Rules on manufacturing licence relaxed to encourage investments in Malaysia

Yes, Malaysia is liberalizing the manufacturing sectors to attract FDIs to overcome the recession, which is similar to the 1997 financial crisis.

We will continue our work to lobby for a more liberal economic policy in Malaysia.

The automatic issuance of manufacturing licences within two days will be made possible as they will now be issued by the Malaysian Industrial Development Authority (Mida), said International Trade and Industry Minister Tan Sri Muhyiddin Yassin.

This was one of several measures he said the Government would undertake to help domestic trade and industry players counter the impact of the global economic slowdown.

An International Trade and Industry Ministry (Miti) source said the ministry had also asked Mida to come up with a simpler form to apply for the licence, which will require only basic information for automatic approval.

Except for certain categories of activities, licence applications will no longer require approval by the Miti secretary-general.

However, activities related to security, health, environment and religion will still need to go through the normal vetting and approval process by the licensing officer.

Firms have said that under the old system, licence application could take up to a month.

Under the Industrial Coordination Act, a manufacturing licence is required for projects by companies with a minimum shareholders’ fund of RM2.5mil or employing 75 full-time employees. This requirement still remains.

Earlier measures to liberalise the licensing process includes doing away with renewal. The RM50 licence fee was also abolished on June 1. Muhyiddin also said he would announce more measures after meeting industry players in other specific sectors, as well as based on the future economic scenario.

Meanwhile, MP for Alor Gajah Datuk Seri Dr Fong Chan Onn, who is a former dean of Universiti Malaya’s economic faculty, said: “If the automatic issuance of licence also deals with approval and usage of land, staff employment, Immigration approval and various other past requirements, it will encourage more investors to do business in Malaysia.”