MIDA

Investment Assistance and Facilitation

Mr. Wan Mohd Supian Wan Deris

Director
MIDA Kelantan

c
@officialMIDA
www.mida.gov.my
 Who We Are &
What We Do
[MIDA is the government's principal investment promotion agency for the
development of the manufacturing and services sectors in Malaysia]
 MIDA Footprint
United States Europe Middle East Asia
• Beijing
• London Dubai • Guangzhou
• New York • Stockholm
• San Jose • Shanghai
• Munich • Taipei
• Chicago • Frankfurt Mumbai • Seoul
• Milan
20 overseas offices • Paris • Tokyo
• Osaka

12 State Offices

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Singapore Sydney
 MIDA Organisation Structure
Planning Promotion Evaluation and Approval of Project Implementation Compliance Post
(Manufacturing License/Tax Incentives/Expatriate Posts Investment
Status Approval)

Foreign • Electrical & Electronic

• Planning for • Oil & Gas, Industry MIDA Tariff Licensing & Issues
Direct • Machinery & Metal
industrial Maritime & Talent State Incentive
Investment • Building Technology &
development Logistics Services Management Offices Compliance
Promotion Lifestyle
• Recommend • Green and
• Transportation Technology Expatriate
policies &
Technology • Healthcare,
strategies on Domestic
• Chemical & Education &
industrial Direct
Advanced Materials Hospitality
promotion and Investment
• Food Technology & • Business Services
development Promotion
Resource Based & Regional
• Formulation of
Industries Operations Evaluation
strategies,
• Life Sciences & • Advanced and Approval
programmes
Medical Technology Technology and of Customs
and initiatives
R&D Duty
for International
Exemption
Economic
Cooperation Manufacturing Services
• Undertake
Industrial Studies
Investor’s Journey
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 Approvals by MIDA
Manufacturing License Investment Incentives Customs Duty Exemptions Expatriate Posts
(ML)

• Require ML if the Paid-up • Tax Incentives • Raw materials; and • Key posts
Capital/Shareholders’ Posts that are
Fund is RM2.5 Million • Matching Grant under • Machinery & equipment permanently filled by
and above; or employing High Impact Fund foreigners
75 or more full time - Training Grant
employees - R&D Grant • Term posts
To apply via ICAJA Form Posts that are filled by
foreigners for a period
• Exempted from ML- If of 1-5 years
below the above
threshold
To apply for Exemption from
ML via ICAJA10 Form
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 Setting-up of Projects-How MIDA Fit In
Companies Promotion, Evaluation, Department of Local Department of Labour Telekom Malaysia C ustoms and
C ommission Approval, Facilitation & Environment Authorities (JTK), Employment (TM), Malaysian Fire & Rescue
of Malaysia Monitoring (DOE) (At the State Provident Fund (EPF), Electricity Department
Levels) Social Security Company (TNB), of Malaysia
Organisation (SOCSO) GAS Malaysia &
& Inland Revenue Department Of
Board (IRB) Occupational
Safety and Health
(DOSH)

Incorporation • Promotion • Preliminary Site • Business • JTK - Manpower Utilities Customs

of Company • Approval Assessment (2 License registration • TM-Telephone • Machinery and
(Two Weeks) ➢ Manufacturing Lic ense Weeks • Planning • EPF - Saving Fund (1 month) Raw Materials
➢ Tax Incentives Approval) Approval, • SOCSO - Security
• Water (1 Month) (Import Duty
➢ Grants • Environmental Building Plan Insurance
• TNB- Elec tric ity Exemptions)
➢ Expatriate Posts Impact and Certific ate • IRB - Income Tax (1 Month) • Licensed
➢ Status Approval Assessment (EIA) of Completion
• Gas Malaysia – Manufacturing
(Representative/ • Detailed & Complianc e Natural Gas Warehouse
Regional Offic e/R&D) Environmental (CCC) (1 month) (LMW)
➢ Customs Duty Exemptions Impact
• Facilitation Assessment Machinery BOMBA
➢ MIDA State Offic e (DEIA) • DOSH –Machinery • Fire Protec tion
➢ Talent Registration System
➢ Post Invest (1 month)
• Monitoring

InvestorsJourney 12
Our Investment
Performance
Malaysia Investment Perfomance2021

Strengthening Domestic Resilience

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 Growth Areas
[Promoted Products & Activities]
 On Going Focus
• High Value Added • High Technology
Targeting Quality • Strong Linkages • Capital-Intensive
• Skills-Intensive • R&D & Design
Investments • High Income Jobs • GNI Impact
• Export Oriented • Knowledge-Intensive

Manufacturing Services

Global Trading, Centre

Centre of Excellence

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New Growth Areas – Digital Economy
Malaysia Digital Economy Blueprint (2021-2030)

• Creative & Digital Content

(eSports, Gaming & Animation)

