You are on page 1of 66

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

BUSINESS REGULATIONS
& SUPPORT SYSTEM
Dr. Azizan Abdullah
Azlin Shafinaz Mohamad Arshad
Siti Zahrah Buyong
Zarina Abdul Munir

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Introduction
Business support system refers to the assistance
and services given by the government or private
agencies to help entrepreneurs to start a new
business or to develop an existing one.
There are a lot of business support system
provided to the entrepreneur in term of monetary
and non monetary facilities.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Approval and Licensing

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Entrepreneur are required to have approval and


licensing from relevant government agencies in
setting up manufacturing businesses.
Manufacturing Licence
The Malaysian Government under The Industrial
Coordination Act (ICA)1975 requires person (s)
engaging in any manufacturing activity to obtain
a licence.
This regulation only apply to the manufacturing
companies with shareholders fund of 2.5m

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

and above or engaging 75 or more full-time


employees.
Manufacturing activity is defined as the making,
altering, blending, ornamenting, finishing or any
other related activities.
Applications of manufacturing licence should be
made to Malaysian Industrial Development
Authority (MIDA).

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

No-Objection Letter for the Location of Projects


No-objection letter from the respective State
Government is require for approval of the project
location.
This letter needs to be submitted to MIDA for the
issuance of the manufacturing licence.
Approval for Planning Permission
Application for planning permission is require under
Town and Country Planning Act, 1976 (Act 1972).

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Planning permission need for a development and


use of all lands and building.
Planning permission should be made to the local
authority such as City Council of Shah Alam (MBSA),
Municipal Council of Kota Star (MPKS) etc.
Approval for Building Plan
The Street, Drainage and Building Act 1974 (Act 133)
require construction of buildings can only be
undertaken with the written approval for the local
authority.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Every plan, drawing or calculation in which related


to The building must be submitted by qualified
person such as architect, draughtsman or engineer.
Approval for Certificate of Fitness for Occupation
All completed building need to be certified as being fit
for occupation by the local authority.
This requirement has been spell out under the
Uniform Building by Laws 1984.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Approval for Business Related Licences


The licences related to factory premises,
advertising signage, storage and canteen.
This licences should be apply through the local
authority.
Approval for Environmental Control
Environment Quality Act, 1974 requires the
manufacturers to control industrial activities that
may result in a new source of effluent or discharge.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

The installation of incinerator, fuel burning


equipment and chimney also need approval.
The environmental control and approval are under
the responsibility of Department of Environment.
Approval for Safety and Health
Factories and Machinery Act 1967 require
manufacturers to obtain design approval of
certificate machinery and certificate of fitness
The application of approval should be send to
Department of Occupational Safety and Health.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Excise Licence and Sales Tax Licence


Excise duties are require for a factory that
manufactured goods which prescribe under Excise
Act, 1976.
Excise licence also need for products under this
category and should be obtained from Royal
Customs Malaysia.
Customs Department will levied a sales tax on
imported and locally manufactured goods.
A sales tax licence should be apply under Sales Tax
Act, 1972

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Infrastructure Facilities

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Industrial Estates
Industrial estates has been developed by State
Economic Development Corporations (SEDCs),
Regional Development Authorities (RDAs), port
authorities and municipalities.
Currently there were over 200 industrial estates
were developed by those agencies and the new
ones are continuously planned to meet the
demand of industrial land.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Free Industrial Zones (FIZs)


Established for manufacturing companies that
produce or assemble products mainly for export
purposes.
The manufacturing companies in FIZs enjoy
minimal customs formalities and duty free import
of raw materials, component parts, machinery
and equipment.
They also have a minimal formalities for export
their finished products.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Licensed Manufacturing Warehouses (LMWs)


The purpose of LMWs is to encourage the dispersal
of industries and to enable companies to enjoy
FIZ facilities in areas where it is neither practical
nor desirable to establish FIZs.
In order to get an approval for LMWs the companies
should have at least 80% of their production meant
for export and raw materials or components are
mainly imported.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Electricity and Water Supply


Electricity for Peninsular Malaysia supply by Tenaga
Nasional Berhad (TNB) while for Sabah and Sarawak
are Sabah Electricity Sdn. Bhd. (SESB) and Sarawak
Supply Corporation (SESCO) respectively.
In term of water, it has been treated according to the
World Health Organisation (WHO) standards for
drinking and supply by state water department
and water supply companies.
Water costs are low and vary from state to state.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Telecommunication Services
Provided by Telekom Malaysia Berhad and other
network service providers.
There are six internet service providers which
include TMNet, Jaring and MAXIS Net whose
help the government to promote information
based industry.
Malaysias also entry into space age
communication through the launching of MEAST-1
and 2 and Tiungsat-1 in 1996 and 2000 respectively.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Sea Ports, Cargo Transportation, Highway and


