cost of doing business in malaysia / penang · usd 1,539 usd 1,679 rm 2,420 rm 2,535 usd 580 usd...

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COST OF DOING BUSINESS IN MALAYSIA / PENANG Invest-in-Penang Berhad PSDC Building, 1, Jalan Sultan Azlan Shah, Bayan Lepas, 11900 Penang, Malaysia Tel: +604 646 8833 Fax: +604 646 8811 Email: [email protected] www.investpenang.gov.my y Invest, Work, Live, Play in Penang Table of Contents Page Number 1. Starting a Business 1 -3 2. Taxation 3 3. Human Resources 4 -7 4. Utilities 8 - 11 5. Transporation Cost 12 - 13 Page 0

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Page 1: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

COST OF DOING BUSINESS IN

MALAYSIA / PENANG

Invest-in-Penang BerhadPSDC Building, 1, Jalan Sultan Azlan Shah,

Bayan Lepas, 11900 Penang, Malaysia

Tel: +604 646 8833 Fax: +604 646 8811

Email: [email protected]

www.investpenang.gov.my

y

Invest, Work, Live, Play in

Penang

Table of Contents PageNumber

1. Starting a Business 1 - 3

2. Taxation 3

3. Human Resources 4 - 7

4. Utilities 8 - 11

5. Transporation Cost 12 - 13

Page 0

Page 2: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

Cost of Doing Business in Malaysia/ Penang

1. Starting a BusinessMain fees to be paid to the Companies Commission of Malaysia (SSM)

Reservation of a name

Application for incorporation under section 14 of the Act:

(a)   Company limited by share

(b)   Company limited by guarantee

(c)    Unlimited company

For registration of a company with share capital:

For registration of a company without share capital

Effective as of 18-Dec-2017

For the full range of fees, please go to SSM's website at www.ssm.com.my

Rental Rates for Prime Office Space

Alor Setar, Kedah

Georgetown, Pulau Pinang

Ipoh, Perak

Kuala Lumpur*

Petaling Jaya, Selangor

Seremban, Negeri Sembilan

Melaka

Johor Bahru, Johor

Kuantan, Pahang

Kuala Terengganu, Terengganu

Kota Bharu, Kelantan

Kota Kinabalu, Sabah

Kuching, Sarawak

The rental above are gross rentals per sq. metre per month inclusive of service charge. 

*Rental excludes Petronas Twin Towers

Source: CBRE/WTW Research, May 2020 (via MIDA)

Cost of Prime Office Space in Penang

* The above rates are approximate rentals (gross) psf per month and is subject to change

Source: Different consultants in Penang

USD 1.00 = MYR as of

(USD 239,808)Not exceeding

(USD 23.98 Million)

14,388

Mainland, Penang

(RM psf / month)

Georgetown Bayan Lepas/ Bayan Baru

(RM psf / month)

2.00 - 3.50

Penang Island

1.50 - 2.00

(RM psf / month)

48.44

6.00

Rent

70,000 16,787

3.12

Exceeding

50

RM

1000

3000

1000

5,000

20,000

40,000

60,000

70,000 16,787

9,592

4,796

1,199

240

719

240

12

USD

USDRMLocation

Type

30.00

17.00

57.00

24.00

27.00

28.00

43.00

38.00

10.31

9.11

26-Oct-2020

24.00

108.00

59.00

32.00

RM 1,000,000

RM 1,000,001 to RM 10,000,000 (USD 239.8K) to

(USD 11.99 Million) to (USD 23.98 Million)

(USD 2.4 Million)

RM 10,000,001 to RM 50,000,000 (USD 2.4 Million) to (USD 11.99 Million)

6.47

19.00

65.00 25.90

14.15

7.67

9.11

13.67

20.00

27.00

43.00

4.08

15.59

38.00

RM 50,000,001 to RM 100,000,000

RM 100,000,000

To

6.47

10.31

5.76

5.76

6.47

6.71

To

4.56

7.19

26.00

34.45

16.00

21.50

13.00

27.00

25.00

From

4.80

6.24

8.26

3.84

5.16

11.62

From

4.17

Page 1

Page 3: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020Cost of Industrial Land & FactoryPDC Ready Built Factory Units 

