Fully Registered Pharmacist
Pharmacy graduates can apply for full registration as a pharmacist upon the completion of
the provisional registration period. With the implementation of compulsory service, he/she
will have to serve the government for not more than 3 years on obtaining full registration.
Groups of pharmacist who are exempted from the compulsory service are as follows:
(i)
who holds a basic pharmacy qualifications recognised by PBM and who holds a
PhD qualification in pharmacy or
(ii)
who holds a basic pharmacy qualifications recognised by PBM and who holds a
qualification of the Board of Pharmaceutical Specialities (BPS), United States of
America.
For those who are exempted from the compulsory service with the government, the
pharmacists can apply to PBM for full registration and at the same time apply to the
Pharmaceutical Services Division, Ministry of Health for exemption from compulsory
service with justification.
(c)
Temporary Registration (TR)
TR can be issued to non-Malaysian (foreigners) of the following groups, in accordance to
Section 11A of the Registration of Pharmacists (Amendment) Act, 2003:
•
Spouses of Malaysians who possess pharmacy qualification recognised by PBM and
are registered as a pharmacist in countries which are recognised by PBM.
•
Spouses of foreigners who are in Malaysia with a working permit who possess
pharmacy qualification recognised by PBM and are registered as a pharmacist in
countries which are recognised by PBM.
•
Foreigners who hold a PhD or post graduate Doctor of Pharmacy who possess basic
pharmacy qualification recognised by PBM and are registered in countries for three
years. [However, a holder of Doctor of Pharmacy (PharmD) from universities in
United States of America is not recognised by PBM as PhD or Doctor of Pharmacy.
He/she needs to provide a letter of appointment from his/her employer in Malaysia].
Registration of Nurses with Nursing Board Malaysia
The graduates of nursing and midwives programmes, assistant nurses and community
health nurses intending to practise nursing in Malaysia are required to register with the
Nursing Board Malaysia and Midwives Board Malaysia in accordance with the Nurses Act,
1950 and Midwives Act, 1966. Only Malaysians and spouses of Malaysians can register
with the board. The Nursing Board Malaysia and Midwives Board Malaysia are the
regulatory authorities to register nurses for life and to issue annual practising certificate if
they deem fit.
(a)
Registration with Nursing Board Malaysia
For any persons wanting to practise nursing in Malaysia, he/she needs to be trained in a
pre-registration programme. Entry requirements are the Malaysian Certificate of Education
(MCE) or Sijil Pelajaran Malaysia (SPM) or its equivalent; a pass in Bahasa Malaysia,
English and Mathematics and preferably with 3 credits.
98
The pre-registration programme is accredited by the Joint Committee of the Nursing Board
Malaysia, National Accreditation Board (LAN) and the Department of Private Education
(JPS) and Public Services Department (Training Division).
During the pre-registration programme, he/she needs to undergo 3 years of basic training
as stipulated by the Nursing Board and sits for the registration examinations conducted by
the Nursing Board.
Upon completion and passing the pre-registration programme, he/she can register with the
Nursing Board and practise as a nurse. Licence for nursing practitioners is renewable
annually.
There are five types of nurses registered under Section 4(2) of the Nurses Act, 1950:
(i)
Registered Nurse
Registered Nurse means a person who is admitted to the general part of the Register
and who has undergone a 3 year Diploma in Nursing Programme at a recognised
College of Nursing or University and passed the Nursing Board Examination.
(ii)
Assistant Nurse
Assistant Nurse means a person who is admitted to the supplementary part of the
Nurses Act, 1950 containing the name of assistant nurses and who has undergone a
2 years Certificate Programme in a recognised School of Nursing and passed the
Assistant Nurses Examination set by the Nursing Board.
(iii)
Mental Health Nurse
Mental Health Nurse is a person who is admitted to the supplementary part of the
Nurses Act, 1950 containing the names of nurses trained in nursing and care of
person suffering from mental diseases.
(iv)
Public Health Nurse
Public Health Nurse is a person who is admitted to the supplementary part of the
Nurses Act, 1950 containing the names of nurses trained in Public Health Nursing.
(v)
Community Nurse
Community Nurse is a person registered under the supplementary part of the Nurses
Act, 1950 and who has undergone 2 years training in a recognised Community
Nurses College.
99
(b)
Annual Practising Certificate (APC)
Every registered nurse who is fully registered must have a valid APC to practise nursing in
Malaysia. The APC expires on 31st December of every year. APC needs to be renewed
annually. All applications should be submitted to the Nursing Board Malaysia and
Midwives Board Malaysia by the 31st of September of each year.
(c)
Temporary Practising Certificate (TPC)
TPC only applies to registered foreign nurses who want to register as locally trained nurses.
Foreign nurses need to fulfil the following requirements:
(i)
Possess a Certificate equivalent to Sijil Pelajaran Malaysia
(ii)
Completed a 3 full years nursing training
(iii)
Must have a minimum of 3 years of clinical working experience (age limit below 56
years)
(iv)
Registered with their country's Nursing Board or Ministry of Health
(v)
Nurse training must meet the minimum requirements of the current nursing
curriculum of the Ministry of Health Malaysia
For foreign qualified nurses who want to register as locally trained nurses, currently, only
foreign qualified nurses from the seven countries stated below will be considered:
•
Myanmar
•
Bangladesh
•
Philippines
•
Albania
•
India
•
Indonesia
•
Pakistan
Registration of Midwives with Midwives Board Malaysia
Currently the Midwives Board Malaysia only admits Midwives Division I and III.
For registration in Division I, the Registered Nurse must have undergone a 12 months
midwives training including domiciliary training and passed the examination set by the
Board.
For registration in Division III (Community Nurses) the persons must have undergone not
less than 18 months including domiciliary training and passed the examination prescribed
by the Board.
100
registration. The fee for signboard registration may vary according to each of the local
authorities and is dependent on the size and type of the signboard. Applicants are advised
to contact the relevant local authority where the company will be located.
documents:
(i)
A copy of the company's Memorandum and Articles of Association (M&A) and
Forms 9, 24 and 49
(ii)
company's business premise
(iii)
A copy of location plan of company's business premise
(iv)
Photographs showing the location of the company's signboard
(vi)
Service Tax Licence
the Service Tax Regulation, 1975 companies that provide medical and health care services
that generate a total annual sales turnover of RM150,000 or more are required to obtain a
Service Tax Licence. The rate of the service tax is 5% on the value of the services rendered.
exempted from the current service tax of 5%. In addition, the provision of medical and
surgical treatment supplied as a services or supplied in connection of goods or supplied in
land situated outside Malaysia is also exempted from service tax.
6.2 Equity Policy
Persons intending to set up private practices in the medical and health services are
required to possess the necessary licensing conditions specified by the respective licensing
authorities of the accredited professional services. The licensing conditions are as follows:
101
Accredited Professional
Services
Licensing Conditions
Licensing Authorities
Medical Services
Full Registration Certificate
and Annual Practising
Certificate
Malaysia Medical Council
Dental Services
Annual Practising Certificate
Malaysia Dental Council
Pharmacy Services
Full Registration Certificate
Pharmacy Board of Malaysia
Licence A under Poisons
Act, 1952
Licensing Officer
Please note that the licensing conditions also apply to private practices in the form of sole
proprietor or partnership.
the country.
In 2004, FIC has liberalised the Malaysian policy on foreign equity participation to allow
foreigners to hold up to 70% of the equity in a Malaysian company. Bumiputeras
(Malaysians of indigenous origins) have to hold at least 30% of the equity.
equity are required to increase the Bumiputera's equity to at least 30%. The remaining
As a signatory to GATS, Malaysia only allows foreign medical professionals in the medical
speciality services (CPC93122) in Malaysia subject to the Schedule of Specific
Commitments. There are no restrictions under cross border supply (mode 1) and
consumption abroad (mode 2). Medical speciality services may be supplied only by
natural person subject to the horizontal commitment. These foreign medical professionals
can only practise in private hospitals of at least 100 beds. The foreign professional can only
practise at a specified location and any changes to the location requires approval from the
respective councils. The setting up of individual or joint group practices is not permitted.
The examination to determine the competence and ability to supply the service for the
purposes of registration with the respective councils will be conducted in the English
language.
102
As a signatory to AFAS, Malaysia only allows foreign medical professionals in the medical
speciality services (CPC93122) in Malaysia subject to the ASEAN Service Commitments.
There are no restrictions under cross border supply (mode 1) and consumption abroad
(mode 2). Medical speciality services may be supplied only by natural person subject to
the horizontal commitment. These foreign medical professionals can only practice in
private hospitals of at least 100 beds. The foreign professional can only practice at a
specified location and any changes to the location requires approval from the respective
councils. The setting up of individual or joint group practices is not permitted.
The examination to determine the competence and ability to supply the service for the
purposes of registration with respective councils will be conducted in the English
language.
Employment of Foreign Medical Practitioners
Under the Medical Act, 1971 expatriate practitioners are only registered to practise
medicine with a specific employer and for a specific time either in the public service or
private sector.
Foreign medical practitioners with basic medical degree as listed in the Schedule 2 of the
Medical Act, 1971 are allowed only to work in the public sector whereas those holding
specialist qualification are allowed to work in private sector as well.
For the purpose of employment, any interested practitioners from foreign countries should
apply directly to the prospective employer who will submit the application for registration
or licensing to the MMC. Expatriate should not submit directly to the MMC.
Employer will arrange the application of Employment Pass for their respective expatriate.
Application can be submitted to the Immigration Headquarters, Putrajaya or any Immigration
State Office.
together with the application before the employment pass or after the employment pass is
Employment of Foreign Dental Practitioners
Foreign dental practitioners are employed by the Ministries of Health, Education and
Defence only. These practitioners must have a valid TPC issued by the MDC. The
application for these TPCs is made by the individuals.
103
Before applying for the employment pass for expatriates, the employer must apply for
approval of the related post from Expatriate Committee of the Immigration Department.
Upon approval of the expatriate posts, the employer should forward their applications for
Employment of Foreign Pharmacists
Foreign pharmacists are only allowed to work in private sector. These practitioners must
have a valid Temporary Registration Pharmacist Certificate issued by PBM, which is
renewable every two years. Foreign pharmacists have to apply for job from employers.
With the job offer letter, they can apply for Temporary Registration from PBM. Before they
can be registered, they have to pass the Pharmacy Jurisprudence Examination handled by
PBM. Applicants are only allowed to start working after they got the approval from PBM.
expatriates have been issued with employment passes. The dependant pass may be
applied together with the application before the employment pass or after the employment
pass is approved. Spouses and children of the expatriates who enter the country on a visit
Employment of Foreign Nurses
Foreign nurses are allowed to work in the private sector. Currently, Malaysia does not
recruit foreign nurses to work in the public sector. Foreign nurses intending to work in the
private sector need to obtain a temporary practising certificate from the Nursing Board
Malaysia.
104
Employment of Foreign Midwives
Currently Malaysia does not recruit any foreign midwives.
below:
(i)
(ii)
18 years of age
(iii)
(iv)
(v)
(vi)
fund are:
(i)
(ii)
(iii)
(iv)
105
details.
The objective of the Brand Promotion Grant (BPG) is to develop and promote in the
international market brand names owned by Malaysian companies for products and
services originating from Malaysia. Companies can obtain 100% reimbursable grants of up
to a maximum of RM1 million per company per brand (for small and medium enterprises
(SMEs) only), or 50% reimbursable grant of up to a maximum of RM2 million per company
per brand (for non-SMEs).This scheme is extended to all services. The BPG will only be
granted to eligible brands identified to be assisted by the Brand Grant Approval
Committee.
(i)
(ii)
(iii)
(iv)
report)
(v)
(vi)
Eligible expenses:
(i)
(ii)
106
•
•
•
Media strategy
•
•
•
Brand Development:
•
•
(iii)
(iv)
•
•
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
(i)
(ii)
employees
(iii)
(i)
(ii)
(iii)
(iv)
(v)
Application should be submitted to MATRADE. Please refer Section 6.6 for contact
details.
107
6.5 Tax Incentives
medical and dental services that are provided by partnership or sole proprietors registered
with Registrar of Business (ROB) under CCM.
Companies engaged in health services are given tax exemption on the statutory income
Application
Where to Apply
Form(s)
Licensing and
Registration
(CCM)
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Form A
• Partnership
CCM
Form A
• Local Company
CCM
Form 13 A
• Sole proprietorship
Medical Service
• Provisional
Registration
108
Malaysia Medical Council (MMC)
7th Floor, Block E-10
Parcel E, Precint 1
Federal Government
62590 Putrajaya
Tel : (603) 8883 1400 – 1471
Fax : (603) 8883 1406
Website : www.moh.gov.my/mmc
Email : mmckkm@yahoo.com
Form 4
Application
Where to Apply
Form(s)
• Full Registration
Housemanship in
Malaysia
MMC
Form 9
Housemanship
Overseas
MMC
Form 9
• Temporary
Practising
Certificate
MMC
TPC Form
• Annual Practising
Certificate
MMC
Form 11
Dental Service
Malaysian Dental Council (MDC)
5th Floor, Block E-10
Parcel E, Precint 1
Federal Government Administrative
Centre
62590 Putrajaya
Tel : (603) 8883 4217
Fax : (603) 8888 6133
Website : www.moh.gov.my/ohd
Email : emonerasinghe@yahoo.com
Form 4
• Annual Practicing
Certificate
MDC
Form 8
• Temporary
Practicing
Certificate
MDC
Form DC/CP/3-03
Pharmacy Service
• Provisional
Registration
Pharmacy Board of Malaysia (PBM)
Pharmaceutical Services Division,
Ministry of Health
Locked Bag No. 924, Jalan Sultan
Post Office
46790 Petaling Jaya, Selangor,
Malaysia
Tel : (603) 7968 2200
Fax : (603) 7968 2222
Website : www.pharmacy.gov.my
Email : pharmacy1@moh.gov.my
Form 1
109
Application
• Provisional
Registration
Where to Apply
Public Service Commission (PSC)
Level 6-10, Block C7
Parcel C
Centre
62590 Putrajaya
Tel : (603) 8885 6000
Fax : (603) 8888 5036
Website :www.spa.gov.my
Form(s)
Form SPA 8
Exempted from
compulsory
service
Not exempted
from compulsory
service
• Temporary
Registration
(Foreigners)
PBM
PBM & PSC
PBM
Form 5
Form 5 & SPA 8
Form PS1 and officially
write in to the PBM
Nursing Services
• Annual Practising
Certificate
(i) Registered
Nurse
(ii) Assistant
Nurse
(iii) Community
Nurse
• Temporary
Practising
Certificate
Nursing Board Malaysia
Level 3, Block E-1
Parcel E, Precint 1
Federal Government
62590 Putrajaya
Tel : (603) 8883 1317
Fax : (603) 8883 1329
Email : registraljm@yahoo.com
kpjljm@hotmail.com
Nursing Board Malaysia
(i) Form M/APC/JB/003
(ii) Form
LJM/APC/PJ/005
(iii) Form
LJM/APC.JM/004
Form A – Application
form
Form B – Verification
of training
Form C – Verification
of registration
110
Application
Where to Apply
Form(s)
Midwives Services
• Application for
Registration as a
Midwife
(i) Registered
Nurse
(ii) Community
Nurse
• Intention to
practise for
midwives
(excluding those
midwives in the
government
service)
(Medical, Dental,
Pharmacy Services
and Nursing
Homes)
• Service Tax
Licence
Midwives Board Malaysia
Level 3, Block E-1
Parcel E, Precint 1
Federal Government
62590 Putrajaya
Tel : (603) 8883 1317
Fax : (603) 8883 1329
Email : registraljm@yahoo.com
kpjljm@hotmail.com
Form A for (i) and
Form C for (ii) under
the Midwives Act
1966, Regulation 1990
Midwives Board Malaysia
Schedule 3
(Regulation 34)
Prescribed Form
Block 2G1B
Administration Centre
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Form JKED 1
111
Application
Where to Apply
Form(s)
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of time
to comply equity
condition imposed
by FIC) (Processing
Time: 10 working
days)
• General
Agreement on
Trade in Services
(GATS)
Foreign Investment Committee
(FIC)
Level 1 Block B5
Centre
60502 Putrajaya
Tel : (603) 8888 2944
(603) 8888 2916
Fax : (603) 8888 3917
Form FIC S2004
FIC
Form FIC R/2004
Ministry of International Trade and
Industry
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
Procedures
• Expatriate Post
112
Immigration Department of
Malaysia
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Form DP10
Application
• Endorsement of
Employment Pass
Where to Apply
Form(s)
Form DP11
Or
Or
Form IM8 & IM38
Form DP 8
• MARA Financing
Scheme
50609 Kuala Lumpur
Tel : (603) 2691 5111
Fax : (603) 2691 3620
• Graduate
Entrepreneur
Scheme
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Register for
Scheme
• Brand Promotion
Grant (BPG)
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Form BPG1/05
• Market
Development
Grant
MATRADE
Form MDG 1/05
113
Application
Where to Apply
Form(s)
Tax Incentives
on Promotion of
Export of Service
the Value of
Increased Exports
114
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
IRB
Form
DD/POE/PS/2003-1
Form EX/AIES/2003-1
Section 7
Energy
7.1
•
•
•
•
•
•
7.2
Equity Policy
•
•
•
7.3
•
•
•
•
Tax Incentives
•
•
•
7.6
Employment of Foreign Engineering Professional
•
7.5
•
7.4
Registration as an Engineering Consultancy Practice with
the Board of Engineers Malaysia
Service Tax Licence
Incentives for Energy Conservation
7
ENERGY CONSULTANCY SERVICES
Advisory and consultative engineering services (classified under code 8672, Central
Product Classification) in the energy sector include the provision of assistance, advisory
and recommendation services concerning engineering matters. Included here are the
undertakings of preparatory technical feasibility studies and project impact studies in the
energy sector.
In Malaysia, oil, gas, coal, electricity (hydroelectricity and thermal), renewable energy
(biomass, solar, biogas, municipal wastes, mini-hydro, wind and etc.) made up the energy
sector.
Engineering consultants who specialise in the energy related activities are able to provide
consultancy services in power generation, transmission and distribution, oil/gas/coal-fired
plants and hydro schemes, rural and urban electrification schemes, electrical sub-stations,
utility services and production facilities for oil/gas and petrochemical industry, energy
audit, study, training, application, management and conservation, project management,
power quality management, turnkey services and any other activities related to energy.
The setting up of an engineering consultancy practice requires the intended professional
to register with Companies Commission of Malaysia (CCM) under the Registration of
Business Ordinance, 1956, or incorporate a company under the Companies Act, 1965. A
foreign company cannot carry on business in Malaysia unless it incorporates a local
company or registers the company in Malaysia with CCM. Foreign company means a
company, corporation, society, association or other body incorporated outside Malaysia
which under the law of its place of origin may sue or be sued. For a foreign company to
register a company in Malaysia, the same registration procedures pertaining to the
registration of a locally incorporated company apply.
Registration as an Engineering Consultancy Practice with the Board of Engineers Malaysia
Under the Registration of Engineers Act, 1967 “Engineering consultancy practice” means
a sole proprietorship, partnership or body corporate, providing professional services,
registered under Section 7A or 7B. The Board of Engineers Malaysia (BEM) is the body that
regulates the practice of engineering.
Only Professional Engineers are allowed to provide engineering consultancy services. Any
candidate who applies for registration as a Professional Engineer must fulfil the following
criteria:
118
(i)
Be registered as a Graduate Engineer with BEM
(ii)
Have satisfied the training requirements of BEM
Energy Consultancy Services
(iii)
Have passed the Professional Assessment Examination (PAE) of BEM or be elected as
a Corporate Member of the Institution of Engineers Malaysia (IEM)
(iv)
Have been residing in Malaysia for a period of not less than six months immediately
prior to the date of application
The certificate of registration for Professional Engineer expires on 31st December every
year and yearly renewal is mandatory.
As a signatory to General Agreement on Trade in Services (GATS), Malaysia allows foreign
professionals to provide engineering consultancy services (CPC 8672) and integrated
engineering services (CPC 8673) in the country subject to the Schedule of Specific
Commitments.
For engineering consultancy services (CPC 8672), there are no restrictions under crossborder supply (mode 1) and consumption abroad (mode 2) but the engineering services
must be authenticated by a registered engineer in Malaysia. Engineering consultancy
services may be supplied only by natural person subject to the horizontal commitment. It
is subject to temporary registration for a period of one year per temporary registration.
For integrated engineering services (CPC 8673), there are no restrictions under crossborder supply (mode 1) and consumption abroad (mode 2) but the integrated engineering
services must be authenticated by the relevant registered engineer in Malaysia.
The qualifying examination to determine the competence and ability to supply the service
for the purposes of registration with the professional bodies will be conducted in English
language.
ASEAN Framework Agreement on Services
As a signatory to ASEAN Framework Agreement on Services (AFAS), Malaysia allows
foreign professionals within ASEAN to provide engineering consultancy services (CPC
8672) in the country subject to ASEAN Service Commitments. There are no restrictions
under cross-border supply (mode 1) and consumption abroad (mode 2) but the engineering
services must be authenticated by a registered engineer in Malaysia. Engineering
consultancy services may be supplied only by natural person subject to the horizontal
commitment. It is subject to temporary registration for a period of one year per temporary
registration.
The qualifying examination to determine the competence and ability to supply the service
for the purpose of registration with the professional bodies will be conducted in English
language. Other requirements are as per in ASEAN Engineer Registry.
The requirements for setting up an Engineering Consultancy Practice in Malaysia are as
follows:
119
Types of
Establishment
Requirements
Sole Proprietorship
•
The proprietor is a Professional Engineer
Partnership
•
All the partners are Professional Engineers
Body Corporate
•
Has a Board of Directors comprising persons who are
Professional Engineers
•
The shares will be held by members of the Board of
Directors mentioned above solely or with any other
persons who are Professional Engineers
•
A minimum paid-up capital which shall be of an amount
to be prescribed by the BEM
•
The Board of Directors comprising Professional Engineers,
Professional Architects and/or registered Quantity
Surveyors
•
The shares shall be held by persons mentioned above and
any of the following persons and/or bodies corporate
where:
Multi-Disciplinary
Body Corporate
(i) The Professional Engineers, Professional Architects,
registered Quantity Surveyors, bodies corporate
providing professional engineering services, bodies
corporate providing architectural consultancy services
and/or bodies corporate practising as consulting
Quantity Surveyors hold a minimum combined share
of 70% of the overall equity of that body corporate, of
which the Professional Engineers and/or bodies
corporate providing professional engineering services
hold a minimum share of 10%; and
(ii) Any other person, including persons belonging to a
profession allied to engineering, architecture or
quantity surveying, being a profession approved in
writing by the board regulating the profession of
engineering, architecture or quantity surveying,
respectively, holds a maximum share of 30% of the
overall equity of the corporate body.
The certificate of registration for Engineering Consultancy Practice expires on 31st
December of each year and is renewable yearly.
120
Any engineering consultancy services companies and integrated engineering services
companies wishing to tender for government contracts must register with the Ministry of
Finance (MOF) using the codes specified by MOF.
Engineering
Code
Description
230100
Civil Engineering
230200
Structural Engineering
230300
Electrical Engineering
230400
Mechanical Engineering
230500
Electronic Engineering
230600
Chemical Engineering
231600
Mining Engineering
231700
Marine Engineering
231800
Geological Engineering
231900
Industrial Engineering
231200
Naval Architecture Engineering
Planning
Code
Description
230700
Architectural
230800
Quantity Surveying
Code
Description
231500
Environmental Research
Code
Description
243700
Energy Management
Multi-discipline
Agriculture
121
(i)
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
-
RM20,000 and above
•
Environmental research
management
-
RM100,000 and above
(ii)
(iii)
(iv)
The firm needs to have an active current account.
(v)
with the practising licence issued by the respective Professional Boards.
(vi)
applicant is required to submit his/her CV or work experience.
experience upon obtaining their academic degree. For Environmental Management
expertise, a minimum of ten (10) years of working experience is required.
Institution.
(ix)
Shareholder must also be a full time Executive Director.
(x)
Professional Boards. The field of expertise to be registered with the MOF will be
determined based on the expertise approved by the Professional Boards.
(xi)
(i)
CCM and the respective Professional Boards.
(ii)
•
122
citizens.
•
Organisations intending to provide engineering and architectural consultancy to
PETRONAS are required to register with its Licensing and Registration Department.
Code
Description
SC5 03
Mechanical & Electrical Engineering
3.1 Mechanical
3.2 Electrical
SC5 04
Civil and Structural Engineering
SC5 05
Architectural
SC5 15
Naval Architectural Consultancy Services
SC5 16
Marine Engineering Consultancy Services
Requirements for registration with PETRONAS are as follows:
(i)
Registered with the CCM as a Private Limited Company or Limited Company. Sole
proprietorship or partnership will not be accepted except in the case of professional
consulting companies which must be registered with the Registrar of Business and
the respective Professional Boards.
(ii)
Paid-up capital of Private Limited or Limited Company in the form of ordinary shares
of not less than RM100,000.
(iii)
Company with stable financial standing. For companies that are incorporated more
than eighteen (18) months, shareholders' fund needs to be at a positive level.
(iv)
Possess the technical capability in management of employees, skilled employees
and equipment for each service category of application.
(v)
Fulfill the Bumiputera participation requirement at the equity level, Board of
Director, management employee and company’s employee.
(vi)
Registered with accredited/professional bodies or government departments which
are related to the category of application.
123
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
(iv)
(v)
Service Tax Licence
the Service Tax Regulation, 1975, companies that provide engineering consultancy
services that generate a total annual sales turnover of RM150,000 or more are required to
obtain a Service Tax Licence. The rate of the service tax is 5% on the value of the services
rendered. Professional services provided by a company to companies within the same
group will be exempted from the current service tax of 5%. In addition, the provision of
engineering consultancy services in connection with goods and land situated outside is
also exempted from service tax.
Application for the Service Tax Licence should be submitted to the Royal Customs
Department.
