A Quick Guide To MITI / MIDA Manufacturing Licenses

Manufacturing activities in Malaysia fall under the Malaysian Investment Development Authority (MIDA), the federal agency facilitating domestic and overseas growth in the sector.

Regardless of the size of a manufacturer, it must register with MIDA, and in this guide we explain the basics of the two primary MIDA licenses.

Here’s how we’ve broken it down:

• the relationship between MIDA and MITI
• threshold for a MIDA Manufacturing License
• benefits of qualifying
• what if you fall below the threshold
• fees, validity periods, and renewals
• how to submit an application, and
• a pitch to let us handle it for you!

As this is meant as a quick overview, we won’t be diving deep, but we’ll link to official MIDA sources for those who would like full details.

Let’s begin.

MIDA or MITI Manufacturing License?

We’d like to clarify a common source of confusion: Whether Manufacturing Licenses are issued by MIDA or the Ministry of Investment, Trade and Industry (MITI).

The answer is both! It’s ultimately granted by MITI, but MIDA is an agency under MITI that manages applications and renewals.

In short, a ‘MITI Manufacturing License’ and ‘MIDA Manufacturing License’ are the same thing.

Manufacturing License threshold

To qualify for a MIDA Manufacturing License, the manufacturer must fulfil two requirements.

The first is mandatory, and the second can be met in one of two ways:

1. A workforce of minimum 80% Malaysian full-time employees
2. Either a minimum shareholders’ funds of RM2.5 million, or employ at least 75 full-time employees

For more key terms scroll to the end of MIDA’s official application guidelines.

Benefits of meeting the threshold

Besides being a legal requirement, a MIDA Manufacturing License comes with numerous incentives.

But we’ll just share the two primary ones:

1. Pioneer Status: 70% – 100% income tax exemption for five – 10 years.
2. Investment Tax Allowance (ITA): 60% – 100% allowance on certain capital expenses.

Both are granted for engaging in sectors deemed beneficial to Malaysia’s economy which are deemed as ‘promoted activities’ and manufacturers can apply for either one, but not both.

This is just the tip of the MIDA incentive iceberg, and for a deep dive please see MIDA’s official guide to incentives, which includes many industry-specific schemes.

What if you fall below the threshold?

Manufacturers that don’t meet the four criteria in the previous section must apply for a MIDA Exemption from Manufacturing License.

They are still eligible for some MIDA incentives, including Pioneer Status and ITA.

Fees, wait times, validity periods, and renewals

Here are key application fees you should know:

Application	Fee (RM)
Digital Certificate	1,000
Manufacturing License	1,500
Additional Incentives (ex. ITA)	2,500
Exemption of Manufacturing License	1,000

A Digital Certificate is an electronic signature linked to the Authorised Person of a company and needed to submit applications via MIDA’s InvestMalaysia portal.

It is valid for two years during which you may apply for a Manufacturing License or Exemption.

Once approved, both the Manufacturing License and Exemption Letter are valid indefinitely unless there are major changes to company details (new business address or type of production).

In such cases, a new application must be submitted, and if the Digital Certificate has expired a new one must be obtained.

For a full breakdown of all fees, here is MIDA’s official price list.

Submitting your application

MIDA only allows online applications and renewals, done via their InvestMalaysia portal.

As it’s your first time using the platform, you’ll need to register a new account.

Once you’re done, just follow these official user guides which take you through the application process step-by-step:

• Aapplication for Manufacturing Licence
• Application for Letter for Exemption from Manufacturing Licence

Actually, here’s their full list of User Guides–super helpful!

If all is well, an interim letter of approval will be issued within six to eight weeks.

You’ll be asked to provide some supporting documents and once done, the final Manufacturing License will be approved within seven to 60 days. 

We wish you a smooth application, and just remember we’re here if you need help!

Let MISHU handle your MIDA license application

If you have a better use of time than filling in forms and compiling documents, get in touch with us – we’ve helped many businesses secure their MIDA licenses and incentives, and we’d be happy to help you.