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Malaysia Your Profit Centre in Asia
Incentives & Policies
In The Resource-Based
Industries
16 June 2015
PRESENTATION
OUTLINE
PROMOTED PRODUCTS AND ACTIVITIES
INCENTIVES & POLICIES
TARGETED SECTORS
RESOURCE-BASED INDUSTRY IN MALAYSIA: RUBBER PALM-BASED INCLUDING OLEOCHEMICALS WOOD-BASED
CONTACT US
TARGETED SECTORS
Quality Investment (FDI & DDI)
Strong Linkages with Domestic
Industries
Completing the
ecosystem
Capital Intensive
High Value Added
Utilization of natural
resources Green &
Clean Technology
Skills Intensive
High Income Jobs
Iconic/ Pioneer Project
High Technology &
Knowledge Intensive
4
Quality Investments
5
Promote the entire value chain of industry clusters
Strengthen & complete the ecosystem
5
Ecosystem Approach
High technology, capital intensive & knowledge driven industries:
Industries manufacturing intermediate goods:
Resourced-based industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
• Oil & Gas • Food & Agro based • Value-added products from natural resources
• Machinery & equipment • Components & parts • Moulds and dies
6
Targeted Sectors In Manufacturing
• Principal Hubs
• Business and professional services
• Logistics
• ICT services
• Offshore and outsourcing activities
• Distributive trade
• Education and training
• Healthcare
• Tourism
7
Targeted Sectors In Services
RESOURCE-BASED INDUSTRY
IN MALAYSIA
9
RUBBER INDUSTRY
• Total world production of rubber is growing at
an average rate of 2.9% per annum.
• Natural and synthetic rubber accounted for
41% and 59% of total world production.
• Growing trend in awareness for sustainability
in rubber:
Increasing R&D programs to achieve a
green industry status through new
environmentally-friendly processing and
waste utilisation technologies
• The vast potential of the industry when
developed as an integrated entity from rubber
cultivation to the downstream value-added
industries. Source: MREPC & MRB
Global Scenario
• Malaysia is the sixth largest producer of Natural Rubber after
Thailand, Indonesia, Vietnam, China and India.
• Key stakeholders:
• Private Sector – investment
• Malaysian Rubber Board (MRB)
• Tun Abdul Razak Research Centre (TARRC)
• Malaysian Rubber Export Promotion Council (MREPC)
• Industry sub-sectors:
• Latex products
• Tyres & tyre-related products
• Industrial and general rubber products
11 Source: MREPC
Rubber Industry In Malaysia
Latex Products
• World’s leading producer and exporter of medical gloves
(examination ad surgical gloves), catheters and condoms
• Second largest exporter of latex threads (in value terms)
• Major companies producing latex gloves:
• Top Glove Sdn. Bhd. (Malaysia)
• Hartalega Sdn. Bhd. (Malaysia)
• Kossan Rubber Industries Berhad (Malaysia)
• Supermax Corporation Berhad (Malaysia)
12
Rubber Industry In Malaysia (Cont.)
Tyres and Tyre-related Products
• More than 40 companies producing tyres and tyre-related
products i.e. tyre retreads, inner tubes, etc.
• Major Tyre producers : • Continental Tyre AS Malaysia Sdn. Bhd. (Germany)
• Continental Tyre PJ Malaysia Sdn. Bhd. (Germany)
• Silverstone Berhad (Japan)
• Goodyear Malaysia Berhad (USA)
• Toyo Tyre Malaysia Sdn. Bhd. (Japan)
13
Rubber Industry In Malaysia (Cont.)
Industrial and General Rubber Products
• More than 185 Companies producing a wide range of rubber
products:
• Beltings
• Hoses
• Tubings
• Seals and sheeting for automotive
• Electrical & electronics
• Machinery & equipment
• Construction industries
14
Rubber Industry In Malaysia (Cont.)