-

-

-

-

-

-

# Based on JPPH valuation @ 2018

PDC SME Units 

Source: PDC (Updated as at Jan 2019)

Cost of Ready-built Factory in Penang

Source: MIDA

USD 1.00 = MYR as of

RM 3,745,290

RM 4,670

USD 1,120

Penang Mainland RM1.00 - RM1.70 USD 0.24 -

USD 0.84

USD 0.41

4,079 -

4,585

Unit Type Sale Price per unitBuilt-Up

(sq.ft)

USD

USD 43.17

26-Oct-2020

USD 105.52

RM 12,600

USD 3,022

RM440.00

RM

RM150.00 - RM350.00

RM1.50 -

Land Area

(sq.ft)

Location

6,939 13,799.81

USD 898,151

RM 975,000

USD 233,813

Penang Island

-RM180.00

Rental p.s.f. per

month

USD 83.93

RM 6,418 RM 7,001

USD 1,539 USD 1,679

RM 2,420 RM 2,535

USD 580 USD 608

Location

Selling price p.s.f. of

floor area

Type

RM 11,712

USD 2,809

Terrace -

Standard

Unit

2,303 2,594

to

RM 1,190,000 RM 4,376

USD 1,049

RM 2,451

USD 588

RM 2,568

USD 616

USD 611,511

RM3.50

Bayan Lepas

Industrial Park

(Phase IV)

RM 2,550,000

-

USD 35.97

Rental per month

Unit TypeLocationBuilt-Up

(sq.ft)

5,834

2,334

5,856

2,335

Land Area

(sq.ft)

15,518-

22,848

3,417 -

6,148

16,221-

16,533

Sale Price per unit #

USD 285,372

Terrace -

Standard

Unit

2,304 2,594

Bukit Minyak

Industrial Park (85

units)

Semi-

Detached

Corner

Unit

Semi-

Detached

Corner

Unit

USD 110,312

USD 594,724

to

RM 4,724

USD 1,133

SME Units

Bukit Minyak

Industrial

Park (27

units)

Terrace 3,087 3,149 – 4,318

SME Village

Batu Kawan

Industrial

Park

(Phrse 4A)

Semi-

detached

RM 2,480,000

RM 460,000

Rental

-

USD 0.36 -

RM 1,190,000

USD 285,372

From

From

Penang Island

Penang Mainland

4.17

Page 2

Page 4: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

Cost of Industrial Land

Penang Science Park

Penang Science Park North

Batu Kawan Industrial Park

Source: PDC

Average Construction Costs of Factory Building (per sq. ft.)

Factory with reinforced concrete structure - - - -

Steel portal frame on reinforced concrete - - - -

Factory with clean room facilities - - - -

Source from different consultants

Additional Information:

Mechanical estimate. No or negligible cost variance between Penang island and mainland.

Source from different consultants

USD 1.00 = MYR as of

2. Taxation

Tax

Company Tax

Personal Tax

Sales & Service Tax (SST)

Source: MIDA

Note: As announced in budget 2019,

corporate tax rate is 24% and corporate

tax rate for SMEs is 17%, from the year of

assessment 2019

26-Oct-2020

per. sq. ft.

Non-clean room ACMV (water-cooled packaged units)

137.00 32.85

45.00 10.79

32.00 7.67

Unit Cost also very much depending on cleanroom class, floor loading, column spacing and building height which

already include the MEP (Mechanical, Electrical, and Plumbing) rates as follow:

TypesRM

190

200

260

265

295

360

45.56

350

47.96

52.76

64.75

64.75

71.94

83.93

200 270

220 300

270

12.00 2.88

12.00 2.88

Rate

18% - 24%

1% - 28%

RMUSD

Penang Island

RM USD

LocationSelling Price (per sq. ft.) (Subject to change)

USDRM

50

50

52

11.99

11.99

12.47

Mainland

Assumptions:

1Clean room and ACMV (Air Conditioning and Mechanical Ventilation)         

0% - 10%

Chilled water system (CH’s, CT’s, piping and fittings within chiller plant

room)

Clean room floor, ceiling, plenum, wall

Clean room electrical outgoing cable, clean room lighting, clean room DB’s

Clean room AHU, control, ducting, piping

25.00 6.00

Fire protection (sprinklers, hydrants, hose reel, conventional FA, etc.)

