1. No category

Cost of Doing Business – January 2015
COST OF DOING BUSINESS IN
MALAYSIA / PENANG
Table of Contents
Page
No.
1. Starting a Business 2-9
Invest-in-Penang Berhad
PSDC Building, 1, Jalan Sultan Azlan Shah,
Bayan Lepas, 11900 Penang, Malaysia
Tel: +604 646 8833 Fax: +604 646 8811
www.investpenang.gov.my
1|Page
2. Taxation
9
3. Human Resources
10-15
4. Utilities
15-22
5. Transportation
Costs
23-27
Cost of Doing Business – January 2015
Comparative cost of doing business
Location
Water
Electricity
(USD/cu.
m3)
Office
Rents
(USD/kwH)
Legal
minimum
wage
(monthly, in
USD)
Regular
gasoline price
Industrial estate
(land) purchase
rate
(Cost /sq m, in
USD)
(price/ sq.
(1 liter, in
m /year,
USD)
in USD)
Malaysia
0.43
0.11
288
296
0.63
30-67
Thailand
0.37
0.11
252
197
1.44
144
Vietnam
0.43
0.09
420
113
1.11
Philippines
0.91
0.27
240
220
1.27
98-112
Indonesia
1.01
0.09
276
226
0.71
180-297
Singapore
1.80
0.23
960
1.71
209-1,180
China
0.64
0.13
540
231
1.23
143-167
India
0.30
0.12
528
128
1.35
55-91
Source: The 23rd Survey of Investment Related Costs in Asia and Oceania, Japan External Trade
Organization (JETRO), FY 2012 Survey
Salary Comparison
Location
Managers
(department
chief level)
Staffs (NonWorkers
manufacturing,
(general workers)
general level)
monthly (in USD)
Malaysia
1,966
944
858
344
Thailand
1,574
698
664
345
Vietnam
787
342
418
145
Philippines
1,070
452
493
301
Indonesia
1057
433
423
239
Singapore
4,268
2,325
2,330
1,230
China
1,456
835
824
449
India
1,395
641
562
276
Source: The 23rd Survey of Investment Related Costs in Asia and Oceania, Japan External Trade
Organization (JETRO), FY 2012 Survey
2|Page
Engineers (midlevel engineers)
Cost of Doing Business – January 2015
Cost of Doing Business in Malaysia/ Penang
1. Starting a Business
Main fees to be paid to the Companies Commission of Malaysia (SSM)
Reservation of a name
RM
US$
30
9
For registration of a company, fees range according to nominal share capital, e.g.:
• Not exceeding RM100,000 (US$31,250)
1,000
303
• RM100,001 - 500,000 (US$31,250 - 156,250)
3,000
909
• RM500,001 - RM1 million (US$156,250 - US$312,500)
5,000
1,515
• RM1,000,001 - RM5 million (US$312,500 - US$1.6 million)
8,000
2,424
• RM5,000,001 - RM10 million (US$1.6 million - US$3.13 million)
10, 000
3030
• RM10,000,001 - RM25 million (US$3.13 million - US$7.81 million)
20,000
6,061
• RM25,000,001 - RM50 million (US$7.81 million - US$15.63 million)
40,000
12,121
50,000
70,000
15,152
21,212
• RM50,000,001 - RM100 million (US$15.63 million - US$31.25 million)
• Exceeding RM100 million (US$15.63 million)
USD 1 = RM3.3
For the full range of fees, please go to CCM's website at www.ssm.com.my
Source: MIDA
Recommended Fees for Company Secretarial Services
Incorporation of a Sdn. Bhd. (private limited company)
Incorporation of a Bhd. (public limited company)
Monthly Fees
Private Company:
- Dormant
- Semi-active
- Active
Public Company:
- Non-Listed
- Listed
Consultancy and advisory fee
(minimum, per hour)
USD 1 = RM3.3
Source: MIDA
3|Page
Professional Fees
RM
2,000
3,500
US$
606
1,061
Retainer Fees
RM
US$
RM
US$
50
100
150
15
30
45
100
150
300
30
45
91
200
300
61
750
227
91
2,000
606
Minimum RM300(USD 91) per hour or
part thereof (subject to negotiation )
Cost of Doing Business – January 2015
Rental Rates for Prime Office Space
Location
RM
US$
Alor Setar, Kedah
21.50 - 27.00
6.52 - 8.18
Georgetown, Penang
27.00 - 30.00
8.18 - 9.09
Ipoh, Perak
10.70 - 20.40
3.24 - 6.18
Kuala Lumpur*
64.60 - 102.25
19.58 - 30.98
Petaling Jaya, Selangor
37.70 - 53.80
11.42 - 16.30
Seremban, Negeri Sembilan
19.40 - 25.80
5.88 – 7.82
Melaka
10.70 - 27.00
3.24 - 8.18
Johor Bahru, Johor
27.00 - 32.30
8.18 – 9.79
Kuantan, Pahang
13.00 - 27.00
3.94 - 8.18
Kuala Terengganu, Terengganu
21.50 - 27.00
6.52 - 8.18
Kota Bharu, Kelantan
16.00 - 27.00
4.85 - 8.18
Kota Kinabalu, Sabah
27.00 - 32.30
8.18 – 9.79
Kuching, Sarawak
15.00 - 27.00
4.55 – 8.18
USD 1 = RM3.3
The above rates are approximate rentals (gross) per sq. metre per month inclusive of service
charge.
Note: 1 sq. metre = 10.76 sq.ft.