15
RUBBER ECOSYSTEM
PRIMARY END PRODUCT SECONDARY
Dried
rubber
Environmental-Friendly Tyres / Green Tyres
• Belting
• Hoses, Pipes and
Tubing
• Rubber profiles
• Seals, gaskets,
washers, packings,
rings and rubber lining
• Anti vibration, damping
and sound insulation
products
Concentrated
Latex
Rubber
Compound Safety or special function
gloves
Rubber gloves
RAW MATERIALS
PLANTATION
The Ayer Hitam
Planting
Syndicate
Berhad
Tyres:
Earthmovers, agricultural
vehicles, industries
vehicles, commercial
vehicles and aircraft
Ekoprena
Enablers Malaysia Rubber Board (MRB) /SIRIM/ Malaysian Rubber Glove Manufacturers Association (MARGMA)/
Malaysian Rubber Export Promotion Council (MREPC)/FMM/Malaysian Association of Tyre Retreaders and
Dealer Society (MATRDS)/ Global Testing and Consultancy for Rubber(G-TACR)
Advanced Rubber for Engineering and
Eco-Efficient Applications Pureprena
Natural Latex
16
RUBBER ECOSYSTEM
• Belting
• Hoses, Pipes and
Tubing
• Rubber profiles
• Seals, gaskets,
washers, packings,
rings and rubber
lining
• Anti vibration,
damping and sound
insulation products
Tyres:
Earthmovers,
agricultural vehicles,
industries vehicles,
commercial vehicles
and aircraft Recycling
Process
Enablers Malaysia Rubber Board (MRB) /SIRIM/ Malaysian Rubber Glove Manufacturers Association
(MARGMA)/ Malaysian Rubber Export Promotion Council (MREPC)/FMM/Malaysian Association of
Tyre Retreaders and Dealer Society (MATRDS)/
Global Testing and Consultancy for Rubber(G-TACR)
Rubber
powder/crumb/sheet
Fuel Oil
Carbon Black
Steel
Fibre (Textile)
Other Industries
Others
Reclaimed Rubber
Retread Tyres
Recycled
PRIMARY SECONDARY RECYCLED PRODUCTS
17
Domestic Investment : RM1.2 Billion
Foreign Investment :
RM103.1 Million
1,728 Job Opportunities
15 Projects
RM1.3 Billion
Approved Projects In Rubber Industry, 2014
18
PALM-BASED INDUSTRY
• The palm oil products sector comprises palm oil, palm kernel oil, oleochemicals, biodiesel, energy generation and products from palm biomass.
• Palm oil is one of the 17 major oils and fats produced in the world. The world’s major consumers of oils and fats are the People’s Republic of China, Europe, Pakistan and India.
• The production of crude palm oil (CPO) was 19.67 million tonnes in 2014 (19.22 million tonnes in 2013).
• The production of crude palm kernel oil and palm kernel cake amounted to 2.28 million tonnes and 2.52 million tonnes respectively.
• Exports of Malaysian oil palm products in 2014, constituting palm oil (crude palm oil and processed palm oil), palm kernel oil, palm kernel cake, oleochemicals, biodiesel, finished products and other palm products, amounted to 25 million tonnes compared with 25.7 million tonnes in 2013. In terms of value, exports increased from RM61.4 billion in 2013 to RM63.5 billion in 2014.
Palm Oil Industry In Malaysia
• The total oil palm planted area in the country was 5.39 million hectares. Sabah remained the largest oil palm planted state, accounting for about 28% of the total planted area in the country, followed by Sarawak and Johor.
• The oil palm industry consists of three major sub-sectors - the food based industry, oleochemicals and biomass products.
Plantation Sector Industry Sector
Current Status
PALM BIOMASS ECOSYSTEM
21
Oil Palm Frond (OPF)
Empty Fruit Bunch (EFB)
Palm Kernel Shell (PKS)
PRIMARY END
PRODUCTS SECONDARY RAW
MATERIALS
OPF Chips
Dried & Fine Fiber
Pulp (Metro Knight Sdn Bhd)
MDF / Particle Board
Briquette (HK Kitaran Sdn Bhd)
Pulp
Paperboard (Jin Xiu Paper Industry (M) Sdn Bhd)
Pellets (QL Tawau Palm Pellet Sdn Bhd)
Paper / Paperboard
Insole / Ring File
Energy Generation
Energy Generation
Furniture/Furniture part
Packaging, Molded Products / Paper
Oil Palm Trunk (OPT)
OPT Chips
Veneer/Plywood (Nippon Palm
Corporation Sdn Bhd)
Pellets (Green Giant Energy Sdn Bhd)
Pulp (Eko Pulp & Paper Sdn Bhd)
MDF/ Particle Board
Energy Generation
Packaging, Molded Products / Paper
Furniture/Furniture part
Furniture / Building Construction
Mattress/ composite product / moulded products / Packaging material
Promoted Products
49 projects RM5.7 billion
Domestic Investment:
RM3.6 billion
Foreign Investment:
RM2.0 billion
1,426 Job Opportunities
Approved Palm-Based Projects 2014
23
• Chemicals derived from natural oils/fats - could be of
animal, marine or vegetable oil sources .