7.2 Equity Policy
the country. However, the ownership structure of an engineering consultancy company
remains protected with Malaysian companies owning 100% equity with the exception of
foreign equity participation under GATS and AFAS.
124
Foreign investment in integrated engineering services (CPC 8673) can be made through a
representative office, regional office or locally incorporated a joint-venture corporation
with Malaysian individuals or Malaysian-controlled corporations or both for the purpose
of services contract awarded in Malaysia. The aggregate foreign shareholding in the
joint-venture corporation shall not exceed 30%. Establishment of such joint-venture
corporation is only for the duration necessary to complete the services contract.
For engineering services (CPC 8672), foreign investment through multi-disciplinary
practices (Architecture, Engineering and/or Quantity Surveying), where foreign equity up
to a maximum of 10% for joint-ventures by professionals who are registered in the country
of origin, is allowed. Foreign Directorship is not allowed.
Employment of Foreign Engineering Professional
Any foreign citizen or any other person who is not a citizen or permanent resident of Malaysia
who take up employment as engineer in Malaysia, shall obtain temporary registration from
BEM as provided under Section 10A of the Registration of Engineers Act, 1967.
A temporary registered Professional Engineer could only submit plans and drawings for the
project he is assigned to. He or she is not permitted to take up position as a director or be
the shareholder of a local company/firm practising as consulting engineers in Malaysia and
is not allowed to set up his own consultancy practice in Malaysia.
The temporary registration will lapse upon the completion of the project in which the
foreign engineer is assigned to. If the sponsor desires to reassign the foreign engineer, the
sponsor must seek prior approval from the BEM to permit the foreign engineer to be
reassigned to a new project. In the case where upon the completion of a project, a new
sponsor desires to employ the foreign engineer for another project, the new sponsor must
submit a fresh application to the Board in the usual manner.
125
The requirements for obtaining temporary registration are as follows:
(i)
He holds the necessary qualifications which are recognised for practice as a
Professional Engineer in the country where he normally practises.
(ii)
He possesses the necessary expertise and has a minimum of 10 years experience in
the field he intends to practise.
(iii)
His physical presence is required in Malaysia for not less than 180 days in one
calendar year.
(iv)
He is employed as an engineer and has been assigned to a specific project by a
particular company.
(v)
He is sponsored by a local Professional Engineer in the company which offers him
the assignment.
(vi)
The sponsor to confirm that no local expertise is available and to attach local
engineers to be trained by the Temporary Professional Engineer.
Any foreign engineer, who is not satisfied with the decision of BEM in rejecting his
application for temporary registration or the renewal of such registration, may appeal to
the Minister of Works through the Registrar’s office. All such appeals must be made within
21 days of being notified of the rejection.
The certificate of registration expires on 31st December of each year regardless of whether
the project is completed or otherwise.
Before the expatriates apply for the employment pass, the company or organisation must
apply for approval of the related post from Expatriate Committee of the Immigration
Department.
Upon approval of the expatriate post, companies should forward their applications for
globally competitive and resilient small and medium enterprises (SMEs). Initiatives and
programmes by the government are directed towards addressing constraints and
enhancing capabilities of SMEs in areas such as financial accessibility, advisory services,
marketing, technology and ICT.
126
Financial Assistance in the form of grants and soft loans are provided by the Ministry of
(a)
(b)
(c)
(d)
(e)
Soft Loan for SMEs
(i)
(ii)
(iii)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
government and the
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
127
Types of Financial
Assistance Schemes
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
Description
The scheme provides
Forms of Assistance
is RM250,000.
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
years
of existing loan
75%
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
contact details.
128
below:
(i)
(ii)
18 years of age
(iii)
(iv)
(v)
(vi)
fund are:
(i)
(ii)
(iii)
(iv)
details.
129
to a maximum of RM1 million per company per brand (for SMEs only), or 50%
reimbursable grant of up to a maximum of RM2 million per company per brand (for nonSMEs).This scheme is extended to all services. The BPG will only be granted to eligible
brands identified to be assisted by the Brand Grant Approval Committee.
(i)
(ii)
(iii)
(iv)
report)
(v)
(vi)
develop the brand into an international brand.
(vii) Products/services should originate from Malaysia.
Eligible expenses:
(i)
(ii)
130
•
•
•
Media strategy
•
•
•
Brand Development:
•
•
•
•
(iii)
(iv)
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
(i)
Incorporated under Companies Act, 1965 or under Business Ordinance, 1956
(ii)
employees
(iii)
(i)
(ii)
(iii)
(iv)
(v)
Participation in overseas international tenders.
131
7.5 Tax Incentives
Incentives for Energy Conservation
Companies undertaking the following activities are eligible to be considered for incentives
under the Promotion of Investments Act, 1986:•
Undertake energy efficiency/energy conservation projects on behalf of clients
(including financing) on the basis of recovery of all costs from agreed sharing of
energy efficiency/energy conservation savings over a specified contract period based
on the performance contract.
•
If the performance contracting services undertaken involve services such as
consultancy and advisory services (energy audit, training, energy management
services, feasibility studies project) and project management (design and tendering,
procurement, supervision and commissioning of the project), these services can also
be taken into account for consideration of tax incentives.
Companies providing these services are eligible for:(a)
Pioneer Status
Companies granted Pioneer Status enjoys tax exemption on 70% of the statutory income
for a period of five (5) years.
Applications received from companies located in the promoted areas i.e. the States of
Sabah and Sarawak, and the designated "Eastern Corridor" of Peninsular Malaysia, will
enjoy a 100% tax exemption on their statutory income during their 5-year exemption
period. All project applications received by 31 December 2010 will be eligible for this
incentive.
(b)
Investment Tax Allowance
As an alternative to Pioneer Status, a company can also apply for Investment Tax
Allowance (ITA). The ITA provides an allowance of 60% on the qualifying capital
expenditure (such as expenditure on factory, plant, machinery or other equipment used for
the approved project) incurred within five (5) years from the date the first qualifying capital
expenditure is incurred.
132
The company can offset this allowance against 70% of its statutory income in the year of
assessment. Any unutilised allowance can be carried forward to subsequent years until the
whole amount is used up. The remaining 30% of its statutory income will be taxed at the
prevailing company tax rate.
Applications received from companies located in the promoted areas i.e. the States of
Sabah and Sarawak, and the designated "Eastern Corridor" of Peninsular Malaysia, will
enjoy an allowance of 100% on the qualifying capital expenditure incurred within a
period of five (5) years. The allowance can be utilised to offset against 100% of the
statutory income for each year of assessment. All project applications received by 31
December 2010 will be eligible for this incentive.
The company is required to implement the project within one year from the date of
approval of the incentive.
(i)
(ii)
The services and/or projects must be implemented within one (1) year of approval.
The incentives apply to applications received by 31 December 2010
(iii)
The companies must carry out performance contracting services to conserve energy
Applications should be submitted to Malaysian Industrial Development Authority (MIDA).
engineering and integrated engineering services that are provided by partnership or sole
proprietors registered with Registrar of Business (ROB) under CCM.
Companies engaged in engineering consultancy services are given tax exemption of
133
Application
Where to Apply
Form(s)
Licensing and
Registration
(CCM)
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Form A
• Partnership
CCM
Form A
• Local Company
CCM
Form 13 A
• Foreign Company
CCM
Form 13 A
134
• Engineering
Consultancy
Practice
Board of Engineers Malaysia (BEM)
Tingkat 17, Ibu Pejabat JKR
Kompleks Kerja Raya Malaysia
50580 Kuala Lumpur
Tel : (603) 2696 7095
(603) 2696 7096
(603) 2696 7097
(603) 2696 7098
Fax : (603) 2692 5017
Website : www.bem.org.my
Email : bem1@jkr.gov.my
enquiry@bem.org.my
Form E
• Government
Procurement
Registration Unit
Management Division
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Application must
be made through
Application
• Registration with
PETRONAS
• Service Tax
Licence
Where to Apply
PETRONAS, Registration &
Licensing Department
Group Tenders & Contracts
Level 66, Tower 1
PETRONAS Twin Towers
50088 Kuala Lumpur
Tel : (603) 2331 4515
Fax : (603) 2331 2440
Website : www.petronas.com.my
Form(s)
Form BTK
Prescribed Form
Block 2G1B
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Form JKED 1
Level 1, Block D5
Federal Government
60502 Putrajaya
Tel : (603) 8888 2944
(603) 8888 2916
Fax : (603) 8888 3917
Form FIC S2004
FIC
Form FIC R/2004
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of time
to comply equity
condition imposed
by FIC)
135
Application
• General
Agreement on
Trade in Services
(GATS)
Where to Apply
Form(s)
and Industry
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
Procedures
BEM
• Temporary
Professional
Engineers
Form B2
• Employment Pass
Application
Malaysia
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Form DP10
• Endorsement of
Employment Pass
Form DP11
Or
Or
Form IM8 & IM38
Form DP 8
Planning and
Development
(ITAF 1)
136
(SMIDEC)
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
Where to Apply
Form(s)
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
for ICT Adoption
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
MIDF
Loan Enquiry Form
Loan Enquiry Form
• MARA Financing
Scheme
50609 Kuala Lumour
Tel : (603) 2691 5111
Fax : (603) 2691 3620
Website: www.mara.gov.my
Form RP 2P
• Graduate
Entrepreneur
Scheme
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Register for
Scheme
137
Application
• Brand Promotion
Grant (BPG)
• Market
Development
Grant (MDG)
Where to Apply
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
MATRADE
Form(s)
Form BPG1/05
Form MDG 1/05
Tax Incentives
• Incentive for
Energy
Conservation
Authority (MIDA)
Block 4, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel : (603) 2267 3633
Fax : (603) 2274 7970
Website : www.mida.gov.my
Email : promotion@mida.gov.my
Form EC 2001
on Promotion of
Export of Services
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
Form
DD/POE/PS/2003-1
the Value of
Increased Exports
138
IRB
Form EX/AIES/2003-1
Section 8
Management
8.1
•
•
•
•
8.2
Service Tax Licence
Equity Policy
•
•
8.3
8.4
•
•
•
8.5
Tax Incentives
•
•
•
8.6
Incentive for MSC Status Companies
8
MANAGEMENT CONSULTANCY
SERVICES
Business and management consultancy services (classified under code 7414, Malaysia
Standard Industrial Classification) include the provision of advice, guidance or operational
assistance to businesses. These activities involve public relations, for example through
image building and opinion moulding, to improve the relations of the client with the
public, media or others, other than by paid advertisements, welfare and charity affairs,
politics, lobbying; activities in connection with planning, organising, efficiency and
control, management information; combined management consultancy and actual
management, for example by agronomists and agricultural economists to farm; arbitration
and conciliation between management and labour; and activities of management holding
companies. It excludes the following:
(a)
Computer activities which are classified in the appropriate item in Division 72:
Computer and related activities.
(b)
Legal advice and representation which are classified in Item 74110: Legal services.
(c)
Accounting, book-keeping and auditing activities and taxation consultancy which
are classified in Item 74120: Accounting, book-keeping and auditing activities and;
taxation consultancy.
(d)
Market research and public opinion polling which are classified in Item 74130:
Market Research and public opinion polling.
(e)
Technical advisory activities which are classified in Item 74211: Architectural
consultancy services or in Item 74212: Engineering consultancy services.
(f)
Advertising activities which are classified in Item 74300: Advertising.
The setting up of a company providing management consultancy services requires the
party (individual or individuals) to register with Companies Commission of Malaysia
(CCM) under the Registration of Business Ordinance, 1956, or incorporate a company
under the Companies Act, 1965. A foreign company cannot carry on business in Malaysia
unless it incorporates a local company or registers the company in Malaysia with CCM.
Foreign company means a company, corporation, society, association or other body
incorporated outside Malaysia which under the law of its place of origin may sue or be
sued. For a foreign company to register a company in Malaysia, the same registration
procedures pertaining to the registration of a locally incorporated company apply.
Any management consultancy services firms wishing to tender for government contracts
must register with the Ministry of Finance (MOF) using the codes specified by MOF.
142
Management Consultancy Services
Multi-discipline
Code
231500
Description
Environmental Research
Social Economy
Code
Description
240200
Organisational Management
240300
Management, Privatisation & Corporate
240400
Economy Management
240500
Socio-economy Management
240600
Marketing and Research Management
241100
Human Resource Management
241200
Training Management
241300
Course/Seminar & Educational Management
241500
Hotel Management
241600
Tourism Management
241900
Culture, Arts & Handicraft
242100
Marine Management
242600
Safety Management
243400
Traffic Management
243500
Quality Management
243800
Hospital Management
243900
Library Management
244000
Statistic Management
Finance
Code
Description
240700
Finance Management
242700
Value Management
243100
Property Evaluation & Management
243300
Land Property Management
143
Agriculture
Code
Description
242200
Forest Management
242300
Agriculture Management
242400
Agriculture Development
242800
Natural Resource and Garden Management
243200
Food Technology
243600
Technology Development Management
243700
Energy Management
Multimedia and Communications
Code
Description
241700
Public Relations
242200
Documentary Firm
242500
Transport Management
242900
Telecommunication
(i)
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
-
RM20,000 and above
•
Environmental research
management
-
RM100,000 and above
(ii)
(iii)
(iv)
(v)
(vi)
All shareholders or partners are required to possess at least five (5) years of working
experience upon obtaining their academic degree. For Environmental Management
expertise, a minimum of ten (10) years of working experience is required.
(vii) Application by firms with shareholding under nominee or corporate is not
Institution.
144
(viii) Shareholder must also be a full time Executive Director.
(ix)
For professions whose ethics of service are not governed by any Professional Boards,
the field of expertise applied for registration is based on the academic qualifications
or working experience of the owner or the partners of the partnership
(x)
(i)
the CCM.
(ii)
•
citizens.
•
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
(iv)
(v)
145
Service Tax Licence
the Service Tax Regulation, 1975, companies that provide management consultancy
services that generate a total annual sales turnover of RM150,000 or more are required to
obtain a Service Tax Licence. The rate of the service tax is 5% on the value of the services
rendered. Consultancy services provided by a company to companies within the same
group will be exempted from the current service tax of 5%.
8.2 Equity Policy
the country.
As a signatory to General Agreement on Trade in Services (GATS), Malaysia allows
foreigners to provide management consultancy services (CPC 86501) in Malaysia subject
to the Schedule of Specific Commitments. There are no restrictions under cross border
supply (mode 1) and consumption abroad (mode 2). Management consulting services may
be supplied only by natural person subject to the horizontal commitment. Foreign
investment in management consultancy services can be made only through a locally
incorporated joint-venture corporation with Malaysian individuals or Malaysian controlled
corporations or both and Bumiputera shareholding in the joint-venture corporation is at
least 30%.
1
Covering advisory, guidance and operational assistance services concerning management of the transmission
of non-conventional energy; on environmental management services including risk assessment services
146
Companies providing management consultancy services in Malaysia may employ expatriates.
The company must submit its applications for Employment Passes to the Immigration Department.
Before applying for the employment pass for expatriates, the company or organisation must
Department. Companies which already acquired the MSC status must apply for approval
of the related post from MSC Management Services Sdn Bhd (MSCMS) under the
Multimedia Development Corporation (MDC).
Important post will be considered if the foreign paid-up capital are at least RM500,000.
However, this sum is only a guideline and the number of important posts applied is
dependent on the company's needs. Application is considered on a case-by-case basis.
(a)
(b)
(c)
(d)
(e)
Soft Loan for SMEs
147
(i)
(ii)
(iii)
Additional financial assistance schemes are available for SMEs under the Special
Assistance Scheme for Women Entrepreneurs other than the above five financial assistance
schemes:
(a)
Grant for Enhancing Product Packaging, Design and Labeling Capabilities of SMEs
(b)
Grant for Development and Promotion of Halal Product
(c)
Grant for Enhancing Marketing Skills of SMEs
Additional qualifying criteria are as follows:
(i)
(ii)
For a 100% owned Malaysian company:
•
A minimum of 51% of the equity must be held by the woman/women or
•
In the case where the majority equity is not held by the woman/women
-
The largest single shareholder must be a woman and the company is run
and managed by a woman or
-
The Managing Director (MD)/Chief Executive Officer (CEO) is a woman
and has a minimum equity of 10% in the company
For 60% Malaysian owned company:
•
A minimum of 51% of the local equity must be held by the woman/women
and the company is run and managed by a woman or
•
The MD/CEO must be a woman and she must hold a minimum of 10% in the
company
•
For existing business of minimum period of one year, grants are offered for
expansion programmes
148
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
Government and the
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
is RM250,000.
(d) Grant for
Enhancing
Product
Packaging,
Design and
Labeling
Capabilities of
SMEs
The scheme provides
assistance to SMEs to acquire
and improve product
packaging, design and
labeling. It enables companies
to improve their product
packaging to enhance product
appearance and comply with
market regulations. A total of
RM100 million has been
allocated to implement the
scheme.
government and the
(e) Grant for
Development
and Promotion of
Halal Product
The scheme is introduced to
encourage SMEs in the
development and promotion
of halal products (food and
non-food). A total of RM10
million has been allocated to
implement the Scheme.
government and the
149
(ii) Institute of Global Management (IGM)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
(a) Grant for
Enhancing
Marketing Skills of
SMEs
assistance for SMEs to
improve their marketing
strategies to compete in both
the domestic as well as export
markets.
50% of the cost of training is
borne by the government and
the remainder by the
applicant.
(iii) Malaysian Industrial Development Finance Berhad (MIDF)
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
years
of existing loan
75%
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
contact details.
150
fund are:
(i)
(ii)
(iii)
(iv)
details.
(i)
(ii)
(iii)
(iv)
report)
(v)
(vi)
Eligible expenses:
(i)
•
•
151
(ii)
(iii)
(iv)
•
Media strategy
•
•
•
Brand Development:
•
•
•
•
Brand Promotion:
•
•
•
Enhancement of Brand Website (maximum grant RM50,000.00)
•
•
Research
•
Brand Tracking
8.5 Tax Incentives
The general tax incentives applicable to services are presented below. All claims relating
to tax incentives should be submitted to the Inland Revenue Board (IRB). Please refer
Section 8.6 for contact details.
Incentive for Multimedia Super Corridor (MSC) Status Companies
152
(i)
Be a Provider or a Heavy User of Multimedia Products and Services.
(ii)
Employ a substantial number of knowledge workers.
(iii)
Provide technology transfer and/or contribute towards the development of the MSC
or support Malaysia's k-economy initiatives.
(iv)
Establish a separate legal entity for the MSC qualifying multimedia business and
activities.
(v)
Locate in a MSC designated cybercity.
(vi)
Comply with environmental guidelines.
MSC Status companies may enjoy the following financial incentives:
(i)
Five-year exemption from Malaysian income tax, renewable to 10 years, or a 100%
Investment Tax Allowance (ITA) of qualifying capital expenditures from its statutory
income for five years
(ii)
Duty-free importation of multimedia equipment
(iii)
Eligibility for R&D grants
Other benefits:
(i)
Intellectual property protection and a comprehensive framework of cyberlaws
(ii)
No censorship of the Internet
(iii)
World-class physical and IT infrastructure
(iv)
High-powered implementation agency, the Multimedia Development Corporation
(MDC), to provide consultancy and assistance within MSC
(v)
A well-planned high quality urban development
(vi)
Excellent R&D facilities
(vii) A green and protected environment
Application should be submitted to MDC. Please refer Section 8.6 for contact details.
registered with CCM.
Companies engaged in management consultancy services are given tax exemption on the
153
Application
Where to Apply
Form(s)
Licensing and
Registration
(CCM)
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Form A
• Partnership
CCM
Form A
• Local Company
CCM
Form 13 A
• Foreign Company
CCM
Form 13 A
• Government
Procurement
• Service Tax
Licence
154
Registration Unit
Management Division
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Block 2G1B
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Application must
be made through
Prescribed Form
Form JKED 1
Application
Where to Apply
Form(s)
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of time
to comply equity
condition imposed
by FIC)
• General
Agreement on
Trade in Services
(GATS)
Level 1, Block D5
Federal Government
60502 Putrajaya
Tel : (603) 8888 2944
(603) 8888 2916
Fax : (603) 8888 3917
Form FIC S2004
FIC
Form FIC R/2004
and Industry
12th, Floor, Block 10
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
Procedures
• Employment Pass
Application (MSC
Status Companies)
MSC Management Services Sdn Bhd
(MSCMS)
Stage One Processing Team
Suite F 01-02, First Floor
2300 Century Square
Jalan Usahawan
63000 Cyberjaya
Tel : (603) 8313 7200
Fax : (603) 8313 7299
Website : www.mscms.com.my
Email : info@mscms.com.my
Pass Application Form
155
Application
Where to Apply
Form(s)
• Employment Pass
Application
Malaysia
62550 Putrajaya, Federal Territory
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Form DP10
• Endorsement of
Employment Pass
Form DP11
Or
Or
Form IM8 & IM38
Form DP 8
Planning and
Development
(ITAF 1)
156
(SMIDEC)
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
Application
Where to Apply
Form(s)
• Grant for Enhancing
Product Packaging
Design and
Labelling
Capabilities of SMEs
SMIDEC
Grant for Enhancing
Product Packaging
Design and Labelling
Form
• Grant for
Development
and Promotion of
Halal Product
SMIDEC
Grant for Development
and Promotion of
Halal Product Form
• Grant for
Enhancing
Marketing Skills
of SMEs
Institute of Global Management
(IGM)
No. 39 & 41, 1st & 2nd Floor
Jalan USJ 21/10, City Centre
UEP Subang Jaya, P.O Box 8629
46794 Petaling Jaya
Selangor
Tel : (603) 8024 0060
Fax : (603) 8024 0086
Website : www.igm.edu.my
Email : igmedu@tm.net.my
for ICT Adoption
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
• Soft Loan for Small
and Medium
Enterprises
• Graduate
Entrepreneur
Scheme
MIDF
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
-
Loan Enquiry Form
Loan Enquiry Form
Register for
Scheme
157
Application
Where to Apply
Form(s)
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Form BPG1/05
• Incentive for MSC
Status Companies
Multimedia Development
Corporation Sdn Bhd (MDC)
MSC Headquarters
2360 Persiaran APEC
63000 Cyberjaya
Tel : (603) 8315 3000
Fax : (603) 8318 8519
Website : www.mdc.com.my
Email : info@mdc.com.my
Pre-Application Form
on Promotion of
Export of Services
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
Form
DD/POE/PS/2003-1
• Brand Promotion
Grant (BPG)
Tax Incentives
the Value of
Increased Exports
158
IRB
Application Form
Form EX/AIES/2003-1
Section 9
Market
Research Services
9.1
•
•
•
•
9.2
Service Tax Licence
Equity Policy
•
•
•
9.3
9.4
•
•
•
9.5
Tax Incentives
•
•
9.6
9
MARKET RESEARCH SERVICES
Market research services (classified under code 86401, Central Product Classification) is
defined as the investigation services designed to secure information on the prospects and
performance of an organisation's products in the market. It includes market analysis (size
and other characteristics of a market) and analysis of consumer attitudes and preferences
utilising personal interviews, telephone and mail surveys, historical data, etc. Economic
and social intelligence services not in connection with merchandised products, such as
industry analysis, econometric modeling, demographic analysis, etc., are also included. It
excludes public opinion polling services classified in subclass 86402.
The setting up of a company providing market research services requires the party
(individual or individuals) to register with Companies Commission of Malaysia (CCM)
under the Registration of Business Ordinance, 1956, or incorporate a company under the
Companies Act, 1965. A foreign company cannot carry on business in Malaysia unless it
incorporates a local company or registers the company in Malaysia with CCM. Foreign
company means a company, corporation, society, association or other body incorporated
outside Malaysia which under the law of its place of origin may sue or be sued. For a
foreign company to register a company in Malaysia, the same registration procedures
pertaining to the registration of a locally incorporated company apply.
Any market research services firms wishing to tender for government contracts must
register with the Ministry of Finance (MOF) under code 240600 for Marketing and
Research Management.
(i)
162
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
-
RM20,000 and above
(ii)
(iii)
(iv)
(v)
(vi)
Market Research Services
Institution.
(ix)
or working experience of the owner or the partners of the partnership.
(x)
(i)
the CCM.
(ii)
•
citizens.
•
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
163
(iv)
(v)
Service Tax Licence
the Service Tax Regulation, 1975, companies that provide market research services that
generate a total annual sales turnover of RM150,000 or more are required to obtain a
Consultancy services provided by a company to companies within the same group will be
exempted from the current service tax of 5%.
9.2 Equity Policy
the country.
foreigners to provide market research services (CPC 864) in Malaysia subject to the
Schedule of Specific Commitments. There are no restrictions under cross border supply
(mode 1) and consumption abroad (mode 2). Market research services may be supplied
only by natural person subject to the horizontal commitment. Foreign investment in
market research services can be made only through a locally incorporated joint-venture
corporation with Malaysian individuals or Malaysian controlled corporations or both and
Bumiputera shareholding in the joint-venture corporate must exceed 30%.
164
As a signatory to ASEAN Framework Agreement on Services (AFAS), Malaysia allows
foreign professionals within ASEAN to provide market research services (CPC 864) in
Malaysia subject to the ASEAN Service Commitments. There are no restrictions under cross
border supply (mode 1) and consumption abroad (mode 2). Market research services may
be supplied only by natural person subject to the horizontal commitment. Foreign
investment in market research services can be made only through a locally incorporated
joint-venture corporation with Malaysian individuals or Malaysian controlled corporations
or both with foreign equity up to 35%.
Companies providing market research services in Malaysia may employ expatriates. The
company must submit its applications for Employment Passes to the Immigration
Department.
Department.
Important post will be considered if the foreign paid-up capital are at least RM 500,000.
