MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (INCORPORATION) ACT 1965

Malaysian Investment Development Authority (Incorporation) 1 LAWS OF MALAYSIA REPRINT Act 397 MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (INCORPORATION) ACT 1965 As at 1 October 2014 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2014 2 Act 397 Laws of Malaysia MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (INCORPORATION) ACT 1965 First enacted ... ... ... … … 1965 (Act No. 13 of 1965) Revised … ... … … … … 1989 (Act 397 w.e.f 16 November 1989) Latest amendment made by Act A1399 which came into operation on … … 19 August 2011 … … Previous Reprints First Reprint ... ... ... ... ... 2001 Second Reprint ... ... ... ... ... 2006 Third Reprint ... ... ... ... 2009 ... Malaysian Investment Development Authority (Incorporation) LAWS OF MALAYSIA Act 397 MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (INCORPORATION) ACT 1965 ARRANGEMENT OF SECTIONS Section 1. Short title and application 2. Interpretation 3. Establishment of the Authority 3 a. Establishment of the Board 3b. Vacation of office 3c. Filling of vacancies 3 d. Appointment of Chief Executive Officer 3e. Appointment of officers, servants and other persons 4. (Deleted) 5. Direction on policy by the Minister 6. Functions of the Authority 6 a. Powers of the Authority 6b. Board to perform functions and exercise powers of the Authority 7. (Deleted) 7 a. Power to delegate 7b. Power to appoint committees 7c. Power to establish companies 8. (Deleted) 9. (Deleted) 10. Malaysian Investment Development Authority Fund 3 4 Laws of Malaysia Section 10a. Expenditure to be charged on the Fund 10aa. Investment Act 397 10b. Deposit of the Fund 10c. Balancing revenue of the Fund 10d. Expenditure and preparation of estimates 11. Statutory Bodies (Accounts and Annual Reports) Act 1980 12. Annual Report 13. Application of Penal Code and obligation of secrecy 13a. Non-liability 13b. Public Authorities Protection Act 1948 14. Regulations Schedule Malaysian Investment Development Authority (Incorporation) LAWS OF MALAYSIA 5 Act 397 MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (INCORPORATION) ACT 1965 An Act to provide for the establishment and incorporation of the Malaysian Investment Development Authority and to provide for the administration, functions and powers of the Authority and for matters connected therewith. [23 June 1966, P.U.(B)125/2002] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: Short title and application 1. (1) This Act may be cited as the *Malaysian Investment Development Authority (Incorporation) Act 1965. (2) This Act shall apply throughout Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— “Authority” means the Malaysian Investment Development Authority established under subsection 3(1); *NOTE–The Malaysian Investment Development Authority (Incorporation) Act 1965 was previously known as the Malaysian Industrial Development Authority (Incorporation) Act 1965 [Act 397] – see section 19 of the Malaysian Industrial Development Authority (Incorporation) (Amendment) Act 2011 [Act A1399] w.e.f 19-08-2011. 6 Laws of Malaysia Act 397 “Board” means the Board established under section 3a; “Chief Executive Officer” means the Chief Executive Officer of the Authority appointed under section 3d; “Fund” means the Malaysian Investment Development Authority Fund established under section 10; “Government Entity” means— (a) the Federal Government, or any State Government, State Authority or local government; and (b) any ministry, department, office, agency, authority, commission, committee, board, council or other body, corporate or unincorporate, of the Federal Government, or of any State Government, whether established under written law or otherwise; “member” means a member of the Board; “Minister” means the Minister charged with the responsibility for international trade and industry. Establishment of the Authority 3. (1) A body corporate by the name of the “Malaysian Investment Development Authority” is established. (2) The Authority shall have perpetual succession and a common seal. (3) Subject to and for the purposes of this Act, the Authority may, upon such term as it deems fit— (a) enter into contracts; (b) acquire, purchase, take, hold and enjoy movable and immovable property of every description; and (c) convey, assign, surrender, charge, mortgage, demise, reassign, transfer, or otherwise dispose of, or deal with, any movable or immovable property or any interest vested in the Authority. Malaysian Investment Development Authority (Incorporation) 7 Establishment of the Board 3a. (1) There shall be established a Board of the Authority consisting of the following members: (a) a Chairman who shall be appointed by the Minister; (b) the Secretary General of the Ministry responsible for finance or his representative; (c) the Secretary General of the Ministry responsible for international trade and industry or his representative; (d) not more than ten other members who shall be appointed by the Minister and of whom not more than seven shall represent the commercial, manufacturing, financial, industrial and service sectors; and (e) the Chief Executive Officer. (2) The Board shall be responsible for— (a) providing policy guidance and recommendations in relation to the performance of the Authority’s functions and exercise of the Authority’s powers; (b) overseeing the implementation of the policies and recommendation; and (c) giving such directions to the Chief Executive Officer as are consistent with the provisions of this Act. (3) The provisions of the Schedule shall apply to the Board. (4) There shall be paid to the members of the Board, other than the Chief Executive Officer, such allowances as may be determined by the Minister. (5) Subject to such terms as may be specified in the instrument of appointment, a member appointed under paragraph (1)(a), (d) or (e) shall, unless he sooner resigns or vacates his office or his appointment is sooner revoked, hold office for a term not exceeding three years and is eligible for reappointment. 