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: