If you wish to operate a construction-related business in Malaysia, you need to have a license from the Construction Industry Development Board (CIBD) regardless of whether you are a local or foreign contractor. The CIBD imposes levies on all major construction projects as well as conducts courses that are compulsory for all registered contractors.

It is illegal for non-CIBD registered contractors or contractors without a valid CIBD-issued registration certificate to undertake any construction work in Malaysia. As such, such an offence is punishable with a fine not exceeding RM50,000. Furthermore, contractors are not allowed to execute any construction works outside the grade in which they are registered. There are seven grades in total and each grade limits the value of a construction work that a contractor can undertake.

 

They are as follows:
  • G1 contractors may undertake projects valued at less than RM200,000
  • G2 = Less than RM5000,000
  • G3 = Less than RM1 million
  • G4 = Less than RM3 million
  • G5 = Less than RM5 million
  • G6 = Less than RM10 million
  • G7 = No limit

 

Foreign contractors are allowed to register and work in Malaysia on a project-to-project basis. Upon receipt of a CIBD-issued registration certificate, the contractor is only allowed to work on the project specified in the certificate.

 

All CIBD-registered contractors are required to notify the CIBD of undertaking any and all projects that exceed RM500,000 in value. A 0.125% levy is then imposed on the contract sum. This levy is recoverable as a civil debt due to the CIBD while failure to notify the CIBD of undertakings exceeding RM500,000 will result in a RM5,000 fine.

 

Are you looking to construct a building or facility in Malaysia?
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Why Choose Us?

We are second to none in providing pre- and post-investment solutions to foreign and domestic direct investors in Malaysia. Our strong presence has enabled us to not only form strategic partnerships with our clientele but also provide them with tactical advice in strategic and government-related affairs. SK International is uniquely positioned to aid your business venture with relocation, entrepreneurship, roll-outs, and operational upscaling in a productive and sustainable way due to our close working-relationships with national and regional authorities in Malaysia.

 

Ad Hoc Advisory & Management Services

We are fully aware that some of our clients have strong opinions and convictions about their investment needs. As such, they require specific services and solutions. With more than 23 years in the field and a network of reliable partners, SKI knows the ins and outs of the FDI and DDI game. We're are in a position to provide our clients with a wealth of the most up-to-date information, relevant statistics, and valuable advice so you can make the most informed decision on the market. We can also oversee the management of your entire project.

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