165
Eight different types of financial schemes are available for SMEs:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Soft Loan for SMEs
(i)
Companies providing manufacturing related services incorporated under the
Companies Act, 1965 with annual sales turnover of not exceeding RM25 million or
full-time employees not exceeding 150
(ii)
(iii)
(iv)
Additional qualifying criteria are required under the Special Assistance Scheme for Women
Entrepreneurs:
(i)
(ii)
•
•
-
In the largest single shareholder must be a woman and the company is
run and managed by a woman or
-
•
•
company
•
166
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
government and the
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
is RM250,000.
(d) Grant for
Enhancing
Product
Packaging,
Design and
Labeling
Capabilities of
SMEs
The scheme provides assistance
to SMEs to acquire and
improve product packaging,
design and labeling. It enables
companies to improve their
product packaging to enhance
product appearance and
comply with market
regulations. A total of RM100
government and the
(e) Grant for
Development
and Promotion of
Halal Product
government and the
167
Types of Financial
Assistance Schemes
Description
Forms of Assistance
(a) Grant for
Enhancing
Marketing Skills of
SMEs
assistance for small and
medium enterprises (SMEs) to
markets.
applicant.
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
years
of existing loan
75%
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
contact details.
168
fund are:
(i)
(ii)
(iii)
(iv)
details.
(i)
(ii)
(iii)
(iv)
report)
(v)
(vi)
Eligible expenses:
(i)
•
169
(ii)
(iii)
(iv)
•
•
Media strategy
•
•
•
Brand Development:
•
•
•
•
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
9.5 Tax Incentives
Companies engaged in market research services are given tax exemption on the statutory
income equivalent to 50% of the value of increased exports.
170
Application
Where to Apply
Form(s)
Licensing and
Registration
(CCM)
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Form A
• Partnership
CCM
Form A
• Local Company
CCM
Form 13 A
• Foreign Company
CCM
Form 13 A
• Government
Procurement
• Service Tax
Licence
Registration Unit
Management Division
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Block 2G1B
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Application must
be made through
Prescribed Form
Form JKED 1
171
Application
Where to Apply
Form(s)
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of time
to comply equity
condition imposed
by FIC)
• General
Agreement on
Trade in Services
(GATS)
Level 1, Block D5
Federal Government
60502 Putrajaya
Tel : (603) 8888 2944
(603) 8888 2916
Fax : (603) 8888 3917
Form FIC S2004
FIC
Form FIC R/2004
and Industry
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
-
Malaysia
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Form DP10
Procedures
• Employment Pass
Application
172
Application
• Endorsement of
Employment Pass
Where to Apply
Form(s)
Form DP11
Or
Or
Form IM8 & IM38
Form DP 8
Planning and
Development
(ITAF 1)
(SMIDEC)
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
Product Packaging
Design and
Labeling
SMIDEC
Grant for Enhancing
Product Packaging
Design and Labeling
Form
• Grant for
Development
and Promotion of
Halal Product
SMIDEC
and Promotion of
Halal Product Form
173
Application
• Grant for
Enhancing
Marketing Skills
of SMEs
(IGM)
No. 39 & 41, 1st & 2nd Floor
46794 Petaling Jaya
Selangor
Tel : (603) 8024 0060
Fax : (603) 8024 0086
for ICT Adoption
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
• Graduate
Entrepreneur
Scheme
174
Where to Apply
MIDF
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Form(s)
-
Loan Enquiry Form
Loan Enquiry Form
Register for
Scheme
Application
• Brand Promotion
Grant (BPG)
Where to Apply
Form(s)
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Form BPG1/05
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
Form
DD/POE/PS/2003-1
Tax Incentives
on Promotion of
Export of Services
the Value of
Increased Exports
IRB
Form EX/AIES/2003-1
175
Section 10
Advertising
10.1
•
•
•
•
10.2
Service Tax Licence
Equity Policy
•
•
10.3
10.4
•
•
•
10.5
Tax Incentives
•
•
10.6
Advertising Practice
10.7
10
ADVERTISING
Advertising (classified under code 74300, Malaysia Standard Industrial Classification)
refers to the provision of advertising services by advertising agency. Advertising agency
activities encompass creating and placing advertisement in periodicals, newspapers, radio,
television and outdoor advertising. Its activities also include media representation, aerial
advertising, distribution or delivery of advertising materials or samples, and renting of
spaces for advertisement. Outdoor advertising refers to billboards, panels, bulletins and
frames, window dressing, showroom design, car and bus carding, etc. Media
representation refers to sale of time and space for various media soliciting advertising. It
excludes the following:
(a)
Printing of advertising material which is classified in Item 22210: Printing.
(b)
Market research which is classified in Item 74130: Market research and public
opinion polling.
(c)
Public relations activities which are classified in Item 74143: Public relations
consultancy services.
(d)
Direct mailing activities which are classified in Item 74992: Bill collecting, credit
rating, direct mailing, mail advertising and similar activities.
(e)
Production of commercial messages for radio, television and film which are
classified in the appropriate items of Group 921: Motion picture, radio, television
and other entertainment activities.
10.1Licensing and Registration
The setting up of a company providing advertising services requires the party (individual
or individuals) to register with Companies Commission of Malaysia (CCM) under the
Registration of Business Ordinance, 1956, or incorporate a company under the Companies
Act, 1965. A foreign company cannot carry on business in Malaysia unless it incorporates
a local company or registers the company in Malaysia with CCM. Foreign company means
a company, corporation, society, association or other body incorporated outside Malaysia
which under the law of its place of origin may sue or be sued. For a foreign company to
register a company in Malaysia, the same registration procedures pertaining to the
registration of a locally incorporated company apply.
Any advertising agencies wishing to tender for government contracts must register with the
Ministry of Finance (MOF) under code 241800 for Design and Advertising.
(a) Conditions that must be fulfilled for registration with MOF
(i)
178
Advertising
•
Sole proprietorship
-
RM10,000 and above
•
Partnership
-
RM20,000 and above
•
-
RM20,000 and above
(ii)
(iii)
(iv)
(v)
(vi)
Institution.
(ix)
or working experience of the owner or the partners of the partnership.
(x)
(i)
the CCM.
(ii)
•
citizens.
•
Advertising
179
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
(iv)
(v)
Service Tax Licence
the Service Tax Regulation, 1975, companies that provide advertising services that
generate a total annual sales turnover of RM150,000 or more are required to obtain a
Consultancy services provided by a company to companies within the same group will be
exempted from the current service tax of 5%. In addition, the provision of advertising
services for promotion outside Malaysia is also exempted from the service tax.
10.2Equity Policy
the country.
180
Advertising
foreigners to provide advertising services (CPC 8711, 8712, 8719) subject to the Schedule
of Specific Commitments. Foreigners can only provide cross border supply (mode 1)
through commercial presence. There is no restriction under consumption abroad (mode 2).
Advertising services may be supplied only by natural person subject to the horizontal
commitment. Foreign investment in advertising services can be made only through a
locally incorporated joint-venture corporation with Malaysian individuals or Malaysian
controlled corporations or both and the aggregate foreign shareholding in the joint-venture
corporation shall not exceed 30%. For advertisement through electronic media, it must
have at least 80% local content and be made in Malaysia.
10.3Specific Immigration Procedures
Companies providing advertising services in Malaysia may employ expatriates. The
company must submit its applications for Employment Passes to the Immigration
Department.
Department.
Important post will be considered if the foreign paid up capital are at least RM 500,000.
10.4Financial Assistance
Advertising
181
(a)
(b)
(c)
(d)
(e)
Soft Loan for SMEs
(i)
(ii)
(iii)
Additional financial assistance schemes are available for SMEs under the Special
Assistance Scheme for Women Entrepreneurs other than the above five financial assistance
schemes:
(a)
(b)
(c)
Additional qualifying criteria are as follows:
(i)
(ii)
•
•
-
The largest single shareholder must be a woman and the company is run
and managed by a woman or
-
•
•
company
•
182
Advertising
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Planning and
Development
(ITAF 1)
The scheme provides
market development.
government and the
and Process
Improvement
(ITAF 2)
The scheme provides
is RM500,000.
(c) Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
The scheme provides
is RM250,000.
(d) Grant for
Enhancing
Product
Packaging,
Design and
Labeling
Capabilities of
SMEs
The scheme provides assistance
to SMEs to acquire and improve
product packaging, design and
labeling. It enables companies
to improve their product
packaging to enhance product
appearance and comply with
market regulations. A total of
RM100 million has been
allocated to implement the
scheme.
government and the
(e) Grant for
Development
and Promotion of
Halal Product
implement the scheme.
government and the
Advertising
183
Types of Financial
Assistance Schemes
Description
Forms of Assistance
(a) Grant for
Enhancing
Marketing Skills of
SMEs
assistance for SMEs to
markets.
applicant.
Types of Financial
Assistance Schemes
Description
Forms of Assistance
Adoption
Loan:
years
of existing loan
75%
capital financing.
Minimum : RM50,000
Maximum :
million (including
up to RM250,000)
- RM1 million
contact details.
184
Advertising
fund are:
(i)
(ii)
(iii)
(iv)
details.
(i)
(ii)
(iii)
(iv)
report)
(v)
(vi)
Advertising
185
Eligible expenses:
(i)
(ii)
(iii)
(iv)
•
•
•
Media strategy
•
•
•
Brand manual & information system
Brand Development:
•
•
•
•
Brand Promotion:
•
•
•
•
•
Research
•
Brand Tracking
10.5Tax Incentives
186
Advertising
Companies engaged in advertising services are given tax exemption on the statutory
income equivalent to 50% of the value of increased exports.
10.6Advertising Practice
The Malaysian Code of Advertising Practice is a fundamental part of the system of control
by which the advertising activities are regulated in Malaysia. It is administered by the
Advertising Standards Authority Malaysia (ASAM). It does not cover publicity for products
which appear in media otherwise than in space or time paid by advertisers. Please contact
the ASAM for details of the code.
Outdoor advertising guidelines and approvals are under the auspices of respective state
government / local authorities.
Government-owned television and radio have their own Advertising Code (Kod
Pengiklanan) which is under the control of the Ministry of Information.
Advertisements communicated electronically, which include private-owned television and
radio, online services and audiotext hosting services otherwise referred to as premium rate
services, have their own Content Code which is administered by the Malaysian
Communications & Multimedia Content Forum (CMCF) of Malaysia.
Commercials must have at least 80% local content and be made in Malaysia if they wish
to qualify as a Made-in Malaysia advertisement according to the Made-in Malaysia (MIM)
rules under Perbadanan Kemajuan Filem Nasional Malaysia (FINAS).
The Film Censorship Board (Lembaga Penapisan Filem) has its own Film Censorship
Guidelines (Garis Panduan Penapisan Filem).
General guidelines to be followed by the companies providing advertising services are:
1.
All advertisement shall be legal, decent, honest and truthful.
2.
Advertisements must project the Malaysian culture and identity, reflect the multiracial character of the population and advocate the philosophy of “RUKUNEGARA”
which reads as follows: •
Believe in God
•
Loyalty to King and Country
•
Upholding the Constitution
•
Rule of Law
•
Good Behaviour and Morality
Advertising
187
3.
Advertisement must not identify or type-cast each particular racial group or sex with
vocations, traditional values and backgrounds.
4.
A list of statutes affecting advertising is set out. Particular attention is drawn to the
Trade Description Act.
5.
Advertisements must comply in every respect with the Law, common or statute.
Advertising should not propagate fraudulent trade practice.
6.
No advertising material which tends to offend the proprieties of ethics generally
observed by the community or contain terms, words or subject matter not generally
considered acceptable in polite conversation shall be accepted.
7.
All advertisement shall be prepared with a sense of responsibility to the consumer.
8.
All advertisement shall conform to the principles of fair competition as generally
accepted in business.
9.
No advertisement shall bring advertising into disrepute or reduce confidence in
advertising as a service to the industry and to the public.
10.
Advertisements must be clearly distinguishable as such.
10.7Application Procedures
Application
Where to Apply
Form(s)
Licensing and
Registration
(CCM)
100 Jalan Putra
50622 Kuala Lumpur
Tel : (603) 4047 6000
Fax : (603) 4047 6317
Form A
• Partnership
CCM
Form A
• Local Company
CCM
Form 13 A
• Foreign Company
CCM
Form 13 A
188
Advertising
Application
• Government
Procurement
• Service Tax
Licence
Where to Apply
Registration Unit
Management Division
62592 Putrajaya
Tel : (603) 8882 3166
(603) 8882 4341
(603) 8882 4339
Form(s)
Application must
be made through
Prescribed Form
Block 2G1B
62596 Putrajaya
Tel : (603) 8882 2100
(603) 8882 2300
(603) 8882 2500
Fax : (603) 8889 5899
(603) 8889 5901
Form JKED 1
Level 1, Block D5
Federal Government
60502 Putrajaya
Tel : (603) 8888 2944
(603) 8888 2916
Fax : (603) 8888 3917
Form FIC S2004
FIC
Form FIC R/2004
Equity Policy
• Acquisitions,
Mergers and
Takeovers
• Appeal
(Application for
extension of time
to comply equity
condition imposed
by FIC)
Advertising
189
Application
Where to Apply
Form(s)
and Industry
Jalan Duta
50622 Kuala Lumpur
Tel : (603) 6203 3053
Fax : (603) 6201 9920
-
• Employment Pass
Application
Malaysia
62550 Putrajaya
Tel : (603) 8880 1000
Fax : (603) 8880 1200
Form DP10
• Endorsement of
Employment Pass
Form DP11
Or
Or
Form IM8 & IM38
• General
Agreement on
Trade in Services
(GATS)
Procedures
Form DP 8
Planning and
Development
(ITAF 1)
190
Advertising
(SMIDEC)
No.5, Jalan SS21/39
Damansara Uptown
Damansara Utama
47400 Petaling Jaya
Tel : (603) 7628 7400
Fax : (603) 7660 1919
ITAF 1 Form
Application
Where to Apply
Form(s)
and Process
Improvement
(ITAF 2)
SMIDEC
ITAF 2 Form
• Grant for
Productivity and
Quality
Improvement and
Certification
(ITAF 3)
SMIDEC
ITAF 3 Form
Product Packaging
Design and
Labelling
SMIDEC
Grant for Enhancing
Product Packaging
Design and Labelling
Form
• Grant for
Development
and Promotion of
Halal Product
SMIDEC
and Promotion of
Halal Product Form
• Grant for
Enhancing
Marketing Skills
of SMEs
(IGM)
No. 39 & 41, 1st & 2nd Floor
46794 Petaling Jaya
Selangor
Tel : (603) 8024 0060
Fax : (603) 8024 0086
for ICT Adoption
Bangunan MIDF
50400 Kuala Lumpur
Tel : (603) 2161 0066
(603) 2161 1166
Fax : (603) 2161 5973
(603) 2161 3906
-
Loan Enquiry Form
Advertising
191
Application
Where to Apply
MIDF
Form(s)
Loan Enquiry Form
• Graduate
Entrepreneur
Scheme
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Tel : (603) 2615 2020
(603) 2615 2828
Fax : (603) 2692 8520
(603) 2698 1748
Register for
Scheme
• Brand Promotion
Grant (BPG)
(MATRADE)
Jalan Raja Laut
50350 Kuala Lumpur
Tel : (603) 2616 3333
Fax : (603) 2694 7363
Form BPG1/05
Malaysia (IRB)
15th Floor, Block 9
50758 Kuala Lumpur
Tel : (603) 6209 1000
Fax : (603) 6201 3798
Form
DD/POE/PS/2003-1
Tax Incentives
on Promotion of
Export of Services
the Value of
Increased Exports
192
Advertising
IRB
Form EX/AIES/2003-1
Application
Where to Apply
• Malaysian Code of
Advertising Standards Authority Malaysia
Unit 706, Block B
Pusat Dagangan Phileo Damansara I
9 Jalan 16/11, off Jalan Damansara
46350 Petaling Jaya, Selangor
Tel : (603) 7660 8535
Fax : (603) 7660 8532
• Advertising Code
Ministry of Information
Angkasapuri
50610 Kuala Lumpur
Tel : (603) 2282 5333
Fax : (603) 2282 1255
Website : www.kempen.gov.my
Email : webmaster@kempen.gov.my
• Content Code
Communications & Multimedia Content Forum of
Malaysia (CMCF)
Unit 706, Block B
Pusat Dagangan Phileo Damansara I
9 Jalan 16/11, off Jalan Damansara
46350 Petaling Jaya, Selangor
Tel : (603) 7660 8535
Fax : (603) 7660 8532
Website : www.cmcf.org.my
Email : secretariat@cmcf.org.my
• Guideline for the Application
& Issuance of the Made in
Malaysia Certificate (MIM)
Perbadanan Kemajuan Filem National Malaysia
(FINAS)
Kompleks Studio Merdeka
Jalan Hulu Kelang
68000 Jalan Ampang
Selangor
Tel : (603) 4108 5722
Fax : (603) 4107 5216
Website : www.finas.gov.my
Email : finas@po.jaring.my
• Film Censorship Guidelines
Film Censorship Board/Film Control Division
Ministry of Home Affairs
Level 3, Block D2, Parcel D
Federal Government Administrative Centre
62546 Putrajaya
Tel : (603) 8886 3330
Fax : (603) 8889 1685
Website : www.moha.gov.my
Email : bhg_c@moha.gov.my
Advertising
193
Appendices
A
Methods of Conducting Business in
Malaysia
B
Taxation
C
D
E
Banking, Finance and Exchange
Administration
F
G
H
General Agreement on Trade in
Services
Appendix A
Methods of Conducting
Business in Malaysia
1.
Methods of Conducting Business in Malaysia
In Malaysia, a business may be conducted:
2.
(i)
By an individual operating as a sole proprietor. This applies only to Malaysians who
are residents in Malaysia or foreigners who are permanent residents in Malaysia.
(ii)
By two (2) or more (but not more than 20) persons in a partnership. This applies only
to Malaysians who are residents in Malaysia or foreigners who are permanent
residents in Malaysia unless in very specific professional capacity such as solicitors.
(iii)
By a locally incorporated company or by a foreign company (i.e. branch office)
registered under the provisions of the Companies Act, 1965.
Sole Proprietorship and Partnership
All sole proprietorships and partnerships must be registered with the Companies
Commission of Malaysia (CCM) under the Registration of Business Act,1956. In the case of
partnerships, partners are both jointly and severally liable for the debts and obligations of
the partnership, should its assets be insufficient. Formal partnership deeds may be drawn
up to govern the rights and obligations of each partner, but this is not obligatory. In the
event of the death of an individual partner, the partnership is dissolved unless the
partnership agreement specifically provides otherwise. A partnership is not required to file
its financial statements in any public registry or to publish them in any other way. Only
Malaysians who are residents in Malaysia or foreigners who are permanent residents in
Malaysia may register a sole proprietorship or a partnership.
2.1
Procedure for Sole Proprietorship and Partnership
A person needs to obtain prior approval from the Commission for the purposed name of
the business. A complete Form A (Registration of New Business) must be return within 21
days from the date of approval of name. Form A includes all the following details:-
196
(i)
Particulars of applicants
(ii)
Date of business commencement
(iii)
Branch(es) of the business
(iv)
Nature of business
Appendix A
A person must submit a copy of permit, licence and letter of approval or supporting letter
when registering a business that requires special consent or approval. A person must attach
the following documents to CCM:(i)
Photocopy of Identity Card
(ii)
Photocopy of Partnership Agreement (if any)
(iii)
Letter from another agency (if any)
The registration fee for payable to the Companies Commission of Malaysia is as follows:-
3.
(i)
Sole Proprietorship using personal name as identity card – RM30
(ii)
Sole Proprietorship and Partnership using trade name – RM60
(iii)
Registration of Branches – RM5 per branch
(iv)
Certified copies of New Business Registration Certificate – RM10
Locally Incorporated Company
3.1
Company Structure
The Companies Act, 1965 governs all companies in Malaysia. The Act stipulates that a
person must register a company with CCM before it can engage in any business activity. It
provides for three (3) types of companies:(i)
A company limited by shares where the personal liability of its member is limited to
the par value of their shares and the number of shares taken or agreed to be taken
by them
(ii)
A company limited by guarantee where the members (shareholders) guarantee to
meet liabilities of up to the amount nominated in the company’s Memorandum and
Articles of Association in the event of the company being wound up
(iii)
An unlimited company where there is no limit to the members’ (shareholders’)
liability
3.2
Company Limited by Shares
The most common company structure in Malaysia is a company limited by shares. Such
limited companies may be either privately-held (Sendirian Berhad or Sdn. Bhd.), or publiclisted (Berhad or Bhd.) companies.
A company having a share capital may be incorporated as a private company if its
Memorandum and Articles of Association:(i)
Restricts the right to transfer its shares
(ii)
Limits the number of its owners to 50, excluding employees and some former
employees
(iii)
Prohibits any invitation to the public to subscribe for its shares and debentures
(iv)
Prohibits any invitation to the public to deposit money with the company
Appendix A
197
A public company may be formed or, alternatively, a private company may be converted
into a public company subject to Section 26 of the Companies Act, 1965. Such a company
can offer shares to the public provided:(i)
It has registered a prospectus with the Securities Commission
(ii)
It has lodged a copy of the prospectus with the CCM on or before the date of its issue
A public company can apply to have its shares quoted on Bursa Malaysia Berhad subject
to its compliance with the requirements laid down by the exchange. Any subsequent issue
of securities (e.g. by way of rights or bonus, or rising from an acquisition, etc.) requires the
approval of the Securities Commission.
3.3
Procedure for Incorporation of Local Company
Before proposing a name for incorporation of a company, a name search has to be done
to determine whether the name can be used to register the company. A person must
complete the Form 13A together with a payment of RM30 for each name applied.
A person must then lodge the following documents with CCM within three (3) months to
secure the use of the proposed name:(i)
198
Memorandum and Articles of Association (M&A);
•
Original copy stamped at any stamp office with a RM100 stamp in the
Memorandum and another RM100 in the Articles
•
The first Directors and Secretaries are named in the M&A
•
At least two Directors or more promoters shall sign the M&A
(ii)
Form 6 - Statutory Declaration of Compliances
(iii)
Form 48A - Statutory declaration by a director or promoter before appointment. The
Director and promoter declared under oath that:
•
He/she not a bankrupt; and
•
He/she has not been convicted at an offence and sentenced by the Court
(iv)
Original copy of 13A
(v)
A copy of letter approving the name issued by CCM
(vi)
A copy of Identity Card of each Director and company secretary
Appendix A
Capital duty for the authorised capital must also be paid to the CCM. The registration fee
for share capital payable to the CCM is as follows:
Authorised share capital (RM)
Up to 100,000
Fee Payable (RM)
1,000
100,001
-
500,000
3,000
500,001
-
1,000,000
5,000
1,000,001
-
5,000,000
8,000
5,000,001
-
10,000,000
10,000
10,000,000
-
25,000,000
20,000
25,000,001
-
50,000,000
40,000
50,000,001
- 100,000,000
50,000
100,000,001 and above
70,000
The Certificate of Incorporation will be issued when all the documents for registration are
in order. Form 8 will be issued for a public company while Form 9 for private company.
Once the Certificate of Incorporation is issued, the subscribers to the Memorandum,
together with such other persons who may from time to time become members of the
company, shall be a body corporate, capable of exercising the functions of an incorporated
company and of suing and being sued. It has a perpetual succession under common seal
with the power to hold land, but with such liability on the part of the members to
contribute to its assets in the event of it being wound up, as provided for in the Companies
Act, 1965.
3.4
Requirements of a Locally Incorporated Company
Upon registration, a certificate of incorporation of the company will be issued by the CCM.
A company must maintain a registered office in Malaysia where all books and documents
required under the provisions of the Companies Act 1965 are kept. Under Section 121 of
the Companies Act 1965, the name of the company shall appear in legible Romanised
letter, together with the company number, on its seal and documents.
A company cannot deal with its own shares or hold shares in its holding company. Each
equity share of a public company carries only one vote at a poll at any general meeting of
the company. A private company may, however, provide for varying voting rights for its
shareholders.
The secretary of the company must be a natural person of full age who has his principal
or only place of residence in Malaysia. He must be a member of a prescribed body or is
licensed by CCM. The company must also appoint an approved auditor to be the company
auditor in Malaysia. Generally, audited accounts must be submitted to the Companies
Commission of Malaysia after adoption at the annual general meeting (AGM) which
should be held within six months after the end of the financial year.
Appendix A
199
In addition, the company shall appoint at least two (2) directors who each has his principal
or only place of residence within Malaysia. Directors of public companies or subsidiaries
of public companies normally must not exceed 70 years of age. A company director may
also be a shareholder.
3.5
Establishment of Foreign Company
A foreign company cannot carry on business in Malaysia unless it incorporates a local
company or registers the company in Malaysia. Foreign companies incorporated outside
Malaysia that intends to establish a company in Malaysia must register with CCM.
The same registration procedures pertaining to the registration of a locally incorporated
company apply, whereby an application for conducting a name search must be submitted
in Form 13A to the CCM headquarters in Kuala Lumpur or any of its branch offices in
Malaysia, with a payment of RM30. The name to be used to register the foreign company
in Malaysia should be the same as the one registered in its country of origin. If the intended
name of the foreign company is available, the application will be approved and the name
reserved for three (3) months.
Upon approval, applicants must lodge the following documents with the CCM for
registration (Section 332 of The Companies Act 1965):(i)
A certified copy of its Certificate of Incorporation (or a document of similar effect)
from the country of origin
(ii)
A certified copy of its Charter, Statute, or M&A, or any other instrument that
constitutes or defines its constitution
(iii)
Form 79 - A list and particulars of its directors of the foreign company;
•
if the list includes directors resident in Malaysia who are members of a local
board of directors include a memorandum stating their powers
(iv)
A Memorandum of Appointment or Power of Attorney, authorising one or more
persons resident in Malaysia to accept on behalf of the company the service of
process and any notices that may be served to the company
(v)
Form 80 - A statutory declaration in the prescribed form made by the agent of the
company
(vi)
Original copy of Form 13A
(vii) A copy of the letter approving the name issued by CCM
The appointed agent will agree to undertake all acts that are required to be carried out by
the company under the Companies Act, 1965. Any change of agents must be reported to
the CCM within one month from the date of change together with the appropriate fees.