*Rental excludes Petronas Twin Towers
Source: MIDA
Cost of Prime Office Space in Penang
Penang Island
Mainland, Penang
Georgetown
Bayan Lepas/ Bayan
(RM psf)
(RM psf)
Baru (RM psf)
Rent
1.20-3.50
1.50-2.00
Sale
Depends on the owner & agreement
* The above rates are approximate rentals (gross) per sq. metre per month and is subject to
change
Source: Different consultants in Penang
4|Page
Cost of Doing Business – January 2015
Cost of Industrial Land & Factory
Ready Built Factory Unit
Location
Unit Type
Bukit Minyak
Industrial
Park
Bayan Lepas
Industrial
Park (Phase
IV)
BuiltUp
(sq.ft)
Land Area
(sq.ft)
Purchase Price
Rental
Semi-Detached
5,834
15,518-22,848
Terrace - Standard
Unit
Corner Unit
2,304
2,594
RM630,000
USD 190,909
RM243,000
USD 73,636
RM5,251 – 7,000
USD 1,591-2121
RM2,074
USD 628
2,334
3,417- 6,148
Semi-Detached
5,834
16,221-16,533
Terrace - Standard
Unit
Corner Unit
2,303
2,594
From RM253,000
From USD 76,667
RM1,100,000
USD 333,333
RM 420,000
USD 127,273
RM2,101
USD 637
RM7,614
USD 2,307
RM2,994
USD 907
2,334
4,079-4,585
From RM 460,000
From USD 139,394
RM3,035.00
USD 920
USD 1 = RM3.3
* The information contained herein is subject to change and cannot form part of an offer or
contract.
Source: PDC
SME Units at Bukit Minyak Industrial Park
The project, consisting of 27 Units of ready-built factory buildings is currently under construction.
Details
Cluster
Terrace
From 4,634
From 3,149
Built-up Area (sq. ft)
2,599
3,087
Price per unit (RM)
FromRM 845,000
From 973,000
From 2.05 mil
USD 256,061
USD 294,849
USD 0.62mil
Land Area (sq. ft)
SemiDetached
Bungalow
From 11,732
SOLD OUT
4,482
Leasehold tenure: 60 years
USD 1 = RM3.3
* The information contained herein is subject to change and cannot form part of an offer or
contract.
Source: PDC
5|Page
Cost of Doing Business – January 2015
SME Village Batu Kawan
The project will be developed in phases and is currently under construction.
Details
Terrace
Semi- Detached
Land Area (sq. ft)
3,600
12,000
Built-up Area (sq. ft)
2,575,
7,270
Rental per unit per month
RM 3,860 @ 1.50 p.s.f
RM 13,000 @ 1.80 p.s.f
USD 1170
USD 3939
RM 880,000
RM 2,750,000
USD 266,667
USD 833,333
Price per unit
USD 1 = RM3.3
* The information contained herein is subject to change and cannot form part of an offer or
contract.
Source: PDC
Cost of Ready-built Factory in Penang
Type
Location
Selling price per
Penang
ft² of floor area
Mainland
Rental per ft² per
month
Bayan Lepas/ Bayan
Baru
Mainland
RM
RM168.00 - 400.00
*Depends on the owner &
agreement
RM 141.00 - 330.00
*Depends on the owner &
agreement
RM1.50 - 3.53
USD
US$50.90 - 121.21
*Depends on the
owner & agreement
US$42.72 – 100.00
*Depends on the
owner & agreement
US$0.45 - 1.07
RM0.70 -2.50
US$0.21 - 0.52
USD 1 = RM3.3
Source: MIDA
Cost of Industrial Land
Location
Selling Price (per sq. ft.) (Subject to
change)
RM
USD
Penang Science Park
40.00
12.12
Bukit Minyak Industrial Park
40.00
12.12
Batu Kawan Industrial Park
40.00
12.12
USD 1 = RM3.3
Source: PDC
6|Page
Cost of Doing Business – January 2015
Property Assessment
Property assessment, also known as assessment rates is a form of taxation imposed by the local
municipal council on all properties based on the 'Annual Value' and the Annual 'Percentage Rate'.
The percentage rate is fixed annually by the Council according to its annual budgetary needs.
The assessment rate payable for rateable properties is calculated with the following formula:
Assessment rate = Annual Value x Rate %
Property Assessment Rate (Penang Island)
Type of Property
Landed (Residential)
Low Cost (Residential)
Apartment /Condominium (Residential)
Commercial
Industrial
Hotel
Associations / Kongsi
Land for Development (Urban Areas)
Land for Development (Rural Areas)
Agricultural (Rural Areas)
Golf Club/ Turf Club
Source: Majlis Perbandaran Pulau Pinang, MPPP
Property Assessment Rate (Mainland)
Type of Property
Residential Scheme:
-Landed Residential (inclusive of landed low cost)
-Strata Except Low Cost
-Low Cost Strata
Village Residential
Commercial
-Urban
-Rural
Industrial
Light Industry
Agricultural SME
Agricultural Land
Development Land
Association/Organization
-Urban
-Rural
Golf Course
Source:Majlis Perbandaran Seberang Perai, MPSP
7|Page
Assessment Rate
9.30%
7.50%
8.50%
11.55%
14.75%
14.75%
7.00%
5.50%
2.70%
1.00%
14.75%
Assessment Rate
8.00%
7.00%
5.00%
0.40%
10.75%
8.25%
11.25%
10.75%
8.05%
0.00%
3.10%
9.50%
7.00%
11.25%
Cost of Doing Business – January 2015
Quit Rent
(a) Town Land
Location
Georgetown
Jelutong
Air Itam
Gelugor
Bukit Bendera
Butterworth
Prai
Tanjong Bungah
Batu Ferringhi
Bukit Mertajam
Bayan Lepas
Balik Pulau
Nibong Tebal
Kapala Batas
Industrial Purpose
RM1.29 m2
minimum RM300 per
lot
-same-same-same-same-same-same-same-
-same-same-sameRM1.08 m2
minimum RM200 per
lot
-same-same-
(b) Country Land
Location
Industrial Purpose
Prai
RM 1.08 m2
minimum RM150 per
lot
Valdor
-sameBukit Minyak
-sameBukit Panchor
-sameTasek
-sameSeberang Jaya
-sameBayan Baru
-sameBatu Maung
RM0.65m2
minimum RM100 per
lot
Sungai Ara
-sameBatu Kawan
-sameSungai Rambai
-sameBertam
-same-
Simpang Empat
Areas other
than the above
-sameRM0.65 m2 minimum
RM80 per lot
Sungai Bakap
-sameSource: Penang Lands and Mines Office
Construction labor rates in Penang
Types of Labor
1
Concretor
2
Bricklayer
3
Tler
4
Carpenter
5
Barbender
6
Welder
7
Plasterer
8
Plumber
9
Painter
USD 1 = RM3.3
Source: CIDB
8|Page
Unit
per 8 hour day
per 8 hour day
per 8 hour day
per 8 hour day
per 8 hour day
per 8 hour day
per 8 hour day
per 8 hour day
per 8 hour day
Residential & Commercial Projects
Rate (USD)
Rate (RM)
29.70
98.00
27.27
90.00
32.42
107.00
30.45
100.50
29.45
97.20
25.76
85.00
29.85
98.50
29.55
97.50
29.85
98.50
Cost of Doing Business – January 2015
Average Construction Costs of Factory Building (per sq. ft.)
