Articles & Information

The business activity in the world has grown from domestic trade to international trade, which is known as globalisation, over the years from the inception of trade. The government in the world has started collecting taxes/ duties on the goods imported into or exported from the country. The main reasons for imposing taxes/duties are 1)…

Any waste listed in the First Schedule of the Environmental Quality (Scheduled Wastes) Regulations 2005 is defined as scheduled wastes. The management of scheduled wastes is different from other non-hazardous industrial wastes because it must comply with the Environmental Quality (Scheduled Wastes) Regulations 2005. There are 77 types of scheduled wastes listed and they can…

Since the country gained independence in 1957, Malaysia’s economic activities have shifted from primary commodities such as rubber and wood to industrialisation over the years. To cater for the increasing needs of the business communities in respect of manufacturing and trade facilities and to attract more foreign direct investment, the Malaysian Government has enacted the…

Subdivision is the division of a parcel of land held under one ownership into two or more portions to be held by the same proprietor under separate titles. This is a crucial legal planning procedure that breaking up an alienated land held under a Registry or Land Office title. Land subdivision is the first step…

With the increasing populations in our country, the lands in the country become smaller due to the subdivision or partition of land. The major reason for the land subdivision is through inheritance such that the inheritors subdivide land property amongst themselves or for commercialization of land. Amalgamation is a process of combining two or more…

A strata title is the type of land title issued for stratified properties which include high-rise properties such as condominiums, apartments, and landed properties that are gated and guarded. It is the document that states the ownership of a strata property and gives owners the control of the individual units of stratified properties. Different from…

There are many types of tax incentives provided by Malaysian Government to attract foreign or local investors for investment in certain industries in Malaysia. The tax incentives are provided in forms of exemption of profits, allowance for capital expenditure or double deduction of expenses. In this article, we will explain the main three types of…

Before the landowner decided to build a building on his land, what are the matters he must take into account? First, the landowner should ascertain the category of land use endorsed on his land title. For example, a factory is allowed to build on an industrial land. If it is agriculture land, the land is…

Licensed Manufacturing Warehouse (LMW) is a warehouse license under the provision of section 65/65A of the Customs Act 1967, Malaysia. The purpose of LMW is to give Customs duty exemption to all raw materials/ components and machinery and equipment used directly in the manufacturing process of approved produce from the first stage of manufacturing till…

Factories and Machineries Act (FMA) was introduced and came into force in 1967, to provide for the control of factories concerning matters relating to safety, health, and welfare of persons at work and to provide control on registration and inspection of machinery. According to Factories and Machinery Act 1967, some machines need to apply for…

A registered trademark is crucial in safeguarding your brand! The registered trademark allows an owner to take legal action against someone who used or attempted to use his brand without permission. It also allows the owner to sell or license his brand to third parties if necessary. However, in most cases, as a new or…

Light industries in Malaysia are usually manufacturers whose products are usually produced by the company themselves, but the usage of the products is usually by someone else which mostly are the consumers. Light industries are usually not very capital intensive. A buffer zone, which is the area or distance between industries and residential areas, is…

Medium industries in Malaysia have capital investments which are in between light and heavy industries. A buffer zone, which is the area or distance between industries and residential areas, is introduced to distance the residential area from the area of activity to reduce the exposure to pollution. Figure 1: Buffer Zone between Industrial Area and…

Heavy industries in Malaysia are different from light industries in the sense that heavy industries are usually more capital intensive compared to light or medium industries; which means they require a lot of machinery and equipment. A buffer zone, which is the area or distance between industries and residential areas, is introduced to distance the…

INTRODUCTION There are certain taxes to be levied on real estate in Malaysia. It is pertinent for persons who wish to purchase or own real estate in Malaysia to be aware of such taxes. 1. STAMP DUTY The stamp duty is a tax levied on the instrument of transfer as specified in the First Schedule…

Introduction Persons who wish to setup business in Malaysia must register their business either under the Registration of Businesses Act 1956 (“ROBA 1956”) or Companies Act 2016 (“CA 2016”) or Limited Liability Partnerships Act 2012. The different forms of business vehicle available in Malaysia includes:- Company Limited by Shares Company Limited by Guarantee Unlimited Company…

If a manufacturer meets a certain requirement, the law requires it to obtain a manufacturing license from Malaysia Investment Development Authority (MIDA). Based on the manufacturing activity, the Industrial Coordination Act (ICA), 1975 requires person(s) who are involved in manufacturing activities to obtain a license from the Licensing Officer. The main goal of introducing the…

Indonesia’s New Capital City in East Kalimantan: Opportunities and Challenges for Malaysian Company President Joko Widodo announced the East Kalimantan Province to be new Indonesia’s capital city. The city is located between Penajam Paser Utara district and Kutai Kartanegara district. The new capital city is placed at a strategic location, located in between two largest…

Factory Business License Application Before you start a business in Malaysia, it is mandatory for you to apply and possess business license, depending on the type of your business. Foreigners who have an intention to set up a private company in Malaysia should aware the type of license to be applied. For example, factory business…

Common Problem for Industrial Project Submission Planning Permission (KM) approval is needed for the owner who seeks permission to carry out the new development. On the other hand, Building Plan (BP) approval is needed when the owner seeks to have the details of development checked and approved to comply with the standard rules and regulations…