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Malaysian Industrial Development Authority
From Wikipedia, the free encyclopedia
The Malaysian Industrial Development Authority (MIDA; sometimes referred to as the Federal Industrial Development Authority or FIDA) is an agency of the Malaysian government set up to advise the federal and state governments on industrial development policies, advise local and foreign enterprises on Malaysian industry, manage business licensing and exemptions from tariffs or import duties, and co-ordinate industrial development.[1]
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MIDA was established in 1965 by the Federal Industrial Development Authority Act, which was passed by Parliament. MIDA reports to the Ministry of International Trade and Industry, but is relatively autonomous. It became fully operational in 1967, and began establishing overseas offices in 1972.[1][2]
MIDA describes itself as "the government's principal agency for the promotion and coordination of industrial development", and "the first point of contact for investors who intend to set up projects in the manufacturing and its related support services sectors in Malaysia."[3]
Although MIDA's main objective is to promote investment in Malaysia amongst foreigners, it also handles other tasks. These include planning for industrial development, recommending policies to promote such development to the Minister of International Trade and Industry, providing consulting services to companies operating in Malaysia and co-ordinating the exchange of information between organisations involved in industrial development. Several officials from various government ministries and state enterprises are stationed at MIDA's headquarters in Kuala Lumpur, the capital city, to advice potential investors. In addition to these tasks, MIDA is also in charge of evaluating manufacturing licence applications, applications for tax incentives, and applications for exemptions from import duties or tariffs.[4]
MIDA also approves the extension of business visit visas, and the conversion of such visas to temporary employment visas. It also approves applications from companies for hiring expatriate workers, and evaluates joint venture agreements.[2]
MIDA has offices worldwide, promoting investment in Malaysia. Neary all of them are situated in the United States, Europe, and East Asia; there is one office in Sydney, Australia.[5]
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.[6]
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.[7] 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".[8]
- ^ a b Abdullah, Mustaza & Hj. Yahya, MatMarjani (1991). Kemahiran Hidup Bersepadu TERAS, p 110. Dewan Bahasa dan Pustaka. ISBN 983-62-2316-9.
- ^ a b "COUNTRY PROFILE OF MALAYSIA". Retrieved Feb. 18, 2006.
- ^ "Introduction". Retrieved Feb. 18, 2006.
- ^ "Functions of MIDA". Retrieved Feb. 18, 2006.
- ^ "MIDA Worldwide Network". Retrieved Feb. 18, 2006.
- ^ Vietnam Development Forum (2006). "Industrial Policy Formulation of Malaysia". Retrieved Feb. 18, 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 Feb. 18, 2006.