• Management of Data
(Data Centres, Cloud Services,
Data Security & Big Data)

• Solution Providers and System

Integration

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 Global/Regional Hubs

Headquarter Hubs Supply Chain Hubs

Lead Regional /Global Operations Integrated Supply Chain
and Control or Manage Strategic Management
Functions from Malaysia

Distribution Hubs Treasury Hubs

Store & Distribute Financial & Risk Management
Parts & Components in the Region

Engineering Hubs R&D Hubs Center of Excellence

Specialized Technical Services & Design, Development & Center for Technology,
Project Oversight Management Innovation Research & Training

Procurement Hubs Digital Tech & ICT Services

Strategic Sourcing & Procurement Smart Innovative Hubs Creative & Interactive Media
of Raw Materials / Components Remote Management of Regional / Services / Software Development
Global Operations
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Incentives
Major Corporate Tax Incentives
Promotion of Investments Act, 1986 (By Products) Income Tax Act, 1967 (By Company)

Pioneer Investment Reinvestment Customised

Status Tax Allowance Allowance Packaged
Income tax exemption 60% or 100% on 60% on qualifying Investment
ranging from 70% or qualifying capital capital expenditure Incentives
100% for a period of 5 expenditure (CAPEX) (CAPEX) incurred for
or 10 years incurred within 5 years. 15 consecutive years.
The CAPEX can be The CAPEX can be
(PS) offset against 70% to offset against 70% of
100% of statutory statutory income
income
(ITA) (RA)

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Tax Incentives for Small Scale Companies
(Manufacturing)
ELIGIBILITY CRITERIA
Promotion Of Investment Act, 1986
1. Incorporated under the Companies Act, 1965.
2. Shareholders’ funds not exceeding RM2.5 million.
3. Malaysian equity ownership:
• Companies with shareholders’ fund of up to RM500,000 with at
least 60% Malaysian equity
Pioneer Investment Tax • Companies with shareholders’ fund of above RM500,000 and
Allowance not exceeding RM2.5 million with 100% Malaysian equity.
Status 4. Applicants must fulfil the following conditions:
60% on qualifying • Value Added (VA) – 25%.
Income tax capital expenditure • Managerial, Technical and Supervisory Staff (MTS) index - 20%.
exemption of incurred within 5 years. • Not more than 20% of the equity of the applicant company is
100% for a The allowance can be owned, whether directly or indirectly controlled, by a holding
offset against 100% of
period of 5 years company having shareholders’ funds of more than RM2.5 million.
statutory income in
that year of 5. Producing products/engaged in activities listed in the list of
assessment. promoted products/activities for small companies or general
promoted list.
6. For companies with shareholders’ fund of above RM500,000 and
not exceeding RM2.5 million and producing products/engaged in
(PS) (ITA) activities listed in the general promoted list, the prevailing rates on
Value Added (VA) and Managerial, Technical and Supervisory
Staff (MTS) index under the general promoted list will be
applicable .

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…cont’d
• Agricultural production
• Processing of agricultural produce
• Forestry products
• Manufacture of rubber products
• Manufacture of palm oil products and their derivatives
• Manufacture of chemicals and pharmaceuticals
• Manufacture of wood and wood products
• Manufacture of paper and paperboard products
• Manufacture of textiles and textile products
• Manufacture of clay based and sand-based products and
other non-metallic mineral products
• Manufacture of iron and steel products, non-ferrous metals
and their products
• Supporting products and services
• Manufacture of transport components parts and accessories
• Manufacture of parts and components for machinery and
equipment
• Manufacture of electrical and electronic products,
components and parts thereof
• Manufacture of furniture, parts and components
• Manufacture of games and Accessories
• Manufacture of souvenirs
• Manufacture of plastic products

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 Introduction of Special Investment Tax Incentives to
Encourage New Investment
Incentives to Encourage Foreign Companies to
Special Reinvestment
relocate or undertake new investment into
Tax Allowance
Malaysia
Eligible Capital New Company Existing Company
Expenditure
(RM) Existing Companies
Incentive Rate Duration Incentive Rate Duration

Special Tax 0% 10 years Investment 100% 5 years Additional RA at the rate of 60%
300 million – on the qualifying capital
500 million Rate Tax
Allowance expenditure which is eligible for
Special Tax 0% 15 years (ITA) reinvestment made within 5
500 million and
Rate years of assessment subject to
above
the manufacturing projects and
New Company: Existing Company: selected agricultural activities
RA period has expired.
Foreign or locally owned company that has existing
❑ Do not have existing manufacturing operation in manufacturing operation in Malaysia and relocate its Effective Date
Malaysia. manufacturing operation from outside Malaysia for new
❑ Company relocating manufacturing facility for business segment. The products from the new business For capital expenditure which is
eligible manufacturing activities from any country to segment are not an expansion project of existing products.
Malaysia; or
undertaken during the year of
❑ Company establishing new operation in Malaysia; assessment 2020 to 2024
Effective Date of Application: 1July 2020 to 31 December 2022

