Online Factory Operation Application
Manufacturing companies wishing to set up factories in Sabah are required to apply for the SGA. Applications for SGA can be made online via the ‘Factories Information System’.
SGA (State Government Approval)
SGA is an abbreviation for ‘State Government Approval’ which refers to an approval issued by the DIDR to manufacturing companies exempted from the Federal Manufacturing License (FML), including Crude Palm Oil (CPO) mills and small manufacturing establishments in Sabah. SGA is not an operational license per se but an approval with attached conditions to be fulfilled before operational.
Manufacturing companies with Paid-up Capital or Shareholders’ Fund of less than RM2.5 million and with total workers of less than 75 people are required to apply for this approval. This approval is a prerequisite before trading licenses can be issued to manufacturing companies by Local Authorities.
FML (Federal Manufacturing License)
FML is an abbreviation for ‘Federal Manufacturing License’ which is required by law, i.e the Industrial Coordination Act (ICA), to be obtained by any incorporated manufacturing company with Paid-up Capital or Shareholders Fund of RM2.5 million and above and with total workers of 75 or more full-time from the Ministry of International Trade & Industry (MITI). Application for FML should be submitted through the Malaysian Investment Development Authority (MIDA).