Malaysian Investment Development Authority
The Malaysian Investment Development Authority (Malay: Lembaga Pembangunan Pelaburan Malaysia), abbreviated MIDA, previously known as Malaysian Industrial Development Authority is the government's principal agency to oversee and drive investment into the manufacturing and services sectors in Malaysia. Starting operations in 1967, MIDA was given the mandate to promote investments in the manufacturing and services sectors; and to advise the Minister of International Trade and Industry (MITI) on industry matters including the formulation of related policies.
Today, MIDA is Malaysia’s cutting-edge, dynamic and pioneering force in opening pathways to new frontiers around the globe. MIDA assists companies which intend to invest in the manufacturing and services sectors, as well as facilitates the implementation of their projects. The wide range of services provided by MIDA include providing information on the opportunities for investments, as well as facilitating companies which are looking for joint venture partners.
History
MIDA was established in and incorporated by the Malaysian Industrial Development Authority (Incorporation) Act 1965. The Act was first known as the Federal Industrial Development Authority (FIDA) Act 1965. It became fully operational in 1967, and began establishing overseas offices in 1972.[1][2]
Functions
Functions of MIDA: • to promote foreign and local investments in the manufacturing and services sectors • to undertake planning for industrial development in Malaysia • to recommend policies and strategies on industrial promotion and development to the Minister of International Trade and Industry • to evaluate applications for manufacturing licences and expatriate posts; tax incentives for manufacturing activities, tourism, R&D,training institutions and software development; and duty exemption on raw materials, components and machinery • to assist companies in the implementation and operation of their projects, and offer assistance through direct consultation and consultation and co-operation with the relevant authorities at both the federal and state levels • to facilitate the exchange of information and co-ordination among institutions engaged in or connected with industrial development; • to further enhance MIDA's role of assisting investors, senior representatives from key agencies are stationed at MIDA's headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Ministry of Human Resources, Immigration Department, Royal Customs Malaysia, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad.
In addition to its Headquarters, MIDA provides the following contact points for investors not based in Kuala Lumpur, and overseas:
MIDA State Offices:
• Selangor • Perak • Pulau Pinang • Kedah • Terengganu • Kelantan • Pahang • Johor • Melaka • Negeri Sembilan • Sabah • Sarawak
MIDA Overseas Offices:
Asia and Asia Pacific • Sydney, Australia • Guangzhou, China • Shanghai, China • Mumbai, India • Osaka, Japan • Tokyo, Japan • Seoul, South Korea • Bangkok, Thailand • Taipei, Taiwan • Singapore
America • Boston • Chicago • Houston • Los Angeles • New York • San Jose
Europe • Paris, France • Frankfurt, Germany • Munich, Germany • Milan, Italy • Stockholm, Sweden • London, UK
Africa • Johannesburg, South Africa
Middle East • Dubai, UAE
Incentives
MIDA is able to offer various incentives to attract foreign investment, including incentives for specific companies. Regionally, there are two levels of incentives: one for Kuala Lumpur, Johor Bahru, and Penang, and another for the rest of the country. MIDA meets weekly on Thursdays to approve new investment applications, and proposed incentives; an official from the Finance Ministry sits in on the meetings to approve the proposed incentives on the spot. If the incentive cannot be approved immediately, it is passed to a higher official at the Ministry, who typically approves or rejects it within a week.[3]
Criticism
MIDA has been criticised by one business periodical as being "preoccupied with internal bureaucratic concerns rather than the entrepreneur's needs" emphasising "rules and regulations, with less actual assistance to the entrepreneur." The same periodical claimed "the entrepreneur appears to have less of a role in the economy" in Malaysia.[4] However, the Foreign Investment Advisory Service of the World Bank has praised MIDA, saying it could be relied on "to provide practically all the approvals and clearances needed" and that "the involvement of MIDA on behalf of an investor effectively guaranteed approvals and permits to be forthcoming without difficulties".[5]
Notes and references
- ↑ Abdullah, Mustaza & Hj. Yahya, MatMarjani (1991). Kemahiran Hidup Bersepadu TERAS, p 110. Dewan Bahasa dan Pustaka. ISBN 983-62-2316-9.
- ↑ "COUNTRY PROFILE OF MALAYSIA". Retrieved 18 Feb. 2006.
- ↑ Vietnam Development Forum (2006). "Industrial Policy Formulation of Malaysia". Retrieved 18 Feb. 2006.
- ↑ Dana, Leo-Paul (July 1987). Industrial development efforts in Malaysia and Singapore. Journal of Small Business Management.
- ↑ Sader, Frank (2000). "DO “ONE-STOP SHOPS” WORK?". Retrieved 18 Feb. 2006.
