e-ML 2.0 www.mida.gov.

my
(w.e.f. 10.07.2020)

GUIDELINE ON APPLICATION FOR E-MANUFACTURING LICENCE (E-ML)

1. INTRODUCTION

1.1 The Industrial Coordination Act (ICA), 1975 defines manufacturing activity
as “…the making, altering, blending, ornamenting, finishing or otherwise
treating or adapting any article or substance with a view to its use, sale,
transport, delivery or disposal and includes the assembly of parts and ship
repairing but shall not include any activity normally associated with retail or
wholesale trade”.

1.2 The Industrial Coordination Act, 1975 requires person(s) engaging in any
manufacturing activity with;

 shareholders’ funds of RM2.5 million and above;

or

 employing 75 or more full-time paid employees;

to apply for a Manufacturing Licence.

1.3 Company can be considered for exemption from Manufacturing Licence if

the company employs less than 75 full-time workers and the company has
less than RM2.5 million of shareholders’ funds (company may apply for the
exemption from Manufacturing Licence by submitting ICA10 Form to MIDA).

1.4 The Manufacturing Licence application for manufacturing projects under the
Industrial Coordination Act (ICA), 1975 is now deliberated through the self-
assessment and self-declaration mechanism.

1.5 The objective of this mechanism is to expedite the Manufacturing Licence

application and approval process to further allow companies to speed-up
project implementation.
2. ELIGIBILITY CRITERIA

2.1 Companies with shareholders’ funds of RM2.5 million and above or

engaging 75 or more full-time paid employees;

2.2 Project’s Capital Investment Per Employee (CIPE) is at least

RM140,000.00;

2.3 Total full-time workforce of the company comprises of at least 80%

Malaysians*. Employment of foreign workers including outsourced workers
is subject to current policies;

2.4 At least 25% of the company’s full time workforce are managerial, technical,
and supervisory (MTS) staff with degree and/or diploma/certificate or
product’s value added is at least 40%;

2.5 The project must be consistent with the national economic and social
objectives and promotes an orderly development of manufacturing activities
in Malaysia.

Note:
i. Manufacturing projects must comply with all approval criteria to be considered for
Manufacturing Licence approval. Please refer to Appendix I for details on
definition/computation/formula for Manufacturing Licence eligibility criteria/condition under
the Industrial Coordination Act, 1975.
ii. *For expansion/diversification and regularisation manufacturing projects, if company
could not comply immediately with this approval criteria, compliance of total full-time
workforce of the company comprises of at least 80% Malaysians can be made by 31
December 2022.

3. EFFECTIVE DATE OF APPLICATION

3.1 All Manufacturing Licence application for manufacturing projects under the
Industrial Coordination Act (ICA), 1975 received by MIDA from 1 July 2020
will be evaluated through the self-assessment / self-declaration mechanism.
4. APPLICATION PROCEDURE

4.1 Applications should be made online through MIDA e-Manufacturing Licence

(e-ML) portal at following URL:
https://eml.mida.gov.my/

4.2 For enquiries and clarification, please refer to:

Website : www.mida.gov.my
Tel : 603-2267 3633
Fax : 603-2274 7970 / 2273 4204
E-mail : [email protected]
 APPENDIX I

DETAILS ON DEFINITION/COMPUTATION/FORMULA FOR MANUFACTURING LICENCE ELIGIBILITY

CRITERIA/CONDITION UNDER THE INDUSTRIAL COORDINATION ACT (ICA), 1975

No. Criteria / Condition Definition / Computation / Formula Minimum

Requirement

1. Value Added (VA) VA (%) = 100% (-) % of costs of raw materials/components (imported At least 40%
and/or local)

Note: Refer Online Application Form (eml.mida.gov.my) in Tab : General : Product

2. Managerial, MTS (%) = Total number of managerial, technical & supervisory (MTS) At least 25%
Technical & staff (÷) total number of full-time employees
Supervisory (MTS)
Note: Refer Online Application Form (eml.mida.gov.my) in Tab: Attachment E:
Index Manpower with Salary

MTS staff consist of:

1. Managerial and Professional staff
2. Technical and Supervisory staff with:
(a) Engineering/Technical qualifications
(b) Science qualifications
(c) Other qualifications/experience (craft skills)

3. Full-time Malaysian Employees (%) = Total number of full-time Malaysian At least 80%
employment of at employees (÷) total number of full-time employees
least 80%
Note: Refer Online Application Form (eml.mida.gov.my) in Tab: Attachment E:
Malaysian Manpower with Salary
4. Full-time workers "Full-time paid employees" refers to all persons normally working in the 75 workers or
establishment for at least six hours a day and at least 20 days a month more
for 12 months during the year and receives salary. This includes
traveling sales, engineering, maintenance and repair personnel who
are paid by and are under the control of the establishment. It also
includes directors of incorporated enterprises except those paid solely
for their attendance at board of directors meetings.

5. Shareholders’ "Shareholders' funds" are the aggregate amount of a company's paid- RM2.5 million or
Funds up capital, reserves, balance of share premium account and balance of more
profit and loss appropriation account.
Note: Refer Online Application Form (eml.mida.gov.my) in Tab: Project Cost and
Tab: Financing

6. Capital Investment CIPE (RM) = Capital investments (÷) total number of full-time At least
Per Employee employees RM140,000
(CIPE) Ratio
Note: Refer Online Application Form (eml.mida.gov.my) in Tab: Financing and Tab:
Attachment E: Manpower with Salary

CIPE Ratio is measured by taking into account fixed assets investment

including payment of rental (10 years) for land and building. The
calculation for CIPE Ratio is by taking Capital Investments as of
company’s Financial Year over Number of Full-Time Employees as of
current Financial Year.