The Malaysian Investment Development Authority (MIDA) is your first point of contact for manufacturing and services investments. Discover how to start, roll out, and scale your business in one of ASEAN's most dynamic economies.
Start Your JourneyStrategically located in the heart of Southeast Asia, Malaysia offers a cost-competitive, sustainable, and conducive environment for your business to thrive.
Located between the Indian Ocean and the South China Sea, Malaysia is well-serviced by all primary air and shipping lines, serving as a bridge to ASEAN and beyond[reference:0].
Malaysia has a highly diversified economic and export structure, supportive labour market, low and stable inflation, and a strong financial sector[reference:1].
As an RCEP member and with numerous FTAs, products manufactured in Malaysia enjoy preferential access to major economies, helping mitigate tariff risks[reference:2].
Decades of development have nurtured a strong local supply chain. Malaysia is a global leader in semiconductor packaging and testing, with a growing EV and electronics cluster[reference:3].
The Malaysian Investment Development Authority (MIDA) is the government's principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI).
MIDA provides a one-stop solution for licenses, tax incentives, and facilitation, helping investors navigate the regulatory landscape efficiently[reference:4].
Headquartered in Kuala Lumpur, MIDA has 12 regional and 21 overseas offices, including in Beijing, Shanghai, Guangzhou, and Shenzhen, to assist investors locally[reference:5].
MIDA issues manufacturing licenses under the Industrial Coordination Act 1975 for companies exceeding specific thresholds[reference:6].
MIDA evaluates and administers key tax incentives, including the new outcome-based New Incentive Framework (NIF)[reference:7].
Malaysia focuses on high-value, technology-driven industries under the New Industrial Master Plan 2030 (NIMP 2030).
Especially semiconductors, which remain a top priority. Malaysia is a major global player in chip packaging and testing, and is moving up the value chain into wafer fabrication and IC design[reference:8].
The central region (Selangor, Negeri Sembilan, Melaka) has complementary strengths in aerospace manufacturing and MRO (maintenance, repair, overhaul)[reference:9].
Growing demand for high-quality healthcare and pharmaceutical manufacturing, supported by a robust regulatory framework[reference:10].
Opportunities in food processing and manufacturing to serve both domestic and export markets, leveraging Malaysia's halal certification capabilities[reference:11].
Malaysia is actively developing the electric vehicle ecosystem and energy storage solutions, with incentives for related manufacturing[reference:12].
Significant investments in data centres and digital infrastructure are driving growth in the services sector[reference:13].
A dedicated pass for foreign investors to enter Malaysia for business negotiations, surveys, and oversight of existing operations.
Effective 1 April 2025, the Investor Pass replaced shorter-term social visit passes for eligible investors. It offers a six-month stay (extendable by another six months) with a Multiple Entry Visa, allowing seamless travel in and out of Malaysia. Approvals are typically issued within five working days[reference:14].
Individuals considering their first investment in Malaysia. Requires an official invitation (if applicable), passport copy, and parent company's certificate of incorporation[reference:15].
Those in discussions with government agencies or awaiting MIDA project approvals. Need supporting documents of ongoing negotiations[reference:16].
Those with established business ties in Malaysia (excluding individuals under local employment). Need proof of investment or business relationship[reference:17].
Applications are submitted online through the immigration ESD portal via the Xpats Gateway System at https://xpatsgateway.com.my. MIDA acts as the supporting agency, while the Immigration Department gives final approval[reference:18].
From initial registration to obtaining necessary licenses, here is a high-level roadmap for setting up your manufacturing or services business in Malaysia.
Register your legal entity (typically a Sdn. Bhd. – private limited company) with the Companies Commission of Malaysia (SSM). This can be done online. A local resident director is required[reference:19].
Create a company account on MIDA’s InvestMalaysia portal. This is the primary online platform for submitting applications for manufacturing licenses and incentives[reference:20].
Companies with shareholders’ funds of RM2.5 million or more OR employing 75 or more full-time employees must apply for a manufacturing license from MIDA under the Industrial Coordination Act 1975[reference:21].
Submit applications for incentives (e.g., under the New Incentive Framework) through the InvestMalaysia portal. MIDA will evaluate based on project contributions to national development priorities[reference:22].
Depending on your sector and location, you may need to obtain approvals from local authorities (e.g., for land use, building plans, environmental compliance) and other regulatory bodies[reference:23].
Once all licenses and approvals are in place, you can commence operations. Ensure ongoing compliance with Malaysian tax, labour, and environmental regulations.
Malaysia offers competitive fiscal incentives to attract high-quality, high-impact investments.
The NIF represents a shift from traditional profit-based incentives to an outcome-based approach. Projects are assessed on their contribution to economic complexity, high-value job creation, supply chain linkages, and sustainability. Investors can choose one of two mutually exclusive options[reference:24].
| Incentive Option | Special Tax Rate (STR) | Investment Tax Allowance (ITA) |
|---|---|---|
| Designed For | Projects with high and earlier returns | Capital-intensive projects with longer horizons |
| Benefit | 0% to 15% income tax rate | 30% to 100% allowance on qualifying capital expenditure |
| Duration | Up to 15 years | Up to 10 years |
| Offset | — | Offset against 70% or 100% of statutory income |
Source: MIDA – Investing for Impact: Unlocking Value in Malaysia’s New Incentive Framework[reference:25].
The NIF is not limited to new investors. Existing companies undertaking diversification activities, including investments in new product lines, may also be eligible for incentives[reference:26].
Malaysia generally allows 100% foreign equity in most manufacturing and services sectors, but there are important exceptions.
Manufacturing, enterprise software, and many unregulated services allow up to 100% foreign ownership. For manufacturing, this is facilitated through MIDA[reference:27].
Equity caps and restrictions remain in sectors such as financial services, telecommunications, transportation, and activities related to national strategic interest[reference:28].
In certain industries, a minimum of 30% Bumiputera (indigenous) equity may be required. This is typically negotiated on a case-by-case basis during licensing[reference:29].
Small-scale retail activities like supermarkets, provision shops, petrol stations, and permanent wet market stalls are reserved for locals or require local partnership[reference:30].
MIDA has offices worldwide to assist you. Reach out to the office nearest to you or contact MIDA Headquarters.
Malaysian Investment Development Authority
Level 22, Wisma MBSA
Persiaran Perbandaran
40000 Shah Alam, Selangor, Malaysia
Tel: +603-5518 4260
Email: selangor@mida.gov.my
MIDA has offices in key cities including:
Visit mida.gov.my for full contact details.
InvestMalaysia Portal:
investmalaysia.mida.gov.my
Xpats Gateway (Investor Pass):
xpatsgateway.com.my
MIDA Website:
www.mida.gov.my