Mainland
Penang Island
RM
US$
RM
US$
Factory with reinforced concrete structure
200-270
60.61 - 81.82
190 - 265
57.58 - 80.30
Steel portal frame on reinforced concrete
220-300
66.67 - 90.91
200 - 295
60.61 - 89.39
Factory with clean room facilities
USD 1 = RM3.3
Source from different consultants
270-350
84.38 - 109.38
260 - 360
78.79 - 109.09
Additional Information:
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:
Mechanical estimate. No or negligible cost variance between Penang island and mainland.
Types
RM per sq. ft USD per sq. ft
1 Clean room and ACMV(Air Conditioning and Mechanical
Ventilation)
Assumptions:
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
2 Non-clean room ACMV (water-cooled packaged units)
3 Fire protection (sprinklers, hydrants, hose reel, conventional
FA, etc.)
USD 1 = RM3.3
Source from different consultants
137.00
41.52
45.00
13.64
32.00
12.00
9.70
3.64
48.00
25.00
12.00
14.55
7.58
3.64
2. Taxation
Tax
Company Tax
Rate
20% – 25%
Personal Income Tax
0% - 26%
Withholding Tax
3% – 15%
Sales Tax
5% – 10%
Capital Allowance
Rate
Initial Allowances
10 %– 40%
Annual Allowances
3% - 40%
9|Page
Note: Effective the year of assessment 2004,
SMEs with a paid-up capital of RM2.5 million and
below are eligible for a reduced corporate tax
rate of 20% on the chargeable income of up to
RM500,000 and 25% on subsequent chargeable
income.
Note: As announced in budget 2015,corporate
tax rate be reduced by 1 percentage point from
25% to 24% and corporate tax rate for SMEs will
be reduced by 1 percentage point from 20% to
19%, from the year of assessment 2016.
Source: MIDA
Cost of Doing Business – January 2015
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
45%
37%
30%
25% 26%
35%
30% 32%
25%
17%
33.99%
30.90%
25%
20%
Corporate Tax
Personal Income Tax
Source: TaxRates.cc; http://www.taxrates.cc/
3. Human Resources
Minimum Conditions of Employment
The Employment Act, 1955 is the main legislation on labor matters in Malaysia.
Paid maternity leave
Normal work hours
Paid holiday
60 days
Not exceeding eight hours in one day or 48 hours in one week
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
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
Two or more but less than five years of
service
Over five years of service
Where hospitalisation is necessary
14 days
18 days
22 days
up to 60 days (inclusive of the paid sick leave
entitlement stated above)
* Minimum paid annual leave to be provided for employees
10 | P a g e
Cost of Doing Business – January 2015
Payment for overtime work:
Normal working days
one-and-a-half times the hourly rate of pay
Rest days
two times the hourly rate of pay
Public holidays
three times the hourly rate of pay
Source: MIDA
Shift Work:
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.
Souce: International Labour Organization
http://www.ilo.org/dyn/natlex/docs/WEBTEXT/48055/66265/E55mys01.htm#c60c
Statutory Contributions
Employees Provident Fund
The compulsory contributions under the Employees Provident Fund (EPF) Act 1991:
Age Group
60 years and below
60-75 years
Employers
Minimum of 12% of the
employees' monthly wages
Minimum of 6%
of the employees' monthly wages
Employees
Minimum of 11% of the
employees' monthly wages
Minimum of 5.5% of the
employees' monthly wages
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
Employers
RM5.00 (US$1.52)
per employee per month
RM5.00 (US$1.52)
per employees per month
Employees
11% of the
employees' monthly wages
5.5% of the
employees' monthly wages
USD 1 = RM3.30
Note: Employers’ statutory contribution rate is 13% for employees earning less than RM5,000
(Effective from 1 January 2012)
Source: MIDA
Social Security Organisation (SOCSO)
SOCSO administers two social security schemes for workers earning wages not exceeding
RM3,000 (US$938) per month. Once covered, workers remain covered irrespective of their
wages. However, the maximum contribution is based on wages of RM3,000 (US$938) per month.
11 | P a g e
Cost of Doing Business – January 2015
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:
•
•
•
•
•
Government employees
Domestic servants
Self-employed persons
Foreign workers
Business owner and spouses of sole-proprietorship or partnership
Contribution under Employment Injury Insurance Scheme:
• Employers - 1.25% of the employee's wages
• Employees - Nil
Contribution under the Invalidity Pension Scheme:
• 1% of the employee's wages shared equally by the employer and employee.