48.00

2

3

11.51

USD

63.549

47.96 70.743

62.35 86.33

4.17

Page 3

Page 5: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

3. Human Resources

Minimum Conditions of Employment

The Employment Act, 1955 is the main legislation on labor matters in Malaysia.

Paid annual leave for employees:

Less than two years of service 8 days

Two or more but less than 5 years of service 12 days

Over five years of service 16    days* Minimum paid annual leave to be provided for employees

Paid sick leave per calendar year:

Less than two years of service 14 days

Two or more but less than five years of service 18 days

Over five years of service 22 days

* Minimum paid annual leave to be provided for employees

Payment for overtime work:

Normal working days 1.5x hourly rate of pay

Rest days 2.0x hourly rate of pay

Public holidays 3.0x hourly rate of pay

Minimum Wages Order 2020

Shift Work:

Souce: International Labour Organization

http://www.ilo.org/dyn/natlex/docs/WEBTEXT/48055/66265/E55mys01.htm#c60c

USD 1.00 = MYR as of 26-Oct-2020

Where hospitalization is necessary

Paid maternity leave

Normal work hours

up to 60 days (inclusive of the paid sick leave entitlement

stated above)

Not exceeding eight hours in one day or 48 hours in one week

The new minimum wages is RM1,200 (USD288) per month. Minimum wages are defined as basic wages, excluding

any allowances or other payments.

At least 11 gazetted public holidays (inclusive of five compulsory public holidays;

National Day, Birthday of the Yang Dipertuan Agong, Birthday of Ruler/Federal

Territory Day, Labour day and Malaysia Day) in one calendar year and on any day

declared as a public holiday under section 8 of the Holiday Act 1951

60 days

An employee who is engaged under his contract of service in shift work may be required by his employer to work

more than eight hours in any one day or more than forty-eight hours in any one week but the average number of

hours worked over any period of three weeks, or over any period exceeding three weeks as may be approved by the

Director General, shall not exceed forty-eight per week.

Paid holiday

4.17

Page 4

Page 6: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

Statutory Contributions

Employees Provident Fund The compulsory contributions under the Employees Provident Fund (EPF) Act 1991:

11% of the

per employee per month employees' monthly wages

5.5% of the

per employee per month employees' monthly wagesSource: MIDA

Social Security Organisation (SOCSO)

• Government employees

• Domestic servants

• Self-employed persons

• Foreign workers (covered under Workmen’s Compensation Act 1952)

• Spouse/s of a sole proprietor or partners

Contribution for Local Employees

*Monthly contribution is subject to the ceiling of the insured wage of RM4,000.00 per month.

Contribution for Foreign WorkersThe rate contribution is 1.25% of the insured monthly wages and to be paid by the employer.

Source: SOSCO https://www.perkeso.gov.my/index.php/en/

USD 1.00 = MYR as of

60 years and below

60-75 years

26-Oct-2020

Employers

RM5.00 (USD 1.2)

Employees

Minimum of 11% of the

employees' monthly wages

Minimum of 4% of the employees' monthly wages

(i)  Monthly wages RM5,000 (USD1,200) and below -

Minimum of 13% of the employees' monthly wages

(ii) Monthly wages exceed RM5,000 (USD1,200) – Minimum

of 12% of the employees’ monthly wages

Employers Employees

All foreign workers and expatriates and their employers are exempted from compulsory contributions. They can,

however choose to contribute and the applicable rates are as follows:

Age Group

60 years and

below

60- 75  years None

Age Group

Age

Based on employees' monthly wages

Second Category

SOCSO administers two social security schemes for workers earning wages not exceeding RM4,000 (USD960) per

month. Once covered, workers remain covered irrespective of their wages. However, the maximum contribution is

based on wages of RM4,000 (USD960) per month.