• Derived from breaking the oils/fats into corresponding
constituents, i.e. fatty acids, glycerol, fatty esters, etc.
• Normal process involves hydrolysis or trans
esterification
• Production capacity in Malaysia :
2013 = 2.6 million tonnes
2014 = 2.8 million tonnes
What Is Oleochemical?
Source: MPOB
Significant expansion in production of fatty acid and
fatty alcohol capacities in the Asia region.
Asia Pacific led by Indonesia, China, and Malaysia, with
advantaged feedstock and markets, account for nearly
70% of the global markets and 60% of the total
capacity.
Increasing demand for oleochemicals in key end-user
applications such as personal care is expected to
improve the growth of oleochemicals market
Global Scenario
Source: Frost & Sullivan
Source : LMC International 2009 25
Major Producers of Basic Oleochemical in the World
Oleochemical industry in Malaysia started in 1979/1980. Comprises of the basic oleo chemical and oleochemical
derivatives subsector.
Malaysia is the largest producer of oleochemicals in the world : 20% of global capacity.
Almost 16 oleochemical plants are established in Malaysia.
Major Home Grown Players : IOI, KLK, Emery, Natural
Oleochemical, Oleon, FGV.
Oleochemical Industry In Malaysia
Malaysia : rich with raw material resources but lack in technology innovation to move into specialty products.
Palm Oil NKEA under EPP 6 initiative shift downstream industry to higher value add derivatives e.g surfactants, agrochemicals, bio lubricants, bio polyols and propylene glycol derivatives.
Vertical Integration: Large plantations have started to invest in downstream feedstock processing
Related supporting regulation bodies; MPIC , MPOB , MPOC
Oleochemical Industry In Malaysia (Cont.)
FEEDSTOCK BASIC DERIVATIVE SPECIALTY CONSUMER
Oleochemical Value Chain
MAJOR OPERATING COMPANIES IN MALAYSIA
Plantation /Millers
ME,Fatty Acid, Fatty Ester, Glycerine
PRODUCTS
Sulfo Fatty Acid
Ester, Alkyl
Chlorides, Fatty
Acid Ethoxylates
EGMS, Methyl Ester
Sulphonate (MES)
Methyl Ester
Food Industry, Toiletries
Confectionary, Pharmaceutical
Oil & Gas, Dairy Products
Domestic Investment : RM2.5 billion
Foreign Investment : RM1.4 billion
1,426 Job Opportunities
22 Projects
RM3.9 billion
Approved Oleochemical Projects in 2014
30
WOOD-BASED INDUSTRY
TARGETED SECTORS
MDF for Malaysia has achieved international standards British Standards (BS) Asia Pacific : Japan Australia & New Zealand (JANS) Harmonised European Standards (EN)
LARGEST EXPORTER OF TROPICAL WOOD
3RD LARGEST EXPORTER OF MDF (AFTER GERMANY & FRANCE)
9TH WORLD LARGEST EXPORTER OF FURNITURE
Source : MTIB
NATIONAL TIMBER INDUSTRY POLICY (NATIP) 2009 – 2020
- Target export of timber products RM 53 billion by 2020
(2014 – RM 20.52 billion)
Wood-Based Industry In Malaysia
Companies In Wood-Based In Malaysia
Veneer, sawn timber, timber
slabs, wood chips, fibre
Sabah Softwoods
Berhad Samling Plywood
(Bintulu) Sdn Bhd Mentakab Veneer &
Plywood Sdn Bhd Shin Yang Plywood
Sdn Bhd
WOOD BASED INDUSTRY ECOSYSTEM
MID-STREAM DOWN STREAM UPSTREAM
Supporting R&D and Government
Agencies
Decorative panel boards (excluding plain
plywood) / timber mouldings / builders
carpentry and joinery / wood waste products
(charcoal , wooden briquette, wood wool) Cipta Briquette Sdn Bhd Ketukangan Inspirasi Sdn
Bhd Pan Euro Products Sdn Bhd
Design,development & production of wooden
furniture LY Furniture Sdn.
