8 FAQs About CIDB License Applications For Malaysians

All contractors must register with the Malaysian Construction Industry Development Board (CIDB) before engaging in any construction work in Malaysia.

Upon successful registration, the contractor is granted what is known as a Local Contractor Registration Certificate (or ‘Perakuan Pendaftaran Kontraktor’ or ‘PPK’ in Bahasa Melayu).

Now they can build all the overpriced condominiums they want!

For those who prefer official sources, here are some CIDB documents:

• CIDB’s full length guide to registration (warning: long and in Bahasa Melayu)
• Act 520 (specifically Section 25 which describes contractor registration)

Otherwise, let’s begin. 

1. What types of CIDB licenses are there?

There’s really just one type of CIDB license, which is the Local Contractor Registration Certificate or PPK.

However, when registering with CIDB, contractors will be classified based on four factors:

• Grade 
• Category
• Specialisation, and
• Classification

In a nutshell, there are seven grades a contractor can apply for, each of which allows them to undertake tenders and projects with progressively higher limits:

Grade	Contract Value Limit
G1	Up to RM200,000
G2	Up to RM500,000
G3	Up to RM1 million
G4	Up to RM3 million
G5	Up to RM5 million
G6	Up to RM10 million
G7	No limit

Obviously every applicant wants to be a G7 contractor, but their grade is limited by their technical category and specialisation.

2. What are CIDB license requirements and limitations?

There are five general requirements for contractors registering with CIDB:

• Permitted applicant
• Business registration
• Financial capability in the form of paid up capital
• Technical personnel requirements, and
• CCD points

Permitted applicant

The application must be made by one of the owners, directors, or board members. 

A director / owner is only allowed to submit one company registration application.

Business registration

The application must be made by a registered business entity, which can be:

• Sdn Bhd
• Limited Liability Partnership
• Enterprise

Paid up capital

The applicant must maintain the following minimum paid up capital throughout the registration period.

Grade	Paid-up Capital
G1	RM5,000 / RM10,000 (if under SPKK)
G2	RM25,000
G3	RM50,000
G4	RM150,000
G5	RM250,000
G6	RM500,000
G7	RM750,000

Technical personnel requirements

Technical personnel include owners, directors, and full-time employees who must be Malaysian citizens with relevant technical certificates, diplomas, or degrees in the field of construction.

The higher the qualification level of your technical personnel, the higher the grade you can apply for.

CCD points

This one is less to do with new registrations and more about renewals.

The Contractor Continuous Development or CCD is a program designed to ensure that contractors registered with CIDB remain up to date.

Under this program, CIBD registered contractors must earn a certain number of CCD points within a year to renew their contractor registration.

The number of points goes up based on their registration grade, as the table below shows:

Grade	1 Year (Minimum Points)
G1& G2	10
G3 & G4	20
G5 & G6	30
G7	40

Common ways to accumulate CCD points include:

• Attending programs that involve knowledge enhancement, forums, seminars, and courses
• Participation in relevant associations
• Contributions to knowledge programs as speakers, panelists, or related roles, and
• Social and civic contributions

3. Can you apply for a CIDB license online?

Yes, all applications are made via CIDB’s CIMS portal. 

If it’s your first time visiting, you’ll need to create a user account first – and remember it’s got to be a company director or owner!

Be sure to have the necessary documents beforehand, which brings us to our next question.

4. What are required documents for a CIDB registration?

The documents required are based on the type of business entity applying.

• Academic certificates
• FM resume if applying for category F
• Certificate of Registration for Competent Persons (if available)
• Certificate of Agency Registration
• Annual Return (if the application is from a limited company)
• Annual Return of the company holding shares in the company
• Current Financial Statement if application is from a business registered under ROB / PLT / ROS
• Partnership Agreement if application is from a partnership
• Company Information, E-InfoSSM services for LLP
• Registration of Societies/Associations (ROS)
• List of company directors for Sdn Bhds

5. How much does a CIDB registration cost?

As of October 2024, here’s what you’ll be paying for:

• The registration application
• the license approval

All registration applications incur a one off RM50 fee, while the license approval fee is annual and based on the contractor’s grade:

Grade	Annual Fee (RM)
G1	RM20.00
G2	RM80.00
G3	RM150.00
G4	RM350.00
G5	RM700.00
G6	RM1,000.00
G7	RM1,400.00

A PPK license may be renewed for up to three years, depending on CCD points accumulated.

6. What is SPKK?

Government Employment Certificates (or ‘Sijil Perolehan Kerja Kerajaan’ and ‘SPKK’ in Bahasa Melayu) is an additional qualification that entitles contractors to participate in government construction projects.

Contractors must have a valid CIDB license before applying for a Government Employment Certificate and fulfil SPKK eligibility requirements or read our guide to SPKK registrations.

7. What is STB?

STB stands for Bumiputera Certificate (Sijil Taraf Bumiputera), which allows Bumiputera contractors to bid on construction projects reserved for Bumiputera businesses.

To obtain the STB, contractors must:

• first secure CIDB’s PPK and SPKK certifications, and
• meet specific Bumiputera status criteria

For more details, check out our guide to CIDB STB registrations.

8. How long does CIDB registration take?

Assuming all documents and licenses have been compiled and there are no issues with the application, a typical CIDB application takes about seven working days to process. 

Hope that helps – all the best with your CIDB License application!

Let MISHU help with your CIDB license

If you have a better use of time than browsing forms and documents, get in touch with us – we’ve helped many businesses secure their CIDB supplier registration, and we’d be happy to help you.