Environmental Requirements

INTRODUCTION
 

1.In the promotion of environmentally sound and sustainable development, the Government of Malaysia  has  established  the  necessary  legal  and  institutional  arrangements  such  that environmental factors are considered at the early stages of project planning. With reference to   the   licensing   requirements   for   establishment   of   business/industry   in   the   country,

environmental  requirements  and  assessment  constitute  the  second  level  of  approval  that need to be obtained after a business or industry has been registered.

2. Before a business can legally start operating, businesses are required to comply with some form  of  licensing,  which  could  be  a  general  licence,  an  industry/sector  specific  licence  or activity specific licence. Business licences are required by the legislation and administered by  various  government agencies,  statutory  bodies  and  local  authorities.  Business  licences includes  registrations,  approvals,  licences  and  permits.  The  compliance requirements  vary by  industry,  business  activity  and  location.  Business  licences  can  be  categorized  into  3 different logical groups, namely:

 

(a) General  licences – are  licences  that  are  required  and  shall  be applicable  once  the investor  has  decided  to  incorporate  a  company  and  starts  to employ  staff.  List  of General licences, which may applicable to any business, include:

• Company Registration

• Company and Employees Income Tax Registration

• Employees Provident Fund

• Social Security Organisation

• Human Resources Development Fund

 

(b) Sector  Industry  Specific  licences – are  licences  unique  to  a particular  industry  or sector that is specified by the Government. This involves major policies that controlled the development of certain industries or sectors in line with the development policy of the country. Examples of Sector/Industry Specific licences are:

• Manufacturing licence

• Telecommunication licence

• Broadcasting licence

• Oil Exploration licence

 

(c) Activity Specific licences – are licences that regulate particular activity and could be applicable  to  one  or  more  Industries  or  Sectors.  This category  of  licence  requires investor  to  comply  with  sets  of  specific guidelines  designed  to  protect  the  interest  of the citizen, employment, safety of workers, environment and general public. Examples of Activity Specific Licences are:

• Certificate of Fitness for Certified Machinery

• Approval for Expatriate Post

• Approval  to  install/resite/alter  Air  Pollution  Control  Equipment  (bag filter and chimney)

• Building Plan Approval

• Sales Tax Licence

 

The  above  information  is  a  general  guide  towards  making  the  initial steps,  decision  and planning  for  the  intended  business  by  potential investors  and  business  owners.  Investors can  obtain  further  and  specific  information  on  “Business  in  Malaysia”  from  Business Licensing Electronic Support System (BLESS) Portal (www.bless.gov.my).  BLESS provides information  and  facilities  for  companies to apply licences or permits to start operating business in Malaysia. [Note: To date, for  the initial implementation (Phase 1),  BLESS only covers application of  business  licences  for  the  Manufacturing,  Construction and Hotel Sectors and with manufacturing, construction and hotel facilities located within the Klang Valley].