Registration fees are payable in accordance with a graduated scale set by the CCM based
on the authorised capital of the parent company. For the registration of a foreign company,
the fee payable to Companies Commission of Malaysia as per payment schedule for
authorised share capital for local company.
200
Appendix A
Where the documents are in a foreign language, a certified translation into English or the
National Language must accompany the documents - section 360. On being satisfied that
the requirements of the Act are fulfilled and on payment of the appropriate fee, the
Registrar will register the Company as a foreign company under Division 2 or Part XI of
the Act and a certificate in form 83 will be issued evidencing the registration. The forms
are technical in nature and set out in the Companies Regulations 1966. The process of
registering a branch office takes one (1) month.
Every foreign company shall, within a month of establishing a place of business or
commencing business within Malaysia, lodge with the CCM the registration notice of the
location of its registered office in Malaysia, by using the prescribed form.
A foreign incorporated company must file a copy of its annual return each year within one
(1) month of its annual general meeting. The company must also file a copy of the balance
sheet of its headquarters, a duly audited statement of assets used, and liabilities arising out
of, its operations in Malaysia, as well as a duly audited profit and loss account within two
(2) months of its annual general meeting.
4.
Equity Policy
In general, the Companies Act, 1965 does not stipulate any equity conditions on
Malaysian incorporated companies. However, persons wanting to set up private practices
in the accredited professional services are required to possess the necessary licensing
conditions specified by the respective licensing authorities of the accredited professional
services. The licensing conditions are as follow:
Accredited Professional
Services
Licensing Conditions*
Licensing Authorities
Legal Services
Annual Certificate
Bar Council Malaysia
High Court of Malaya
Accounting and
Auditing Services
Audit Licence
Liquidators Licence
Ministry of Finance
Taxation Services
Tax Licence
Ministry of Finance
Architectural Consultancy Registration Certificate
Board of Architects Malaysia
Surveying Services
and Consultancy
Registration Certificate
Board of Quantity
Surveyors, Malaysia
Medical Services
Annual Practising
Certificate
Malaysia Medical Council
Dental Services
Malaysia Dental Council
Pharmaceutical Services Full Registration Certificate
Pharmacy Board of Malaysia
Nursing and Midwives
Board
Nursing and Midwives Board
Energy Consultancy
Services
Certificate of Registration
Board of Engineers Malaysia
Appendix A
201
Please note that the licensing conditions also apply for private practices in the form of sole
proprietor or partnership.
Although the Companies Act, 1965 does not stipulate any equity conditions during the
incorporation of companies in Malaysia, the Foreign Investment Committee (FIC) has a set
of “Guidelines on the Acquisition of Interests, Mergers and Take-overs by Local and
Foreign Interests” in the Malaysian incorporated companies.
4.1 Foreign Investment Committee Equity Guidelines on the Acquisition of Interests,
Mergers and Takeovers by Local and Foreign Interests
the country.
In 2004, the FIC had liberalised its policy on foreign equity participation to allow
foreigners to hold up to 70% of the equity in a Malaysian company. Of the remaining
balance, 30% has to be allocated to Bumiputeras (Malaysians of indigenous origins). The
FIC equity conditions include:
(i)
Companies which do not have any Bumiputera equity or having less than 30%
Bumiputera equity, are required to increase the Bumiputera equity to at least 30%.
The remaining equity shareholding can be held either by local interest, foreign
interest or by both.
(ii)
The requirement of at least 30% Bumiputera equity participation will be applied
uniformly except if expressly stated otherwise by the government.
(iii)
For companies which activities involve national interests such as water and energy
supply, broadcasting, defense and security, the participation of foreign interest is
limited to 30%. In certain circumstances, the government may also impose other
conditions such as the issuance of the “golden share”.
(iv)
Companies with Bumiputera equity shareholding of 30% or more, but less than 51%
are required to maintain at least 30% Bumiputera equity at all times.
(v)
Companies which already have Bumiputera equity shareholding of 51% or more,
will be required to maintain at least 51% Bumiputera equity at all times.
(vi)
For companies incurring losses and undertaking debt restructuring, the equity
conditions may be waived and the company’s equity structure will be reviewed after
three (3) years from the date of FIC’s approval letter.
(vii) For a non-licensed manufacturing company incorporated after 31 July 1998, no
equity condition will be imposed.
(viii) The equity conditions that will be imposed on companies seeking listing on Bursa
Malaysia are as follows:
•
202
Appendix A
upon listing on the Main Board or Second Board, companies are required to
have at least 30% Bumiputera equity unless exempted by the relevant
government agencies or regulatory bodies;
5.
•
for listing on the Malaysian Exchange of Securities Dealing and Automated
Quotation Berhad (MESDAQ) market, companies are required to comply with
the Bumiputera equity condition as stipulated in the Bursa Malaysia Listing
Requirements For The MESDAQ Market; and
•
for listing of companies having major foreign-based operations as defined in
SC’s Policies And Guidelines On Issue/Offer Of Securities, the 30%
Bumiputera equity shareholding requirement need not be complied with.
(ix)
For companies which are allowed to issue/offer Depository Receipts (DR) overseas,
the allocation of 30% equity to Bumiputera will not be imposed on the DR.
(x)
Any corporate transaction that involves in the increase of the paid-up capital and
results in the dilution of Bumiputera equity, 30% of the new shares issued must be
offered to Bumiputera investors.
(xi)
For transactions which require approval of any government agencies/statutory
bodies, the equity condition imposed will be considered by the relevant government
agencies/statutory bodies based on this Guideline.
Signboard Licences Issued by State Authorities
registration. The fee for signboard registration may vary according to the local authority
and is dependent upon the size and type of the signboard. Applicants are advised to
contact the relevant local authority where the company will be located.
documents:(i)
Forms 9, 24 and 49
(ii)
(iii)
(iv)
(v)
Appendix A
203
Appendix B
Taxation
1.
Taxation in Malaysia
All income of companies and individuals accrued in, derived from or remitted to Malaysia,
are liable to tax. However, income derived from outside Malaysia and remitted to Malaysia
by resident companies (except those involved in the banking, insurance, shipping and sea
transportation businesses), non-resident companies and non-resident individuals are
exempted from tax.
Effective from the year of assessment 2004, income remitted to Malaysia by a resident
individual is also exempted from tax.
To modernise and streamline the tax administration system, the assessment of income tax
was changed to a current year basis of assessment from the year 2000. In 2001, the SelfAssessment System replaced the Official Assessment System for companies and in 2004; it
was implemented for businesses, partnerships, cooperatives and salaried groups.
Apart from income tax, there are other direct taxes such as stamp duty and real property
gains tax, and indirect taxes such as sales tax, service tax, excise duty, import duty and
export duty.
2.
Sources of Income Liable to Tax
The following sources of income are liable to tax:(i)
Gains and profits from a trade, profession and business
(ii)
Gains or profits from an employment (salaries, remuneration, etc.)
(iii)
Dividends, interests or discounts
(iv)
Rents, royalties or premiums
(v)
Pensions, annuities or other periodic payments
(vi)
Other gains or profits of an income nature
Chargeable income is arrived at after adjusting for allowable expenses incurred in the
production of the income, capital allowances and incentives where applicable. Section 34
of the Income Tax Act, 1967 allows specific provisions for bad or doubtful debts. However,
no deduction for book depreciation is allowed although capital allowances are granted.
Unabsorbed business losses and unabsorbed capital allowances may be allowed to be
carried forward if there is continuity of ownership i.e. the shareholders of the company are
substantially the same on the last day of the basis period for the year of assessment in
which the amount was ascertained and the first day of the year of assessment in which the
loss is to be setoff, except for companies with Pioneer Status.
204
Appendix B
3.
Company Tax
A company, whether resident or not, is assessable on income accrued in or derived from
Malaysia. Income derived from sources outside Malaysia and remitted by a resident
company is exempted from tax, except in the case of the banking and insurance business,
and shipping and air transportation undertakings. A company is considered a resident in
Malaysia if the control and management of its affairs are exercised in Malaysia.
Under Income Tax 1967, a tax rate of 28% applies to both resident and non-resident
companies. However companies with a paid-up capital of RM2.5 million and below are
subject to a corporate tax of 20% on chargeable income of up to RM500,000. The
corporate rate on the remaining chargeable income is maintained at 28%.
4.
Personal Income Tax
All individuals are liable to tax on income accrued in, derived from or remitted to
Malaysia. However, a non-resident individual will be taxed only on income earned in
Malaysia. The rate of tax depends on the individual’s resident status, which is determined
by the duration of his stay in the country as stipulated under Section 7 of the Income Tax
Act, 1967. Generally, an individual residing in Malaysia for more than 182 days in a year
has resident status.
However, there are other conditions where the individual can be treated as a resident even
if he stays for less than 182 days.
An individual is resident in Malaysia in the basis year of assessment if he:
(i)
is in Malaysia for not less than 182 days in the relevant basis year
(ii)
is in Malaysia for a period of less than 182 days in the basis year and that period is
linked to another period where he is continuously in Malaysia for not less than 182
days immediately before or after the relevant basis year. Where temporary absence
occur, the period of temporary absence can be taken to form part of such period,
where he is in Malaysia, immediately prior to or after the temporary absence
(iii)
is in Malaysia for not less than 90 days (need not be consecutive) in the basis year
and is resident or has been in Malaysia for 90 days or more in 3 out of the 4
preceding years of assessment or
(iv)
has not been in Malaysia in the relevant basis year but he is deemed to be resident
in Malaysia in the relevant basis year if he is resident in Malaysia in the following
basis year and also in the each of the 3 basis year immediately preceding the
relevant basis year
Effective from the year of assessment 2004, income remitted to Malaysia by a resident
individual is also exempted from tax.
Appendix B
205
4.1
Resident Individual
A resident individual is taxed on his chargeable income at a graduated rate from 0% to
28% after deducting tax reliefs.
Personal Relief
The chargeable income of an individual resident is arrived at after making several
deductions. These include the personal reliefs for self (a further RM5,000 for that
individual if he is a disabled person), spouse and unmarried children below 18 years of
age; parents’ medical expenses, medical expenses on serious diseases including medical
examinations for individual, spouse or child; expenditure for the purchase of basic support
equipment for the individual, spouse, child or parent who is disabled (RM4,000 be given
for each disabled child pursuing education in a recognised institution of higher learning);
and contributions to the Employees Provident Fund (EPF), life insurance premiums, and
insurance premiums for education or medical benefits.
An amount limited to a maximum of RM5,000 on fees expended by the individual for any
course of study up to tertiary level for the purpose of acquiring scientific, technical,
vocational, industrial, and information and communications technology (ICT) skills at
institutions of higher learning in Malaysia recognised by the Government is also allowed
as a deduction. Effective from year of assessment 2006, eligibility for relief is extended to
professional courses, accountancy and law undertaken at recognised institutions of higher
learning in the country. The eligible professional fields are to be approved by the Ministry
of Finance.
Non-Resident Citizen Relief
Non-Resident Citizen Relief shall be allowed to an individual who is a citizen but not
resident for the basis year for a year of assessment by reason of his employment (in the
public services or the services of a statutory authority) which is exercised outside Malaysia.
An individual, who is claiming relief under this provision, should make his claim in the
prescribed form and should furnish such further particulars as may be required by the
Inland Revenue Board of Malaysia (IRB)
Tax Rebates
The tax liability of a resident individual is reduced by way of the following rebates:-
206
(i)
An individual with a chargeable income not exceeding RM35, 000 enjoys a rebate
of RM350. Where the wife is not working or the wife’s income is jointly assessed,
she also enjoys a further rebate of RM350. Similarly, a wife who is assessed
separately will also enjoy a RM350 rebate, provided her chargeable income does not
exceed RM35, 000.
(ii)
The amount paid in respect of any zakat, fitrah or other obligatory Islamic religious
dues.
Appendix B
(iii)
RM400 towards the purchase of a personal computer once every five (5) years per
family.
(iv)
Any fee paid to the government for the issue of an employment pass, visit pass or
work permit.
4.2
Non-Resident Individual
A non-resident individual is liable to tax at the rate of 28% without any personal reliefs.
However, he can claim rebates in respect of the levy paid to the Government for the
issuance of an employment work permit.
Director General of Inland Revenue is only allowed to make assessments on income tax
within a period of six years. Effective from year of assessment 2006, the Director General
of Inland Revenue is empowered to make assessment after a period of six years in cases
where the assessment is determined by the court or withdrawal, revocation or cancellation
of any exemption, relief, remission or allowance.
5.
Withholding Tax
The withholding tax is imposed on income of non-resident in respect of amount paid in
consideration of services rendered in Malaysia as follows:(i)
10% on special classes of income under Section 4A of Income Tax Act 1967 such as
the use of moveable property, technical advice, assistance or services, installation
services on the supply of plant, machinery, etc., and personal services associated
with the use of intangible property. Payments to non-residents for services rendered
abroad will not be liable to the withholding tax.
(ii)
10% on royalty
(iii)
15% on interests
(iv)
15% on the services of a public entertainer.
Currently, income received by non-resident skilled teaching personnel in the performing
arts and the production of crafts is subject to withholding tax of 10%. Effective for a period
of 5 years from 1 October 2005 it is proposed that income received by non-resident
individuals who train Malaysians in such fields and related technical areas be exempted
from withholding tax.
A non-resident employee on a short-term visit to Malaysia enjoys tax exemption in respect
of his income from an employment exercised in Malaysia when his presence does not
exceed 60 days in a calendar year. However, the income of a non-resident individual who
performs independent services such as consultancy services is not exempted from tax.
Appendix B
207
6.
Real Property Gains Tax
Capital gains are generally not subject to tax in Malaysia. Real property gains tax is
charged on gains arising from the disposal of real property situated in Malaysia or of
interest, options or other rights in or over such land as well as the disposal of shares in real
property companies. Tax rates for Malaysian citizens and permanent residents are as
follows:Disposal within 2 years
-
30%
Disposal in the 3rd year
-
20%
Disposal in the 4th year
-
15%
Disposal in the 5th year
-
5%
Disposal in the 6th year and thereafter - Company
- Individual
5%
nil
For non-citizens and non-permanent resident individuals, gains from the disposal of real
property within five (5) years are taxed at a flat rate of 30%, after which the tax rate will
be 5%.
An exemption of RM5,000 or 10% of the gains whichever is the greater for each disposal
of a property by an individual, a gain accruing to the government, a State Government or
a local authority, a gain equal to the amount of estate duty payable where the disposer is
compelled to dispose the property in order to pay the estate duty, besides a one-time tax
exemption on the gains arising from the disposal of one (1) private residence.
To accord equal tax treatment without gender bias, it is proposed that the election to claim
RPGT exemption on a residential property is given to both husband and wife on one
residential property each, once in a lifetime. The proposal is effective from 1 October
2005.
Director General of Inland Revenue is only allowed to make assessments on real property
gains tax within a period of six years. Effective from year of assessment 2006, the Director
General of Inland Revenue be empowered to make assessment after a period of six years
in cases where the assessment is determined by the court or withdrawal, revocation or
cancellation of any exemption, relief, remission or allowance.
7.
Service Tax
Labuan, Free Zones and ‘Joint Development Area’. A service tax applies to certain
prescribed goods and services in Malaysia including food, drinks and tobacco, provision
of rooms for lodging and premises for meetings, conventions, cultural and fashion shows
and provision of accommodation and food by private hospitals.
208
Appendix B
The tax also applies to professional and consultancy services provided by lawyers,
engineers, surveyors, architects, accountants, advertising agencies, consultancy firms,
insurance companies, motor vehicle service and repair centres, telecommunication
services companies, security and guard services agencies, recreational clubs, estate agents,
parking space services operators, courier service firms and veterinary doctors.
exempted from the current service tax of 5%. This applies to service provided by public
accountants, advocates and solicitors, engineers, architects, surveyors (including valuers,
assessors and real estate agents), consultants and management service providers. The
following provisions are also exempted for the Service Tax:(i)
Provision of accounting, auditing, book-keeping, and consultancy services in
connection with business organisations situated outside Malaysia
(ii)
Provision of legal services in connection with goods or land situated outside
Malaysia or where subject matter related to a country outside Malaysia
(iii)
Provision of engineering consultancy services in connection with goods or land
situated outside Malaysia
(iv)
Provision of architectural services in connection with goods or land situated outside
Malaysia
(v)
Provision of all types of surveying services in connection with goods or land situated
outside Malaysia
(vi)
Provision of consultancy services relating to medical and surgical treatment or
supplied in connection of goods or land situated outside Malaysia
(vii) Provision of all types of management services in connection with goods or land
situated outside Malaysia.
(viii) Provision of advertising services for promotion outside Malaysia
The tax base has been widened to include other services such as those provided by car
rental agencies licensed under the Commercial Vehicles Licensing Board Act, 1987 having
an annual sales turnover of RM300,000 and above, employment agencies having an
annual sales turnover of RM150,000 and above, and companies providing management
services, including project management and coordination services, having an annual sales
turnover of RM150,000 and above. Hotels having more than 25 rooms and restaurants
within such hotels are subject to this tax. Restaurants operating outside hotels having an
annual sales turnover of RM500,000 and above are also subject to service tax.
Generally, the imposition of service tax is subject to a specific threshold based on an
annual turnover ranging from RM150,000 to RM500,000.
The application for a Service Tax Licence shall be made in Form JKED1 and submitted to
the nearest Royal Customs Department where the business premise is located.
Appendix B
209
8.
Import Duty
In Malaysia, import duty is mostly imposed ad valorem although some specific duties are
imposed on a number of items. Nevertheless, over the last few years, Malaysia has
abolished import duties on a wide range of raw materials, components and machinery.
Furthermore, Malaysia is committed to the ASEAN Common Effective Preferential Tariff
(CEPT) Scheme whereby import duties imposed on most goods from ASEAN countries with
a minimum 40% ASEAN content have been reduced to between 0% and 5%.
9.
Agreements for the Avoidance of Double Taxation
Agreements for the Avoidance of Double Taxation prevent incidences of double taxation
on income such as business profits, dividends, interest and royalties that are derived in one
country and remitted to another country. To date, Malaysia has signed such tax treaties
with the following countries (by alphabetical order):-
Albania
Iran
Papua New Guinea
Argentina *
Ireland
Philippines
Australia
Italy
Poland
Austria
Japan#
Romania
Bahrain
Jordan
Russia
Bangladesh
Korea, South
Saudi Arabia*
Belgium
Kuwait
Seychelles#
Canada
Kyrgyz
Singapore#
Chile
Lebanon
Sri Lanka#
China
Luxembourg
Sudan
Croatia
Malta
Sweden#
Czech
Republic Mauritius
Switzerland
Denmark
Mongolia
Thailand
Fiji
Morocco
Turkey
Finland
Myanmar
United Arab Emirates
France
Namibia
United Kingdom#
Germany
Netherlands
United States of America*
Hungary
New Zealand
Uzbekistan
India#
Norway
Vietnam
Indonesia
Pakistan
Zimbabwe
In addition, an Agreement for the Avoidance of Double Taxation has been signed between
the Malaysian Friendship and Trade Centre in Taipei (MFTC) and the Taipei Economic and
Cultural Office in Kuala Lumpur (TECO).
* Limited to shipping and air transport services
# New agreement
210
Appendix B
Appendix C
1.
Passport and Visa Requirements
All persons entering Malaysia must possess valid national passports or other internationally
recognised travel documents valid for travel to Malaysia. These documents must be valid
for at least six (6) months beyond the date of entry into Malaysia.
Those with passports not recognised by Malaysia must apply for a document in lieu of the
passport as well as a visa issued by Malaysian missions abroad.
Applications for visas can be made at the nearest Malaysian mission abroad. In countries
where Malaysian missions have not been established, applications can be made to the
nearest British High Commission or Embassy.
Visa Requirements
Citizens of
No visa required
Commonwealth countries (except India, Bangladesh, Pakistan,
Sri Lanka and Nigeria), Switzerland, Netherlands, San Marino
and Liechtenstein
No visa required for
visit not exceeding
30 days
All ASEAN countries (except Myanmar)
visit not exceeding
three (3) months
Albania, Algeria, Argentina, Austria, Bahrain, Belgium, BosniaHerzegovina, Brazil, Croatia, Cuba, Czech Republic, Denmark,
Egypt, Finland, France, Germany, Hungary, Iceland, Italy, Japan,
Jordan, Kyrgyz Republic, Kuwait, Lebanon, Luxembourg,
Morocco, North Yemen, Norway, Oman, Poland, Qatar,
Romania, Saudi Arabia, South Afrika, South Korea, Spain,
Sweden, Slovakia, Tunisia, Turkey, Turkmenistan, United Arab
Emirates, United States of America and Uruguay
visit not exceeding
two (2) weeks
Iran (15 days), Iraq, Libya and Syria, Macau (Travel Permit),
Portugal Alien Passport, Palestine, Sierra Leone, Somali, Somalia
and South Yemen
Appendix C
211
Visa Requirements
Citizens of
Visa required
India, Bangladesh, Pakistan, Sri Lanka, Myanmar, Nepal,
Taiwan, Angola, Burkina Faso, Burundi, Cameroon, Central
African Republic, Congo Republic, Congo Democratic
Republic, Cote d' Ivoire, Djibouti, Equatorial Guinea, Eritrea,
Ethiopia, Guinea - Bissau, Liberia, Ghana, Liberia, Mali,
Mauritania, Mozambique, Niger, Nigeria, Rwanda, Western
Sahara, Taiwan, Myanmar, Nepal, Bhutan, Colombia, PR China,
All Holders of Certificate of Identity, All Holders of Laisses
Passer, All Holders of Titre De Voyage and Afghanistan (Visa
with Reference)
Prior approval
required from the
Malaysian
Government
Israel, Serbia and Montenegro
For countries other than those stated above, no visa is required for visits not exceeding one
(1) month.
2.
Entry into Malaysia
2.1
Passes Issued at Point of Entry
A visitor can obtain a visit pass for the purpose of a social or business visit at the point of
entry provided he/she can satisfy Immigration authorities that he/she has a valid passport
and visa (where necessary) which allows him/her to stay temporarily in Malaysia.
The types of passes issued are:
Visit Pass (Social)
Every foreigner entering Malaysia for the purpose of Social Visit must obtain a Social Visit
Pass. Social visit Pass is issued at all point of entry on arrival. A person holding a social
visit pass cannot take up employment, business or professional work while in Malaysia.
The validity of the passes are depends on the agreement between respective country and
Malaysia.
All foreign visitors entering Malaysia through the gazette entry points will be given social
visit pass for social visits including the following purposes:(i)
Visiting Relatives
(ii)
Tourism
(iii)
Journalist / Reporter
(iv)
Attending Meeting
(v)
Attending Business Discussion
(vi)
Inspection of factory
(vii) Auditing Company's Account
212
Appendix C
(viii) Signing Agreement
(ix)
Doing survey on investment opportunities/setting up factory
(x)
Attending Seminars
(xi)
On goodwill mission for students or sitting for examinations in University
(xii) Taking part in sports competitions
(xiii) Other activities not mentioned above but approved by the Director General of
Immigration.
2.2
Passes Issued upon Arrival in Malaysia
Other than applications for entry for the purpose of social or business visits, all
applications for passes mentioned below must be made upon arrival in the country. All
such applications must have sponsorship in Malaysia whereby the sponsors agree to be
responsible for the maintenance and repatriation of the visitors from Malaysia if necessary.
The types of passes are:
Visit Pass (Temporary Employment)
This is issued to persons who enter the country to take up temporary employment or earn
a monthly income of less than RM2,500 per month.
Employment Pass
This is issued to foreigners who enter the country to take up a contract of employment with
a minimum period of two (2) years and minimum wages not less than RM2,500 per month.
Before applies for the employment pass, employer has to apply for the position from
Expatriate Committee. Employer must arrange the application of Employment Pass for their
respective Expatriate. Application can be submitted to Immigration Headquarters Office,
Putrajaya or any Immigration State Office. The required documents for application are:
(i)
Cover Letter from the Employer
(ii)
Letter of Authorisation from the Company
(iii)
DP11 Form
(iv)
Approval Letter from JKPD/ MIDA/ MITI/ KPDN&HEP/ CIDB/ KPM or related
(v)
Form 9
(vi)
Form 24
(vii) Form 49
(viii) Contract (stamping RM10)
(ix)
Requirement in Contract (Brief) (Position, Contract Period, Monthly Salary)
(x)
Personal resume, academic certificate and experience
(xi)
Full copy of Expatriate's passport containing Expatriate details
(xii) Passport size photo
Appendix C
213
Visit Pass (Professional)
This is issued to foreigners on short-term contract with any agency. The validity of the pass
varies but it does not exceed 12 months at any one time. Applications should be made
before entering Malaysia. All applicants will only be allowed for entry once the pass is
approved.
The categories of foreigners who are eligible are:
(i)
Expert/Volunteer: Professional Visit Pass is issued to foreigners who serve as
professionals or experts and also volunteers on a short-term basis in Malaysia.
(ii)
Artist: For performance, filming and promotion by foreign artists in Malaysia.
(iii)
Missionary (Muslim): Professional Visit Pass (Missionary) is issued to foreigners who
wish to serve as Expatriate Imam, Religious, Arabic and Quranic Teachers
(iv)
Missionary (Other Region): Professional Visit Pass (Missionary) is issued to foreigners
who wish to serve as Expatriate Gurukkals, Priests, Religious Sculptors, Religious
Musicians, Monks, Dharma Teachers and Granthis in Temples, Shrines or Churches
in Malaysia.