Bhd. Cosmopolitan
Wood Sdn Bhd Home Ritz Corp Bhd Lii Hen Furniture
Sdn Bhd
RAW MATERIAL
Tropical hardwood /
rubber wood / acacia
Forest
**Engineered wood, also called composite wood, man-made wood, or manufactured board; includes a range of derivative wood, products which are manufactured by binding or fixing the strands, particles, fibers or veneers or boards of wood, together with adhesives, or other methods of fixation to form composite materials (greater strength)
Promoted Products Under General List
Promoted Products Under Small Scale Industries
WOODEN FURNITURE ECOSYSTEM
34
MID-STREAM DOWN STREAM RAW MATERIAL
Supporting R&D and
Government Agencies
Timber molding / finger joint
Major player: Samling Housing Product Sdn. Bhd.
Plywood
Major player: Asia Plywood Company Sdn Bhd
Particle board Major player:Mieco
Manufacturing Sdn. Bhd.
Sawn Timber
Major Player : Sabah Softwoods Berhad
logs
Sabah Forest Industries Sdn. Bhd.
Wood chips Major player:Sabah Softwoods Berhad.
Design and
develop
Promoted Products
KENAF ECOSYSTEM
35
MID-STREAM DOWN STREAM
Potential / Existing
Companies operating
in Malaysia
UPSTREAM
Supporting R&D and
Government Agencies
Plantation & Cultivation Kenaf Fibre & Powder Kenaf End Products
KEFI Malaysia S/B (Kenaf Fibre & Core)
Kenaf Natural Fiber
Industries S/B (Kenaf fibre & core)
Symphony Advance S/B
(Kenaf powder)
Pointray S/B (Powder, Pellets & Furniture
from Kenaf)
KPC Manufacturing (M) S/B
(Kenaf Polymer Composites Foaming)
Sri Jentayu Sdn. Bhd.
(Bullet proof vest)
Bio Solutions Sdn. Bhd. (Yarn & textile)
Small Planters
Promoted Products
48 projects RM465.4 million
Domestic Investment:
RM422.9 million
Foreign Investment:
RM42.5 million
3,815 Job Opportunities
Approved Wood-Based Projects 2014
PROMOTED PRODUCTS AND
ACTIVITIES
38
Category Current List
General List Manufacture of Rubber Products i. Tyre for earthmover, agriculture vehicles, industries vehicle,
commercial vehicles, motorcycle and aircraft. ii. Latex products (Safety or special function gloves) iii. Dry rubber products:
a) Beltings b) Hoses, pipes and tubings c) Rubber profiles d) Seals, gaskets, washers, packings, rings and rubber lining e) Anti-vibration, damping and sound insulation products
Small Scale (SMIs) Manufacture of Rubber Products i. Moulded rubber products ii. Extruded rubber products iii. General rubber goods
Promoted List Under PIA 1986 - Rubber
39
Category Current List
General List Manufacture of palm oil products and their derivatives such as: i. Oleochemicals or oleochemical derivatives or preparations ii. Palm based nutraceuticals, constituents of palm oil or palm kernel oil iii. Palm-based food products and ingredients:
• Specialty animal fat replacer • Palm-based mayonnaise and salad dressing • Milk or coconut powder substitute • Red palm oil and related product • Palm-based food ingredient • Modified (interesterified) pam oil and palm kernel oil products • Margarine, vanaspati, shortening or other manufactured fat products • Cocoa butter replacers, cocoa butter substitutes, cocoa butter
equivalent, palm mid fraction or special olein Processed products from: i. Palm kernel cake, ii. Palm oil mill effluent iii. Palm biomass
Small Scale (SMIs) Manufacture of oil palm products and their derivatives such as: Processed products from palm oil Processed products from palm biomass/waste/by-products
Promoted List Under PIA 1986 – Palm-Based
40
Category Current List
General List Manufacture of Wood-Based Products i. Design, development and production of wooden furniture ii. Engineered wood products excluding plywood
Manufacture of Pulp, Paper and Paperboard Corrugated medium paper, testliner or kraftliner or kraft paper and paperboard Manufacture of Kenaf-Based Products Such as animal feed, kenaf particle or fibre, reconstituted panel board or products and moulded products
Small Scale (SMIs) Forestry Products Rattan products, bamboo products and other forestry prodcuts Manufacture of Wood and Wood Products i. Decorative panel boards (excluding plain plywood) ii. Timber mouldings iii. Builders’ carpentry and joinery iv. Products derived from utilisation of wood waste (eg.: activated charcoal) v. Wooden household and office articles
Manufacture of Paper and Paperboard Products Moulded paper products
Promoted List Under PIA 1986 – Wood-Based
41
Category Resourced Based
Reinvestment (Section 4F)
i. Rubber ii. Oil Palm iii. Wood
Promoted List Under PIA 1986 – Reinvestment
INCENTIVES & POLICIES
The Industrial Coordination Act 1975 requires manufacturing companies with shareholders’ funds of RM2.5 million and above or engaging 75 or more full time paid employees to apply for a manufacturing license (ML). ML application will be processed by MIDA.
