LAWS OF MALAYSIA

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Act 156

INDUSTRIAL CO-ORDINATION
ACT 1975
Incorporating all amendments up to 1 January 2006

PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
2 Laws of Malaysia ACT 156

INDUSTRIAL CO-ORDINATION ACT 1975

Date of Royal Assent … … … … … 15 May 1975

Date of publication in the Gazette … … … 22 May 1975

PREVIOUS REPRINTS

First Reprint … … … … … 1983

Second Reprint … … … … … 1997
Third Reprint … … … … … 2001
 Industrial Co-ordination 3
LAWS OF MALAYSIA

Act 156

INDUSTRIAL CO-ORDINATION ACT 1975

ARRANGEMENT OF SECTIONS

Section

1. Short title, application and commencement

2. Interpretation
3. Licence required for manufacturing activity
3A . Licensing officer to be appointed by Prime Minister
4. Application for and issue and conditions of licence
5. Existing manufacturers
6. Revocation of licence
7. Transfer of licence
7A . Variation
8. Compliance with other laws
9. Enforcement
10. Returns or other information to be furnished on being required so to
do by notice in writing
11. Exemption
11A. Establishment and composition of Industrial Advisory Council
11B. Appointment of alternate member of Council
11C. Schedule to apply to Council and members
12. Rules
13. Person aggrieved may appeal to Minister whose decision shall be final
14. Continuation of licence pending appeal
15. Revocation to be published
15A. Failure to comply with or give effect to order made under section 13
to be an offence
16. Saving of existing licence
4 Laws of Malaysia ACT 156
Section

17. Power to compound certain offences

18. Person in respect of whom offence compounded not to be liable to
prosecution in respect of that offence
19. Liability of certain persons for offences committed by company,
partnership or body of persons
20. Service of returns or other information, notice, certificate, decision and
order
21. Certificate of licensing officer to be prima facie evidence of certain
matters stated therein
22. Sessions Court to have full jurisdiction
SCHEDULE
 Industrial Co-ordination 5
LAWS OF MALAYSIA

Act 156

INDUSTRIAL CO-ORDINATION ACT 1975

An Act to provide for the co-ordination a nd orderly development

of manufacturing activities in Malaysia, for the establishment of
an Industrial Advisory Council and for other matters connected
therewith or incidental thereto.

[1 May 1976, P.U. (B) 248/1976]

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, application and commencement

1. (1) This Act may be cited as the Industrial Co-ordination Act
1975, and shall apply throughout Malaysia.

(2) This Act shall come into force on such date as the Minister
may by notification in the Gazette appoint.

Interpretation
2. In this Act, unless the context otherwise requires—

“Council” means the Industrial Advisory Council established

under section 11A;

“licence” means a licence issued under this Act to engage in any

manufacturing activity;

“licensing officer” means any public officer appointed to be a

licensing officer under section 3A;

“manufacturer” means a person who is engaged in any

manufacturing activity;

“manufacturing activity” with its grammatical variations and

cognate expressions means the making, altering, blending,
ornamenting, finishing or otherwise treating or adapting any article
or substance with a view to its use, sale, transport, delivery or
6 Laws of Malaysia ACT 156

disposal and includes the assembly of parts and ship repairing but
shall not include any activity normally associated with retail or
wholesale trade;

“Minister” means the Minister charged with the responsibility

for industrial development;

“product” means any article, thing, substance or service produced

as a result of any manufacturing activity and includes a range of
products.

Licence required for manufacturing activity

3. (1) No person shall engage in any manufacturing activity unless

he is issued a licence in respect of such manufacturing activity.

(2) Any person who fails to comply with subsection (1) is

guilty of an offence and is liable on conviction to a fine not
exceeding two thousand ringgit or to a term of imprisonment not
exceeding six months and to a further fine not exceeding one
thousand ringgit for every day during which such default continues.

Licensing officer to be appointed by Prime Minister

3A. The Prime Minister may appoint any public officer to be a

licensing officer for the purposes of this Act and any such appointment
made prior to the coming into force of this section shall, upon such
coming into force, be deemed to have been made under this section.

Application for and issue and conditions of licence

4. (1) An application for a licence shall be made in the prescribed

form to the licensing officer.

(2) One application may be made for one or more products

manufactured in one or more places of manufacturing activity but
a separate licence shall be issued for each place of manufacturing
activity.

(3) The licensing officer shall, in deciding whether an application

for a licence should be approved or refused, consider whether the
issue of a licence is consistent with national economic and social
objectives and would promote the orderly development of
manufacturing activities in Malaysia.
 Industrial Co-ordination 7
(4) The licensing officer in issuing a licence, may, in furtherance
of the aforesaid objectives impose such conditions as he may think
fit and such conditions may be varied on the application of the
manufacturer or on the licensing officer’s own motion after
consultation with the manufacturer in respect of whom the conditions
in the licence are to be varied.

(5) Every licence issued shall be in the prescribed form and

shall be subject to such fee as may be prescribed.

Existing manufacturers
5. Every person who on the commencement of this Act is engaged
in any manufacturing activity may continue to do so but shall not
later than one year from the date of the commencement of this Act
apply for a licence in the prescribed form to the licensing officer.

Revocation of licence
6. (1) The licensing officer may in his discretion revoke a licence
if the manufacturer to whom a licence is issued—
(a) has not complied with any condition imposed in the licence;
(b) is no longer engaged in the manufacturing activity in
respect of which the licence is issued; or
(c) has made a false statement in his application for the
licence.

