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What is the government loan, incentive and grants that we are able to apply for in my business?

Manufacturing License was a license given for manufacturer that comply the conditions which is paid-up capital is RM2.5 million and above OR full-time workers must be at least 75 peoples. Many of companies not aware about it and also not fulfill the condition thus do not apply it. However, for those manufacture that do not match the condition, can get the Exemption Letter of Manufacturing License where enjoying same benefit as Manufacturing License. Nowdays, the application become stricter and the form was so thick to fill up and it very easy to get rejected if the form is not completely fill up.

Below is the benefit of getting a Manufacturing License OR Exemption Letter from Manufacturing License: -

  • Can apply for Duty Tax Exemption for raw materials and spare parts that directly used in manufacturing;

  • Can apply the Incentive which is income tax exemption (for those applicable);

  • Can apply the grant with Government and Statutory Body;

  • Can register with Ministry of Finance as their suppliers; and

  • Easy to work and get help from MITI on any kind of issue.

Incentive (Income Tax Exemption) are given to the manufacturer that producing the products that listed in promoted list. This applicable only for the new products that manufactured less than 1 years. The incentive consists of Pioneer Status (PS) or Investment Tax Allowance (ITA). Both of it are unique and can help manufacturer a lot in saving their money. PS are income tax exemption up to 70% from statutory income form 5 years. Meanwhile, for ITA is an allowance given by government to not pay a tax up to 60% from their project cost for 5 years.

Grant was a gifted fund from government. There is a lot of grant which is for purchasing of new machinery/technology, acquiring a new technology, R&D, acquiring a testing standard, training and many more. These grants were given by government on selected ministry and statutory body. This grant is useful for manufacturer because can help you reducing your capital for expansion. The grant can up to millions of ringgits depend on your cost.

Business Loan is one of needed things for manufacturer to expand their business. Many of manufacturer or company applied for loan for their expansion. However, many of them failed to get a loan from bank due to not enough document and document are not strong enough. Yet, they are still in the same level for many years.

As for your information, we are a consultant company that provided the consulting service on getting the approval of Manufacturing License, Incentive, Grant and Business Loan from government, statutory body and banks.

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