Contribution

All Malaysian employees and permanent residents who have been employed by an employer under a contract of

service or apprenticeship are liable under SOCSO's act. Categories of employees exempted from SOCSO's coverage

are:

RM5.00 (USD 1.2)

All employees who have not reached the age of 60, must contribute

under the First Category except for those who have attained 55

years of age and have no prior contributions before they reach 55

due to non-eligibility under the Employees’ Social Security Act,

1969.

For eligible new employees who are 55 years of age, they must be

covered under the Second Category.

Note

SchemeEmployment Injury Scheme

Invalidity SchemeEmployment Injury Scheme

4.17

< 60 years

Employer (1.75%), Employee (0.5%)

Based on employees' monthly wages

60 years and above

Employer (1.25%)

First Category

Page 5

Page 7: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020Human Resources Development Fund (HRDF)

Source: MIDA

Employment Insurance System 2017 - Act 800 (EIS)

Employment of Expatriates

i. Employment Pass:

•         Key Post

•         Term Post ii. Processing Fees

iii. Journey Perform Visa

iv. No levy

Visit Pass [VP (TE)] - PLKS i. Levy:

ii. Processing Fees:

iii. Journey Perform

Visa (if applicable) Source: MIDA

USD 1.00 = MYR as of

Employment insurance system adminstered by the Social Security Organization is to provide certain benefits and

re-employment placement program for insuraed persona in the event of loss of the employment

Visit Pass (Temporary Employment) is

issued only for domestic helpers (maid).

26-Oct-2020

RM 500 (USD 120)

0.5% of employees' monthly wages

Rate of Levy Contributions

Beginning Jan 1, 2018, employers and employees will each have to contrinbute 0.2% of the employees' wages

towards an accumulated EIS fund.

The contribution to the fund is capped at wage level of RM4,000 (USD960) a month, although a person may earn

more than RM4,000 (USD960) a month, his contribution is fixed at 0.2% of RM 4,000

Employers with 5 to 9 employees regardless

of paid-up capital, are given the option to

register with HRDF

Employers with 10 employees and above

Categories of Employers

RM 300

RM 200

Per post/application (subject to visa entry

requirement according to each country of origin)

Type of Passes Payment of Fees

An employment pass is issued to expatriate to enable him to stay and work legally in the country. There are two

types of passes issued by the Immigration Department subject to the period of employment’s contract and the

monthly salary received by the expatriates.

Employment Pass (PG)

This pass is issued for key-post and term-

post position subject to the following

conditions:

RM 500

(USD 1,199)

B

A

HRDF operates on the basis of a levy/grant system. Employers who have paid the Human Resources Development

levy will qualify for training grants from the HRDF to defray or subsidise training costs for their Malaysian

employees.

Manufacturing companies cover under the Human Resources Development Berhad Act, 2001 are as follows:

Mandatory 1% of employees' monthly wages

• minimum period of employment’s

contract is (2) years and stamping;

and

• salary not less than RM 5,000

(USD 120)

RM 410 (USD 98)

RM 125 (USD 30)

RM 125

(USD 72)

(USD 48)

(USD 30)

4.17

Page 6

Page 8: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

Wage Rates (Monthly)

Finance

Financial Analyst Degree 3-4 years

Accountant Degree/

Professional Cert

Office support

Administrator Diploma/Degree 3-5 years

Sales, Marketing & Advertising

Customer Service Executive Diploma/Degree 2-3 years

Marketing Executive Diploma/Degree 2-4 years

Marketing Manager Higher Diploma/Degree 8 years

Human Resources

HR Manager Diploma/Degree 6-8 years

HR Officer / Executive Diploma/Degree 2-3 years

HR Assistant High School/Diploma 1-2 years

Information Technology

IT Executive Degree 2 years

Programmer Degree 1-2 years

Help Desk Analyst Degree 2-3 years

Web Designer Degree 2 years

Software Engineer Degree 2-3 years

Systems Analyst Degree 3-5 years

Business Development Manager Degree 3-5 years

Project Manager Degree 3-5 years

Helpdesk Tech Support

(Foreign Languages)