(a) Expert/Volunteer
Professional Visit Pass is issued to foreigners who serve as professionals or experts and also
volunteers on a short-term basis in Malaysia:
(i)
Invited and Visiting Lecturers/ Lecturers
(ii)
External Examiners
(iii)
Fellow Doctorates
(iv)
Research Assistants
(v)
Seminar and Course Speakers
(vi)
Consultant and Technical Consultants
(vii) Advisors and Technical Advisors
(viii) Technical Experts
(ix)
Trainees and Technical Trainees
(x)
Horse’s Trainer
(xi)
Jockeys
(xii) Volunteers
Application must be complete and fulfill all the requirements. Incomplete application and
that do not fulfill the requirements will not be processed:
214
(i)
Form IMM.12 (2 copies)
(ii)
Form IMM.38 (if required)
(iii)
Stamped Personal Bond
(iv)
Two(2) passport sized photographs of applicant
(v)
Photocopy of passport/travel document
(vi)
Letter from Company/Institution (Sponsor)
Appendix C
(vii) Letter of offer
(viii) Original letter of confirmation from employer overseas
(ix)
Letter from foreign university (for Expert/ Professional- Practical Training)
(x)
Income Tax declaration letter from Income Tax Department (for Experts/ Professional)
(xi)
Training Programme/Schedule
(xii) Invoice of purchase of machinery (for Experts/ Professional- if required)
(xiii) Supporting letter from Ministry of Welfare Services (for Volunteers- if required)
(xiv) Photocopies of company MAA, Form 9, 24 and 49 certified by the Companies
Commission of Malaysia (CCM).
The application fees are:
(i)
Professional Visit Pass - RM 90.00
(ii)
Visa - According to country
(b) Artist
For performance, filming and promotion by foreign artists in Malaysia:
(i)
Artist (Singers) and Musicians
(ii)
Concerts/ Orchestra
(iii)
Inter-governmental Cultural Exchange
(iv)
Government-to-Government
(v)
Promotion of album, food and cosmetics
(vi)
Film shooting, advertisement, documentary and Television Drama
(vii) Film crew, stunts director, director, actor/actress and cameraman.
(viii) Opera
(ix)
Magicians
(x)
Circus performer
The artiste must be outside Malaysia when applying for the Professional Pass except for
extension of Pass. Application must be made by the intended agencies. The use of an
outside agent or consultant is strictly forbidden. Application must be made at least one (1)
month before the performance and arrival of artist. The documents needed are:
(i)
Form IMM. 12 (New application)
(ii)
Form IMM. 55 (Extension)
(iii)
Letter from sponsor to Immigration Department
(iv)
Letter from sponsor to Ministry of Home Affair's
(v)
Letter from sponsor to FINAS
(vi)
Passport sized photographs of applicant
(vii) A copy of passport (Photostat)
(viii) Name list of applicants
Appendix C
215
(ix)
Filming schedule
(x)
Stamped Personal Bond
(xi)
Performance/ Promotion
(xii) Letter from sponsor to Immigration Department
(xiii) Letter from sponsor or Ministry of Culture, Art and Tourism
(xiv) Bank Guarantee
(xv)
Letter from Wisma Putra (Ministry of Foreign Affairs) and Embassy/High Commission
for Government-to-Government status
(xvi) A copy of local artiste contract
(xvii) A copy of foreign artiste contract
Application is to be submitted to Central Committee for Filming and Performance by
Foreign Artist (PUSPAL) situated at the 32nd Floor of Putra World Trade Centre (PWTC),
Ministry of Culture, Art and Tourism Malaysia.
(i)
For filming and performance by foreign artiste
(ii)
Application to be submitted to Special Committees for Professional Visit Pass (PLIK)
(iii)
Artists, Filming and performance by foreign artiste
(iv)
Cosmetic Promotion
(v)
Food Promotion
Fees is charged for a duration of 3 months or below (each person)
Categories
Fees
Artists, Musician, Concert, Orchestra, Album Promotion, Acrobatics
RM500
Charity Concert, Cosmetic & Food Promotion, Filming & Opera,
magician, Circus
RM90
Cultural Exchange
Gratis
Dependant Pass
This is issued to wives and children of foreigners who have been issued with an
employment pass. This pass may be applied together with the application for an
employment pass or after the employment pass is approved. Wives and children of
foreigners who enter the country on a visit pass (temporary employment or professional)
will be issued a visit pass (social).
Student’s Pass
This is issued to foreigners who enroll as students in any approved educational institution.
216
Appendix C
3.
Employment of Expatriate Personnel
The Malaysian Government is desirous that Malaysians are trained and employed at all
levels of employment. Thus, companies are encouraged to train more Malaysians so that
the employment pattern at all levels of the organisation reflects the multiracial composition
of the country.
Notwithstanding this, where there is a shortage of trained Malaysians, foreign companies
are allowed to bring in expatriate personnel. In addition, foreign companies are also
allowed key posts (posts that are permanently filled by foreigners).
An expatriate personnel who is transferred from one post to another within the same
company will be required to obtain a new employment pass. His original employment
pass will be amended to reflect the change in post. A new expatriate personnel replacing
another must also obtain a fresh employment pass.
All employment passes are valid for the period approved for the post. However, for key
post holders, employment passes will be issued on a five (5)-year renewable basis except
in circumstances where:
(i)
the validity of the expatriate’s passport is less than five (5) years
(ii)
the expatriate’s employment contract is less than five (5) years, or
(iii)
the employer requires the services of the expatriate for less than five (5) years
Holders of employment passes will be issued with multiple entry visas valid for the
duration of the employment pass.
The age policy for expatriates are 21 years old for information technology related position
while for other management position must be 27 years old and above.
4.
Application for Expatriate Posts
Any company requiring the service of an expatriate must obtain an employment pass for
the expatriates from the Immigration Department. Before an employment pass is issued,
the expatriate post must obtain prior approval from the Immigration Department or an
agency authorised by the Immigration Department.
Any company with low paid up capital, the company will have to fulfill condition
regarding the paid up capital if the post applied has been approved.
(i)
For 100% Bumiputera, company's capital have to be increase to RM100,000
(ii)
For 100% Non-bumiputera, company's capital have to be increase to RM150,000
(iii)
For jointly owned company, between Bumiputera and Non-bumiputra, the capital
have to be increase to RM125,000 - RM150,000 depending on the composition of
majority share.
Appendix C
217
(iv)
For 100% foreign share, the paid up capital have to be increase to RM250,000
(v)
For jointly owned company between foreigner and Bumiputra/Non-Bumiputera the
capital has to be increase to RM200,000.
Extended Condition to Foreign Investment Committee (FIC) will be imposed until the
equity is no longer 100% belongs to foreigner.
Below is a list of agencies approving and endorsing the expatriate posts:Agency
Approval /
Endorsement
Company Activities
Malaysian Industrial
Development
(MIDA)
Approval
Manufacturing (export), Hotel, Agriculture
(export), Tourism, Research and Development
Ministry of
Education Malaysia
Endorsement
Lecturer/Teacher/Tutor for Institution and Private
School
Security
Commissioner
Endorsement
Industrial Security Company, Kloffe, Investment
Fund - economist, consultant, dealers
Bank Negara
Malaysia
Endorsement
Bank and finance institution - economist,
researchers, financial advisor, insurance
consultant
Multimedia
Development
Corporation
Approval
Companies approved with Multimedia Super
Corridor (MSC) status
Public Service
Department
Approval
Government Hospital and Public Higher
Education Institution
Department of
Civil Aviation
Endorsement
Any post related to airlines
Expatriate
Committee
Approval
Others than above
For companies which do not fall under the above categories, applications to add or extend
expatriate posts can be submitted directly to the Expatriate Committee of Immigration
headquarters in Putrajaya. After the expatriate posts have been approved, companies can
proceed with the endorsement of the employment pass at the Immigration headquarters or
the state Immigration office using DP11 Form.
Enquiry of Expatriate Officer Post Application can be made online using Malaysian
Immigration Department Enquiry of Expatriate Officer Post Application System.
218
Appendix C
The required documents for application of Expatriates Committee include all the
following:(i)
Letter of Authorisation from the Company / Copy of Identity Card/ Business Card
(ii)
DP10 Form
(iii)
Application Letter from the Company
(iv)
Organisation Chart
(v)
Copy of Forms 9, 24 and 49 certified by CCM
(vi)
Others company's relevant information
(vii) Confirmation Letter from the Employer regarding Expatriate's Admission Status, for
citizen of:
•
China
•
India
•
Philippines
•
Sri Lanka
•
Pakistan
•
Bangladesh
•
Nepal
•
Myanmar
•
North Korea
•
Vietnam
(viii) Copy of Commentary Letter from related Government Agency (if required)
(ix)
Copy of Letter of Acceptance & Offer or Letter of Intent
(x)
For manufacturing sector, please enclose brief description/picture of the product
(xi)
Resume, Academic Qualifications Certificate and Copy of Expatriate Passport
(xii) Letter of Approval (for extension only)
(xiii) CIDB License/Contract Project
(xiv) Bill of Lading/WRT from KHEDN
There is no levy imposed on expatriates earning more than RM3,000 per month and with
employment contracts of 24 months and more. However, a nominal fee will be imposed
for key posts and management/professional and technical posts.
Appendix C
219
Appendix D
1.
Malaysia’s Labour Force
Malaysia offers the investor a diligent, disciplined, educated and trainable labour force.
Malaysian youths who enter the labour market would have undergone at least 11 years of
school education i.e. up to secondary school level, and are therefore easy to train in new
techniques and skills.
To cater to the demand for technically trained workers, the Malaysian government has
taken measures to increase the number of engineers, technicians and other skilled
personnel graduating each year from local as well as foreign universities, colleges, and
technical and industrial training institutions.
In addition, Malaysia enjoys a free and competitive labour market where employeremployee relationship is cordial and harmonious. Labour costs in Malaysia are relatively
low in comparison with industrialised countries while productivity levels remain high.
2.
Manpower Development
The National Vocational Training Council (NVTC) under the Ministry of Human Resources
was established in May 1989 for the purpose of formulating, promoting and coordinating
Malaysia's vocational and industrial training strategy and programme in keeping with the
country's technological and economic development needs.
The NVTC coordinates the setting up of all public and private training institutions,
evaluates the demand for existing and future skills, identifies future vocational and
industrial training needs and continually develops the National Occupational Skill
Standards (NOSS). Up till September 2005, there are 829 NOSS covering certificate,
diploma and advanced diploma qualifications. Future development of the NOSS has been
assigned to the 20 major industrial sectors in Malaysia. NVTC expected that another 5000
NOSS will be developed, starting from 2005.
2.1 Facilities for Training in Industrial Skill
In Malaysia, vocational and technical schools, polytechnics and industrial training
institutions prepare youths for employment in various industrial trades. While they are
mostly run by government agencies, several private initiatives complement the
government's efforts in producing the skilled workers needed by industry. The main
government agencies involved in training are:
(i)
220
Appendix D
Ministry of Human Resources which currently runs 16 industrial training institutes
(ITIs) included the Centre for Instructors and Advanced Skills Training (CIAST), the
Japan-Malaysia Technical Institute (JMTI) and 4 advanced technology centres
(ADTECs). It offers industrial skills training programmes at basic, intermediate and
advanced levels for pre-employment or job entry level. These include
apprenticeship programmes in the mechanical, electrical, building and printing
trades as well as programmes to upgrade skills and train instructors.
(ii)
Majlis Amanah Rakyat (MARA) or the Council of Trust for the Indigenous People
under the purview of the Ministry of Entrepreneur Development. MARA operates
twelve skills training institutes in different parts of the country which offer
programmes at basic, intermediate and advanced levels. MARA also coordinates the
operations of three advanced skills training institutions, i.e. the German-Malaysian
Institute (GMI), British Malaysian Institute (BMI) and Malaysia France Institute (MFI).
(iii)
Ministry of Education which runs 90 technical schools offering technical and
vocational courses. School leavers from the technical schools can either seek
employment at entry level or pursue their post-secondary education at certificate or
diploma level in polytechnics or community colleges which are now under the
purview of Ministry of Higher Education or other training institutions under the
supervision of other ministries.
(iv)
The Ministry of Higher Education, which was established in March 2004, supervises
20 polytechnics and 34 community colleges to prepare skilled manpower for
industries. At the post-secondary level, the formal training conducted in polytechnics
and community colleges aims to produce trained manpower at the semi-professional
level in engineering, commerce and services sectors. More polytechnics and
community colleges are being planned for establishment under the Ninth Malaysian
Plan (2006 - 2010).
(v)
Ministry of Youth and Sports which provides basic, intermediate and advanced levels
of industrial skills training through its 13 National Youth Skill Training Institute, a
National Youth Skill Training College and a National Youth Advanced Skill Training
Institute. Short-term courses and skills upgrading programmes are also being
conducted.
2.2 Human Resources Development Fund
The Human Resources Development Fund (HRDF), aimed at encouraging direct private
sector participation (both manufacturing and services sectors) in skills development, was
launched in 1993 with a grant from the government.
The HRDF operates on the basis of a levy/grant system. Employers who have paid the levy
will qualify for training grants from the fund to defray or subsidise training costs for their
Malaysian employees.
The selected services sectors which contribute to HRDF are as follows:
• Advertising
• Freight forwarding
• Shipping
• Air transport
• Higher education
• Telecommunications
• Computing services
• Hotel
• Tour operating business
• Energy
• Postal / Courier
• Training
Appendix D
221
The contribution rates are as follows:
(i)
Companies that employ 50 or more
Malaysian workers
1% of employees’ monthly wages
(ii)
Companies that employ less than 50
to a minimum of 10 employees, with
a paid-up capital of RM2.5 million or
more
1% of employees’ monthly wages
(iii)
Companies that employ less than 50
to a minimum of 10 of employees,
with a paid-up capital of less than
RM2.5 million
Option of registering with the HRDF and
paying a levy of 0.5% of the employees'
monthly wages
(Note: For this category, the
Government contributes RM2.00 for
every RM1.00 spent.)
The rate of financial assistance is 100% of the allowable costs incurred for training in
Malaysia and up to 50% for costs incurred overseas, subject to the availability of levy in
the employers' accounts with the Human Resources Development Council, which has
been corporatised and is now known as Pembangunan Sumber Manusia Berhad (PSMB).
For specific industries, apprenticeship schemes developed and implemented by PSMB
help in providing trained workers to industries. A RM35-million Apprenticeship Fund
established by PSMB pays for the tuition fees of apprentices sponsored by employers in
PSMB-initiated apprenticeship schemes. At the same time, 100% of allowable training
costs such as apprentices' monthly allowances, insurance premiums and consumables,
can be reimbursed from levy contributions.
To date, the PSMB has implemented various apprenticeship schemes in the fields of
mechatronics, the hotel industry, industrial machining, information technology and the
wood-based industry to cater to the needs of employers.
2.3 Management Personnel
In 2002, an estimated 53,000 degree and 22,000 diploma holders graduated from
Malaysia's 18 public universities and other institutions of higher education. These
graduates are from various disciplines ranging from business management, information
technology, engineering, medicine, science and mathematics to art and design.
Besides universities and colleges, agencies like the National Productivity Corporation
(NPC), the Malaysian Institute of Management and the Malaysian Institute of Personnel
Managers also provide training for management personnel. In addition many of Malaysia's
management-level personnel have been educated overseas.
222
Appendix D
3.
Labour Costs
There is no national minimum wage law applicable to the service sector in Malaysia. Basic
wage rates vary according to location and industrial sector, while supplementary benefits,
which may include bonuses, free uniforms, free or subsidized transport, performance
incentives and other benefits, vary from company to company.
Salaries and fringe benefits offered to management and executive personnel also vary
according to the industry and employment policy of the company. Most companies
provide free medical treatment, personal accident and life insurance coverage, free or
subsidised transport, an annual bonus, retirement benefits and enhanced contributions to
the Employees Provident Fund (EPF).
For more information on salaries and fringe benefits, please refer to the MIDA’s brochure
entitled “Costs of Doing Business in Malaysia”.
4.
Facilities for Recruitment
Besides registered private employment agencies, employers and job seekers can seek
assistance from government employment offices located throughout the country.
Employers seeking to recruit workers can obtain detailed information on job seekers
registered with these employment offices whose functions include:
(i)
Undertaking publicity campaigns to aid employers' recruitment drive
(ii)
Arranging preparatory work relating to holding interviews and aptitude tests
The polytechnics and the community colleges also provide facilities for prospective
employers to conduct interviews for graduating students in their institutions.
5.
Labour Standards
The Department of Labour provides advisory services to employers and employees on all
aspects of the labour laws in Malaysia. Every service industry undertaking or establishment
where any commerce, trade, profession or business is carried on that employs or is likely
to employ employees, must notify the nearest Department of Labour in writing within 90
days of commencing operation. When employing a foreign employee, employers must
inform the Department of Labour within 14 days.
5.1
Employment Act 1955
The Employment Act 1955 stipulates the minimum conditions of employment. It applies
to all employees in Peninsular Malaysia and the Federal Territory of Labuan whose
monthly wages do not exceed RM1,500 and all manual workers irrespective of their
wages. Even so, employees who earn between RM1,500 and RM5,000 a month can still
seek redress from the Department of Labour with regard to wages and any other payments
in cash as stipulated in their contract of service. Under the Employment Act 1955:
(i)
Every employee must be given a written contract of employment which states the
terms and conditions of the employment, including the notice period required to
terminate it.
Appendix D
223
(ii)
Wages must be paid not later than the seventh (7) day after the last day of any wage
period. A pay slip is required, detailing wages less any lawful deductions.
(iii)
Female employees are not permitted to work in any industrial or agricultural
undertaking between the hours of 10.00pm and 5.00am, except with the prior
written approval of the Director-General of the Department of Labour.
(iv)
Female employees are entitled to 60 days paid maternity leave for up to five (5)
surviving children. They shall be paid their ordinary rate of pay, subject to a
minimum of RM6.00 per day.
(v)
Normal hours of work shall not exceed eight (8) hours in one (1) day or 48 hours in
one (1) week.
(vi)
Employees are entitled to paid holidays on at least 10 gazetted public holidays in
any one (1) calendar year and on any day declared as a public holiday under Section
8 of the Holiday Act 1951.
(vii) Eight (8) days of paid annual leave for employees with less than two (2) years of
service, 12 days of paid annual leave for employees with two (2) years but less than
five (5) years of service and 16 days of paid annual leave for those with five (5) or
more years of service.
(viii) 14 days of paid sick leave for employees with less than two (2) years of service, 18
days of paid sick leave for employees with two (2) but less than five (5) years of
service and 22 days paid sick leave for those with over five (5) years of service per
calendar year and where hospitalisation is necessary, up to a maximum of 60 days
paid sick leave per calendar year.
(ix)
Payment for overtime work is at a minimum of one-and-a-half times the hourly rate
of pay on normal working days, two (2) times the hourly rate on rest days and three
(3) times the hourly rate on public holidays.
5.2
The Labour Ordinance, Sabah and the Labour Ordinance, Sarawak
The Labour Ordinance, Sabah and the Labour Ordinance, Sarawak regulates the terms and
conditions of employment and other employment matters in the respective states.
5.3
Employee Provident Fund Act 1991
The Employees Provident Fund Act 1991 stipulates a compulsory contribution for
employees. Under the Act, all employers and employees (except foreign workers and those
who are listed under the First Schedule) must contribute to the Employees Provident Fund
(EPF) at the minimum rates of 12% (for the employer's share) and 11% (for the employee's
share) of the employee's monthly wages respectively. Both employers and employees are
encouraged to contribute at a rate higher than this mandatory contribution.
All employers must register their employees with the EPF immediately upon employment
except for those who are exempted under the Act such as employees who are not
Malaysian citizens and persons stated in the First Schedule i.e. persons who are employed
to work in or are connected with work in a private dwelling. However, persons stated in
the First Schedule can elect to contribute to the EPF and the rate of contribution is at a
minimum of RM50 and a maximum of RM5,000 per month.
224
Appendix D
All employees who are not Malaysian citizens are exempted from compulsory
contributions. They can, however, elect to contribute and the rate is RM5.00 for the
employer's share and 11% for the employee's share of each employee's monthly wages.
5.4
Employee's Social Security Act 1969
The Social Security Organisation (SOCSO) administers the Employment Injury Insurance
Scheme and the Invalidity Pension Scheme provided under the Employees' Social Security
Act 1969. SOCSO however covers only Malaysian workers and permanent residents.
All establishments, including factories, employing workers earning wages not exceeding
RM2,000 a month are required to insure their workers under the two (2) social security
schemes.
The Employment Injury Insurance Scheme provides employees with coverage by way of
cash benefits and medical care in the event of any disablement or death due to
employment injury. Only the employer pays the contribution of about 1.25% of the
employees' monthly wages.
The Invalidity Pension Scheme provides 24-hour coverage to employees against invalidity
and death due to any cause before attaining the age of 55 years. The 1% monthly
contribution is shared equally between the employer and employee.
5.5
Workmen's Compensation Act 1952
The Workmen's Compensation Act 1952 administered by the Department of Labour
provides for the payment of compensation to workmen in the event of injuries arising from
their employment. Where fatalities occur, the Act provides for the payment of
compensation to the workers' dependants.
The Act covers private sector workers who earn less than RM500 a month and all manual
workers irrespective of their wages. Malaysians and permanent residents who are covered
by SOCSO are not covered by this Act. All foreign workers come under the purview of the
Act in respect of compensation for employment injury as well as non-employment injury
vide the Workmen's Compensation (Foreign Workers' Compensation Scheme) (Insurance)
Order 1998.
5.6
Occupational Safety and Health Act 1994
The Occupational Safety and Health Act, 1994 (OSHA) provides the legislative framework
to promote, stimulate and encourage high standards of safety and health at work. The aim
is to promote safety and health awareness, and establish effective safety organization and
performance through self-regulation schemes designed to suit the particular industry or
organization. The long-term goal of the Act is to create a healthy and safe working culture
among all Malaysian employees and employers. The Department of Occupational Safety
and Health (DOSH) is responsible for enforcing compliance with OSHA 1994. DOSH also
enforces compliance with the Factories and Machinery Act 1967.
Appendix D
225
The Occupational Safety and Health Act, 1994 defines the general duties of employers,
employees, the self-employed, designers, manufacturers, importers and suppliers of plant
or substances. Although these duties are of a general character, they carry a wide ranging
set of responsibilities. The Act provides a comprehensive and integrated system of law to
deal with the safety and health of virtually all people at work and the protection of the
public where they may be affected by the activities of people at work. All "persons at work"
in manufacturing; mining and quarrying; construction; agriculture, forestry and fishing;
utilities; transport, storage and communication; wholesale and retail trades; hotels and
restaurants; finance, insurance, real estate and business services; public services and
statutory services, are covered.
The general duties of employers, employees, the self-employed, designers, manufacturers,
importers and suppliers of plant or substances are clearly defined under OSHA 1994.
Employers must safeguard so far as is practicable, the health, safety and welfare of the
people who work for them. This applies in particular to the provision and maintenance of
a safe plant and system of work. Arrangements must also be made to ensure safety and
health in the use, handling, storage and transport of plant and substances. Under OSHA
1994, 'plant' includes any machinery, equipment, appliance, tool and component, whilst
'substance' means any natural or artificial substance whether in solid, liquid, gas, vapour
or combination thereof, form.
Risks to health from the use, storage or transportation of substances must be minimised. To
meet these aims, all practicable precautions must be taken in the proper use and handling
of any substance likely to cause a risk to health. It is the duty of employers to provide the
necessary information, instruction, training and supervision in safe practices, including
information on the legal requirements. Employers need to consider the specific training
needs of their organisations with particular reference to processes with special hazards.
An employer employing 40 or more persons must establish a safety and health committee
at the workplace. The committee's main function is to keep under review the measures
taken to ensure the safety and health of persons at the workplace and investigate any
related matters arising. An employer must notify the nearest occupational safety and health
office of any accident, dangerous occurrence, occupational poisoning or disease which
has occurred or is likely to occur at the workplace.
Some operations, installations, maintenance and dismantling of equipment and processes
need competent persons. Thus, during the installation of machinery and equipment such
as cranes, lifts and local exhaust ventilation systems, competent persons are compulsory
to ensure safe erection, whilst a boilerman and a steam engineer are required to operate
high risk equipment such as boilers. Processes that use hazardous chemicals require
competent persons to conduct the air quality and personal monitoring, a safety and health
officer as well as an occupational health doctor are required to ensure the proper
surveillance of the workplace.
There are seven (7) regulations under OSHA enforced by DOSH. They are:
(i)
226
Appendix D
Employers' Safety and Health General Policy Statements (Exception) Regulations,
1995
(ii)
Control of Industrial Major Accident Hazards Regulations, 1996
(iii)
Classification, Packaging and Labelling of Hazardous Chemicals Regulations, 1997
(iv)
Safety and Health Committee Regulations, 1996
(v)
Safety and Health Officer Regulations, 1997
(vi)
Use and Standards of Exposure of Chemicals Hazardous to Health Regulations, 2000
(vii) Notification of Accident, Dangerous Occurrence, Occupational Poisoning and
Occupational Disease Regulations, 2004
Contravention of some of the requirements can lead to prosecution in court. A person who
fails to comply with an improvement or prohibition notice that is served on him is liable
to prosecution, with a maximum fine of RM 50,000 or imprisonment for a term not
exceeding five (5) years, or both.
The objective of the Factories and Machinery Act (FMA), 1967 on the other hand, is to
provide for the control of factories on matters relating to the safety, health and welfare of
persons and the registration and inspection of machinery. Some high risk machinery such
as boilers, unfired pressure vessels, passenger lifts and other lifting equipment such as
mobile cranes, tower cranes, passenger hoists, overhead traveling cranes and gondolas,
must be certified and inspected by DOSH. All factories and general machinery must be
registered with DOSH before they can be installed and operated in Malaysia.