Railway Services
Sea ports has modern facilities and equipment to
facilitates full range of cargo handling.
Cargo transportation provide comprehensive
containerised cargo transportation services.
The Malaysian Highway Authority provided
latest design of expressways which link to all major
townships and potential development area.
Railway services operates by Keretapi Tanah Melayu
(KTM) with the capacity to transport goods ranging
from grain to machinery.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Multimedia Super Corridor (MSC)


MSC was established with the aims to revolutionise
how Malaysians and others in the region conduct
commerce in the digital age.
MSC governed by groundbreaking Cyberlaws,
policies and practices that enable operating
companies to harness the full potential of Information
Communications Technology and Multimedia.
The ultimate aim of MSC is to attracts multimedia
companies locally and internationally to become
world class over time.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Financial Assistance

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Financial Assistance for Entrepreneurs

Financing is needed by
entrepreneur for sustainability and
development of business.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Purposes of Financing
1. Strengthening skills of workforce
2. Entrepreneur development
3. Marketing & Promotion
4. Product Development & Quality
accreditation
5. Technology development
6. Debt restructuring
7. General

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Types of Financing
1. Soft loan
2. Grants
3. Equity financing
4. Venture capital
5. Guarantee scheme
6. Tax incentives

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Who Provide the Financial


Assistance?
Two main provider for financial assistance are
ministry and agencies.
Ministry
1. Ministry of Entrepreneur and Co-operative
Development (MECD)
2. Ministry of Science, Technology and
Innovation (MOSTI)
Agencies
26 agencies

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Ministry of Entrepreneur and Cooperative Development (MECD)


Financing scheme under MECD:
1.ASEAN- Japan Development Fund
2. Equity Financing
3. Franchise Development
4. Skim Pembiayaan Pusat Negeri
(SPPN)

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Ministry of Science, Technology


and Innovation (MOSTI)
Financing scheme under MOSTI:
Enterprise Innovation Fund(EIF)
Objective :

To increase the participation of SMEs,


micro businesses and individual/soleproprietors in innovative activities through
the development of new or improved
products, processes or services with
element of innovation for
commercialisation

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Ministry of Science, Technology


and Innovation (MOSTI)
Enterprise Innovation Fund(EIF)
Eligibility criteria
Malaysian business enterprises or
individual with project or product
proposal that has elements of
technological innovation for
commercialisation

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Financial Assistance from


Government Agencies
There are twenty six (26) agencies that provide financial
assistance for entrepreneur. Examples are :
1.

2.

Banks such as Bank Kerjasama Rakyat Malaysia


Berhad, Bank Negara Malaysia, Bank Perusahaan
Kecil & Sederhana Berhad, and Bank Pertanian
Malaysia Berhad
Non-banks such as Perbadanan Nasional Berhad,
Small and Medium Industries Development
Corporation, Multimedia Development Corporation

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Bank Kerjasama Rakyat Malaysia Berhad


Youth Business Scheme
Objective
To assist youth to venture into business on full time basis.

Eligibility criteria
Individual Malaysian citizen aged between 18-40 years old
Must register online as an applicant through the Portal of
Majlis Penggalakan Ekonomi Belia (MPEB) www.mpeb.gov.my
Pass the screening test conducted by Ministry of Youth and
Sport
No adverse record with financial institutions

Purpose of financing
Expansion in productive capacity

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Bank Negara Malaysia


New Entrepreneurs Fund 2
Objective
To promote the growth of small and medium-sized Bumiputera
enterprises by ensuring that they have access to financing at
reasonable cost.

Eligibility criteria
Business enterprise based on the definition of SMEs [Link]
www.smeinfo.com.my
Maximum shareholders' funds not exceeding RM2 million;
Shareholding by Public Listed Companies or Government-Link
Companies (if any) should not exceed 20%;

Purpose of financing
Expansion in productive capacity

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

SME Bank
Graduate Entrepreneurs Fund
Objective
To encourage graduates to participate and venture into
businesses in the selected industry.
Eligibility criteria
Graduate holds majority equity in a company registered with
the Companies Commission of Malaysia under the Companies
Act 1965
Has a diploma/degree/doctorate qualification
Must be below 40 years old and has successfully completed
training programmers, placement and practical training under
the Ministry of Entrepreneur and Co-operative Development
(MECD) or its agencies
Purpose of financing
Working capital
Financing fixed assets or both