Logistic & Warehousing

Shipping Supervisor Diploma/Degree 3-5 years

Warehouse Executive Diploma 2-3 years

Buyer Diploma/Degree 2-3 years

Logistic Coordinator Diploma/Degree 3-5 years

Warehouse Manager Diploma/Degree 4-5 years

Engineering & Technical

QA Engineer Degree 4-5 years

Sales Engineer Technical/

Diploma/ Degree

Mechanical Engineer Engineering Degree 3-4 years

Electrical & Instrument Engineer Degree 4-6 years

Product Engineer Engineering Degree 4-6 years

Service Engineer Degree 3-4 years

Technical Manager Technical/

Diploma/ Degree

Maintenance Engineer Degree 3-4 years

Assembly Engineer Degree 2-3 years

Chemical Engineer Diploma/Degree 3-4 years

R&D Engineer Diploma/Degree 2-3 yearsNote: Salary figures are industry average. Figures may vary according to depth of expertise and experience.

Source: Malaysia Employment Outlook & Salary Guide 2018/19 by Kelly Services

USD 1.00 = MYR as of

13,000

26-Oct-2020

1,151

959

1,271

Degree

3,118

1,559

1,918

2,014

1,559

1,559

1,559

3,500

8,000

3,300

3,300

1,559

1,918

1,918

2,014

1,871

8,000

5,200

4,600

3,600

767

8,400 2,014

1,271

1,271

1,007

1,175

3,500

3,300 791

839 7,000

6,500 1,559

2,100

3,357

2,038

2,158

1,511

1,271

1,391

1,151

1,127

2-3 years

Maximum

1,487

743

863

552

624 4,900

4,200

5,300

5,300

3,600

6,200

1,127

2,878

2,518

1,103

1,103

1,535

6,000

3,000

3,100

7,200

8,000

3,100

1,559

3,500

2,600

2,300

3,600

3,100

839

6,200

1,679

3,200 767 6,500

1,439

3-4 years

791

791

839

4-5 years 6,200

6,000

5,000

USD

7,800

5,300

4,000

4,800

4,700

8,400

8,500

9,000

6,300

5,300

5,800

4,800

4,600

6,400

3,900

4,600

839

10,500

14,000

1,103

863

719

743

1,727

1,918

743

504

863

935

1,439

1,199

1,247

PositionMinimum

1,487 8,400

6,500

6,500

4-5 years

3,500

RM USD

12,000

RM

1,487

ExperienceQualification(s)

6,500

6,500

6,500

8,000

8,000

4,700

3,200

1,918

4.17

Page 7

Page 9: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

4. Utilities

Electricity Rates (Peninsular Malaysia)

TARIFF D – LOW VOLTAGE INDUSTRIAL TARIFF

For the first 200 kWh (1 -200 kWh) per month

For the next kWh (201 kWh onwards) per month

The minimum monthly charge

TARIFF E1 - MEDIUM VOLTAGE GENERAL INDUSTRIAL TARIFF

For each kilowatt of maximum demand per month

For all kWh

The minimum monthly charge

TARIFF E2 - MEDIUM VOLTAGE PEAK/OFF-PEAK INDUSTRIAL TARIFF

For each kilowatt of maximum demand per month during the peak period

For all kWh during the peak period

For all kWh during the off-peak period

The minimum monthly charge

TARIFF E3 - HIGH VOLTAGE PEAK/OFF-PEAK INDUSTRIAL TARIFF

For each kilowatt of maximum demand per month during the peak period

For all kWh during the peak period

For all kWh during the off-peak period

The minimum monthly charge(Source: Tenaga National Berhad on Jan 2019)

Water Rate (Penang)

Tariff 2: Trade ordinaryMinimum charge: per month per monthFirst 20 m3

More than 20 m3to 40 m3

More than 40 m3 to 200 m3

More than 200 m3

(Source: Perbadanan Bekalan Air Pulau Pinang Sdn Bhd, as on Jul 2017)