Source: MIDA
Human Resources Development Fund (HRDF)
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:
Categories of Employers
Rate of Levy Contributions
Employers with 50 employees and above
1% of employees' monthly wages
Employers with 10 to 49 employees and a paid-up
capital of RM2.5 million (US$757,576) and above
1% of employees' monthly wages
Employers with 10 to 49 bemployees and a paid-up
capital of less than RM2.5 million (US$757,576), are
given the option to register with HRDF
USD 1 = RM3.30
Source: MIDA
0.5% of employees' monthly wages
12 | P a g e
Cost of Doing Business – January 2015
Employment of Expatriates
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.
Type of Passes
Payment of Fees
Employment
Pass
(PG)
i. Employment Pass:
A
This pass is issued for key-post and
 Key Post
RM300 (USD91)
term-post position subject to the
 Term Post
RM 200 (USD61)
following conditions:


minimum period of
employment’s contract is (2)
years and stamping; and
salary not less than
RM3,000 (US$938)
B Visit Pass
Visit Pass (Temporary Employment) is
issued only for domestic helpers.
ii. Processing Fees
RM50 (USD152)
iii. Journey Perform Visa RM500 (USD152)
Per post/application (subject to visa entry
requirement according to each country of
origin)
iv.
i.
ii.
iii.
iv.
No levy
PLKS/VP (TE) Pass:
RM60 (USD19) per year
Levy:
RM 410 (USD125)
Processing Fees:
RM50 (USD16)
Journey Perform
Visa (if applicable)
RM500(USD152)
USD 1 = RM3.30
Source: MIDA
Wage Rates (Monthly)
Position
Finance
Financial Analyst
Accountant
Office support
Front Desk Assistant
Data Entry Assistant
Despatch
Administrator
Sales, Marketing &
Advertising
Customer Service Executive
Sales Executive
Marketing Executive
Marketing Manager
13 | P a g e
Minimum
RM
USD
Maximum
RM
USD
2-3 years
6000
1,818
8000
2,424
4-5 years
5,000
1,515
7,000
2,121
High School
High School
High School
Diploma/Degree
1-2 years
1-2 years
1-2 years
3-5 years
1,800
1,500
1,200
3,000
545
455
364
909
2,500
1,600
1,500
5,000
758
485
455
1,515
Diploma/Degree
High School/
Diploma/Degree
Diploma/Degree
Higher
Diploma/Degree
2-3 years
2,300
697
3,000
909
1-2 years
2,200
667
3,000
909
2-4 years
3,000
909
4,500
1,364
4-5 years
5,000
1,515
8,500
2,576
Qualification(s)
Experience
Degree
Degree/
Professional Cert
Cost of Doing Business – January 2015
Human Resources
HR Manager
HR Officer / Executive
HR Assistant
Information Technology
IT Executive
Programmer
Help Desk Analyst
Web Designer
Software Engineer
Systems Analyst
Business Development
Manager
Project Manager
Helpdesk Tech Support
(Foreign Languages)
Logistic & Warehousing
Shipping Supervisor
Warehouse Executive
Buyer
Logistic Coordinator
Warehouse Manager
Engineering & Technical
QA Inspector
Electrical Technician
Sales Engineer
Mechanical Engineer
Product Engineer
Service Engineer
Technical Manager
Assembly Engineer
R&D Engineer
Diploma/Degree
Diploma/Degree
High
School/Diploma
6-8 years
2-3 years
8,000
3,000
2,424
909
11,000
4,500
3,333
1,364
1-2 years
2,000
606
3,000
909
Degree
Degree
Degree
Degree
Degree
Degree
2 years
1-2 years
2-3 years
2 years
2-3 years
3-5 years
3,500
3,800
4,500
4,500
4,500
6,000
1,061
1,152
1,364
1,364
1,364
1,818
4,500
5,500
5,500
5,000
6,000
8,500
1,364
1,667
1,667
1,515
1,818
2,576
Degree
3-5 years
5,500
1,667
8,000
2,424
Degree
Degree
6-10 years
9,500
2,879
13,000
3,939
2-3 years
5,000
1,515
8,000
2,424
Diploma/Degree
Diploma
Diploma/Degree
Diploma/Degree
Diploma/Degree
3-5 years
2-3 years
2-3 years
3-5 years
4-5 years
2,500
2,200
3,500
3,000
6,000
758
667
1,061
909
1,818
4,000
4,000
5,000
5,000
8,000
1,212
1,212
1,515
1,515
2,424
Degree
Technical Diploma
Technical/
Diploma/ Degree
Engineering
Degree
Engineering
Degree
Degree
Technical/
Diploma/ Degree
Degree
2-4 years
2-3 years
3,500
2,000
1,061
606
5,500
2,800
1,667
848
2 years
3,500
1,061
5,500
1,667
2-3 years
4,500
1,364
6,500
1,970
3-5 years
4,000
1,212
7,500
2,273
3-4 years
3,800
1,152
6,000
1,818
3-6 years
6,500
1,970
8,500
2,576
2-3 years
2,500
758
5,500
1,667
Diploma/Degree
2-3 years
3,500
1,061
5,500
1,667
USD 1 = RM3.30
Note: Salary figures are industry average. Figures may vary according to depth of expertise and
experience.
Source: Malaysia Employment Outlook & Salary Guide 2014/15 by Kelly Services
14 | P a g e
Cost of Doing Business – January 2015
Salary Comparison in Engineering
Field (USD)
4000
3000
Manager
2000
Senior executive
fresh graduate
1000
USD1= MYR3.2
USD1= SGD1.25
USD1= INR62.45
0
USD1= PHP43.25
Malaysia
Singapore
India
Philippines
Source: Jobstreet Salary Report 2013/2014
Source: Jobstreet Salary Report 2013/2014
15 | P a g e
Cost of Doing Business – January 2015
4. Utilities
Electricity Rates
This tariff is effective from 1st January 2014 and supersedes the previous tariff schedule which
was effective on 12th August 2011.