DOSH enforces 16 regulations under FMA 1967. They are:
(i)
Electric Passenger and Goods Lift Regulations, 1970
(ii)
Fencing of Machinery and Safety Regulations, 1970
(iii)
Notification, Certificate of Fitness and Inspection Regulations, 1970
(iv)
Persons-In-Charge Regulations, 1970
(v)
Safety, Health and Welfare Regulations, 1970
(vi)
Steam Boilers and Unfired Pressure Vessel Regulations, 1970
(vii) Certificates of Competency-Examinations Regulations, 1970
(viii) Administration Regulations, 1970
(ix)
Compounding of Offences Rules, 1978
(x)
Compoundable Offences Regulations, 1978
(xi)
Lead Regulations, 1984
(xii) Asbestos Regulations, 1986
(xiii) Building Operations and Works of Engineering Construction (Safety) Regulations,
1986
(xiv) Mineral Dust Regulations, 1989
(xv)
Noise Exposure Regulations, 1989
(xvi) Notification, Certificate of Fitness and Inspection (Amendment) Regulations, 2004
Appendix D
227
6.
Industrial Relation
6.1
Trade Unions
The government encourages the growth of responsible trade unions and, towards this end,
has enacted the Trade Unions Act, 1959 and the Trade Unions Regulations, 1959.
These legislations require that:
(i)
Trade unions confine their membership to employees within any particular
establishment, trade, occupation or industry
(ii)
All trade unions must be registered.
(iii)
No union can organize a strike without first obtaining the consent by secret ballot of
at least two-thirds of its total number of members who are entitled to vote
(iv)
All unions are inspected regularly to ensure compliance with the laws
6.2
Industrial Relations Act, 1967
The Industrial Relations Act, 1967 regulates relations between employers and workmen
and their trade unions, including the prevention and settlement of trade disputes. The Act
outlines the following:
(i)
Protection of the legitimate rights of employers and workmen and their trade unions
(ii)
Procedure for submission of claims for recognition and the scope of representation
of trade unions and collective bargaining
(iii)
Matters not allowed to be included in the proposals for collective bargaining are
those relating to promotion, transfer, recruitment, retrenchment, dismissal,
reinstatement, allocation of duties, and prohibition of strikes and lockouts over any
of these issues.
(iv)
An emphasis on direct negotiation between employers and workmen and their trade
unions to settle any differences. Where this fails, the Act provides for speedy and just
settlement of trade disputes by conciliation or arbitration.
(v)
The Minister of Human Resources to intervene and to refer at any stage any trade
dispute to the Industrial Court for Arbitration.
(vi)
A prohibition of strikes and lockouts once a trade dispute has been referred to the
Industrial Court and on any matter covered by a collective agreement or by an award
of the Industrial Court.
(vii) The protection of pioneer industries during the initial years of their establishment
against any unreasonable demands from a trade union. Collective agreements
cannot contain more favourable terms of employment than those stipulated under
the Employment Act, 1955 unless approved by the Minister of Human Resources.
6.3
Relations in Non-Unionised Establishments
In a non-unionised establishment, the normal practice for settling disputes is for the
employee to try to obtain redress from his supervisor, foreman or employer directly. An
employee can also lodge a complaint with the Ministry of Human Resources which will
then conduct an investigation.
228
Appendix D
Appendix E
Banking, Finance and
Exchange Administration
1.
The Banking System in Malaysia
The banking system, comprising the commercial banks, merchant banks and finance
companies and industrial finance institutions, is the major institutional source of credit to
the economic sectors in Malaysia. In addition, there are also development finance
institutions which provide financing especially to the industrial sector.
1.1
The Central Bank
The central bank, Bank Negara Malaysia, is responsible for maintaining monetary stability
and ensuring a sound financial system. Towards this, Bank Negara Malaysia regulates and
supervises the Malaysian banking system, development finance institution and insurance
companies. Bank Negara Malaysia also issues the Malaysian currency (the Ringgit), acts as
a banker and economic and financial adviser to the government, administers the country's
foreign exchange control regulations, and acts as lender of last resort to the banking
system.
1.2
Financial Institution
The commercial banks are the main players in the banking system. Currently, there are 10
domestic and 13 locally incorporated foreign commercial banks operating through a
network of 1,660 branches across the country. Besides that, 6 of these domestic banks
have a total of 46 branches overseas. In addition, 22 foreign banks maintain representative
offices that do not conduct normal banking business, providing only liaison services and
facilitating information between business interests in Malaysia, in their home countries and
in countries where they have representations.
Ten (10) merchant banks provide a wide range of services through 17 branches. Merchant
banks play a role in the short-term money market and capital raising activities including
underwriting, loans syndication, corporate finance and management advisory services,
arranging for the issue and listing of shares, as well as investment portfolio management.
Malaysia also has two (2) Islamic banks which provide banking services based on Islamic
principles. The first to be established, Bank Islam Malaysia Berhad, operates through 87
branches in the country while the more recently-established Bank Muamalat Malaysia
Berhad has 48 branches. In addition to the Islamic banks, there are also 13 commercial
banks that offer products and services under the Islamic banking scheme.
In addition to the commercial banks, nine (9) finance companies, through their 723
branches, accept savings and fixed deposits and provide hire purchase financing,
consumer financing, housing loans, block discounting and leasing transactions.
Appendix E
229
There are also seven (7) discount houses in Malaysia that specialise in short-term money
market operations and mobilise deposits from the financial institution and corporations.
They are permitted to invest funds in treasury bills, government securities, banker's
acceptances, negotiable instruments of deposit and private debt securities, and accept
short-term funds. In addition, there are 599 scheduled institutions comprising building
credit companies, credit token companies, factoring companies and leasing companies
that provide credit and financing facilities to the public.
Malaysia has several development finance institutions (DFIs) that were specifically set up
to promote certain strategic sectors of the economy. These DFIs specialise in providing
medium to long-term loans, equity capital and guarantees for loans. DFIs also provide
consulting and advisory services in the identification and development of new projects,
besides financial, technical and managerial advice and assistance. DFIs complement
banking institutions in providing financing to the strategic sectors such as the agriculture,
infrastructure, shipping, manufacturing and export sectors, and SMEs.
The Export-Import Bank of Malaysia Berhad (Exim Bank) finances and facilitates Malaysia's
foreign trade and investments, concentrating on medium to long-term credit for Malaysian
exporters and investors as well as buyers of Malaysian goods. Another institution, the
Malaysian Export Credit Insurance Berhad (MECIB), offers export insurance cover and
guarantees.
2.
Export Credit Refinancing (ECR)
Export Credit Refinancing (ECR) is a scheme under which the Exim Bank provides shortterm financing at competitive interest rates to direct/indirect exporters through the
commercial banks. The facility is offered by commercial banks which are then refinanced
by Exim Bank. An exporter who wishes to use the ECR facility should arrange for an ECR
credit line with his ECR bank and then obtain access to the ECR facilities from Exim Bank.
2.1
Eligibility Criteria
The ECR facility is available to direct exporters (manufacturing companies/agricultural
product producers/trading companies) and indirect exporters (suppliers of domestic
inputs), while the products to be exported must not be listed under the First Schedule of
Custom Duties Order (list of goods which is prohibited to be exported).
230
2.2
Type of Facilities
(i)
The pre-shipment ECR facility is a loan advanced to manufacturing companies to
facilitate the production of eligible goods or to trading companies for the purchase
of intermediate/finished goods, for export prior to shipment.
(ii)
The post-shipment ECR facility enables Malaysian exporters to obtain immediate
funds after shipment of eligible goods that are sold on sight/usance credit terms.
Appendix E
2.3
Method of Financing
Two (2) methods of financing are available for exporters under the pre-shipment ECR i.e.
the order-based method and certificate of performance (CP) method. Under the orderbased method, the pre-shipment ECR financing is advanced to direct exporters against the
purchase orders received from their buyers.
The CP method is an alternative available only to direct exporters who are consistently
exporting at least RM1 million of eligible goods annually.
The method of financing under the post-shipment ECR facility is through bills discounting.
Exporters should submit a full set of export documents to the ECR bank to create a postshipment bill to enable it to be discounted at the Exim Bank.
2.4
Period and Amount of Financing
The maximum period of financing is four (4) months and six (6) months for the preshipment ECR and post-shipment ECR respectively. Under the order-based method,
exporters can obtain financing for 95% of the value of their export order, while under the
CP method, the amount of financing for manufacturing companies and trading companies
is 80% and 90% respectively of the export value of eligible products in the preceeding 12
months. The minimum amount of financing is RM10,000 and the maximum, RM50
million, with a minimum drawdown of RM2,000. The exporter may request for an
additional amount of financing from the Exim Bank with the recommendation of the
commercial bank.
3.
The Securities Market in Malaysia
3.1
Securities Commission
The Securities Commission (SC), established in 1993, regulates the capital markets in
Malaysia pursuant to the Securities Commission Act 1993, Securities Industry Act 1983,
Futures Industry Act 1993 and Securities Industry (Central Depositories) Act 1991.
Another prong of the SC's role is to facilitate the orderly development of an innovative and
competitive capital market in Malaysia. The SC is a self-funding statutory body with
investigative and enforcement powers, and reports to the Minister of Finance.
The SC regulates all matters on securities and futures contracts, take-overs and mergers of
companies, and unit trust schemes. It is the authority for registering prospectuses of
corporations (other than unlisted recreational clubs) and approving corporate bond issues.
The SC supervises exchanges, clearing houses and central depositories, and is also
responsible for licensing and supervising all licensed persons.
Appendix E
231
The SC introduced the Capital Market Masterplan (CMP) in 2001. This is a comprehensive
plan that charts the strategic positioning and future direction of the Malaysian capital
market for the next 10 years. The Masterplan prioritises the immediate needs of the capital
market and charts its direction and long-term growth in anticipation of global
developments to its environment.
Visit the SC website (www.sc.com.my) for more information on the SC and the CMP.
3.2
Bursa Malaysia Berhad
The first formal stock exchange, the Malayan Stock Exchange, was set-up in 1960 with two
(2) trading rooms, in Singapore and Kuala Lumpur. With the separation of Singapore from
Malaysia in 1965, the Stock Exchange of Malaysia and Singapore (SEMS) was established.
With the termination of currency interchangeability between Malaysia and Singapore in
1973, SEMS was separated into two i.e. the Kuala Lumpur Stock Exchange Berhad (KLSEB)
and the Stock Exchange of Singapore. A new company limited by guarantee, the Kuala
Lumpur Stock Exchange (KLSE) took over operations of KLSEB in 1976. Following a
demutualisation exercise, KLSE became a public company limited by shares on 5 January
2004.
KLSE vested and transferred its exchange business to a wholly-owned subsidiary, Bursa
Malaysia Securities Berhad whilst the demutualised KLSE became the exchange holding
company known as Bursa Malaysia Berhad (Bursa Malaysia) with effect from 20 April
2004.
Bursa Malaysia is a front-line regulator and market operator for exchange-traded securities
and derivatives. It has its Memorandum and Articles of Association (M&A) and rules which
govern the conduct of its Participating Organisations and Trading Participants in securities
and derivatives dealings respectively.
It is also responsible for the surveillance of the marketplace, and for the enforcement of its
listing requirements, which spell out the criteria for listing, disclosure requirements and
standards to be maintained by listed companies.
Bursa Malaysia Group of Companies
Bursa Malaysia Group provides a comprehensive range of services to support the securities
industry in Malaysia.
(i)
Bursa Malaysia Securities Berhad (Bursa Securities)
It provides a marketplace for equities trading and is made up of:
232
Appendix E
•
The Main Board for larger capitalised companies
•
The Second Board for the medium-sized companies
•
MESDAQ Market for technology and growth companies
(ii)
Bursa Malaysia Derivatives Berhad (Bursa Derivatives)
It is formerly known as Malaysia Derivatives Exchange Berhad, operates the
derivatives market. Bursa Derivatives was a result of the consolidation between the
financial futures and commodities futures exchanges. Bursa Derivatives provides
investors with hedging instruments and currently offers commodities, financial and
equity-related futures. Current products available are KLCI Futures and Options,
Kuala Lumpur Interbank Offered Rate (KLIBOR) Interest Rate Futures, 3-Year, 5-Year
and 10-Year Malaysian Government Securities Futures, Crude Palm Oil Futures and
Crude Palm Kernel Oil Futures.
(iii)
Labuan International Financial Exchange (LFX)
It is an offshore financial exchange based in Labuan, was established in November
2000. It is the only international exchange with full-fledges listing and trading
facilities in an international Offshore Financial Centre (IOFC) in Asia.
It offers trading facilities that cater for a wide range of multi-currency financial
instruments in an offshore environment. These instruments can be based on
conventional or Islamic based principles. LFX offers web-based trading and on-line
submission of documents, including equity and debt instruments, bonds, asset
backed securities and mutual funds. Instruments that are currently listed include 13
conventional bond issues, five investment fund and five Islamic Notes.
In terms of regulatory structure, LFX is governed by its Rules and Regulations as
approved under the Labuan Offshore Securities Industry Act, 1998 (LOSIA). The
custodian of LOSIA is the Labuan Offshore Financial Services Authority.
(iv)
Bursa Malaysia Securities Clearing Sdn Bhd
It (formerly known as Securities Clearing Automated Network Services Sdn. Bhd) is
the equity clearing house while the Bursa Malaysia Derivatives Clearing Berhad
(formerly known as Malaysia Derivatives Clearing House Bhd) is the derivatives
clearing house. They provide clearing and settlement facilities for their respective
markets.
(v)
Bursa Malaysia Depository Sdn Bhd
It (formerly known as Malaysian Central Depository Sdn Bhd) provides efficient
central clearing and settlement of securities, and operates the central depository
system (CDS).
Bursa Malaysia Corporate Governance
In a demutualised structure, a single Board oversees Bursa Malaysia Group. The Board has
a balanced representation structure consisting: Public Interest directors, Independent
directors, Shareholder directors and the Chief Executive Officer to safeguard the interest of
all stakeholders.
The Board is also augmented by Board Committees that are based on corporate
governance best practices. Consultative Panels made up of the different market and
settlement segments are set up to maximise inputs from industry representatives.
Appendix E
233
Product and Services
Bursa Malaysia is today one of the largest bourses in ASEAN, with 953 companies (as 19
November 2004) listed either on the Main Board, Second Board or MESDAQ Market.
These companies, which mirror the diversity and scope of the Malaysian economy, are
categorised into 14 different sectors for Plantation, Mining, Trading/Services, to
Technology, Infrastructure and Finance, to name a few.
Stockbroking Companies
Currently, there are 34 stockbroking companies known as Participating Organisations
offering services in the dealing of securities listed on Bursa Malaysia Securities. Out of
these, six (6) stockbroking companies have been granted universal broker status. Universal
brokers are able to offer a full scope of integrated capital market services, i.e. corporate
finance, debt securities trading and share dealing.
Stockbroking Companies
A Trading Participant is a company who owns at least one (1) Preference Share conducting
business as futures broker licensed under the Futures Industry Act and carrying on trading
in contracts traded on the Bursa Malaysia Derivatives Berhad. A Trading Participant has to
be registered with the Securities Commission. Currently, there are 15 Trading Participants.
Trading Participants
A Trading Participant is a company who owns at least one (1) Preference Share conducting
business as futures broker licensed under the Futures Industry Act and carrying on trading
in contracts traded on the Bursa Malaysia Derivatives Berhad. A Trading Participant has to
be registered with the Securities Commission. Currently, there are 15 Trading Participants.
4.
Offshore Financial Services
4.1
Labuan Offshore Financial Service Authority (LOFSA)
The Labuan Offshore Financial Services Authority (LOFSA) is a single regulatory body that
spearheads and coordinates the development and promotion of Labuan as an International
Offshore Financial Centre (IOFC).
It streamlines government machinery for supervising the offshore financial services
industry, undertakes research and development work, and improves operational efficiency,
thus creating a conducive business environment for the IOFC.
The incorporation and registration of companies fall under the purview of LOFSA. LOFSA
also oversees the LFX and Labuan's offshore industries such as banking, insurance,
securities and trust and fund management.
234
Appendix E
Offshore business activities undertaken by Labuan offshore companies refer to trading and
non-trading activities. Offshore trading activities include banking, insurance, trading,
management, licensing or any other activity, which is not an offshore non-trading activity.
Offshore non-trading activities refer to activities relating to holding of investments in
securities, stocks, shares, loans, deposits and immovable properties by an offshore
company on its own behalf.
The Labuan IOFC is not subject to the exchange control rules and regulations of Malaysia.
This is because the nature of offshore business in Labuan is basically foreign currencybased and conducted with non-residents.
Over 5,000 offshore companies have set up operations in Labuan, including trust
companies, banks, insurance and insurance-related companies, and fund management
and leasing companies.
4.2
Incentives for Offshore Financial Service
(i)
Minimum Tax
(ii)
•
An offshore company carrying on an offshore trading activity can opt to pay
tax each year at the rate of 3% of its net audited profits or a fixed tax of
RM20,000.
•
An offshore company which has no basis period for a year of assessment is
taxed at a fixed rate of RM20,000.
Abatement of Tax for Professional Services
•
(iii)
(iv)
Any person or his employee or a company rendering qualifying professional
services to an offshore company in Labuan is exempted from income tax of up
to 65% of the statutory income. This includes legal, accounting, financial and
secretarial services.
Abatement of Tax for Employment
•
Non-citizens employed in a managerial capacity in an offshore company in
Labuan enjoy an income tax exemption of up to 50% of gross employment
income.
•
Non-citizens trust officers working in a Labuan trust company enjoy income
tax exemption of up to 50% of gross employment.
Exemptions from Income Tax
The following exemptions are available for offshore companies under the Income
Tax Act 1967:
•
Dividends paid to a resident or a non-resident person
•
100% tax exemption on Director's fees paid to a non-citizen Director
•
50% tax exemption on Labuan and housing allowances paid to Malaysian
citizens working in an offshore company
Appendix E
235
Offshore Companies are exempted from withholding tax for the following:
(v)
•
Interest paid to a resident person or a non-resident who is not engaged in the
business of banking, finance or insurance
•
Interest paid to a non-resident person or another offshore company unless the
interest accrues to a banking, finance company or insurance business by a
non-resident
•
Lease rental paid to non-resident
•
Technical or management fee paid to a non-resident or another offshore
company
•
Royalty to a non-resident person or another offshore company
•
Distributions made by an offshore trust to non-resident beneficiaries
Stamp Duty Exemption
•
5.
Offshore business transactions by an offshore company (including M&A of an
offshore company and transfer of shares in an offshore company) are exempted
from payment of stamp duty.
Exchange Control Practices
The foreign exchange administration rules in Malaysia are aimed at providing an
appropriate framework that will influence capital flows and facilitate currency risk
management to promote financial and economic stability of the country.
The rules complement the overall macroeconomic policies and are reviewed regularly in
line with the changing environment. Reviews are aimed at reducing the cost of doing
business, improving regulatory delivery system and encouraging better risk management
activities by residents and non-residents as well as promoting the development of domestic
foreign exchange market to promote stability in the financial system and economy of the
country.
All rules are applied uniformly to transactions with all countries, except the State of Israel
for which special restrictions apply.
Malaysia Adopts a Managed Float for the Ringgit Exchange Rate
Bank Negara Malaysia announced that beginning 21st July 2005 the exchange rate of the
Ringgit with immediate effect will be allowed to operate in a managed float, with its value
being determined by economic fundamentals. Bank Negara Malaysia will monitor the
exchange rate against a currency basket to ensure that the exchange rate remains close to
its fair value. Promoting stability of the exchange rate continues to be a primary objective
of policy.
236
Appendix E
Changes in the international and regional financial and economic environment have made
it important for Malaysia to have a stable exchange rate against its major trading partners,
in particular, the regional countries. Consequently, the stability of the Ringgit exchange
rate against the regional currencies will become increasingly important. Such stability can
best be achieved by maintaining the value of the Ringgit against a trade-weighted index of
Malaysia’s major trading partners.
This announcement represents a change in the system by which the value of the Ringgit is
determined. Given that the current valuation of the Ringgit is consistent with our
fundamentals and after taking into consideration developments in our trading partner
countries, the exchange rate after shifting to this new system is not expected to deviate
significantly from the current prevailing level.
For foreign exchange administration purposes, the definition of residents and non-residents
are as follows:
(i)
(ii)
5.1
Residents
•
Citizens of Malaysia (excluding persons who have obtained permanent
resident status of a territory outside Malaysia and are residing abroad)
•
Non-citizens who have obtained permanent resident status in Malaysia and
are residing permanently in Malaysia
•
Persons, whether body corporate or unincorporated, registered or approved by
any authority in Malaysia
Non-residents
•
Persons other than residents
•
Overseas branches, overseas subsidiaries, overseas regional offices, sales
offices, representative offices of resident companies
•
Embassies, Consulates, High Commissions, supranational or international
organisations recognised by the Government of Malaysia
•
Malaysian citizens who have obtained permanent resident status of a territory
outside Malaysia and are residing outside Malaysia
Non- Residents
Non-residents are free to invest in Malaysia in any form. To complement their investment
strategy, non-residents may obtain financing from licensed onshore banks (licensed
commercial and Islamic banks in Malaysia) both in Ringgit and foreign currency. They are
also able to enter into foreign exchange contracts with licensed onshore banks to actively
manage their exchange risk exposures arising from their Ringgit investments. Nonresidents are free to exchange their foreign currency into Ringgit and vice versa of any
amount as well as repatriate their capital, profits and income earned from Malaysia in
foreign currency. Details are as follows:
Appendix E
237
Investment in Malaysia
(i)
(ii)
Setting-up a Business in Malaysia (Equity Investment)
•
A non-resident may incorporate a company, register a branch, and/or establish
sole proprietorship or partnership in Malaysia with the Companies
Commission of Malaysia. Details can be found at http://www.ssm.com.my/.
•
A company or business registered with any authority in Malaysia is a resident
in Malaysia, irrespective of whether the company/firm is resident or nonresident-owned or controlled. Such businesses will be governed by rules
relevant to residents.
Purchasing Portfolio or Debt Securities Issued in Malaysia
•
(iii)
A non-resident is free to purchase any Ringgit securities, including debt
securities (including Ringgit bonds issued by non-residents) in Malaysia.
Purchase of Immovable Properties in Malaysia
•
A non-resident is free to obtain up to three loans to purchase immovable
property in Malaysia from Malaysian financial institutions. The amount of
borrowing is determined by the financial institutions' own policies and the
Foreign Investment Committee (FIC) guidelines. The borrowing would be
applicable for both residential and commercial property. Consideration would
be given if the non-resident needs to obtain more than three property loans.
Guidelines issued by the FIC on purchases of immovable properties by a nonresident can be found at http://www.epu.jpm.my/.
(iv)
Placement of Deposits in Ringgit or Foreign Currency
•
•
238
Appendix E
Ringgit Account (External Accounts)
(a)
A non-resident may open and maintain any number of Ringgitdenominated accounts with any licensed onshore banks, licensed
finance companies or licensed merchant banks in Malaysia.
(b)
A Ringgit account belonging to a non-resident or where the beneficiary
of the funds is a non-resident is known as an External Account.
(c)
There is no restriction on the amount of Ringgit funds that can be placed
in the External Account.
(d)
The Ringgit funds in an External Account can be used for payments to
residents for purchase of Ringgit assets or services provided in Malaysia.
(e)
Funds in the External Account can be converted into foreign currency
with a licensed onshore bank and repatriated at any time.
Foreign Currency Account
(a)
A non-resident may open and maintain any number of foreign currency
accounts or amounts with any licensed onshore banks and licensed
merchant banks in Malaysia.
(b)
No restrictions are imposed on the use of foreign currency funds in the
foreign currency account. Funds in such accounts may be converted into
Ringgit with licensed onshore banks or repatriated at any time.
(v)
Lending to Residents
•
Ringgit Credit Facilities
A non-resident may lend in Ringgit to a resident who has obtained prior
permission of the Controller of Foreign Exchange (the Controller).
•
Foreign Currency Credit Facilities
A non-resident may extend foreign currency credit facilities to a resident as
long as the resident's total foreign currency credit facilities does not exceed the
aggregate of RM50 million equivalent for a resident company on a corporate
group basis and RM10 million equivalent for a resident individual.
Consideration can be given for extension of foreign currency credit facilities
exceeding the above limits.
Payment for Investment
A non-resident may pay for the investment in Malaysia in Ringgit from his External Account
or in foreign currency.
Borrowing from Residents
(i)
A non-resident is free to obtain Ringgit credit facilities as follows:
(ii)
•
From licensed banking institutions in Malaysia up to an aggregate of RM10
million for use in Malaysia.
•
From resident insurers up to the value of the cash surrender value of the
insurance policy purchased by the non-resident.
•
From licensed onshore banks up to RM200 million on intra-day and overnight
basis by a non-resident stockbroking company or a custodian bank. The
facilities are strictly for financing funding gaps due to settlement timing
mismatches, unforeseen or inadvertent /technical administration errors or
delays due to time zone difference in relation to settlement of trades on Bursa
Malaysia (stock exchange in Malaysia).
•
From resident stock-broking companies in the form of margin financing.
•
From a non-bank resident up to RM10,000.
•
Up to three loans to finance the purchase of immovable properties in
Malaysia.
Issuance of Ringgit Debt Securities
•
Malaysia allows Multilateral Development Banks or foreign multinational
corporations to raise Ringgit-denominated bonds in Malaysia. Applications for
issuance of the Ringgit bonds would be considered on the merit of each case.
Further details are available at http://www.bnm.gov.my/fxadmin.
(iii)
•
A non-resident may obtain any amount of foreign currency credit facilities
from licensed onshore banks and approved merchant banks.
Appendix E
239
Hedging of Investments
(i)
A non-resident is free to enter into a foreign exchange contract on spot or forward
basis with a licensed onshore bank to buy Ringgit to make payment to a resident.
(ii)
A non-resident is also free to enter into a foreign exchange contract on spot or
forward basis with a licensed onshore bank to sell Ringgit funds arising from a
committed transaction in Malaysia.
(iii)
The maturity date of the foreign exchange contracts should be the expected date of
payment or receipt of the underlying committed transaction.
(iv)
The amount of the foreign exchange contracts should not exceed the expected sum
of payment or receipt of the underlying committed transaction.
Sale of Investments
(i)
A non-resident may sell any of his investments in Malaysia including securities not
listed on Bursa Malaysia to a resident or another non-resident.