Comparison of Water Rate by States in Malaysia

Price per m³ Min. Payment/

(RM) month (RM)

Penang Industrial/ Commmercial 0 - 20 m³

20 - 40 m³

40 - 200 m³

Above 200 m³

Selangor Industrial/Commercial 0 - 35m³

35m³ and above

Johor Industrial/Commercial 0 - 35m³

35m³ and above

Kedah Commercial 0 - 50m³

51 - 200m³

201 - 350m³

More than 350m³

Industrial 0 - 1,000m³

1,001 - 10,000m³

10,001 - 50,000m³

More than 50,001m³

Source: MIDA

USD 1.00 = MYR as of

0.38 /kWh

26-Oct-2020

0.441 /kWh

7.20

RM USD

0.09 /kWh

0.11 /kWh

1.73

1.80

1.40

0.337 /kWh

600

1.60

1.80

2.10

37.00 /kW

0.355 /kWh

0.219 /kWh

State

0.85

1.05

1.30

1.45

2.07

2.28

2.80

3.30

1.40

8.87 /kW

143.88

600

35.5 /kW

0.337 /kWh

1.50

Usage

1.60

36.00

30.00

15.00

15.00

0.08 /kWh

Category RM per 1,000 litres USD per 1,000 litres

0.851.051.301.45

0.200.250.310.35

12 2.88

7.1 /kW

0.202 /kWh

600 143.88

0.05 /kWh

0.08 /kWh

8.51 /kW

143.88

0.05 /kWh

0.09 /kWh

29.6 /kW

CURRENT RATETARIFF CATEGORY

12.00

4.17

Page 8

Page 10: COST OF DOING BUSINESS IN MALAYSIA / PENANG · USD 1,539 USD 1,679 RM 2,420 RM 2,535 USD 580 USD 608 Location Selling price p.s.f. of floor area Type RM 11,712 USD 2,809 Terrace -

Cost of Doing Business - 2020

Sewerage Rates

Industrial Customers

Industrial customers will be charged based on the total number of employees

Scheduled Waste Treatment Rates

Mineral Oil Wastes

Wastes containing lubricating oil, hydraulic oil, etc.

Organic Chemical Wastes Containing Halogens and/or Sulphur > 1%

Freon, PVC wastes, chloroform, solvents, capacitors and transformers containing PCB, etc.

Waste Solvents Containing Halogens and/or Sulphur < 1%

Organic Chemical Wastes Containing Halogens and/or Sulphur < 1%

Glue, latex, paint, phenol, printing ink, synthetic oils, soap, epoxy, etc.

Wastes Containing Mercury

Mercury, vapour lamps, COD-fluids, mercury batteries, etc.

Pesticide Wastes

Insecticides, fungus and weed killers, rat poison, etc

Inorganic Wastes

Miscellaneous

Organic Wastes for Incineration

*Note: Packaged wastes refers to wastes packed in standard 200-litre drums or 1m3 PP Bags.

(Source: MIDA)

USD 1.00 = MYR as of

-810

-

647

-

-

-

USD

26-Oct-2020

755

- -

3,600 863

-

2,790 669

(per tonne)

Packaged Wastes*

Sewerage services in Malaysia were privatised in 1994 and are managed by Indah Water Konsortium Sdn. Bhd., a

company wholly owned by Minister of Finance Incorporated. It operates in 86 Local Authorities areas except those in

Johor Bahru, Kelantan, Sabah and Sarawak.

Waste Group

-

- - -

1,800 432 2,700

T 3,600 863 - - -3,150

4.17

194

3,150 755

1,350 324

1,890

630 151

453

A

B

C

H

K

T

X

Z

A

B - -

Waste

Group (per tonne)

RM USD

C

H/Z

-

RMRM USD

Pumpable liquid

(per tonne)

RM USD

Solid

(per tonne)

Pumpable liquid

Kualiti Alam Sdn. Bhd. is a designated company providing off-site scheduled waste treatment disposal services in

Peninsular Malaysia. Its waste management centre is located at Bukit Nanas in Negeri Sembilan. Scheduled wastes

must be disposed through department of environment licensed scheduled waste with recovery contractors. For non-

scheduled wastes, collection and disposal rates vary according to location and contractor.