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Agro Bank Malaysia


Agriculture Entrepreneurs Scheme for Graduates
Objective
To encourage graduate to embark in the commercial
agriculture sector as an alternative career
development.
Eligibility criteria
Unemployed graduates with keen interest to develop
a full time career in agriculture sector
Purpose of financing
Working capital and expansion in productive capacity
e.g. purchase of fixed asset

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Perbadanan Nasional Berhad


Youth Franchise
Objective
To encourage Bumiputera youth to venture into franchise
business by providing start-up financing
Eligibility criteria
- A wholly-owned Bumiputera private limited company
- Bumiputera age between 21 to 40 years old
- Contribute at least 10% of the total project cost
Application procedure
Application to be submitted to PNS

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Perbadanan Usahawan Nasional


Berhad (PUNB)
Bumiputera Entrepreneurs Retail Project Fund
(PROSPER)
Objective
To enhance and upgrade Bumiputera entrepreneurs'
participation in the retail business.
Eligibility criteria
1. Entrepreneur
- Bumiputera above 18 years old
- Possess the necessary entrepreneurial skills.
2. Business
- Retail business wholly owned by Bumiputera.
- Viable project costing not exceeding RM 1 million.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Perbadanan Usahawan Nasional


Berhad (PUNB)
PROSPER Siswazah Entrepreneurial Scheme
Objective

To assist Bumiputera graduates to embark or venture into retail


and distribution business industry through the systematic and
structured PUNB's programmes

Eligibility criteria
1. Young Bumiputera Graduate
- Less than 30 years old with at least diploma qualification from
institution recognised by the government.;
- Able to source own capital amounting RM500 for each project
2. Businesses
- Wholly-owned and managed by Bumiputera ;

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Small and Medium Industries


Development Corporation
Matching Grant for Business Start-ups
Objective
- To provide assistance in the form of matching grant to
start up a business in the following sectors:
- Manufacturing and Manufacturing related services; and
- Services (excluding insurance and financial services)
Eligibility criteria
- Business enterprise based on the definition of SMEs.
- At least 60% of equity are held by Malaysian and
- Possess valid premise license

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Multimedia Development Corporation


MSC Malaysia Research and Development Grant Scheme
(MGS)
Objective
To provide reimbursable R&D grant to assist Multimedia
Super Corridor (MSC) Malaysia-Status Companies to develop
innovative multimedia technologies and applications.
Eligibility criteria
Possess a valid MSC Malaysia-status certification
Malaysian shareholding of at least 51%
Past or current recipients of any Government R&D grant are
NOT eligible under the scheme
Purpose of financing
To provide financing for research and development projects
for the development of new products and services across the
multimedia value chain and Flagship Applications

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Employment Policies &


Legislations

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

EMPLOYMENT POLICIES
& LEGISLATION
1.
2.
3.
4.

EMPLOYMENT ACT 1955


EMPLOYER PROVIDENT FUND
SOCIAL SECURITY ORGANIZATION
OCCUPATIONAL SAFETY AND HEALTH

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

1. EMPLOYMENT ACT 1955


Stipulates the minimum conditions of employment
such as Besides, the Act is to provide minimum
standards on working hours and overtime, weekly rest
day, public holidays, annual and sick leaves, maternity
benefits, termination and lay off benefits etc
Applies to all employees in Peninsular Malaysia and
the Federal Territory of Labuan whose monthly wages
do not exceed RM1,500 and all manual workers
irrespective of their wages.
Employees who earn between RM1,500 to RM5,000 a
month can still seek redress from the Labor
Department with regard to wages and any other
payments in cash as stipulated in their contract of
service.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

2. EMPLOYER PROVIDENT FUND


A social security institution formed according to the Laws
of Malaysia, Employees Provident Fund Act 1991 (Act
452) which provides retirement benefits for members
through management of their savings in an efficient and
reliable manner.
All employers must register their employees with EPF
immediately upon employment.
Provides a convenient framework for employers to meet
their statutory and moral obligations to their employees.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

2. EMPLOYER PROVIDENT FUND


The Act stipulates a compulsory contribution for
employees. A contribution constitutes the amount of
money credited to members' individual accounts in the
EPF. The amount is calculated based on the monthly
wages of an employee. The current rate of contribution is
23% of the employee's wages of which 11% is from the
employee's monthly wage while 12% is contributed by
the employer.
Under this Act, all employers and employees except
foreign workers, expatriates and those who are listed
under the First Schedule must contribute to the
Employees provident Fund (EPF). However, they can
choose to contribute at the rate of RM5.00 (employers
share) per employee per month and 11% of monthly
wages by the employee.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

