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Incorporated as a statutory body under the Malaysian Industrial Development Authority (MIDA) Act, the establishment of MIDA in 1967 was hailed by the World Bank as “the necessary impetus for purposeful, positive and coordinated promotional action” for Malaysia’s industrial development. Today, MIDA’s is Malaysia’s cutting-edge, dynamic and pioneering force in opening pathways to new frontiers around the globe.

To further enhance MIDA’s role in assisting investors, senior representatives from key government agencies are stationed at MIDA’s headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Department of Labour, Immigration Department, Royal Malaysian Customs, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad.

MIDA also evaluates the following applications for projects in the manufacturing and its related services sectors:

  • Manufacturing licenses
  • Tax incentives
  • Expatriate posts
  • Duty exemptions on raw materials and components
  • Duty exemptions on machinery and equipment for agricultural sector and selected services sector

With the implementation of the self-declaration mechanism for granting import duty exemption on machinery, equipment, spare parts, consumables, prime movers and container trailers for manufacturers in the principal customs area (PCA), companies engaged in a hotel business and haulage operators effective 2nd May 2014, MIDA is also responsible to issue a Confirmation Letter on the status of the applicant prior to seeking the permission from the Royal Malaysian Customs Department to claim for the exemption.

Investors are encouraged to discuss their project interests with MIDA officers at MIDA’s headquarters in Kuala Lumpur or at its overseas or state offices closest to them. Information on investing can also be obtained from the  Getting Started section. Investors are also invited to visit MIDA’s Business Information Centre (BIC) where published information on investment, trade, financing, productivity pertaining to the manufacturing and services sectors are available.




Functions of MIDA




Why Malaysia?

Malaysia is in its most radical transformation as it battles to achieve the Vision 2020. The transformation is visible on the political front, the public sector and among Malaysian business entities.

A Dynamic Business Environment20141127131833_mida-HQ

Malaysia, strategically located in the heart of South East Asia, offers a cost-competitive location for investors intending to set up offshore operations for the manufacture of advanced technological products for regional and international markets.


Supported by a market-oriented economy and pro-business Government policies, Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. Malaysia’s key strengths include well-developed infrastructure and productive workforce. A politically stable country with a well-developed legal system, Malaysia also provides attractive incentives for investors.


Advancing with Technology

Technological advancement has become an integral part of Malaysia’s growth as an industrialised nation. With the help of technology, Malaysia is steadfast in providing for the modern day requirements of investor companies based in the country. Malaysia is one of the most technologically developed countries amongst industrialising nations in the ASEAN region. The nation’s persistent drive to engage modern technologies proves to be a great advantage to manufacturers in Malaysia.


Well-developed Infrastructure

Infrastructure in Malaysia is designed to serve the business community; it is one of the best in Asia. Telecommunications network served by digital and fibre optic technology, five international airports (all with air-cargo facilities), well-maintained highways and seven international seaports make Malaysia an ideal springboard to the Asia-Pacific market.

Industries in Malaysia are predominantly located in over 500 industrial estates and Free Zones developed throughout the country. These zones are categorised as export processing zones, which cater to the requirements of export-oriented industries. There are also specialised parks that have been developed to cater to the needs of specific industries.

Human Resources

One of Malaysia’s greatest assets is her human resources. The workforce here is young, educated and productive, proving to be one of the best in the region. The Government’s emphasis on human resource development ensures the continuous supply of manpower to meet the needs of the expanding manufacturing and services sectors.


Towards the Economy of Tomorrow

As a result of perceptive foresight, strategic planning and abundant resources, Malaysia offers investors a wide spectrum of investment opportunities. The technologically-inclined economy of Malaysia is proven through the country’s involvement in advanced electronics manufacturing, R&D, biotechnology, photonics, logistics, design, innovation and a highly automated manufacturing sector, to name a few. The Government’s objective is also to make Malaysia a hub for other value chain activities, such as R&D, design and development (D&D), procurement, logistics, distribution and marketing, business support services and shared services.


A Heaven for Foreign Companies

The conducive business environment in Malaysia has made the country one of the world’s top investment destinations for offshore manufacturing operations. Malaysia has to date attracted more than 5,000 foreign companies from more than 40 countries to establish their operations in the country. Many of them have also expanded and diversified their operations in the country, reflecting their confidence in Malaysia as a site for their business ventures.


Economic Strength

  1. Natural resources – crude oil, natural gas, tin, timber, palm oil, rubber.
  2. GDP growth  4.5 – 5.5% (2015)
  3. Gross national savings – 29% of GNI
  4. Per capita income – RM36,397 (USD9,488)
  5. Unemployment rate – 3.1% (p)
  6. Inflation(CPI) – 1.9% (p)



  • Supportive Government Policies
  • Pro-business policies
  • Responsive government
  • Liberal investment policies
  • Attractive tax and other incentives
  • Liberal exchange control regime
  • Intellectual property protection
  • An Educated Workforce
  • Talented, young, educated and productive workforce
  • Multilingual workforce speaking two or three languages, including English
  • Comprehensive system of vocational and industrial training, including advanced skills training
  • Harmonious industrial relations with minimal trade disputes
  • Developed Infrastructure
  • Network of well-maintained highways and railways
  • Well-equipped seaports and airports
  • High quality telecommunications network and services
  • Fully developed industrial parks, including free industrial zones, technology parks and Multimedia Super Corridor (MSC)
  • Advanced MSC Malaysia Cybercities and Cybercentres
  • Vibrant Business Development
  • Market-oriented economy
  • Well-developed financial and banking sector, including the Labuan International Business and Financial Centre
  • Wide use of English, especially in business, legal and accounting practices based on the British system
  • Large local business community with a long history in international business links
  • Large foreign business community in all business sectors
  • Extensive trade links – country’s total trade was valued at RM1.466 trillion in 2015
  • Quality of Life
  • Friendly and hospitable Malaysians
  • Safe and comfortable living environment
  • Excellent housing, modern amenities, good healthcare and medical facilities
  • Excellent educational institutions including international schools for expatriate children
  • World-class recreational and sports facilities
  • Excellent shopping with goods from all over the world


  1. Ministry of Finance – Economic Report 2015/2016
  1. Matrade Press Release: Malaysia’s Trade Performance for the year 2015

Note: Exchange Rate: Based on average USD exchange rate for the month of April 2016 (US$1 = RM3.836)

Malaysian Investment Development Authority