Acids, alkaline, sodium hypochlorite, inorganic salts, metal hydroxide sludge, chromate and cyanide

waste, etc.

Bulk Wastes

Solid

Premises receiving sewerage services

(USD 0.48)

per head per month

Waste Type

(USD 0.6)RM2.50

per head per month

RM2.00Premises with individual septic tanks

Medicine wastes, lab-packs, asbestos wastes, mineral sludges, isocyanates (MDI,TDI), batteries, etc.

Acetone, alcohols (eg. ethanol, methanol), benzene, turpentine, xylene, etc. Waste should be

pumpable, containing < 50% water and 18MJ/kg calorofic value

Page 9

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Cost of Doing Business - 2020

Liquid Inorganic Wastes for Physical/Chemical Treatment

Acid Wastes Without Chromate (X)

Alkaline Wastes Without Cyandie (X)

Chromate Wastes (X)

Cyanide Wastes (X)

Mercury Wastes (K)

Inorganic Wastes for Solidification

X / Z

Inorganic Wastes for Direct Landfill

X / Z

Encapsulation

Contaminated Crushed Drum and Other Contaminated Waste

Cementation

Dry Cell Batteries and Other Miscellaneous Wastes

Source: MIDA

USD 1.00 = MYR as of

1,440

RM

26-Oct-2020

RM

1,440

194

1,800

Waste Group

Packaged Wastes*

(per tonne)

RM USD

Waste Group (Z)

Packaged Wastes*

(per tonne)

RM USD

900 216

Packaged Wastes*

(per tonne)

RM USD

1,500 360

Waste Group (Z)

495 119

Waste in Bulk

(per tonne)

RM USD

765 183

Waste in Bulk

(per tonne)

RM USD

450 108

Waste Group

Packaged Wastes*

(per tonne)

3,600

USD

810

863 3,780 906

Waste Group

800-litre Pallet Tank

(per tonne)

200-litre Drum

(per tonne)

345 1,620 388

345 1,620 388

1,800 432 1,980 475

432 1,980 475

USD RM USD

4.17

Page 10

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Cost of Doing Business - 2020Transportation Rates

Negeri Sembilan

Kuala Lumpur

(Wilayah Persekutuan)

Melaka

Selangor

Perak

Johor

Pahang

Penang

Terengganu

Kedah

Kelantan

Perlis

Source: Kualiti Alam Shd. Bhd. - www.kualitialam.com.my

Natural Gas Tariff - Industrial

Effective 1 Jan 2020 until 31 Dec 2020, inclusive of GCPT surcharge of RM0.23/MMBtu

Source: Gas Malaysia Berhad - www.gasmalaysia.com

USD 1.00 = MYR as of

66.10

75.89

82.01

17.90

15.85

26-Oct-2020

113.59

60.71 18.20

226.44

42.11 10.10 105.26

14.56

225.22 54.01

25.24

24.66

Note: For waste on pallets,the rates are quotes in 2 tiers. The 1st tier is for a minimum of 18 pallets and the 2nd is for any

pallets above the minimum 18 pallets in the same consignment.

1 Tariff C 31.86

1050

1152

1166

1190

1240

760

54.89

184.09 44.15 92.04 22.07 230.11 55.18

23.77

19.67

5

90.09 21.60

33.99 8.15 > 750,000

4 Tariff F 33.45 8.02 200,001 - 750,000

3 Tariff E 33.45 8.02 50,001 - 200,000

2 Tariff D 5,011 - 50,00032.15 7.71

Tariff L

56.79 13.62 141.98

183.11 43.91 228.89

54.30

34.05

181.15 43.44 90.58

99.14

82.25 19.72 41.13 9.86 102.82

84.21 20.19

180.17 43.21

65.61 15.73

114

248

274

374

59.73 14.32

652

722

74.66

26.44 6.34

21.72

29.87 7.16

91.56 21.96

30.36 7.28

32.80 7.87

52.88 12.68

27.24

79.32 19.02 39.66 9.51

RM USD RM USD RM

KM Statemin. 18 pallet

1st Tier

Per Pallet

2nd Tier

Above 18 pallet

USD

Per Metric

Tonne

7.64 601 - 5,000

Price

(RM/MMBtu)