3. SOCIAL SECURITY ORGANIZATION


Administers the Employment Injury Insurance Scheme
and Invalidity Pension Scheme provided under the
Employees Social Security Act 1969.
The scheme is compulsory and employer must cover
all employees under SOCSO even if they are covered
under other insurance policies.
A monthly contribution must be made for each eligible
employee according to rates specified under the Act
(about 2.5% of basic employees salary).
Covers only Malaysian workers and permanent
residents. All establishments, including factories,
employing workers earning wages not exceeding
RM2,000 a month

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

4. OCCUPATIONAL SAFETY AND HEALTH


The Department of Occupational Safety and Health
(DOSH) is a department under the Ministry of Human
Resources. The Department of Occupational Safety and
Health (DOSH) is responsible for enforcing compliance
of the law with OSHA 1994. DOSH also enforces
compliance with the Factories and Machinery Act 1967.
The OSHA 1994 provides legislative framework to
promote, stimulate and encourage high standards of
safety and health at work. The aim is to promote safety
and health awareness, establish effective safety
organization and performance through self-regulation
schemes designed to suit the particular industry or
organization. This Act also defines the responsibilities of
employers, manufacturer, employees, self-employed
workers, designers, importers and vendors.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

4. OCCUPATIONAL SAFETY AND HEALTH


As for Factories and Machinery Act 1967, it provide for
the control of factories on matters relating to the safety,
health and welfare of persons, and the registration and
inspection of machinery. Some high risk machinery must
be certified and inspected by DOSH. All factories and
general machinery must be registered with DOSH for the
purpose of registration before they can be installed and
operated in Malaysia.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Manpower
Development & Training
Facilities

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

MANPOWER DEVELOPMENT
& TRAINING FACILITIES
1.
2.
3.
4.
5.

NATIONAL VACATIONAL TRAINING COUNCIL


MINISTRY OF HUMAN RESOURCE
HUMAN RESOURCE DEVELOPMENT FUND
MALAYSIA PRODUCTIVITY FUND
MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT
CENTRE
6. PERBADANAN USAHAWAN NASIONAL BERHAD
7. MAJLIS AMANAH RAKYAT

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

1. NATIONAL VACATIONAL TRAINING


COUNCIL
The Department of Skills Development, formerly known
as The National Vocational Training Council, is one of
the agencies under the Human Resource Ministry,
responsible for the co-ordination and control of skills
training as well as career development in skills training.
in line with the implementation of the National Skills
Development Act, 652 (2006) on September 1, 2006.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

1. NATIONAL VACATIONAL TRAINING


COUNCIL
The objective is to generate and coordinate the
development of skilled workforce by:

Developing Competency Standard, of a developed country


level, for skilled workforce,
Recognising the competency and skills of workforce and
industry experts, and
Coordinating skills training systems and Malaysia Skills
Certificate systems.
Function of this council is to :
Assess training requirements,
Develop, approve and revise the National Skills Standard,
Implement the national training certification programmes,
Promote skills training systems,
Assist and enhance skills proficiency of individuals, and
Guide learning/research programmes related to skills training.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

2. MINISTRY OF HUMAN RESOUCE


Currently runs 14 industrial training institutes (ITIs)
which offer industrial skills training programme at
basic, intermediate and advanced levels for preemployment or job entry level. These include
apprenticeships in mechanical, electrical, building
and printing trades as well as programme to
upgrade skills and to train instructors.
The Ministry also operates the Centre for
Instructors and Advanced Skills Training (CIAST),
Industrial Training Institute Japan-Malaysia
Technical Institute (JMTI) and Advanced
Technology Centers (ADTEC).