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 Incentives to Encourage
Technology and Digitalisation
Adoption
1 Industry4WRD Intervention Fund (IIF)
ELIGIBILITY CRITERIA
Total expenditure 70% subsidised
Incorporated under the Companies Act,
1965/2016 by Government
Matching grant
Undertake Manufacturing or (70:30) on Max. 30%
manufacturing-related-services (MRS) reimbursable basis will be
based on eligible provided
expenditures, up to a upfront
In operation for at least 3 years in the maximum grant of
current business line RM500,000

Possess a valid Business Licence and/or • Launched under Budget 2019 and
Manufacturing Licence (ML) continue under 12th MP
• The fund was introduced under the
National Policy on Industry 4.0 (known
Completed the Industry4WRD Readiness 30% borne as Industry4WRD)
Assessment (RA) Programme
by Company • Financial support facility for
Malaysian SMEs in the manufacturing
Malaysian SMEs only 206 companies with total and related services sectors to
investments of RM94.23 embrace Industry 4.0
million have been • Project duration of 18 months –
Submit IIF application not more than two approved matching Project implementation (12 months)
(2) months after receiving the
allocation of RM72 million and Claim period (6 months)
Industry4WRD RA report

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 2 Automation Capital Allowance (Automation CA)
Automation CA was introduced under Budget 2015
As at 28 feb 2022, 462 Automation CA projects have been
and the incentive is jointly evaluated by MIDA and approved with total investments of RM667.3 million
SIRIM Category 1 – Labour intensive (189)
CATEGORY 1– LABOUR-INTENSIVE INDUSTRIES
Category 2 – Others industries (273)

Automation CA of 200% on the first RM4 million

expenditure incurred within 8 years of
assessment from 2015 to 2023

Rubber Plastic Wood Furniture Textile

Products Products Products Products Products

CATEGORY 2– OTHER INDUSTRIES / SERVICES

Automation CA of 200% on the first RM2 million

expenditure incurred within 8 years of assessment
from 2015 to 2023 (Manufacturing) and years of
assessment from 2020 to 2023 (Services)

Fabricated E&E Chemical Transport Food Others

Metal Products Products Equipment Products
Products
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3 Digital Ecosystem Acceleration Scheme (DESAC)
DESAC was introduced under Budget 2022 to further boost digital investments and to
strengthen the whole digital ecosystem of Malaysia.

Category 1: Digital Technology Provider Category 2: Digital Infrastructure Provider

New company Eligible for an investment tax allowance (ITA) of

Eligible to be considered for an income tax rate of 0% to 100% on capital expenditure for qualifying
10% for up to 10 years.
activities that can be offset against up to 100%
Existing company with new services segment of statutory income for a period of up to ten
Eligible to be considered for an income tax rate of 10% for years
up to 10 years

The DESAC tax incentive is effective for applications received by MIDA from 30 October 2021 until
31 December 2025.

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4 Smart Automation Grant (SAG)
▪ The fund was launched on 2 Todate, 218 companies with total investments of
December 2020 RM247.4 million have been approved Matching
▪ SAG will be given on a Allocation of RM123.7 million
matching basis (1:1) based on
eligible expenditures, up to a
maximum grant of RM1 million
per company
SUCCESS STORY
▪ SAG is part of the RM100
million announced under
No. Committed Deliverables Performance (%) Compliance
PENJANA
A. Manufacturing Sector Before After Formula Yes/ No
1. Reduction in the Number of Unskilled
OBJECTIVES Workers
4 2 50% Yes
2. Reduction in Working Hours (Hours) 24 12 50% Yes
▪ to automise and digitalise
operations, production and trade 3. Increased Production
50 100 100% Yes
channels Capacity(Carton)
▪ to improve efficiency in the
manufacturing and services sector
▪ to reduce reliance on low-skilled
The grant allowed company to improve productivity and assisting
foreign workers companies for the needs of penetrating international markets.
▪ to enhance SMEs competitiveness
at international level
Due to an overwhelming interest in MIDA SAG, the program has reached its fund capacity and is put on pause. MIDA
is no longer taking new applications at this time and registration is closed effective 1 June 2021.
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Promoting Green
Investments
Promotion of Green Technology
▪ Green Building System ▪ Production
▪ Green Township ▪ Services
▪ Green Data Centre ✓ Charging Station
✓ Maintenance, Repair
& Overhaul of EV