Guidelines on Manufacturing License
43
Investment Policies
Repatriation of Funds
Foreign Equity
Liberal Expatriate Post Approvals 44
Investment Policies
45
PIONEER STATUS (PS) Income tax exemption ranging from 70% or 100% for a period of 5 or 10
years
GENERAL LIST
INVESTMENT TAX ALLOWANCE (ITA) 60% or 100% on qualifying capital
expenditure for 5 years. Can be offset against 70% or 100% of statutory
income.
PIONEER STATUS (PS) 100% income tax exemption for a
period of 5 years
SMIs LIST
INVESTMENT TAX ALLOWANCE (ITA) 60% on qualifying capital
expenditure for 5 years. Can be offset against 100% of statutory
income.
Major Incentives
46
Reinvestment by Existing Company (Section 4F) – Resource-Based Industry
Another round of PS Income tax exemption ranging from 70%
for a period of 5 years
Another round of ITA 60% on qualifying capital
expenditure for 5 years. Can be offset against 70% of statutory income.
Second Round Incentive for Investment By Subsequent Company Formed by Existing Company
A second-round of PS Income tax exemption ranging from 70%
of increased statutory income for a period of 5 years
A second-round of ITA 60% on additional qualifying capital
expenditure for 5 years. Can be offset against 70% of statutory income.
Major Incentives
High Technology
New and emerging
technologies
Relatively new technology for
the industry concern
Incentives For Acquiring A Foreign Company For High
Technology
INCENTIVES FOR REINVESTMENT (BUDGET 2002)
Annual deduction of 20% of the acquisition cost for 5 years. To enable Malaysian owned companies to acquire state-of-the-art technologies
for the purpose of utilizing of the acquired technology in their existing operation within Malaysia.
Eligibility Criteria The acquirer company must be local owned with at least 60% Malaysian equity
for a period of 5 years from the date of application. The acquiree must be foreign company with 100% foreign equity ownership Direct acquisition at least 51% of the equity of the foreign company abroad The acquisition must be in form of cash transaction The acquisition must be complete within 3 years The acquisition must result in increase of performance or enhancement of
technology and process of company’s operation in Malaysia
Incentives For Acquiring A Foreign Company For High
Technology
Reinvestment Allowance
60% on qualifying capital expenditure for 15 consecutive years
(Application to be submitted to IRB)
Import Duty Exemption
For raw materials
49
Other Incentives
50
• Further development of the
rubber industry in the heart of the
Natural Rubber Economic Belt
• Proposed site: Ladang Bukit Ketapang,
Kuala Nerang, Kedah
• Supported and facilitated by the
Malaysian and Kedah State
Government
• More than 1,157 acres of flat land
• Rubber City will comprise:
Industrial zone
Commercial zone
Research & Development (R&D)
hub
Establishment Of Rubber City In Kedah
Catalytic Anchor Tenants
Leading rubber product manufacturers
e.g. latex / nitrile gloves, passenger & commercial tyres, condoms
Specialized Latex & Rubber Products
High value-add and specialized products for niche customer
segments
e.g. specialty / surgical gloves, catheters, latex mattresses,
adhesives, “intelligent” rubber
Precision Engineered Rubber Products
Precision moulded rubber products for different industrial
sectors
e.g. seals, gaskets, bearings for automotive, aerospace, construction
sectors
“Green” Rubber Products
Rubber-based products from environmentally-friendly raw materials and/or processes
e.g. Ekoprena tyres, reclaimed rubber products such as rubberised
bitumen
4 Sub-Industries
51
Rubber City Core Industry Focus
100% of qualifying capital
expenditure for 5 years. Can be
offset against 100% of statutory
income.