(ii)
A resident may pay or settle the purchase from the non-resident seller in Ringgit or
in foreign currency.
(iii)
A non-resident purchaser may also pay or settle the purchase from the non-resident
seller in foreign currency or Ringgit from his External Account.
Repatriation of Funds
A non-resident is free to repatriate capital, divestment proceeds, profits, dividends, rental,
fees and interest arising from investments in Malaysia.
5.2
Residents
As part of ongoing efforts towards reducing cost of doing business and encouraging better
risk management activities, residents are allowed to manage their funds through domestic
and foreign placement of foreign currency funds, undertake investment activities outside
Malaysia as well as enter into risk management arrangement with licensed onshore banks
in Malaysia. Details are listed below:
Payments for Import of Goods and Services
240
(i)
There is no restriction for a resident to make payments of any amount to a nonresident for import of goods and services.
(ii)
Such payments must be made in a foreign currency other than the currency of the
State of Israel. Prior permission is required for payment in the currency of the State
of Israel or to a person who is a resident of the State of Israel.
(iii)
A resident may also enter into a forward foreign exchange contract with licensed
onshore banks or approved merchant banks to buy foreign currency against Ringgit
or another foreign currency to make payment for import from a non-resident.
Appendix E
Proceeds Arising from Export of Goods (Export Proceeds)
(i)
All export proceeds are required to be repatriated to Malaysia in accordance with
the payment schedule as specified in the sales contract, which should not exceed six
months from the date of export.
(ii)
Export proceeds must be received in foreign currency. They may be sold for Ringgit
or retained in foreign currency accounts (FCA) with licensed onshore banks or
approved merchant banks. There is no limit on the amount of funds retained in the
FCA.
(iii)
A resident may enter into a forward foreign exchange contract with a licensed
onshore bank to sell export proceeds for Ringgit or another foreign currency.
(iv)
Only resident exporters with annual gross exports exceeding the equivalent of RM50
million are required to submit quarterly reports to the Controller.
Investment Abroad by A Resident
(i)
A resident company or individual with no domestic Ringgit credit facility is free to
invest abroad. The investment may be made through the conversion of Ringgit or
from foreign currency funds retained domestically or offshore.
(ii)
A resident with domestic Ringgit credit facility is also free to invest abroad its foreign
currency funds maintained domestically or offshore.
(iii)
In addition, a resident with domestic Ringgit credit facility may convert Ringgit into
foreign currency up to the following limits for overseas investments, including
extension of foreign currency credit facilities to non-residents:
•
Up to RM10 million per calendar year by the company on a per corporate
group basis
•
Up to RM100,000 per calendar year by the individual.
(iv)
For a company converting Ringgit for overseas investments, it must have a minimum
shareholders' funds of RM100,000 and must be in operation for at least one year.
(v)
Individuals may convert Ringgit into foreign currency up to the amount required for
investment in foreign currency securities under the Employee Share Option/Purchase
Scheme offered by the individual employer's overseas parent or related companies.
(vi)
A resident is allowed to finance overseas investment in aggregate up to RM10
million equivalent with foreign currency credit facilities.
(vii) A resident unit trust management company may invest abroad up to:
•
The full amount of investments by its non-resident clients as well as resident
clients without any domestic credit facilities
•
30% of investments by resident clients with domestic credit facilities.
(viii) These funds by different clients or companies may be pooled to benefit from
economies of scale when investing abroad. Such investments should be consistent
with clients' mandates and comply with the Securities Commission's guidelines.
(ix)
A resident insurance company may invest abroad up to 5% of its margin of solvency
while a takaful operator may invest up to 5% of its total assets.
Appendix E
241
(x)
A resident insurance company or a takaful operator may also invest abroad up to
30% of the NAV of its investment-linked funds. These investments are subject to
compliance with guidelines or regulations issued by Bank Negara Malaysia.
(xi)
All payments for investment abroad exceeding RM50,000 should be registered with
the Controller at least seven working days prior to making the payments.
Credit Facilities Obtained by Residents
(i)
(ii)
•
A resident may obtain trade financing facility of any amount in foreign
currency from licensed onshore banks.
•
In addition, a resident company may obtain credit facilities in foreign currency
up to an equivalent of RM50 million in aggregate on a group basis from
licensed onshore banks, licensed merchant banks and non-residents.
•
A resident individual may also obtain credit facilities in foreign currency up to
the equivalent of RM10 million in aggregate from licensed onshore banks,
licensed merchant banks and non-residents.
•
Any amount of credit facility exceeding the above permitted limits would
require the prior permission of the Controller. Where the aggregate amount
exceeds the equivalent of RM1 million and up to the permitted limit, the
resident (company or individual) is required to register the credit facility with
the Controller, prior to loan drawdown.
•
A resident may only utilise up to an aggregate of RM10 million equivalent of
the foreign currency credit facilities to finance its overseas investment
activities.
•
There is no restriction for the repayment or prepayment of credit facilities as
long as such credit facilities have been obtained in accordance with the
relevant foreign exchange administration rules. Resident borrowers need to
register with the Controller any proposal to prepay the credit facilities prior to
effecting the prepayments.
A resident is required to seek prior permission of the Controller to obtain any amount
of credit facility in Ringgit from non-residents, including from non-resident
shareholders or directors.
Forward Foreign Exchange Contracts
(i)
242
Appendix E
A resident may enter into forward foreign exchange contracts with licensed onshore
banks and approved merchant banks to purchase or sell any foreign currency against
Ringgit or another foreign currency as follows:
•
Any payments or receipts for import or export of goods and services as well as
income, based on firm commitment or anticipatory basis.
•
Hedging the foreign currency exposures of permitted overseas investment,
including extension of credit facilities to non-residents.
•
Any committed capital inflows or outflows, including drawdown of permitted
foreign currency credit facilities, and repayment of foreign currency credit
facilities up to the amount repayable within 24 months as well as payments for
permitted overseas investment.
(ii)
The maturity date of the forward foreign exchange contract should be the expected
date of receipt or payment of the underlying transaction. In the event foreign
currency receivables are received earlier, the resident can temporarily retain the
receipts in its foreign currency account, pending maturity of the forward foreign
exchange contract.
(iii)
For forward purchase of export proceeds, the maturity date of the forward foreign
exchange contract should not be later than six months after the intended date of
export.
(iv)
For forward foreign exchange contract involving two foreign currencies, the use or
retention of the foreign currency being purchased by the residents must comply with
the current foreign exchange administration rules.
(v)
A resident may also enter into interest rate swaps with licensed onshore banks,
approved merchant banks and licensed offshore banks in Labuan provided the
transaction is supported by firm underlying commitment.
Issuance of Ringgit Private Debt Securities
Resident company is allowed to raise domestic credit facility through the issuance of
Ringgit Private Debt Securities regardless of amount, provided not more than RM10
million is used for investment abroad in a calendar year.
Foreign Currency Accounts of Residents (FCA)
(i)
A resident company or individual with or without any domestic credit facilities, is
free to open FCA with any licensed onshore banks, licensed offshore banks in
Labuan or overseas banks to retain any amount of its foreign currency receipts, other
than receipts arising from export of goods from Malaysia.
(ii)
A resident exporter may open FCA with licensed onshore banks to retain any amount
of foreign currency export receipts. It is also free to merge its export and non-export
FCA maintained with licensed onshore banks without any restriction on the amount
of foreign currency receipts retained in such accounts.
(iii)
A resident may convert Ringgit into foreign currency and credit into FCA maintained
with licensed onshore banks, licensed offshore banks in Labuan and overseas banks
subject to the permitted limits for investment abroad by residents.
(iv)
A resident company maintaining FCA with licensed offshore banks in Labuan or
overseas banks is required to submit monthly statement (Statement OA) to the
Controller.
5.3
Special Status Granted to Selected Companies
Offshore Entities in the Labuan International Offshore Financial Centre
(i)
An entity incorporated or registered under the Offshore Companies Act 1990 is
declared as a non-resident for foreign exchange administration purposes.
(ii)
An offshore entity in Labuan may buy or sell foreign currency (other than the
currency of the State of Israel) against another foreign currency spot or forward with
licensed onshore banks, licensed offshore banks (excluding licensed offshore
investment banks) in Labuan as well as non-residents outside Malaysia. It may also
buy or sell foreign currency (other than the currency of the State of Israel) against
Ringgit with licensed onshore banks for permitted purposes.
Appendix E
243
(iii)
All offshore entities may maintain External Accounts with licensed onshore banks to
facilitate the defrayment of statutory and administrative expenses in Malaysia.
(iv)
An offshore insurance entity in Labuan may also use its External Accounts to
facilitate the receipt of reinsurance premiums and for payment of claims arising from
reinsurance of domestic insurance business.
(v)
A licensed offshore bank in Labuan may receive payments in Ringgit from residents
arising from fees, commissions, dividends or interest from deposit of funds with
onshore financial institutions.
(vi)
A licensed offshore bank in Labuan may invest in assets/instruments in Malaysia for
its own account provided the investments are transacted directly with resident
banking institutions or resident brokers. The investments must not be financed by
Ringgit borrowings.
Multimedia Super Corridor Companies
(i)
A company operating in Multimedia Super Corridor (MSC) that is incorporated as a
legal entity is given exemption from foreign exchange administration rules upon the
company being awarded the MSC status by the Multimedia Development
Corporation. The exemption granted to the MSC company is solely for transactions
undertaken on its own account.
(ii)
However, prior permission should be obtained to deal with Israeli residents or the
currency of the State of Israel.
(iii)
The MSC company is required to submit the necessary statistical
forms/reports/statements for monitoring purposes. These reports can be obtained
from Bank Negara Malaysia's website, http://www.bnm.gov.my/fxadmin.
Approved Operational Headquarters
An Approved Operational Headquarters (OHQs) is allowed to:
(i)
Open FCA with licensed onshore banks to retain any amount of export proceeds in
foreign currency.
(ii)
Open FCA with licensed onshore banks, licensed offshore banks in Labuan or
overseas banks for crediting foreign currency receivables, other than export
proceeds, with no limit imposed on the overnight balances
(iii)
Obtain any amount of domestic credit facilities in Ringgit.
(iv)
Obtain any amount of foreign currency credit facilities from licensed onshore banks
and licensed merchant banks in Malaysia, and from any non-resident, provided the
OHQ does not on-lend to, or raise the funds on behalf of, any resident.
(v)
Invest abroad any amount, including extension of credit facilities to its related
companies, to be funded with foreign currency funds or borrowing. It may also
convert any amount of Ringgit for investment abroad if it does not have domestic
credit facilities or up to RM10 million per calendar year if it has domestic credit
facilities.
Detailed information on the foreign exchange administration rules can be obtained at
http://www.bnm.gov.my/fxadmin.
244
Appendix E
Appendix F
Intellectual property protection in Malaysia comprises that of patents, trademarks, industrial
designs, copyrights, geographical indications and layout designs of integrated circuits. Malaysia
is a member of the World Intellectual Property Organisation (WIPO) and a signatory to the Paris
Convention and Berne Convention which govern these intellectual property rights.
In addition, Malaysia is also a signatory to the Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS) signed under the auspices of the World Trade Organization (WTO).
Therefore, Malaysia's intellectual property laws are in conformance with international standards
and provide adequate protection to both local and foreign investors.
1.
Patents
The Patents Act 1983 and the Patents Regulations 1986 govern patent protection in
Malaysia. An applicant may file a patent application directly if he is domicile or resident
in Malaysia. A foreign application can only be filed through a registered patent agent in
Malaysia acting on behalf of the applicant.
Similar to legislations in other countries, an invention is patentable if it is new, involves an
inventive step and is industrially applicable. In accordance with TRIPS, the Patent Act
stipulates a protection period of 20 years from the date of filing of an application. Under
the Act, the utility innovation certificate provides for an initial duration of 10 years
protection from the date of filing of the application and renewable for further two (2)
consecutive terms of five (5) years each subject to use. The owner of a patent has the right
to exploit the patented invention, to assign or transmit the patent, and to conclude a
licensed contract.
In accordance with TRIPS, under the scope of compulsory licence, the Act allows for
importation of patented products that are already in the other countries' market (parallel
import).The Government can prohibit commercial exploitation of patents for reasons of
public order or morality. The provision for Patent Cooperation Treaty (PCT) also allows
importation under the scope of compulsory license.
2.
Trade Marks
Trade mark protection is governed by the Trade Marks Act 1976 and the Trade Marks
Regulations 1997. The Act provides protection for registered trade marks and service marks
in Malaysia. Once registered, no person or enterprise other than its proprietor or
authorised users may use them. Infringement action can be initiated against abusers. The
period of protection is 10 years, renewable for a period of every 10 years thereafter. The
proprietor of the trade mark or service mark has the right to deal or assign as well as to
license its use.
Appendix F
245
In accordance with TRIPS, Malaysia prohibits the registration of well-known trade marks
by unauthorised persons and provides for border measures to prohibit counterfeit trade
marks from being imported into Malaysia.
As with patents, while local applicants may file applications on their own, foreign
applicants will have to do so through authorized agents.
3.
Industrial Designs
Industrial design protection in Malaysia is governed by the Industrial Designs Act, 1996
and Industrial Designs Regulations 1999. The Act provides the rights of registered
industrial designs as that of a personal property capable of assignment and transmission by
operation of the law.
To be eligible for registration, industrial designs must be new and do not include a method
of construction or design that is dictated solely by function. In addition, the design of the
article must not be dependent upon the appearance of another article of which it forms an
integral part.
Local applicants can file registrations individually or through a registered industrial designs
agent. However, foreign applicants will need to seek the services of a registered industrial
designs agent. Registered industrial designs are protected for an initial period of five (5)
years which may be extended for another two (2) 5-year terms, providing a total protection
period of 15 years.
4.
Copyright
The Copyright Act, 1987 provides comprehensive protection for copyrightable works. The
Act outlines the nature of works eligible for copyright (which includes computer software),
the scope of protection, and the manner in which the protection is accorded. There is no
registration of copyright works.
Copyright protection in literary, musical or artistic works is for the duration of the life of
the author and 50 years after his death. In sound recordings, broadcasts and films,
copyright protection is for 50 years after the works are first published or made.
The Act also provides protection for the performer's rights in a live performance which
shall continue to subsist for 50 years from the beginning of the calendar year following the
year in which the live performance was given.
A unique feature of the Act is the inclusion of provisions for its enforcement. A special team
of officers of the Ministry of Domestic Trade and Consumer Affairs is appointed to enforce
the Act and empowered to enter premises suspected of having infringing copies and to
search and seize infringing copies and contrivances. They also have the power of arrest
without warrant.
246
Appendix F
5.
Layout Design of Integrated Circuits
The Layout Design of Integrated Circuits Act, 2000 provides for the protection of layout
designs of integrated circuits based on originality, creator's own invention and the fact that
the creation is freely created. There is no registration for the layout design of an integrated
circuit.
The duration of protection is 10 years from the date of its commercial exploitation or 15
years from the date of creation if not commercially exploited. The Act also allows for
action to be taken by the owner if such a right recognised under the Act has been infringed.
The right can also be transferred either partly or wholly by way of assignment, license,
wills or through the enforcement of law.
The Act is implemented in compliance with the TRIPS agreement to provide a guarantee
to investors in Malaysia's electronics industry and to ensure the growth of technology in
the country.
6.
Geographical Indication
The Geographical Indications Act, 2000 provides protection upon registration to goods
following the name of the place where the goods are produced. This protection is
applicable to goods such as wine and spirit, on natural or agricultural products or any
product or handicraft or industry. Geographical indications which are contrary to public
order or morality shall not be protected under the Act. Actions, penalties and remedies
concerning infringement of geographical indications are similar to those applicable for
trade marks.
Further information on intellectual property protection can be obtained from the Ministry
of Domestic Trade and Consumer Affairs.
Appendix F
247
Appendix G
To promote environmentally sound and sustainable development, the Malaysian government has
established the legal and institutional framework for environmental protection. Investors are
encouraged to consider the environmental factors during the early stages of their project
planning. Aspects of pollution control include possible modifications in the process line to
minimise waste generation, seeing pollution prevention as part of the production process, and
focusing on recycling options.
1.
Environmental Policy
The National Policy on the Environment aims at the continued economic, social, and
cultural progress of Malaysia and enhancement of the quality of life of its people, through
environmentally sound and sustainable development.
The Policy aims at achieving:
(i)
A clean, safe, healthy and productive environment for present and future generations
(ii)
The conservation of the country's unique and diverse cultural and natural heritage
with effective participation by all sectors of society
(iii)
A sustainable lifestyle and pattern of consumption and production
Malaysia's national environmental policy emphasises on:
(i)
Exercising respect and care for the environment in accordance with the highest
moral and ethical standards
(ii)
Conserving the natural ecosystem to ensure the integrity of biodiversity and life
support systems
(iii)
Ensuring continuous improvement in the productivity and quality of the environment
while pursuing economic growth and human development objectives
(iv)
Managing natural resource utilisation to sustain the resource base and prevent
degradation of the environment
(v)
Integrating environmental dimensions in the planning and implementation of the
policies, objectives and mandates of all sectors to protect the environment
(vi)
Strengthening the role of the private sector in environmental protection and
management
(vii) Ensuring the highest commitment to environmental protection and accountability by
all decision-makers in the public and private sectors, resource users, nongovernmental organisations and the general public in formulating, planning and
implementing their activities
(viii) Participating actively and effectively in regional and global efforts towards
environmental conservation and enhancement
248
Appendix G
2.
Environmental Requirement
The Environmental Quality Act, 1974 and its accompanying regulations call for
environmental impact assessment, project siting evaluation, pollution control, monitoring
and self-enforcement. Industrial activities are required to obtain the following approvals
from the Director-General of Environmental Quality prior to project implementation:
(i)
Environmental impact assessment (EIA) for Prescribed Activities
(ii)
Site suitability evaluation for Non-Prescribed Activities
(iii)
Written Permission
(iv)
Written Approval
(v)
License to occupy premises
2.1
Environmental Impact Assessment (EIA) for Prescribed Activities
An investor should check whether an environmental impact assessment (EIA) is required
for the following activities prescribed under the Environmental Quality (Prescribed
Activities) (Environmental Impact Assessment) Order 1987.
(i)
(ii)
(iii)
(iv)
Agriculture
•
Land development schemes covering an area of 500 hectares or more to
convert forest land for agricultural production.
•
Agricultural programmes necessitating the resettlement of 100 families or
more
•
Development of agricultural estates covering an area of 500 hectares or more
involving changes in the type of agricultural use
Airport
•
Construction of airports having an airstrip of 2,500 metres or longer
•
Airstrip development in state and national parks
Drainage and Irrigation
•
Construction of dams and man-make lakes and artificial enlargement of lakes
with surface areas of 200 hectares or more
•
Drainage of wetland, wild-life habitat or of virgin forest covering an area of
100 hectares or more
•
Irrigation schemes covering an area of 5,000 hectares or more
Land Reclamation
•
(v)
(vi)
Coastal reclamation involving an area of 50 hectares or more
Fisheries
•
Construction of fishing harbours
•
Harbour expansion involving an increase of 50% or more in fish landing
capacity per annum
•
Land-based aquaculture projects involving the clearing of mangrove swamp
forests covering an area of 50 hectares or more
Forestry
•
Conversion of hill forest land to other land use covering an area of 50 hectares
or more
Appendix G
249
•
Land-based aquaculture projects involving the clearing of mangrove swamp
forests covering an area of 50 hectares or more
•
Logging or conversion of forest land to other land use within the catchment
area of reservoirs used for municipal water supply, irrigation or hydropower
generation or in areas adjacent to state and national parks and national marine
parks
•
Conversion of mangrove swamps for industrial, housing or agricultural use
covering an area of 50 hectares or more
•
Clearing of mangrove swamps in islands adjacent to national marine parks
•
Housing development covering an area of 50 hectares
(vii) Housing
•
Housing development covering an area of 50 hectares
(viii) Industry
•
Chemicals
Where production capacity of each product or of combined products is greater
than 100 tonnes per day
•
Petrochemicals
All sizes
•
Non-ferrous
Primary smelting of aluminium (all sizes), primary smelting of copper (all
sizes), and primary smelting which produces 50 tonnes per day and above of
other products
•
Non-metallic
Cement: for clinker throughput of 30 tonnes per hour and above; lime: 100
tonnes per day and above for burnt lime rotary kiln or 50 tonnes per day and
above for vertical kiln
•
Iron and Steel
Requirement of iron ore as raw material for production greater than 100
tonnes per day, or using scrap iron as raw material for production greater than
200 tonnes per day
•
Shipyards
Dead Weight Tonnage greater than 5,000 tonnes
•
Pulp and Paper Industry
Production capacity greater than 50 tonnes per day
(ix)
250
Appendix G
Infrastructure
•
Construction of hospitals with outfall into beachfronts used for recreational
purposes
•
Construction of expressways
•
Construction of national highways
•
Construction of new townships
(x)
(xi)
Ports
•
Construction of ports
•
Port expansion involving an increase of 50% or more in handling capacity per
annum
Mining
•
Mining of minerals in new areas where the mining lease covers a total area in
excess of 250 hectares
•
Ore processing, including concentrating for aluminium, copper, gold or
tantalum
•
Sand dredging involving an area of 50 hectares or more
(xii) Petroleum
•
Oil and gas field development
•
Construction of off-shore and on-shore pipelines in excess of 50 kilometres in
length
•
Construction of oil and gas separation, processing, handling and storage
facilities
•
Construction of oil refineries
•
Construction of product depots for the storage of petrol, gas or diesel
(excluding service stations) that are located within three kilometres of any
commercial, industrial or residential areas and that have a combined storage
capacity of 60,000 barrels or more.
(xiii) Power Generation and Transmission
•
Construction of steam generated power stations burning fossil fuels and having
a capacity of more than 10 megawatts
•
Dams and hydroelectric power schemes with either or both of the following:
(a)
Dams over 15 metres high and ancillary structures covering a total area
in excess of 40 hectares
(b)
Reservoirs with a surface area in excess of 400 hectares
•
Construction of combined cycle power stations
•
Construction of nuclear-fueled power stations
(xiv) Quarries
•
(xv)
Proposed quarrying of aggregate, limestone, silica quartzite, sandstone,
marble and decorative building stone within 3 kilometres of any existing
residential, commercial or industrial areas, or any area in which a license,
permit or approval has been granted for residential, commercial or industrial
development.
Railways
•
Construction of new routes
•
Construction of branch lines
Appendix G
251
(xvi) Transportation
•
Construction of Mass Rapid Transport projects
(xvii) Resort and Recreational Development
•
Construction of coastal resort facilities or hotels with more than 80 rooms
•
Hill station resort or hotel development covering an area of 50 hectares or
more
•
Development of tourist or recreational facilities in national parks
•
Development of tourist or recreational facilities or islands in surrounding
waters which are gazetted as national marine parks
(xviii) Waste Treatment and Disposal
•
•
•
Toxic and Hazardous Waste
(a)
Construction of on-site incineration plant
(b)
Construction of off-site recovery plant
(c)
Construction of off-site wastewater treatment plant
(d)
Construction of off-site storage facility
(e)
Construction of secure landfill facility
Municipal Solid Waste
(a)
Construction of incineration plant
(b)
Construction of composting plant
(c)
Construction of recovery or recycling plant
(d)
Construction of municipal solid waste landfill facility
Municipal Sewage
(a)
Construction of wastewater treatment plant
(b)
Construction of marine out fall
Note: All off-site treatment and disposal (incineration, wastewater treatment, storage and
secure landfill) of scheduled wastes is not allowed until after 17 December 2010 with the
signing of the concession agreement between the government of Malaysia and Kualiti
Alam Sdn. Bhd.
2.2
Site Suitability Evaluation for Non-Prescribed Activities
One of the most important factors in obtaining environmental approval is the site
suitability of the proposed project. Site suitability is evaluated based on the compatibility
of the project with respect to the gazetted structure or local plans, surrounding land-use,
provision of set-backs or buffer zones, the capacity of the area to receive additional
pollution load, and waste disposal requirements.
The Department of Environment (DOE) produces a set of guidelines entitled "Guidelines
for the Siting and Zoning of Industries" which specifies details on the appropriate buffer
zone for each specific industry category. For potentially hazardous industries, the project
proponent may be required to submit a risk analysis to the DOE as part of the site
consideration.
252
Appendix G
2.3
Written Permission
Any person intending to carry out activities as listed below must obtain prior written
permission from the Director-General of Environmental Quality:
(i)
Construction of any building or carrying out of any work that may result in a new
source of effluent or discharge as stipulated under Regulation 4, Environmental
Quality (Sewage and Industrial Effluents) Regulations 1979
(ii)
A factory which is categorised as a prescribed premise, namely, crude palm oil mills,
raw natural rubber processing mills, and treatment and disposal facilities of
scheduled wastes
2.4
Written Approval
(i)
New installation near dwelling area as detailed out in regulation 4 and First Schedule
of the Environmental Quality (Clean Air) Regulations 1978
(ii)
Any erection (including incinerators), installation, resiting or alteration of fuel
burning equipment that is rated to consume pulverized fuel or solid fuel at 30 kg or
more per hour, or liquid or gaseous fuel at 15 kg or more per hour as stipulated in
Regulations 36 and 38 of the Environmental Quality (Clean Air) Regulations 1978
(iii)
Any erection, installation, resiting, or alteration of any chimney from or through
which air impurities may be emitted or discharged, respectively.
2.5
License to Occupy Premises
A license is required to occupy and operate prescribed premises. Applications for the
license shall be made after obtaining written permission and/ or written approval (as
mentioned in 2.3 and 2.4). Licensing fees apply for every license issued for palm oil and
raw natural rubber processing mills and facilities for the treatment and disposal of
scheduled wastes.
2.6
Emission and Effluent Standards
Industries are required to comply with both air emission and effluent discharge standards
which are regarded as acceptable conditions allowed in Malaysia, as stipulated in the
Environmental Quality (Clean Air) Regulations 1978 and the Environmental Quality
(Sewage and Industrial Effluents) Regulations 1979.
2.7
Control on Ozone Depleting Substances (ODS)
Ozone Depleting Substances (ODS) are categorised as environmentally hazardous
substances under the Environmental Quality (Refrigerant Management) Regulations 1999
and the Environmental Quality (Halogen Management) Regulations 1999. New
investments relating to the use of these substances are prohibited.
Appendix G
253
Appendix H
The General Agreement on Trade in Services (GATS) is among the World Trade Organisation's
most important agreements. The accord, which came into force in January 1995, is the first and
only set of multilateral rules covering international trade in services. It has been negotiated by
the governments themselves, and it sets the framework within which firms and individuals can
operate. The GATS has two parts: the framework agreement containing the general rules and
disciplines; and the national “schedules” which list individual countries’ specific commitments
on access to their domestic markets by foreign suppliers.
Key basic principles of GATS are:
•
All services are covered by the GATS (except for government and air traffic)
•
Most favoured nation (MFN) treatment applies to all services
•
National treatment applies in the areas where commitments are made
•
Transparency in regulations, which have to be objective and reasonable
•
Progressive liberalisation through further negotiations
The agreement applies four modes of supply through which services may be exchanged:
Mode 1:
Cross-border supply is defined to cover services flows from the territory of one
country into the territory of another country (e.g. banking or design service
transmitted via telecommunications)
Mode 2:
Consumption abroad refers to situations where consumers make use of a service in
another country (e.g. tourism)
Mode 3:
Commercial presence refers to a situation where a company from one country sets
up subsidiaries or branches to provide services in another country (e.g. a bank from
one country setting up operations in another country)
Mode 4:
Presence of natural persons consists of individuals traveling from their own country
to supply services in another (e.g. accountants, doctors, trainers, construction
workers)
ASEAN Framework Agreement on Services
The ASEAN Framework Agreement on Services (AFAS) is aimed at forging closer economic
integration and increasing the region’s competitive advantage as a single production unit. It is
the vision of the ASEAN leaders that by year 2020, ASEAN will be a stable, prosperous and
highly competitive region with free flow of goods, services, investments, capital and equitable
economic development and reduced poverty and socio-economic disparities. The AFAS was
signed on 15 December 1995 in Bangkok, Thailand.
254
Appendix H
The key objectives of AFAS are:
•
To enhance cooperation in services amongst Member States to improve efficiency and
competitiveness, diversify production capacity and supply and distribution of services of
their service suppliers within and outside ASEAN
•
To eliminate substantially restrictions to trade in services amongst Member States;
•
To liberalise trade in services by expanding the depth and scope of liberalisation beyond
those undertaken by Member States under the GATS with the aim to realising a freer trade
area in services.
Malaysia has offered market opening measures in the form of allowing establishment of equity
ownership and presence of professionals from ASEAN countries. The concessions are better than
the commitments under the WTO. These covers:
•
Accounting, auditing and bookkeeping services up to 40 percent equity ownership;
•
Taxation services up to 35 percent foreign equity;
•
Landscape architectural services up to 40 percent equity;
•
Computer and related services with no limitation on foreign equity;
•
Telecommunication services up to 49 percent equity
•
Construction services up to 49 percent equity
The offers by other member countries cover:
Business Services
•
In accountancy services, Cambodia allows the establishment of representative office,
Indonesia (49 percent), the Philippines (partnership practice), Singapore (no limitation on
equity), Thailand (49 percent) and Vietnam (joint venture arrangements).
Construction Services
•
Brunei offers up to 50 percent equity for construction companies, Cambodia (100 percent),
Indonesia (55 percent), Lao PDR (30 percent), the Philippines (40 percent) and Thailand
(49 percent).
Engineering Services
•
Cambodia up to 100 percent equity, Indonesia (49 percent), Lao PDR (30 percent),
Thailand (40 percent) and Vietnam (30 percent).
Information and Communications Technology
•
Cambodia offers up to 100 percent equity, Indonesia (30percent), Lao PDR (30 percent),
the Philippines (40 percent), Thailand (40 percent) and Vietnam (30 percent).
Appendix H
255
Under the ASEAN framework, effort has been initiated on the development of Mutual
Recognition Arrangements (MRA) aimed at facilitating mobility professionals in the region. The
MRA on engineering services has been finalised and is aimed at facilitating mobility of engineers
in the region through the recognition of qualifications. MRA efforts have also started in
architecture, accountancy, medical doctors and nursing.
By 2020, the aim is to transform ASEAN as an Economic Community (AEC) characterised by:
256
•
a single market and production base with free flow of goods, services, investment and
skilled labour; and
•
freer flow of capital
Appendix H
Useful Addresses
Ministry of International Trade & Industry (MITI)
Block 10, Government Offices Complex, Jalan Duta 50622 Kuala Lumpur Malaysia
Tel: (603) 6203 3022 Fax: (603) 62012337/62031303 Website: www.miti.gov.my E-mail: mitiweb@miti.gov.my
MITI OVERSEAS OFFICES
BELGIUM
Minister Counsellor (Economy)
Mission of Malaysia to the EU
Embassy of Malaysia in Belgium
Avenue de Tervuren 414A
1150 Brussels
Belgium
Tel:
(322)776 0340/762 5939
Fax:
(322)771 2380
Email: miti.brussels@skynet.be
JAPAN
Department of Trade Affairs
Embassy of Malaysia
20-16 Nanpeidai-Cho
Shibuya-ku, Tokyo 150-0036
Japan
Tel:
(813) 3476 3844
Fax:
(813) 3476 4972
E-mail: metrade1@ninus.ocn.ne.jp
CHINA
Embassy of Malaysia (Economic Section)
No.2 Liang Ma Qiau Bei Jie
Chaoyang District, 100600 Beijing
People’s Republic of China
Tel:
(8610)6532 2533/7990
Fax:
(8610)6523 3617
Email: lltay@miti.gov.my
PHILIPPINES
Counsellor (Economy)
Embassy of Malaysia (Trade Office)
107 Tordesillas Street, Salcedo Village
Makati, Metro Manila
Philippines
Tel:
(632) 817 4581 to 85
(632) 817 4551 to 53
Fax:
(632) 816 3114
E-mail: tradecom@mozcom.com
INDIA
50-M, Satya Marg
Chanakyapuri
New Delhi 110 021
Republic of India
Tel:
(91-11) 2611 1291/1292/1293/1297
Fax:
(91-11) 2688 1538
E-mail: mwndelhi@starith.net
INDONESIA
Embassy of Malaysia
(Commercial Section)
Jalan H.R. Rasuna Said, Kav X6
No.1-3, Kuningan
Jakarta 12950
Indonesia
Tel:
(6221) 522 4947/522 4962
Fax:
(6221) 522 4963
Email: mitijkt@cbn.net.id
258
Appendix
SINGAPORE
Malaysian Trade Commission
80 Robinson Road #01-02
Singapore 068896
Tel:
(65) 6222 0126/1356/1357
Fax:
(65) 6221 5121
Email: mitising@singnet.com.sg
SWITZERLAND
Permanent Mission
of Malaysia to the WTO
International Centre Cointrin (ICC)
3rd Floor, Block C
20, Route de Pre-Bois
Case Postale 1909
CH 1215, Geneva 15
Switzerland
Tel:
(4122) 799 4040
Fax:
(4122) 799 4041
E-mail: muhd.noor@ties.itu.int
THAILAND
35, South Sathorn Road
Tungmahamek, Sathorn
Bangkok 10120
Thailand
Tel:
(662) 679 2190-9
Ext.2303/2304/2305
Fax:
(662) 679 2200
E-mail: trade@samart.co.th
UNITED KINGDOM
Malaysian Trade Commision
17 Curzon Street
London WIY 5HR
United Kingdom
Tel:
(020) 7499 7388
Fax:
(020) 7493 3199
UNITED STATES OF AMERICA
Embassy of Malaysia
3516 International Court NW
Washington DC 20008
United States of America
Tel:
(1202) 572 9700/10/34
Fax:
(1202) 572 9782/882
E-mail: mitimydc@erols.com
Malaysia External Trade Development Corporation (MATRADE)
7th FI, Wisma Sime Darby (West Wing), Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia
Tel: (603) 2616 3333 Fax : (603) 2694 7363/2694 7362 Website: www.matrade.gov..my E-mail: matrade@hq.matrade.gov.my
MATRADE STATE OFFICES
PULAU PINANG
1st Floor, FMM Building
2767, Mukim 1, Lebuh Tenggiri 2
Bandar Seberang Jaya
13700 Seberang Perai Tengah
Pulau Pinang
Tel:
(604) 398 2020
Fax:
(604) 398 2288
E-mail: penang@matrade.gov.my
SABAH
Lot C5.2A, Tingkat 5, Blok C
Bangunan KWSP, Jalan Karamunsing
88100 Kota Kinabalu
Sabah
Tel:
(6088) 240 881/242 881
Fax:
(6088) 243 881
E-mail: sabah@matrade.gov.my
MATRADE OVERSEAS OFFICES
EUROPE
FRANCE
Malaysian Trade Commissioner
Service Commercial De Malaisie
Ambassade De Malaisie
90, Avenue Des Champs Elysees
75008 Paris, France
Tel:
(331) 4076 0000/0034
Fax:
(331) 4076 0001
E-mail: paris@matrade.gov.my
GERMANY
Embassy of Malaysia (Trade Section)
Rolex Haus, 6th Etage
Dompropst-Ketzer Strasse 1-9
50667 Cologne
Federal Republic of Germany
Tel
: (49221) 124 007
Fax
: (49221) 139 0416
E-mail : cologne@matrade.gov.my
THE NETHERLANDS
Embassy of Malaysia (Commercial Section)
Rustenburgweg 2, 2517 KE, The Hague
The Netherlands
Tel:
(31010) 462 7759/7098
Fax:
(31010) 4627349
E-mail: rotterdam@matrade.gov.my
HUNGARY
Assistant Trade Commissioner
Embassy of Malaysia
Trade Section (MATRADE)
Ground Floor, Museum Atrium
Dozsa Gyorgy ut 84/b
1068 Budapest, Hungary
Tel:
36-1-488 0810 (T)
36-1-488 0824 (T)
Fax:
E-mail: budapest@matrade.gov.my
RUSSIA
Mosfilmovskaya Ulitsa 50
Moscow, Russia
Tel:
(7095) 147 1514/23
Fax:
(7095) 143 6043
E-mail: moscow@matrade.gov.my
UNITED KINGDOM
3rd & 4th FI, 17 Curzon Street
London W1J 5HR
United Kingdom
Tel:
(44207) 499 5255/4644
Fax:
(44207) 499 4597
E-mail: london@matrade.gov.my
ITALY
Consul and Trade Commissioner
Consulate of Malaysia
(Commercial Service)
5th FI, Via Vittor Pisani 31
20124 Milano, Italy
Tel:
(3902) 669 0501
(3902) 670 2872
Fax:
E-mail: milan@matrade.gov.my
Appendix
259
ASIA - PACIFIC
AUSTRALIA
Malaysian External Trade
Level 4, MAS Building
16, Spring Sreet, Sydney
NSW 2000, Australia
Tel:
(612) 9252 2270
Fax:
(612) 9252 2285
E-mail: sydney@matrade.gov.my
CHINA, PEOPLE’S REPUBLIC OF
C501 & C502
Office Building Kempinski Hotel
Beijing Lufthansa Center
No.50, Liangmaqiao Road
Chaoyang Dist, Beijing 100016
Tel:
(8610) 8451 5109/5110
Fax:
(8610) 8451 5112
E-mail: beijing@matrade.gov.my
INDONESIA
Trade Commissioner
Embassy of Malaysia
12th Floor, Plaza Mutiara
Jl. Lingkar Kuningan
Kav. E.1.2, No. 1 & 2
Kawasan Mega Kuningan
Jakarta 12950
Indonesia
Tel:
(6221) 576 4297
(6221) 576 4322
Fax:
(6221) 576 4321
E-mail: jakarta@matrade.gov.my
CHINA, SHANGHAI
Consulate General of Malaysia
(Trade Section)
Unit 807-809, 8th Floor
Shanghai Kerry Centre
1515, Nanjing Road West
Shanghai
200040 People’s Republic of China
Tel:
(8621) 6289 4467
Fax:
(8621) 6289 4381
E-mail: shanghai@matrade.gov.my
JAPAN, TOKYO
Director
6th FIr, Ginza Showadori Building
8-14-14, Ginza Chuo-ku
Tokyo 104-0061, Japan
Tel:
(813) 3544 0712/713
(813) 3544 0714
Fax:
Email: tokyo@matrade.gov.my
CHINA, GUANGZHOU
Trade Commissoner
Trade Section (MATRADE)
Unit 5305, CITIC Plaza
233, Tianhe North Road
Tianhe District, Guangzhou
510610 People's Republic of China
Tel:
(8620) 2885 8212
(8620) 2885 8213
(8620) 2885 8215
Fax:
(8620) 3877 3985
E-mail: guangzhou@matrade.gov.my
260
HONG KONG
Malaysian Trade Consul
The Consulate General of Malaysia
(Trade Section)
Ground Floor, Malaysia Building
50 Gloucester Road, Wanchai
Hong Kong Special Administrative Region
Tel:
(852) 2527 8273
Fax:
(852) 2527 8109
E-mail: hongkong@matrade.gov.my
Appendix
JAPAN, OSAKA
Marketing Officer
3rd Floor, Takahashi Building
5-9-3, Nishi-tenma
Kita-ku, Osaka 530-0047
Japan
(816) 6313 5015
Tel:
(816) 6313 5016
Fax:
Email: osaka@matrade.gov.my
KOREA, REPUBLIC OF
Embassy of Malaysia
(Trade and Investment Section)
17th Floor, SC First Bank Building
100, Gongpyung-Dong, Jongro-Gu
Seoul 110-702
Republic of Korea
(0082) 2739 6813/6814
Tel:
Fax:
(0082) 2739 6815
E-mail: seoul@matrade.gov.my
PHILIPPINES
Marketing Officer
Embassy of Malaysia
Trade Office (MATRADE)
3/F, Malaysian Embassy Building
107 Tordesillas Street, Salcedo Village
Makati City, Metro Manila
Philippines
Tel:
(632) 817 4581
(632) 817 4551
(632) 817 4553
Fax : (632) 816 3114
E-mail: manila.neil@matrade.gov.my
SINGAPORE
Director
Singapore Office
100, Beach Road
#33-01/03, Shaw Towers
Singapore 189702
Tel:
(602) 6392 2238
Fax:
(602) 6392 2239
E-mail: singapore@matrade.gov.my
TAIWAN
Director
Malaysian Friendship & Trade Centre
(Trade Section)
10F-D, Hung Kuo Building
167 Tun Hwa North Road
Taipei, Taiwan
(8862) 2545 2260
Tel:
Fax:
(8862) 2718 1877
E-mail: taipei@matrade.gov.my
THAILAND
Marketing Officer
Embassy of Malaysia
Trade Office (MATRADE)
35, South Sathorn Road
Tungmahamed, Sathorn
Bangkok, 10120
Thailand
Tel:
(662) 679 2190-9 ext: 2209
(662) 679 2200
(662) 679 2131
Fax:
(662) 679 2200
E-mail: bangkok.chun@matrade.gov.my
VIETNAM
Malaysia Trade Commissioner
Trade Commissioner Office
1208, 12th FIr, Me Linh Point Tower
2, Ngo Duc Ke Street, District 1
Ho Chi Minh City
Vietnam
Tel:
(848) 829 9023/829 8256
Fax:
(848) 823 1882
E-mail: hcmc@matrade.gov.my
WEST ASIA
EGYPT
Trade Commissioner
Embassy Of Malaysia
Commercial Section (MATRADE)
17th Floor, North Tower
Nile City Building
Cornish El-Nil Street
Cairo
Egypt
Tel:
(202) 461 9063
(202) 461 9064
Fax:
(202) 461 9065
E-mail: cairo@matrade.gov.my
SAUDI ARABIA
Room 1012, 14th FIoor
Saudi Business Centre
Madina Road
P.O.Box 20802
Jeddah 21465
Saudi Arabia
Tel:
(9662) 653 2143/98
Fax:
(9662) 653 0274
E-mail: jeddah@matrade.gov.my
UNITED ARAB EMIRATES
Consul General / Malaysian Trade
Commissioner
Lot 1-3 & 6-10
Ground & Mezzanine Floors
Al-Shafeena Building
Near Lamcy Plaza
Al-Zabeel Road
P.O.Box 4598, Dubai
United Arab Emirates
Tel:
(9714) 335 5528/38
Fax:
(9714) 335 2220
E-mail: dubai@matrade.gov.my
SOUTH ASIA
INDIA
Capitale
2A, 2nd Floor
554 & 555, Anna Salai
Teynampet
Chennai-600018
India
Tel:
(9144) 2431 3722/3723
Fax:
(9144) 2431 3725
E-mail: chennai@matrade.gov.my
NORTH AMERICA
550 South Hope Street
Suite 400, Los Angeles, CA 90071
Tel:
(1213) 892 9034
Fax:
(1213) 955 9142
E-mail: losangeles@matrade.gov.my
313, East 43rd Street, 3rd Floor
New York, NY 10017
Tel:
(1212) 682 0232/(1917) 834 0472
Fax:
(1212) 983 1987
E-mail: newyork@matrade.gov.my
SOUTH AMERICA
BRAZIL
771, Alameda Santos
Suite 72, 7th Floor
01419-00141, Sao Paulo
Brazil
(5511) 3285 2966
Tel:
(5511) 3289 1595
Fax:
E-mail: saopaulo@matrade.gov.my
CHILE
Corporation
Oficina Commercial de Malasia
Embajada De Malasia Avda
Tajamar 183
Oficina 302, Las Condes
Santiago, Chile
Tel:
(562) 234 2647
Fax:
(562) 234 2652
E-mail: santiago@matrade.gov.my
AFRICA
KENYA
Trade Commissioner
Malaysian Trade Commission
3rd Floor, North Wing
Victoria Towers, Kilimanjaro Avenue
Upper Hill, P.O.Box, 48916
001000 Nairobi GPO
Kenya
Tel:
(2542) 0273 0070/0071
Fax:
(2542) 0273 0069
E-mail: nairobi@matrade.gov.my
SOUTH AFRICA
Ground Floor, Building 5
Commerce Square Office Park
39, Rivonia Road
Sandhurst, Sandton
South Africa
Tel:
(2711) 268 2380/2381
Fax:
(2711) 268 2382
E-mail: johannesburg@matrade.gov.my
Appendix
261
Block 4, Plaza Sentral, Jalan Stesen Sentral 5, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia
Tel: (603) 2267 3633 Fax: (603) 2274 7970 Website : www.mida.gov.my E-mail : promotion@mida.gov.my
MIDA STATE OFFICES
KEDAH & PERLIS
Director
8th Fl., Wisma PKNK
Jalan Sultan Badlishah
05000 Alor Star, Kedah
Malaysia
Tel:
(604) 731 3978
Fax:
(612) 731 2439
E-mail: midaas@po.jaring.my
PULAU PINANG
Director
4.03 4th Floor, Menara PSCI
39 Jalan Sultan Ahmad Shah
10050 Pulau Pinang
Malaysia
Tel:
(604) 228 0575
Fax:
(604) 228 0327
E-mail: midapg@po.jaring.my
PERAK
Director
2nd Floor
Perak Techno Trade Centre (PTTC)
Bandar Meru Raya
Off Jalan Jelapang
30020 Ipoh, Perak
Malaysia
Tel:
(605) 526 9962/9961
Fax:
(605) 527 9960
E-mail: midaprk@po.jaring.my
MELAKA
Director
3th Floor, Menara MITC
Kompleks MITC
Jalan Konvensyen
75450 Ayer Keroh, Melaka
Malaysia
(606) 232 2876/78
Tel:
Fax:
(606) 232 2875
E-mail: midamel@po.jaring.my
262
Appendix
JOHOR
Director
Unit No. 15.03
Level 15, Wisma LKN
49, Jalan Wong Ah Fook
80000 Johor Bahru, Johor
Malaysia
Tel:
(607) 224 2550/ 5500
Fax:
(607) 224 2360
E-mail: midajb@tm.net.my
PAHANG
Director
Suite 3, 11th Floor
Kompleks Teruntum
P.O.Box 178,
25720 Kuantan, Pahang
Malaysia
Tel:
(609) 513 7334
Fax:
(609) 513 7333
E-mail: midaphg@po.jaring.my
KELANTAN
Director
5th Floor, Bangunan PKINK
Jalan Tengku Maharani Puteri
15000 Kota Bharu, Kelantan
Malaysia
Tel:
(609) 748 3151
Fax:
(609) 744 7294
E-mail: midakb@po.jaring.my
TERENGGANU
Director
5th Floor, Menara Yayasan Islam
Terengganu
Jalan Sultan Omar
20300 Kuala Terengganu, Terengganu
Malaysia
(609) 622 7200
Tel:
Fax:
(609) 623 2260
E-mail: midakt@pd.jaring.my
SABAH
Director
4th Fl., Bank Negara Building
Jalan Lapan Belas,
Off Jalan Tun Razak
P.O. Box 11915
88821 Kota Kinabalu, Sabah
Malaysia
Tel:
(6088) 211 411/211 412
Fax:
(6088) 211 412
E-mail: midasbh@tm.net.my
SARAWAK
Director
Room 404, 4th Floor, Bangunan Bank
Negara
No.147, Jalan Satok, P.O.Box 716
93714 Kuching, Sarawak
Malaysia
Tel:
(6082) 254 251/237 484
Fax:
(6082) 252 375
E-mail: mida_kch@tm.net.my
MIDA OVERSEAS OFFICES
ASIA-PACIFIC
EUROPE
NORTH AMERICA
AUSTRALIA
Director
Level 3, MAS Building
16 Spring Street
Sydney NSW 2000, Australia
Tel:
(612) 9251 1933
Fax:
(612) 9251 4333
E-mail: midasyd@bigpond.net.au
FRANCE
Director
42, Avenue Kleber
75116 Paris
France
Tel:
(331) 4727 3689/6696
Fax:
(331) 4755 6375
E-mail: mida.paris@wanadoo.fr
Consul (Investment)
(Investment Section)
550, South Hope Street, Suite 400
Los Angeles, California 90071
Tel:
(1213) 955 9183
Fax:
(1213) 955 9878
E-mail: lacamida@aol.com
JAPAN
Director
4th Floor, Aoyama 246 Building
5-6-26, Minami-Aoyama, Minato-Ku
Tokyo 107-0062, Japan
Tel:
(816) 3409 3680/3681
Fax:
(813) 3409 3460
E-mail: midatokyo@midajapan.or.jp
Website: www.midajapan.or.jp
GERMANY, FEDERAL REPUBLIC OF
Director
6th Floor, Rolex Haus
Dompropst-ketzer Str.1-9
50667 Cologne
Federal Republic of Germany
Tel:
(49221) 124 008/ 009
Fax:
(49221) 136 198
E-mail: mida.cologne@t-online.de
Director
Authority
3rd Floor, Takahashi Building
5-9-3, Nishi-Tenma, Kita-ku
Osaka 530-0047, Japan
Tel:
(816) 6313 3121/3221
Fax:
(816) 6313 3321
E-mail: midaosaka@mida.or.jp
ITALY
Consul (Investment)
4th Floor, Via Vittor Pisani,31
20124 Milan
Italy
Tel:
(3902) 6698 4614/ 4647
Fax:
(3902) 6698 4749
E-mail: midamln@tin.it
KOREA, REPUBLIC OF
Counsellor (Investment)
Embassy of Malaysia
17th Floor, Korea First Bank Building
100, Gongpyung-Dong
Jongro-Gu
Seoul 110-702
Republic of Korea
Tel:
(822) 733 6130/6131
Fax:
(822) 733 6132
E-mail: midasel@chollian.net
PEOPLE’S REPUBLIC OF CHINA
Consul (Investment)
Unit 807-809, Level 8, Shanghai Kerry
Centre,
No.1515, Nanjing Road (West)
Shanghai 200040
(8621) 6289 4547/
Tel:
(8621) 5298 6335
Fax:
(8621) 6279 4009
E-mail: midash@online.sh.cn
SWEDEN
Economic Counsellor
Embassy of Malaysia
Karlavagen 37
P.O. Box 26503
S-10041 Stockholm
Sweden
Tel:
(468) 791 7690/ 7942
Fax:
(468) 791 8761
E-mail: mida@malemb.se
UNITED KINGDOM
Director
17 Curzon Street
London W1J 5HR
United Kingdom
Tel:
44 (20) 7493 0616
Fax:
44 (20) 7493 8804
E-mail: midalon@btconnect.com
Director
226, Airport Parkway
Suite 480, San Jose
CA 95110
Tel:
(1408) 392 0617/8
Fax:
(1408) 392 0619
E-mail: midasanjose@aol.com
Director
John Hancock Centre, Suite 1515
875, North Michigan Avenue
Chicago, Illinois 60611
Tel:
(1312) 787 4532
Fax:
(1312) 787 4769
E-mail: mida@midachicago.org
Consul (Investment)
313 East, 43rd New York
New York 10017
Tel:
(1212) 687 2491
Fax:
(1212) 490 8450
E-mail: mida@midany.org
Director
2, Oliver Street, Suite 1107
Boston, MA 02109
(1617) 338 1128/ 338 1129
Tel:
Fax:
(1617) 338 6667
E-mail: midaboston@aol.com
TAIWAN
Director (Investment)
Malaysian Friendship & Trade Centre
8th Floor, San Ho Plastics Building
102, Tun Hua North Road,Taipei
Taiwan
Tel:
(8862) 2713 2626
(8862) 2514 7581
Fax:
E-mail: midatpe@ms18.hinet.net
Appendix
263
Published by
Block 4, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
(603) 2267 3633
Tel:
(603) 2274 7970
Fax:
Website: www.mida.gov.my
E-mail: media@mida.gov.my

malaysia

Transcription

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