RM USD

NoApplicability Range

MMBtu/year

4.17

Tariff Category

Page 11

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Cost of Doing Business - 2020

5. Transportation Costs

Container Haulage Rates

Haulage base: Port Klang (North Port)

Source: MIDA

Ocean Freight Rates

Rates quoted are subject to:

1.      THL/THD/DOC and EDI

2.      BAF/ CAF/WAR RISK/ PEAK SEASON surcharges as per Conference announcement.

AUSTRALIA

Main ports

CHINA

Shanghai

EUROPE

Main ports

USA

INDIA

Navasheva

JAPAN

Main ports

KOREA

Pusan

WEST MEDITERRANEAN

Main ports

NEW ZEALAND

SOUTH AFRICA

Source: MIDA

USD 1.00 = MYR as of

3,400

1,200

800

40-ft container

USD

26-Oct-2020

2,883.00

2,902.70

1029.43

USD

Actual at

Cost

Road Toll

639.09

1,162.00

696.09

605.00

86.29

97.95

460.93

564.71

850.01

436.47

153.26

2,847.00

900

200

950

1,300

835.79

822.59

1151.66641.61

515.75

337.30

211.00

850.82

2,000

400

400

600

1,625

100

3,430.21

2,818.00 3,485.23

376.90

450.41

456.23

1,406.53

1,762.00

4,802.41

188.13

285.27

726.15 174.14

786.61 188.64

800

4,100

20-ft container

USD

2,782.00

Area

PORT KLANG - Shah Alam

PETALING JAYA - Sungai Way

PERAK - Tanjong Malim

PENANG - Butterworth/ Seberang Perai

KEDAH - Kulim

PERLIS - Kangar

NEGERI SEMBILAN - Nilai

533.00

677.00 109.61

TERENGGANU - Kerteh

JOHOR - Pasir Gudang

From Port Klang to:

2,328.00

(RM)

SELANGOR - Banting

(RM)

20' & 40'

RM

1,900

2,500

450

PAHANG - Kuantan

KELANTAN - Kota Bharu

MELAKA - Air Keroh Industrial Area

3,544.56

3,547.93

20' & 40'

FAFHaulage

Rates

12.47%

period from

1st June

2011

Total

Effective 1st

Jan 2007

19.80

Los Angeles1,800 2,200

197.80

197.80

197.80

240.00

240.00

56.40

103.40

3,488.00 4,292.71

466.76

1,515.00 1,820.08245.28

23.20

0.00

4.17

2,150.67

3,963.00

59.80

194.80

Page 12

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Cost of Doing Business - 2020Courier Service Rates

Various Malaysian and international companies provide courier services in Malaysia.

Source: MIDA

USD 1.00 = MYR as of

30

26-Oct-2020

32

25

USD

6

UK

USA

Destination

Country

Australia

First 500 gm

80

105

70

80

55 80

80

70

4

819

17

USD

19

13

9 2

RM

15

8

6

Documents

Next 500 gm

Merchandise

First 200 gm Next 200 gm

RM

Germany

Japan

25 9

105 25

105 25 9 2

19 7 2

2

25

32

19 7 2

RM

17

RM USDUSD

Max. Weight Limit (kg)

4.17

Page 13

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Cost of Doing Business - 2020

Note/Remark

Page 14

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Cost of Doing Business - 2020

Disclaimer: The content of the booklet is not comprehensive and it is for general information purposes only and does not constitute

advise. InvestPenang has taken all reasonable measures to ensure that the information is correct. However, InvestPenang gives no

warranty and accepts no responsibility for the accuracy or the completeness of the information contained in this booklet. All content

and information in the booklet might be changed or updated without notice.

Page 15