100% tax exemption for a period
of 5 + 5 years commencing from
the year company derives
statutory income
50% tax reduction for 5 years
PS
• 100% tax exemption for a period of 5 + 5 years commencing from the year company derives statutory income
ITA
• 100% of qualifying capital expenditure for 5 years. Can be offset against 100% of statutory income.
Stamp Duty Exemption
•For documents related to transfer of land/ building
Deduction on Pre-Operational Expenditure
•Tax exemption for pre-operational expenditure incurred within a period of 4 years
Reduction in Corporate Tax
•50% tax reduction for 5 years
• Applicable for Specialised Latex and Rubber, Precision Engineered Rubber and Green Rubber Products only.
OR
52
Incentives For Rubber City
NEW INCENTIVES UNDER THE 2015 BUDGET
Incentive for Less Developed Areas
Incentive for Industrial Area Management
Capital Allowance to Increase Automation
in Labour-Intensive Industries
Incentive for the Establishment of
Principal Hub
NEW INCENTIVES ANNOUNCED
New Incentive Annouced
INCENTIVE FOR LESS
DEVELOPED AREAS
Income Tax Exemption :
100% up to 15 years of assessment (5+5+5) OR
Investment Tax Allowance :
100% of qualifying capital expenditure incurred within 10 years
Stamp Duty Exemption on :
Transfer or leased of land or building used for development in relation to
manufacturing and services activities
Witholding Tax Exemption on :
Fees for technical advice, assistance or services or royalty in relation
tomanufacturing or services activities
Import Duty Exemption on :
- Raw materials & components used directly in the manufacturing process
- Machinery & equipment in the activity for the selected services sector
Incentives
Incentive For Less Develop Area
TARGET
GROUPS
ELIGIBILITY
CRITERIA EFFECTIVE DATE
OF APPLICATION
Existing
companies
expanding their
operation into the
less developed
areas; OR
Newly established
companies
Undertake
manufacturing or
services activities in
less developed areas
with substantial
employment creation
and rural
development
Comply with
conditions including
value added, local
employment and
Managerial, Technical
and Supervisory
Index (MTS index)
Submission
period: 1 January
2015 to 31
December 2020
Application
submitted to
MIDA
CAPITAL ALLOWANCE TO INCREASE
AUTOMATION IN LABOUR-INTENSIVE
INDUSTRIES
Category 2:
Other industries - ACA of
200% on the first RM2 million
expenditure incurred within
Year of Assessment 2015 to
2020.
IMPLEMENTATIO
N TIMELINE
Manufacturing
companies (labour
and non-labour
intensive) operating
at least 36 months in
Malaysia
Category 1:
Year of Assessment
(YA) 2015 – YA 2017
TARGET GROUP TYPE OF INCENTIVE
Accelerated Capital Allowance (Aca)
Category 2:
Year of Assessment
(YA) 2015 – YA 2020
Category 1:
Labour intensive industries
(rubber products, plastics,
wood, furniture and textiles) –
ACA of 200% on the first RM4
million expenditure incurred
within Year of Assessment
2015 to 2017.
Eligibility Criteria
Possesses a valid Business Licence from
Local Authority and Manufacturing Licence
from MITI
Company residing in Malaysia and in
operation for at least 36 months
Expenditure incurred within the relevant years
of assessment
INCENTIVE FOR INDUSTRIAL
AREA MANAGEMENT
EFFECTIVE
DATE OF
APPLICATION
Newly established
companies; OR
Existing
companies
appointed by
Local Authority
100% tax exemption
on statutory income
for 5 years
commencing from the
date a company
commences its
activities
Submission
period: 1 January
2015 to 31
December 2017
Application
submitted to
MIDA
TARGET
GROUP
TYPE OF
INCENTIVE
Industrial Area Management
IE must be gazetted by the State
Authority as an Industrial Land
Eligibility Criteria
A company approved by Local Authority
to undertake the management of
specified IE
At least 70% of the annual income
derives from mandatory activities
Must undertake all of the following management,
upgrading and maintenance activities within the IE:
Mandatory Activities
Roads, street lightings and drainage systems
Common facilities
Landscaping
Industrial waste collection, transfer and
disposal
Database system maintenance
Thank You MIDA Sentral No. 5 Jalan Stesen Sentral 5 K L Sentral 50470 Kuala Lumpur Tel. 03 – 2267 3633, Fax. 03 – 2274 7970 [email protected] 65
Malaysia Your Profit Centre in Asia