Green Green Green Waste Electric Green

Products Energy Building Management Vehicle Certification

▪ Renewable Energy
▪ Integrated Waste
• Solar
Recycling
✓ Own Consumption
✓ Net Energy Metering ✓ Developer ▪ Malaysia pledge to cut its
✓ Large Scale Solar (LSS) ✓ Manager greenhouses emissions by
• Biomass ✓ Operator 45% by 2030.
• Biogas ▪ Waste Eco Park
• Mini Hydro (below 30MW)
▪ Recycling
▪ Energy Efficiency ▪ 20% clean energy generation
• Own Consumption by 2025 (excluding large
• ESCO hydro).
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Business Programmes and
Facilitation

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Revitalising Domestic Direct Investment (DDI)

DOMESTIC DOMESTIC INVESTMENT SUPPLY CHAIN START UP SME DESK INVEST SERIES
SEMINARS COORDINATION PROGRAMMES PROGRAMME
PLATFORM (DICP)

Networking Creating
platform to opportunities for Encouraging use To act as a ‘One
Bridging missing
update on the domestic of new Stop Centre’ to
link between To update on the
current companies to technologies by assist and advise
businesses, latest
government mitigate the domestic SMEs on the
funding, development
policies, gaps in the companies and Government’s
technology and and investment
incentives and supply chain and scaling-up the initiatives and
research opportunities in
supports for leverage on startup facilitation in
capability the state
investment in the outsourcing companies transforming
through Joint
manufacturing opportunities through strategic SMEs capability
Ventures or M&A.
and services from MNCs/ cooperation. and productivity.
sectors. LLCs.

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Domestic Investment Coordination Platform

DOMESTIC DOMESTIC INVESTMENT SUPPLY CHAIN START UP SME DESK INVEST SERIES
SEMINARS COORDINATION PROGRAMMES PROGRAMME
PLATFORM (DICP)

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Supply Chain Programmes

DOMESTIC DOMESTIC INVESTMENT SUPPLY CHAIN START UP SME DESK INVEST SERIES
SEMINARS COORDINATION PLATFORM PROGRAMMES PROGRAMME
(DICP)

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1 MIDA Online Application– Invest Malaysia Portal

e-Manufacturing License 2.0

The Manufacturing Licence will be

approved within

2 days
Starting from the date of complete
information received

All Applications

• Incentives
• Import Duty Exempton
• Expatriate Post (EP)
• Grant
• Domestic Sales
• R&D/ IILS / DIILS Status
• RE/RO
All application should be made via
• Post Approval/ Post Licensing/ Post
Incentive https:// investmalaysia.mida.gov.my
• Confirmation Letter for Exemption (SPM) 29
 Facilitate Speedy Implementation by
2 Project Acceleration & Coordination Unit (PACU)

Aspen Glove Sdn Bhd implemented their projects

within 7 MONTHS from approval from MIDA

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3 Talent Facilitation
One-on-one SOURCE OF TALENT
Assistance

Talent Assistance Request

Resume Bank
(7,000 CVs)
Mass Talent Facilitation:
Career Fair

Talent Corp:
Returning Expert
Programme

Academia & Technical

Institutions

▪ Implementation Survey MIDA Structured Dialogue

Proactive Outreach
▪ Companies in Production & Matchmaking Session
Approach
List

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 4 i-Incentives Portal
Categorisation of Incentives http://investmalaysia.mida.gov.my/incentives

11 Key Figures 22 Type of Incentives 3 By Sectors

Services
10 51%
16% Tax Incentive : 47

51%
Ministries Tax Incentives (67) Grant : 18
51% Soft Loan : 21
Others* : 16
19%
23
132 Agencies Manufacturing
Tax Incentive : 32
18%
Published Incentives
Offering
16% 34% Grant
Soft Loan
: 11
: 14
15% Others* : 11
3
Main
Sectors Primary
4
Types of Soft Loan Tax Incentive :6

15%
Incentives (23) Grant :9
Others* (22) Soft Loan :6
(Ecosystem Support) Grant (20) Others* :9
* Equity funding, training, aids, regional establishments & other facilitation programmes.
Source: i-Incentives Portal (as at 30 June 2022) 32
5 i-Services Portal

To assist To promote To facilitate

investors and linkages
who are encourage programmes
looking for the utilisation by MIDA or
local of local other
service service agencies http://iservices.mida.gov.my
providers providers for
investment
projects

Accounting Architectural Environmental

Insurance Construction Banking Education Engineering Protection

Distribution Green Other

Oil & Gas Legal ICT
& Logistics Technology Real Estate Professional &
Services Technical

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6 Industrial Parks with High Speed Broadband

1Gbps
37
Industrial Areas
Internet
Connectivity 34
Thank You
MIDA Kelantan
Aras 5-C, Menara Pejabat Kelantan Trade Centre (KTC)
Jalan Bayam, 15200 Kota Bharu
Kelantan Darul Naim
Tel: 609 748 3151 Fax: 609 744 7294
[email protected] / [email protected]