Tariff Category
Unit
RM
USD
Tariff A - Domestic Tariff
sen/kWh
For the first 200 kWh (1 - 200 kWh) per month sen/kWh
21.80 sen/kWh
6.61
For the next 100 kWh (201 - 300 kWh) per
sen/kWh
33.40 sen/kWh
10.12
month
For the next 100 kWh (301 - 400 kWh) per
sen/kWh
51.60 sen/kWh
15.64
month
For the first 100kWh (401 - 500 kWh) per
sen/kWh
51.60 sen/kWh
15.64
month
For the next 100 kWh (501 - 600 kWh) per
sen/kWh
51.60 sen/kWh
15.64
month
For the next 100 kWh (601 - 700 kWh) per
sen/kWh
54.60 sen/kWh
16.55
month
For the next 100 kWh (701 - 800 kWh) per
sen/kWh
54.60 sen/kWh
16.55
month
1
For the next 100 kWh (801 - 900 kWh) per
sen/kWh
54.60 sen/kWh
16.55
month
For the next kWh (901 kWh onwards) per
sen/kWh
57.10 sen/kWh
17.30
month
The minimum monthly charge is RM3.00
2
3
Tariff B - Low Voltage Commercial Tariff
For Overall Monthly Consumption Between 0-200 kWh/month
For all kWh
sen/kWh
The minimum monthly charge is RM7.20 (USD 2.37)
For Overall Monthly Consumption More Than 200 kWh/month
For all kWh (From 1kWh onwards)
sen/kWh
The minimum monthly charge is RM7.20 (USD 2.3)
Tariff C1 - Medium Voltage General Commercial Tariff
For each kilowatt of maximum demand per
RM/kW
month
For all kWh
sen/kWh
The minimum monthly charge is RM600.00 (USD 197.2)
Tariff C2 - Medium Voltage Peak/Off-Peak Commercial Tariff
For each kilowatt of maximum demand per
RM/kW
month during the peak period
For all kWh during the peak period
sen/kWh
For all kWh during the off-peak period
sen/kWh
The minimum monthly charge is RM600.00 (USD197.2)
16 | P a g e
43.5
13.18
50.9
15.42
30.3
9.18
36.5
11.06
45.1
13.67
36.5
11.06
22.4
10.12
Cost of Doing Business – January 2015
Industrial Tariff Category
Unit
RM
Tariff D - Low Voltage Industrial Tariff
For Overall Monthly Consumption Between 0-200 kWh/month
For all kWh
sen/kWh
38.0
The minimum monthly charge is RM7.20 (USD 2.18)
For Overall Monthly Consumption More Than 200 kWh/month
1
For all kWh (From 1kWh onwards)
sen/kWh
44.1
The minimum monthly charge is RM7.20 (USD 2.18)
Tariff Ds – Special Industrial Tariff (for consumers who qualify only)
For all kWh
sen/kWh
42.7
The minimum monthly charge is RM7.20 (USD 2.18)
Tariff E1 - Medium Voltage General Industrial Tariff
For each kilowatt of maximum demand per
RM/kW
29.6
month
For all kWh
sen/kWh
33.7
The minimum monthly charge is RM600.00 (USD 181.82)
2
Tariff E1s – Special Industrial Tariff (for consumers who qualify only)
For each kilowatt of maximum demand per
RM/kW
23.7
month
For all kWh
sen/kWh
33.6
The minimum monthly charge is RM600.00 (USD 181.82)
3 Tariff E2 - Medium Voltage Peak/Off-Peak Industrial Tariff
For each kilowatt of maximum demand per
RM/kW
37.0
month during the peak period
For all kWh during the peak period
sen/kWh
35.5
For all kWh during the off-peak period
sen/kWh
21.9
The minimum monthly charge is RM600.00 (USD 181.82)
Tariff E2s – Special Industrial Tariff (for consumers who qualify only)
For each kilowatt of maximum demand per
RM/kW
32.9
month during the peak period
For all kWh during the peak period
sen/kWh
33.6
For all kWh during the off-peak period
sen/kWh
19.1
USD
11.52
13.36
12.94
8.97
10.21
7.18
10.18
11.21
10.76
6.64
9.97
10.18
5.79
The minimum monthly charge is RM600.00 (USD 181.82)
Tariff E3 - High Voltage Peak/Off-Peak Industrial Tariff
For each kilowatt of maximum demand per
RM/kW
35.5
month during the peak period
For all kWh during the peak period
sen/kWh
33.7
For all kWh during the off-peak period
sen/kWh
20.2
The minimum monthly charge is RM600.00 (USD 181.82)
4
Tariff E3s – Special Industrial Tariff (for consumers who qualify only)
For each kilowatt of maximum demand per
RM/kW
29.0
month during the peak period
For all kWh during the peak period
sen/kWh
31.7
For all kWh during the off-peak period
sen/kWh
17.5
The minimum monthly charge is RM600.00 (USD 181.82)
17 | P a g e
10.76
10.21
6.12
8.79
9.61
5.30
Cost of Doing Business – January 2015
Note: SIT has a 2% higher increase than normal Industrial tariff in line with the Government's
effort to gradually phase out the SIT subsidy
Note: The revision of the surcharge on electricity bill for the RE Fund from 1.0 per cent to 1.6 per
cent is to facilitate the implementation of Feed-in Tariff (FiT) mechanism
USD1 = RM3.30
(Source: Tenaga National Berhad)
Water Rate (Penang)
Category
RM per 1,000 litres
Tariff 1: Domestic (Individual)
Minimum charge:
2.50 per month
WATER CONSERVATION SURCHARGE (WCS)
Consumption above 35,000 liters per month
0.48
First 20,000 litres
0.22 (no WCS)
20,001 - 35,000 litres
0.42 (no WCS)