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

3. HUMAN RESOURCE
DEVELOPMENT FUND
Aimed at encouraging direct private
sector
participation
in
skills
development was launched in 1993
with a grant form government.
Functions of HRDF are :
to assess and determine the types and
extent of employee training and retraining
in keeping with the human resources need
of industries
to promote and stimulate manpower
training
to determine the terms and conditions

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Contribution Guidelines for employers:


(i)

Companies that employ 50 or more Malaysian 1% of employees


workers
monthly wages

(ii)

Companies that employ less than 50 to a


minimum of 10 employees, with a paid up
capital of RM2.5 million or more

(iii)

Companies that employ less than 50 to a


minimum of 10 of employees, with a paid-up
capital of less than RM 2.5 million

1% of employees
monthly wages

Option of registering
with the HRDF and
paying a levy of 0.5% of
the employees monthly
(Note : For this category, the Government
contributes RM2.00 for every RM1.00 spent.) wages

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

4. MALAYSIA PRODUCTIVITY
CORPORATION
Formally known as the National Productivity Corporation
was established in 1962 as a joint project between the
United Nations Special Fund and the Federal
Government, with the International Labor Organization
acting as its executing agency.
Function of PMC are :

To generate local expertise in the field of productivity, quality,


management and entrepreneurship;
To enhance the development of human resource both at the
supervisory and management levels in the country;
To assess and certify supervisory and management training
programmes, entrepreneurship programmes and productivity
and quality management programmes conducted by the
private sector for the public;
To conduct training or other programmes relating to
productivity, quality, management and entrepreneurship;

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

5. Malaysian Entrepreneurship
Development Centre (MEDEC)
Established within MARA University of Technology
(UiTM) in 1975.
The mission was to facilitate the growth of Bumiputera
entrepreneurs in Malaysia.
Specifically, it was set up for the purpose of planning
and implementing entrepreneurship development
programs such as training, education, research and
consultancy.
Activitie and programmes offered are :
Entrepreneur Development Program
Entrepreneur Development Program for Civil Service
Entrepreneur development program for Corporate and
Government Agencies

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

6. Perbadanan Usahawan Nasional


Berhad
Focus is on developing Bumiputera entrepreneurs in
strategic and high potential businesses and also to
provide opportunities to Bumiputera entrepreneurs to
achieve business success; through the provision of
financial and corporate support.
Business operations are focused on providing
integrated entrepreneur development packages to
assist Bumiputera entrepreneurs in Retail and Small
and Medium sized Enterprise (SME) sectors. These
development packages are designed to help
Bumiputera entrepreneurs develop business acumen,
maintain a profitable venture, and shape their
enterprise; par excellence.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

7. Majis Amanah Rakyat


Incorporated as a statutory body on March 1, 1966 under an
Act Of Parliament, No. 20, 1966.
Entrusted with the responsibility to promote, stimulate,
facilitate and undertake economic and social development of
the people particularly in the rural areas thereof.
It is also to encourage, guide, train and assist Bumiputera to
enable them to participate actively and progressively in small
and medium scale commercial and industrial enterprises
towards creating a strong and viable Bumiputera Commercial
and Industrial Community (MPPB).
In order to create, increase and improve the level of
Bumiputera entrepreneurship and business, MARA have
provided activities such as in entrepreneurship, manufacturing
incubator, consultancy service, marketing promotion and
technopreneur programme.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Other Business
Support System

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Other Support Facilities in Malaysia


Entrepreneur
Technical
Assistance

Marketing
Services

Advisory
Assistance

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Technical Assistance
Malaysian Agricultural Research and
Development Institute (MARDI)

The main objective of MARDI is to develop


indigenous science and technology capabilities in
support of the development and modernization of
the national food and agriculture sector.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Malaysian Palm Oil Board (MPOB)

The Malaysian Palm Oil Board (MPOB) is the premier


government agency that is responsible for promoting,
developing and advancing the countrys palm oil
industry. It is also responsible for providing scientific and
technological leadership to support the development of
the palm oil industry.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Fisheries Research Institute (FRI)

The

Fisheries

Research

Institute

(FRI)

conducts studies in various fields of aquatic


organism such as fish, mollusk and shrimp.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

MIMOS Berhad

MIMOS Berhad is a technology R&D organization


that functions as an advisor to the Malaysian
government on technologies, policies and strategies
relating technology development.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

SIRIM Berhad

SIRIM Berhad, a government-owned company, is a


leader in industrial research and development. Its role is
to spearhead industrial research and development and
to pioneer standardization activities and the provision of
technical and consultancy services aimed at enhancing
the competitiveness of Malaysian industries.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Marketing Assistance
The purpose of marketing assistance is to help
entrepreneurs distribute and market their products locally
and internationally. There are a number of agencies
involved such as MITI, MATRADE, FAMA and GUTHRIE.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

Advisory Services
Advisory services are very important for entrepreneurs in
managing their business. There are many agencies
providing these services with certain charges depending
on the area and scope of the services. However, rebate
or tax reduction is given to certain services acquired
under the training scheme recognized by the Ministry of
Human Resources.

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS REGULATIONS & SUPPORT SYSTEM

END OF MODULE 6

You might also like