8 Laws of Malaysia Act 397 (6) The Minister may at any time revoke the appointment of any member appointed under paragraph (1)(a), (d) or (e) without assigning any reason for the revocation. (7) A member appointed under paragraph (1)(a),(d) or (e) may at any time resign from his office by a written notice to the Minister. (8) The Minister may appoint any member to exercise the functions of the Chairman during any period the Chairman is for any reason unable to perform his functions or during any period of vacancy in the office of the Chairman and such member shall, during the period in which he is performing the functions of the Chairman under this subsection, be deemed to be the Chairman. (9) Until an appointment under subsection (8) is made or in default of such appointment or in the absence of the Chairman from any meeting of the Board, the Chief Executive Officer shall perform the functions of and be deemed to be the Chairman of the Board. Vacation of office 3b. (1) The office of a member appointed under paragraph 3a(1)(a), (d) or (e) shall be vacated— (a) if he dies; (b) if there has been proved against him, or he has been convicted on, a charge in respect of— (i) an offence involving fraud, dishonesty or moral turpitude; (ii) an offence under any law relating to corruption; or (iii) any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years; (c) if he becomes a bankrupt or has made an arrangement with his creditors; (d) if he is of unsound mind or is otherwise incapable of performing his duties or managing his affairs; or Malaysian Investment Development Authority (Incorporation) 9 (e) if he has been absent at three consecutive meetings of the Board, without leave in writing of the Minister. Filling of vacancies 3c. Where any person ceases to be a member by reason of section 3b the Minister may appoint another person to fill the vacancy for a term not exceeding three years, and that person shall be eligible for reappointment. Appointment of Chief Executive Officer 3d. (1) The Minister shall appoint, a Chief Executive Officer upon such terms and conditions as the Minister may determine. (2) The Chief Executive Officer shall be responsible for the administration and management of the functions and affairs of the Authority, and in particular, but without prejudice to the generality of the foregoing— (a) the preparation of programmes, schemes and projects, the progress of which must be reported to the Board from time to time; (b) the execution of programmes, schemes and projects of the Authority; (c) the issuance of policy guidance or elucidation of recommendations of the Board to officers and servants of the Authority; (d) the management and administration of the financial affairs of the Authority; (da) the management of the annual budget of the Authority and making a decision on the allocation for all activities including development and operational; and (e) the supervision and control over the implementation of the recommendations of the Board. 10 Laws of Malaysia Act 397 (3) The Chief Executive Officer shall perform such further duties as the Board may from time to time direct. Appointment of officers, servants and other persons 3e. (1) The Authority may appoint such number of officers and servants of the Authority as it thinks desirable and necessary who shall be paid such remuneration and allowances and be subject to such conditions of service as may be prescribed by regulations. (2) The Authority may engage the services of and pay other persons to do any act required to be done in the performance of its functions or the exercise of its powers or for the better carrying into effect the purposes of this Act. 4. (Deleted by Act A1146). Direction on policy by the Minister 5. The Minister may give to the Board directions not inconsistent with this Act as to performance of the functions and exercise of the powers of the Authority, and the Board shall give effect to such directions. Functions of the Authority 6. It shall be the functions of the Authority to promote investments in the manufacturing and services sectors (excluding financial and utilities) and to advise the Minister on the formulation of policies in respect thereof and for that purpose, the Authority may— (a) lead, co-ordinate, monitor and evaluate the implementation of the policies, strategies, activities and development of investment in the manufacturing and services sectors (excluding financial and utilities); (b) undertake activities relating to the promotion of investment in the manufacturing and services sectors (excluding financial and utilities) within or outside Malaysia; Malaysian Investment Development Authority (Incorporation) 11 (c) undertake or cause to be undertaken research and planning on matters relating to investment in the manufacturing and services sectors (excluding financial and utilities); (d) advise the Government on the policies relating to the promotion of investment in the manufacturing and services sectors (excluding financial and utilities) including policies on— (i) the granting of manufacturing licences; (ii) the incentives applicable to investors in Malaysia; (iii) expatriate posts; (iv) the imposition or alteration of, and exemption from, custom duties; and (v) any other fiscal or non-fiscal facilities; (e) formulate measures for the promotion of investment in the manufacturing and services sectors (excluding financial and utilities); (f) co-ordinate and facilitate the activities relating to the promotion and implementation of investment in the manufacturing and