35,000 - 40,000 litres
0.90 (0.42+ 0.48 WCS)
40,000 - 60,000 litres
1.00 (0.52+0.48 WCS)
60,000 – 200,000 litres
1.38 (0.90+0.48 WCS)
More than 200,000 litres
1.48 (1.00+0.48 WCS)
USD per 1,000 litres
0.76
0.15
0.07
0.13
0.28
0.30
0.42
0.45
Tariff 2: Trade (Ordinary)
Minimum charge:
First 20,000 litres
20,001 - 40,000 litres
40,001 - 200,000 litres
More than 200,000 litres
10.00 per month
0.66
0.89
1.15
1.27
3.13 per month
0.21
0.28
0.35
0.38
Tariff 3: Trade (Special)
Minimum charge:
Flat rate
10.00 per month
1.52
3.13 per month
0.46
Tariff 4: Trade (Shipping)
Minimum charge:
Flat rate
10.00 per month
2.54
3.13 per month
0.77
Tariff 5: Domestic (Bulk)
Minimum charge:
26.00 per month
7.88
Flat rate
0.35
0.11
USD 1= RM3.30
(Source: Perbadanan Bekalan Air Pulau Pinang Sdn Bhd, as on 2 July 2012) (Penang water
conservation surcharge increased from RM0.24 to RM0.48 effectively from 1 st September 2013)
18 | P a g e
Cost of Doing Business – January 2015
Comparison of Water Rate by State
State
Usage
Penang
Industrial/Commercial 0-20,000m3
21-40m3
41 - 200 m3
Above 200m3
Industrial/Commercial 0-35m3
35 m3 and above
0.66
0.89
1.15
1.27
2.07
2.28
Johor
Industrial/Commercial 0-35 m³
35m³ and above
2.60
2.96
25.00
Kedah
Commercial
1.40
1.50
1.60
1.80
1.40
1.60
1.80
2.10
15.00
Selangor
Industrial
Price per m³
(RM)
0 - 50 m³
51 - 200 m³
201- 350 m³
More than 350 m³
0 – 1,000m³
1,001 – 10,000 m³
10,0001- 50,000 m³
More than 50,001 m³
Min.
Payment/month
(RM)
10.00
36.00
15.00
Source:MIDA
Sewerage Rates
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.
Domestic Customers
Houses receiving connected sewerage services
RM8 (US$2.42)
per month
RM6 (US$1.82)
per month
RM3 (US$0.91)
per month
Houses with individual septic tanks
Village/Estate dwelling houses with individual septic tanks or receiving
connected sewerage services
Low cost dwelling houses and houses with annual value of less than RM600
(US$188) with individual septic tanks or receiving connected sewerage
services
RM2 (US$0.61)
per month
Industrial Customers
Premises receiving connected sewerage services
RM2.50 (US$0.76)
per head per month
Premises with individual septic tanks
RM2 (US$0.61)
per head per month
19 | P a g e
Cost of Doing Business – January 2015
Commercial Customer
Monthly sewerage services charges for commercial premises is the sum of the Basic Charge
based on the premises Annual Value and the Excess Charge based on average water
consumption in excess of 100 meter cube (m³).
Annual Value of Property
RM
2,000 or less
2,001 - 5,000
5,001 - 10,000
10,001 - 20,000
20,001 - 30,000
30,001 - 40,000
40,001 - 50,000
50,001 - 60,000
60,001 - 70,000
70,001 - 80,000
80,001 - 90,000
90,001 - 100,000
100,001 - 200,000
200,001 - 400,000
400,001 - 600,000
600,001 - 800,000
800,001 - 1,000,000
1,000,001 - 3,000,000
3,000,001 - 5,000,000
5,000,001 - 7,000,000
More than 7,000,001
US$
606 or less
606 - 1,515
1,515 - 3,030
3,030 - 6,060
6,060 - 9,090
9,091 - 12,121
12,121 - 15,151
15,151 - 18,181
18,182 - 21,212
21,212 - 24,242
24,242 - 27,272
27,273 - 30,303
30,303 - 60,606
60,606 - 121,212
121,212 - 181,818
181,818 - 242,424
242,424 - 303,030
303,030 - 909,090
909,091 - 1,515,151
1,515,151 - 2,121,212
More than 2,121,212
Monthly charge for
premises receiving
connected
sewerage services
RM
US$
8
2
14
4
20
6
26
8
29
9
32
10
35
11
38
12
41
12
44
13
47
14
50
15
180
55
495
150
522
158
1,980
600
2,160
655
4,320
1,309
8,800
2,667
9,200
2,788
9,600
2,909
Monthly charge for
premises with
individual
septic tanks
RM
US$
7
8
14
19
21
23
25
27
29
31
33
35
120
330
348
1,320
1,440
2,880
5,400
6,000
6,600
2
2
4
6
6
7
8
8
9
9
10
11
36
100
105
400
436
873
1,636
1,818
2,000
Monthly Excess Charge
Water Usage
Excess Charge
Up to 100 m³
No charge
More than 100 m³
30 sen (9 US cents) per m³
More than 200 m³
45 sen (14 US cents) per m³
*The excess charges are subject to an annual revision based on the water consumption data for
the previous year obtained from the Water Authority.
USD 1= RM3.30 (Source: MIDA)
20 | P a g e
Cost of Doing Business – January 2015
Scheduled Waste Treatment Rates
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 enviroment
licensed scheduled waste with recovery contractors. For non-scheduled wastes, collection and
disposal rates vary according to location and contractor.
Waste Group Waste Type
A
Mineral Oil Wastes
Wastes containing lubricating oil, hydraulic oil, etc.
B
Organic Chemical Wastes Containing Halogens and/or Sulphur > 1%
Freon, PVC wastes, chloroform, solvents, capacitors and transformers containing PCB,
etc.
