MODULE 6: BUSINESS REGULATIONS AND SUPPORT SYSTEMS #2

Infrastructure Facilities.


1. Industrial Estates.

• Developed by State Economic Development Corporations (SEDC), Regional Development Authorities (RDA), port authorities and municipalities.
• In Malaysia, there are currently 200 industrial estates developed, as well as new ones undergoing development.

2. Free Industrial Zones.

• For manufacturing companies producing or assembling products for export purposes.
• Enjoy minimum formalities and duty free benefits in importing raw materials, component parts, machines or equipment.
• Minimal formalities in exporting finished products.

3. Licensed Manufacturing Warehouses.

• To disperse industries in areas where free industrial zones cannot be established, either practically or desirably.
• Upon approval, the company must determined that 80% of items manufactured are meant for export, where its raw materials are mainly imported.

4. Electricity and Water Supplies.

• In Peninsular Malaysia, electricity is supplied by Tenaga Nasional Berhad (TNB). On the other hand, in Sabah and Sarawak, Sabah Electricity Sdn. Bhd. (SESB) and Sarawak Electricity Supply Corporation (SESCO) are the companies responsible for providing sources of electricity, respectively.
• Water supplies are currently provided by private companies in each respective states in Malaysia, according to standards set by World Health Organization (WHO) and the companies, with affordable fees offered.

 

5. Telecommunication Services.

• Major market is handled by Telekom Malaysia Berhad, offering mainly landline connections as well as internet.
• Other providers include Maxis, Celcom and Digi, providing both mobile telecommunication services and broadband internet.
• Telecommunications services have much improved since the launching of three country's satellites; Measat-1, Measat-2 and Tiungsat-1.

6. Sea ports, cargo transportation, railway and highway services.

• Sea ports in Malaysia have been equipped with the latest technologies to handle cargoes meant either for import or export purposes (transportation). 
• Malaysia Highway Authority has outlined and developed potential highways as links to connect major townships and development areas.
• Railway services operated by Keretapi Tanah Melayu Berhad (KTMB) are meant for transporting goods, ranging from grains and machinery.

7. Multimedia Super Corridor (MSC).

• Setup on the purpose to revolutionize technologies to conduct commerce transactions in the digital age.
• Governed by groundbreaking cyberlaws, policies and related practices to maximize the potential of the usage of ICT.
• Attracts multimedia companies either locally or internationally to achieve world class level.

MODULE 6: BUSINESS REGULATIONS AND SUPPORT SYSTEMS #1

Definition Of Business Support System


Assistance given by government or privates agencies, either in form of financial, technical, marketing or advisory, to entrepreneurs for the development of new business venture, or existing business venture.

Approval and Licensing Procedures


1. Manufacturing License.

• Industrial Coordination Act (1975) is applicable.
• For companies having shareholder's funds of 2.5 mil or more, and currently employing 75 or more full-time employees.
• For companies engaging in making, altering, finishing, blending or ornamenting raw materials into finished ones.
• Application is submitted to Malaysian Industrial Development Authority (MIDA).

2. No-objection Letter For Project Location.

• Approval letter obtained from the state government, stating that the project location does not clash with any other projects by both government or private institutions.
• This approval letter should accompany the application of manufacturing license, to be sent to MIDA.

3. Planning Authorization.

• Town and Country Planning Act 172 (1976) is applicable.
• Application should be made towards local municipalities, for the use of lands and building constructions.

4. Building Construction Authorization.

• Street, Drainage and Building Act 133 (1974) is applicable.
• This act states that construction of buildings should only take place after written approval by local municipalities.
• Every plans, drawings or related documents connected to constructions must be submitted by qualified personnel, such as architect, draughtsman or engineer.

5. Certification Of Fitness For Occupation (abbreviated as CO).

• Uniform Building By Laws (1984).
• Written verification by local authorities that the buildings constructed are suitable for workable use.

6. Related Business Licenses.

• Business registrations, permits, signage, factory premises, storage and canteen.
• Applied through the local authorities.

7. Environmental Approval.

• Environment Quality Act (1974).
• Manufacturers are obliged to comply with regulations in controlling industrial activities resulting in new sources of effluents or discharges.
• Environmental related discharging equipment, such as incinerators, chimneys or fuel burning machinery must obtain approvals form Department Of Environment prior to operation.

8. Approval For Occupational Safety and Health.

• Factory and Machinery Act (1967).
• This act states that all machinery and factory related equipment, must obtain approvals from Department Of Occupational Safety and Health, in terms of design and fitness.

9. Excise Licenses and Sales Tax Licenses.

• Excise Act (1976).
• Applied from Royal Customs Of Malaysia.
• Sales Tax Act (1972).
• For local and imported goods manufactured.