Malaysian Investment Development Authority (MIDA)

Overview of MIDA, Malaysia government agency for manufacturing and services investment facilitation.

Malaysian Investment Development Authority (MIDA)

The Malaysian Investment Development Authority (MIDA), also known in Malay as Lembaga Pembangunan Pelaburan Malaysia, is Malaysia's principal government agency for overseeing and driving investment into the manufacturing and services sectors. For industrial property users, manufacturers and foreign investors, MIDA is one of the key agencies to understand when planning factory setup, expansion, incentives and project implementation in Malaysia.

Agency Overview

Role in Investment

• MIDA promotes investment in Malaysia's manufacturing and services sectors.
• It advises MITI on industry matters, including the formulation of related policies.
• It assists companies intending to invest in manufacturing and services.
• It facilitates project implementation for investors after a project is proposed or approved.
• It provides information on investment opportunities in Malaysia.
• It helps companies looking for joint venture partners.

History

• MIDA was established and incorporated under the Malaysian Industrial Development Authority (Incorporation) Act 1965.
• The Act was first known as the Federal Industrial Development Authority (FIDA) Act 1965.
• MIDA became fully operational in 1967.
• It began establishing overseas offices in 1972.

Functions Relevant to Industrial Investors

• Promote foreign and domestic investments in the manufacturing and services sectors.
• Undertake planning for industrial development in Malaysia.
• Recommend policies and strategies on industrial promotion and development to the relevant minister.
• Evaluate applications for manufacturing licences, expatriate posts and tax incentives.
• Evaluate incentives for manufacturing activities, tourism, research and development, training institutions and software development.
• Assist companies in the implementation and operation of their projects through direct consultation and coordination with federal and state authorities.
• Facilitate information exchange and coordination among institutions involved in industrial development.

One-Stop Investor Support

MIDA's headquarters in Kuala Lumpur includes senior representatives from key agencies who advise investors on government policies and procedures. These include representatives from the Ministry of Human Resources, Immigration Department, Royal Customs Malaysia, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad.

Incentives

• MIDA can offer various incentives to attract foreign investment, including incentives for specific companies.
• Regionally, the incentive structure described by the source distinguishes between Kuala Lumpur, Johor Bahru and Penang, and the rest of the country.
• MIDA meets weekly to approve new investment applications and proposed incentives.
• An official from the Finance Ministry may sit in the meetings to approve proposed incentives on the spot.
• If an incentive cannot be approved immediately, it is escalated to a higher official at the Ministry for a later decision.

Reference: Wikipedia, “Malaysian Investment Development Authority”. Sections on state offices, overseas offices and criticism are intentionally excluded.