C
Waste Solvents Containing Halogens and/or Sulphur < 1%
Acetone, alcohols (eg. ethanol, methanol), benzene, turpentine, xylene, etc. Waste
should be pumpable, containing < 50% water and 18MJ/kg calorofic value
H
Organic Chemical Wastes Containing Halogens and/or Sulphur < 1%
Glue, latex, paint, phenol, printing ink, synthetic oils, soap, epoxy, etc.
K
Wastes Containing Mercury
Mercury, vapour lamps, COD-fluids, mercury batteries, etc.
T
Pesticide Wastes
Insecticides, fungus and weed killers, rat poison, etc
X
Inorganic Wastes
Acids, alkaline, sodium hypochlorite, inorganic salts, metal hydroxide sludge, chromate
and cyanide waste, etc.
Z
Miscellaneous
Medicine wastes, lab-packs, asbestos wastes, mineral sludges, isocyanates (MDI,TDI),
batteries, etc.
Organic Wastes for Incineration
Waste
Packaged Wastes*
Group
Pumpable liquid
Solid
(per tonne)
RM
US$
810
245
3,150
955
21 | P a g e
(per tonne)
RM
US$
630
191
-
Solid
(per tonne)
RM
US$
A
B
C
1,350
409
H/Z
1,890
573
2,790
845
1,800
545
2,700
818
T
3,150
955
3,600
1,091
*Note: Packaged wastes refers to wastes packed in standard 200-litre drums or 1m3 PP Bags.
USD 1= RM3.30 (Source: MIDA)
(per tonne)
RM
US$
3,600
1090
Bulk Wastes
Pumpable liquid
Cost of Doing Business – January 2015
Liquid Inorganic Wastes for Physical/Chemical Treatment
800-litre Pallet Tank
(per tonne)
Waste Group
200-litre Drum
(per tonne)
RM
US$
RM
US$
Acid Wastes Without Chromate (X)
1,440
436
1,620
491
Alkaline Wastes Without Cyanide (X)
1,440
436
1,620
491
Chromate Wastes (X)
1,800
545
1,980
600
Cyanide Wastes (X)
1,800
545
1,980
600
Mercury Wastes (K)
3,600
1,091
3,780
1,145
Inorganic Wastes for Solidification
Waste Group
X/Z
Packaged Wastes*
per tonne
Waste in Bulk
per tonne
RM
US$
RM
US$
810
246
765
232
Inorganic Waste for Direct Landfill
Waste Group
X/Z
Packaged Wastes*
per tonne
Waste in Bulk
per tonne
RM
US$
RM
US$
495
150
450
136
Encapsulation
Waste Group (Z)
Contaminated Crushed Drum and Other Contaminated Waste
Packaged Wastes*
per tonne
RM
US$
1,500
455
Cementation
Waste Group (Z)
Dry Cell Batteries and Other Miscellaneous Wastes
Source: MIDA
22 | P a g e
Packaged Wastes*
per tonne
RM
US$
900
273
Cost of Doing Business – January 2015
Transportation Rates
Per Pallet
KM
State
1st Tier
2nd Tier
min. 18 pallet
Above 18 pallet
Per Metric
Tonne
RM
US$
RM
US$
RM
US$
114
Negeri Sembilan
52.88
16.02
26.44
8.01
66.1
20.03
248
Kuala Lumpur
(Wilayah Persekutuan)
59.73
18.10
29.87
9.05
74.66
22.62
274
Melaka
60.71
18.40
30.36
9.20
75.89
23.00
374
Selangor
65.61
19.88
32.8
9.94
82.01
24.85
652
Perak
79.32
24.04
39.66
12.02
99.14
30.04
722
Johor
82.25
24.92
41.13
12.46
102.82
31.16
760
Pahang
84.21
25.52
42.11
12.76
105.26
31.90
1050
Penang
113.59
34.42
56.79
17.21
141.98
43.02
1152
Terengganu
180.17
54.60
90.09
27.30
225.22
68.25
1166
Kedah
181.15
54.89
90.58
27.45
226.44
68.62
1190
Kelantan
183.11
55.49
91.56
27.75
228.89
69.36
1240
Perlis
184.09
55.78
92.04
27.89
230.11
69.73
*Packaged wastes refers to wastes packed in standard 200-litre drums or 1m3 PP Bags.
Note: For palletises pickup, the rates are in tier's, the 1st tier for minimum pickup of 18 pallets
and the 2nd tier is for any subsequent pallet pickup. from a single consignment CTI request.
Source: Kualiti Alam Shd. Bhd. - www.kualitialam.com.my
Natural Gas Tariff
Tariff Category
1
Tariff B – Commercial
Unit Charge
2
Tariff C – Commercial & Industrial
Unit Charge
3
Tariff D – Commercial & Industrial
Unit Charge
4
Tariff E – Commercial & Industrial
Unit Charge
5
Tariff F – Commercial & Industrial
Unit Charge
6
Tariff L – Commercial & Industrial
Unit Charge
Source: Gas Malaysia Berhad
23 | P a g e
Price
(RM/MMBTU)
20.61
17.64
18.14
19.00
19.18
19.65
Applicable Range
MMBTU/MONTH
(MMBTU/YEAR)
0 – 50 mmBtu
(0 – 600 mmBtu)
51 – 416 mmBtu
(601 – 5,000 mmBtu)
417 – 4,166 mmBtu
(5,001 – 50,000 mmBtu)
4,167 – 16,666 mmBtu
(50,001 – 200,000 mmBtu)
16,667 – 62,500 mmBtu
(200,001 – 750,000mmBtu)
>62,500 mmBtu
(>750,000mmBtu)
Cost of Doing Business – January 2015
5. Transportation Costs
Container Haulage Rates
Haulage base: Port Klang (North Port)
Haulage
Rates
Area
PORT KLANG - Shah Alam
PETALING JAYA - Sungai Way
SELANGOR - Banting
PERAK - Tanjung Malim
PENANG - Butterworth/ Seberang Prai
KEDAH - Kulim
PERLIS - Kangar
NEGERI SEMBILAN - Nilai
MELAKA - Air Keroh Industrial Area
KELANTAN - Kota Bharu
PAHANG - Kuantan
TERENGGANU - Kerteh
JOHOR - Pasir Gudang
Source: MIDA
USD 1= RM3.30
24 | P a g e
Road Tolls
FAF
Effective from 12.47%
20' & 40' 1st Jan. 2007 Period
(Actual at from 1st
(RM)
May
cost)
2006
(RM)
444.00
19.80
55.37
504.00
23.20
62.85
564.00
0.00
70.33
1,262.00
59.80
157.37
2,402.00
194.80
299.53
2,372.00
240
295.79
2,906.00
240
362.38
968.00
56.40
120.71
1,468.00
103.40
183.06
3,302.00
197.80
411.76
1,940.00
197.80
241.92
2,318.00
197.80
289.05
2,348.00
211
292.80
Total
20' & 40'
RM
US$
519.17 157.32
590.05 178.80
634.33 192.22
1,479.17 448.23
2,896.33 877.68
2,907.79 881.15
3,508.38 1,063.15
1,145.11 347.00
1,754.46 531.65
3,911.56 1,185.32
2,379.72 721.13
2,804.85 849.95
2,851.60 864.12
Cost of Doing Business – January 2015
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.
