GENERAL POLICIES, FACILITIES AND GUIDELINES

1 GENERAL policies , FACILITIES ANDGUIDELINESMALAYSIA: INVESTMENT IN THE SERVICES SECTORI ntroductionThis booklet is one of a series of 21 booklets prepared by MIDA for the purpose of providing investors with relevant information on establishing projects in the identified services sub-sectors in Malaysia. The complete list of booklets is as follows: Booklet 1: GENERAL policies , FACILITIES and GUIDELINES Booklet 2: Regional OperationsBooklet 3: Research and Development (R&D) ServicesBooklet 4: Logistics ServicesBooklet 5: Specialised Technical Support ServicesBooklet 6: information and Communication Technology ServicesBooklet 7: Environmental Management ServicesBooklet 8: Distributive Trade ServicesBooklet 9: Tourism and Travel Related ServicesBooklet 10.

2 Education and Industrial Training ServicesBooklet 11: Legal ServicesBooklet 12: Accounting, Auditing and Taxation ServicesBooklet 13: Integrated Engineering Services Booklet 14: Architectural Consultancy ServicesBooklet 15: Surveying Consultancy ServicesBooklet 16: Medical and Health Care ServicesBooklet 17: Engineering and Energy Consultancy ServicesBooklet 18: Management Consultancy ServicesBooklet 19: Market Research ServicesBooklet 20: Advertising ServicesBooklet 21: Quick ReferenceThe Ministry of International Trade & Industry (MITI) spearheads the development of industrial activities to further enhance Malaysia s economic growth.

3 As an agency under MITI, the Malaysian Investment Development Authority (MIDA) is in charge of the promotion and coordination of industrial development in the is the first point of contact for investors who intend to set up projects in manufacturing and services sector in Malaysia. With its headquarters in Malaysia s capital city of Kuala Lumpur, MIDA has established a global network of 24 overseas offices covering North America, Europe and the Asia Pacific to assist investors interested in establishing manufacturing projects and services activities in Malaysia.

4 Within Malaysia, MIDA has 12 branch offices in the various states to facilitate investors in the implementation and operation of their you wish to investigate investment opportunities in Malaysia, please contact MIDA for more information as well as assistance in your decision-making (please see the last page of contact details of MIDA s headquarters and state and overseas offices).October 2012 GENERAL policies , FACILITIES AND GUIDELINESBOOKLET1 CHAPTER 1: GETTING STARTED 1 INCORPORATING A COMPANY FOR SERVICES BUSINESS 4 Methods of Conducting Business in Malaysia 4 Procedures for Incorporation 5 Registration of Foreign Companies 7 E-Services 92 GUIDELINES ON EQUITY POLICY 9 Autonomous Liberalisation 9 Protection for Foreign Investment 11 CHAPTER 2.

5 TAXATION1 TAXATION IN MALAYSIA 142 CLASSES OF INCOME ON WHICH TAX IS CHARGEABLE 143 COMPANY TAX 144 PERSONAL INCOME TAX 15 Resident Individual 15 Non-Resident Individual 185 WITHHOLDING TAX 186 REAL PROPERTY GAINS TAX 197 SALES TAX 208 SERVICE TAX 209 IMPORT DUTY 2110 EXCISE DUTY 2111 CUSTOMS APPEAL TRIBUNAL AND CUSTOMS RULING 2112 DOUBLE TAXATION AGREEMENT 22 CHAPTER 3: IMMIGRATION PROCEDURES1 ENTRY REQUIREMENTS INTO MALAYSIA 24 Passport or Travel Document 24 Visa requirement 24 Passes Requirement 262 EMPLOYMENT OF EXPATRIATE PERSONNEL 28 Types of Expatriate Post 29 GUIDELINES on the Employment Expatriate Personnel 293 APPLYING FOR EXPATRIATE POST 304 EMPLOYMENT OF FOREIGN WORKERS 30 CHAPTER 4.

6 MANPOWER FOR INDUSTRY1 MALAYSIA S LABOUR FORCE 322 MANPOWER DEVELOPMENT 32 FACILITIES for Training in Industrial Skills 32 Human Resource Development 33 Management Personnel 343 LABOUR COSTS 354 FACILITIES FOR RECRUITMENT 355 LABOUR STANDARDS 35 Employment Act, 1955 35 The Labour Ordinance, Sabah and the Labour 36 Ordinance, Sarawak Employees Provident Fund Act, 1991 36 Employees Social Security Act, 1969 37 Workmen s Compensation Act, 1952 38 Occupational Safety and Health Act, 1994 386 INDUSTRIAL RELATIONS 40 Trade Unions 40 Industrial Relations Act, 1967 41 Relation in Non-unionised Establishments 41 CHAPTER 5.

7 BANKING, FINANCE AND EXCHANGE ADMINISTRATION1 THE BANKING SYSTEM IN MALAYSIA 42 The Central Bank 42 Financial Institutions 42 Malaysia International Islamic financial Centre 442 EXPORT CREDIT REFINANCING 45 Method of Financing 45 Period and Amount of Financing 46 Repayment 463 THE SECURITIES MARKET IN MALAYSIA 46 Securities Commission Malaysia 46 Bursa Malaysia 474 LABUAN FINANCIAL SERVICES 48 Labuan Financial

8 Services Authority (Labuan FSA) 48 Business Activities of Labuan IBFC 49 Business Incentives in the Labuan IBFC 495 EXCHANGE CONTROL PRACTICE 51 Rules applicable to Non-Residents 51 Rules applicable to Residents 52 CHAPTER 6: FINANCIAL ASSISTANCE1 FINANCIAL ASSISTANCE FOR SMALL AND MEDIUM 54 ENTERPRISES (SMES) SME Corporation Malaysia 54 Malaysian Industrial Development Finance Berhad (MIDF) 582 MAJLIS AMANAH RAKYAT (MARA) FINANCING SCHEME 61 FOR PROFESSIONALS 3 TABUNG USAHAWAN SISWAZAH (TUS)/GRADUATE 61 ENTREPRENEUR FUND 4 MARKET DEVELOPMENT GRANTS 62 CHAPTER 7.

9 INTELLECTUAL PROPERTY PROTECTION1 INTELLECTUAL PROPERTY PROTECTION 69 Patents 69 Trade Marks 69 Industrial Designs 70 Copyrights 70 Layout Design of Integrated Circuit 71 Geographical Indications 71 CHAPTER 8: ENVIRONMENTAL MANAGEMENT1 POLICY 722 ENVIRONMENT REQUIREMENTS 73 Environmental Impact Assessment for Prescribed Activities 73 Who Can Conduct EIA Study 76 Site Suitability Evaluation 77 Written Notification or Permission to Construct 77 Written Approval for Installation of Incinerator.

10 78 Fuel Burning Equipment and Chimney Licence to Occupy Prescribed Premises and 78 Prescribed Conveyance Gaseous Emission and Effluent Standards 78 Control on Ozone Depleting Substances 79 Scheduled Waste Management 79 CHAPTER 9: INFRASTRUCTURE SUPPORT1 INDUSTRIAL LAND 81 Industrial Estates 81 Free Zones 81 Licensed Manufacturing Warehouse 812 ELECTRICITY SUPPLY 813 WATER SUPPLY 824 TELECOMMUNICATION SERVICES 825 AIR CARGO FACILITIES 836 SEA PORTS 847 CARGO TRANSPORTATION 84 Container Haulage 84 Freight Forwarding 858 HIGHWAYS 859 RAILWAY SERVICES 8510 MSC MALAYSIA 85 CHAPTER 10.