Discover how MIDA (Malaysian Investment Development Authority) helps businesses invest in factories, manufacturing, and industrial projects in Malaysia.
What is MIDA?
The Malaysian Investment Development Authority (MIDA) is the government's principal agency for the promotion of investments in Malaysia’s manufacturing and services sectors.
Established under the Ministry of Investment, Trade and Industry (MITI), MIDA is a one-stop center that facilitates both foreign direct investment (FDI) and domestic direct investment (DDI)—especially in the industrial, logistics, and manufacturing sectors.
Why MIDA Matters to Industrial Property Buyers
If you are planning to:
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Set up a factory or manufacturing facility,
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Buy land or a warehouse for industrial purposes,
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Import capital equipment or machinery,
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Apply for government incentives, grants, or tax exemptions—
… then MIDA is your go-to agency.
Key Functions of MIDA
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Facilitates Investment Approvals
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MIDA assists companies with applying for Manufacturing Licences, especially those with an annual sales turnover > RM50 million or > 75 employees.
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Coordinates Industrial Land & Factory Setup
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Advises on site selection, location suitability, and approvals needed from other agencies (BOMBA, DOSH, Local Authorities).
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Recommends Tax Incentives & Grants
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Recommends investors for:
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Pioneer Status (PS) – Income tax exemption up to 5–10 years
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Investment Tax Allowance (ITA) – Allowance on capital expenditure
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Automation capital allowance, reinvestment allowance, etc.
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Facilitates Foreign Investor Approvals
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Helps foreign companies establish manufacturing entities, wholly-owned subsidiaries, and joint ventures.
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Supports High-Tech & ESG-Compliant Projects
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MIDA actively promotes green technology, automation, Industry 4.0, and ESG-aligned industrial development.
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Industrial Sectors Supported by MIDA
MIDA supports a broad range of industrial and commercial segments, including:
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Electrical & Electronics (E&E)
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Food Processing
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Furniture & Wood-Based Manufacturing
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Logistics & Warehousing
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Packaging & Plastics
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Chemical & Petrochemical
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Aerospace & Automotive
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Medical Devices
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Semiconductor & Solar Tech
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Green Energy Infrastructure
MIDA’s Investment Incentives – At a Glance
| Incentive Type | Description |
|---|---|
| Pioneer Status (PS) | Income tax exemption for 5-10 years |
| Investment Tax Allowance | Offset against 70-100% of statutory income |
| Reinvestment Allowance (RA) | For businesses expanding or upgrading |
| Automation Capital Allowance | For process automation & machinery upgrades |
| Green Investment Tax Allowance (GITA) | For ESG & energy-efficient initiatives |
How to Engage with MIDA
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Submit project proposals (business plan, site plan, financials)
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Work with licensed industrial consultants or real estate agents
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Apply online through MIDA's e-Apps system
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Visit the MIDA HQ (KL Sentral) or regional MIDA offices for support
Did You Know?
MIDA collaborates closely with industrial developers and agents to:
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Curate strategic land and factory locations (e.g., Selangor, Johor, Penang)
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Link investors to local suppliers and talent pools
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Offer guidance on utility requirements, customs exemptions, and import duty waivers