20-ft container
US$
40-ft container
US$
950
1,900
100
200
900
1,800
600
1,800
400
800
400
800
900
1,800
NEW ZEALAND
950
1,900
SOUTH AFRICA
1,300
2,600
1,725
2,300
2,625
3,500
From Port Klang to :
AUSTRALIA
Main ports
CHINA
Shanghai
EUROPE
Main ports
INDIA
Navasheva
JAPAN
Main ports
KOREA
Pusan
WEST MEDITERRANEAN
Main ports
USA West Coast
Los Angeles
USA East Coast
New York
Source: MIDA
Courier Service Rates
Various Malaysian and international companies provide courier services in Malaysia.
Destination
Country
Australia
Germany
Japan
UK
USA
Source: MIDA
USD 1= RM3.30
25 | P a g e
Documents
First 500 gm Next 500 gm
RM
US$
RM
US$
60
18.18
15
4.55
70
21.21
20
6.06
47
14.24
12
3.64
70
21.21
20
6.06
65
19.70
20
6.06
Merchandise
First 500 gm Next 500 gm
RM
US$
RM
US$
75
22.73
14
4.24
100 30.30
19
5.76
64
19.39
15
4.55
100 30.30
15
4.55
100 30.30
20
6.06
Max. Weight Limit
(kg)
20
23
30
20
No Limit
Cost of Doing Business – January 2015
Penang Bridge
Source: Penang Bridge Sdn Bhd, www.penangbridge.com.my
Penang Second Bridge
Toll Rate for Sultan Abdul Halim Mu’adzam Shah Bridge
Users from the Mainland (Batu Kawan) going to the Penang Island (Batu Maung) via the Sultan
Abdul Halim Mu’adzam Shah Bridge, the toll will be collected at Sultan Abdul Halim Mu’adzam
Shah Toll Plaza and Bandar Cassia Toll Plaza (one way).
VEHICLES CLASSIFICATION
TOLL RATES
TOLL RATES
(RM)
(USD)
Class 0 Vehicles:
1.70
0.52
Vehicles with two axels and two wheels
Class 1 Vehicles:
8.50
2.58
Vehicles with two axels and three or four wheels
(excluding taxi and bus)
Class 2 Vehicles:
Vehicles with two axels and six wheels (excluding bus)
Class 3 Vehicles:
Vehicles with three or more axels (excluding bus)
Class 4 Vehicles:
Taxis
Class 5 Vehicles:
Busses
USD 1= RM3.30
26 | P a g e
30.50
9.24
70.10
21.24
8.50
2.58
26.20
7.94
Cost of Doing Business – January 2015
Toll Rate for the Link Road
Toll for the Link Road will be collected from users exiting from PLUS Expressway at Bandar Cassia
Toll Plaza going to Penang Island via the Sultan Abdul Halim Mu’adzam Shah Bridge or to Bandar
Cassia and users entering the PLUS Expressway at Bandar Cassia Toll Plaza. The rates are as
follows:
VEHICLES CLASSIFICATION
TOLL RATES
(RM)
Class 1 Vehicles:
Vehicles with two axels and three or four wheels
(excluding taxi and bus)
Class 2 Vehicles:
Vehicles with two axels and six wheels (excluding bus)
Class 3 Vehicles:
Vehicles with three or more axels (excluding bus)
Class 4 Vehicles:
Taxis
Class 5 Vehicles:
Busses
USD 1= RM3.30
TOLL RATES
(USD)
0.60
0.18
0.90
0.27
1.20
0.36
0.30
0.09
0.50
0.15
Source: Jambatan Kedua Sdn Bhd www.jambatankedua.com.my
Penang Port Ferry Tariff
Price structure for the latest tariff of ferry services are as follows :I. Passenger
a. Children age 5 and below 12 years of age
b. Adult
Monthly ticket (not valid for travel with bicycle)
RM
USD
0.60
1.20
0.19
0.38
a. Student (not exceeding 21 years of age)
b. Adult
II. Bicycle
III. Motorcycle
IV. Trishaw and Tricycle
6.00
30.00
1.40
2.00
3.30
1.88
9.38
0.44
0.63
1.03
V. Motorcar including Station Wagon, Four Wheel Drive, Three Wheel
Drive, Three Wheel Commercial Vehicle and Motorcycle with Side Car.
7.70
2.41
13.20
27.50
4.13
8.59
Vl. Lorry, Van and Bus
a. Vehicle with 2 axles and 4 wheels
b. Vehicle with 2 axles and 6 wheels
USD 1= RM3.30
Source : Penang Port Commission
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