Legislation and Policy
Legislations and policies provide governance not only to the type of manufacturing industries by size and sub-sectors, but also manufacturing activities such as expansion, technology transfer etc. Examples of such legislations and policies are as follow:
The Industrial Coordination Act, 1975, where any person engaging in any manufacturing activity in Malaysia with shareholders' funds of RM2.5 million and above, or those engaging 75 or more full-time employees must obtain a manufacturing licence from the Malaysian Industrial Development Authority (MIDA).
The Wood-Based Industry Act, which covers wood-based furniture manufacturing and effective in the states that apply the National Forest Act 1984 in the related State Legislative Assembly.
An existing licensed company which proposes to undertake an expansion of production capacity for its approved products or diversification to manufacture additional products is required to submit an application for the expansion or diversification in the prescribed form to MIDA.
Companies undertaking manufacturing projects licensed under the Industrial Coordination Act 1975 must obtain prior written approval from the Ministry of International Trade and Industry before entering into any technology transfer agreement involving foreign partners.
The following are other policies and legislation applicable in the manufacturing industry: