To Carry On Construction Business Companies in Malaysia

It is important to have a clear understanding of the statutory and regulatory requirements for setting up and running a construction business in Malaysia in order to avoid any legal pitfalls.

The Malaysian construction industry is governed by the Construction Industry Development Board (CIDB), which is a statutory body established under the Construction Industry Development Act 1994.

Under the CIDB Act, all construction companies in Malaysia must be registered with the CIDB and must possess a valid licence in order to operate.

There are two types of licences that a construction company can apply for, namely the General Builder Licence (GBL) and the Specialist Builder Licence (SBL).

The GBL allows a construction company to undertake any type of building work, while the SBL is specific to a particular type of construction work, such as civil engineering works, electrical engineering works, or mechanical engineering works.

In order to obtain a GBL or SBL, a construction company must first fulfil certain eligibility criteria, such as having a minimum paid-up capital of RM500,000, a minimum of five years’ experience in the construction industry, and a satisfactory track record of safety and quality.

Once a construction company has been registered with the CID