(2) Before exercising his power to revoke a licence the licensing

officer may call upon the manufacturer to show within such period
as may be prescribed due cause why his licence should not be
revoked.

(3) The licensing officer may withhold or suspend the revocation

of a licence if he is satisfied that the act or omission on the part
of the manufacturer under subsection (1) was due to some cause
beyond his control and there is a reasonable prospect of such act
or omission being remedied within such period as the licensing
officer may direct.

Transfer of licence
7. (1) No licence shall be transferable from a manufacturer to any
person without the prior approval of the licensing officer.
8 Laws of Malaysia ACT 156

(2) Without prejudice to subsection (1) the licensing officer

may in the event of the death, incapacity, bankruptcy, or, in the
case of a company, liquidation of the holder of a licence, or where
a receiver or manager is appointed in relation to the business of
the holder of a licence, or where for any reason the licensing
officer is satisfied it would be unjust not to do so authorize the
transfer of the licence.

(3) An application for the transfer of a licence shall be made

in writing to the licensing officer.

Variation

7A. (1) A manufacturer shall not manufacture any product other

than those specified in a licence without the prior approval of the
licensing officer.

(2) A manufacturer may suspend or discontinue the manufacture

of a product that is specified in a licence after notifying the licensing
officer in writing of his intention to do so.

(3) An application for an approval under subsection (1) shall be

made in writing to the licensing officer.

Compliance with other laws

8. The issue of a licence shall not be deemed to relieve the

manufacturer to whom a licence is issued from compliance with
any other written law relating to the manufacturing activity for
which the licence is issued.

Enforcement

9. (1) The Minister may authorize in writing any public officer

to exercise the powers under this section.

(2) In exercising any of the powers under this section the authorized
officer shall on demand produce to the person against whom he
is acting under this Act or any rule made thereunder the authority
issued to him by the Minister.

(3) Wherever it appears to any Magistrate upon written information

on oath and after any enquiry which he may think necessary that
there is reasonable cause to believe that in any building or place
 Industrial Co-ordination 9
there is manufactured, concealed, deposited or kept any product,
manufacturing equipment or other thing in respect of which an
offence against this Act or any rule made thereunder has been
committed, he may issue a warrant authorizing any authorized
officer named therein by day or night and with or without assistance
to enter such building or place and there search for and seize any
product, manufacturing equipment or other thing in respect of
which any such offence is suspected to have been committed and
may also seize any book or document which may reasonably be
believed to contain information as to any offence so suspected of
having been committed.

(4) Wherever it appears to any authorized officer that there is

a reasonable cause to believe that in any building or place there
is manufactured, concealed, deposited or kept any product,
manufacturing equipment or other thing in respect of which an
offence against this Act or any rule made thereunder has been
committed and if he has reasonable grounds for believing that by
reason of the delay in obtaining a search warrant, such product,
manufacturing equipment or other thing is likely to be removed,
such officer may exercise in or upon or in respect of such building
or place all the powers mentioned in subsection (3) as if he were
authorized to do so by a warrant issued under that subsection.

(5) Every authorized officer who is exercising his power under

subsection (4) shall, before exercising such power, obtain the
written approval of the Minister.

(6) Any person who obstructs or impedes any authorized officer

in the lawful exercise of any of his powers under this Act or under
any rule made thereunder is guilty of an offence and is liable to
a fine of five hundred ringgit or to imprisonment for a term not
exceeding six months or to both.

Returns or other information to be furnished on being required

so to do by notice in writing

10. (1) The licensing officer may by notice in writing require

any manufacturer to furnish him or the Department of Statistics
or both, within such time as may be specified in the notice, with
returns or other information pertaining to any manufacturing activity
of the manufacturer but the manufacturer shall not be required to
furnish information which would disclose any secret manufacturing
process or other trade secret.
10 Laws of Malaysia ACT 156

(2) Any manufacturer who—

(a) fails to furnish within the specified time any return or
other information required under subsection (1) is guilty
of an offence and is liable to a fine not exceeding one
thousand ringgit or to imprisonment for a term not exceeding
three months or to both and he is also liable to a further
fine not exceeding five hundred ringgit for every day
during which such default continues; or
(b) furnishes any return or other information that is false or
misleading in any material respect is guilty of an offence
and is liable to a fine not exceeding two thousand ringgit
or to imprisonment for a term not exceeding six months
or to both.

Exemption

11. The Minister may by order exempt any manufacturing activity

from all or any of the provisions of this Act.

Establishment and composition of Industrial Advisory Council

11A. (1) There is established a body called the Industrial Advisory

Council whose function is to advice the Minister on matters pertaining
to this Act.

(2) The Council shall consist of the following members to be

appointed by the Minister by name:
(a) a chairman;
(b) a representative of the Ministry;
(c) a representative of the Ministry of Finance;
(d) a representative of the Economic Planning Unit of the
Prime Minister’s Department;
(e) a representative of the Ministry responsible for primary
industries;
(f) a representative of the Malaysian Industrial Development
Authority;
(g) one representative from each of the States of Sabah and
Sarawak whom the Minister shall appoint after consultation
with the Governments of those States;
 Industrial Co-ordination 11
(h) five members to represent the institutions of commerce
and manufacturing industries;
(i) two members to represent the interests of persons engaged
in manufacturing activities in the States of Sabah and
Sarawak; and
(j) at the discretion of the Minister, not more than two other
members.

(3) The Minister may revoke the appointment of a member of

the Council who is appointed under this section or an alternate
member thereof who is appointed under subsection 11B(1) without
assigning any reason therefor and where he so does the revocation
shall be final and shall not be questioned in any court.

Appointment of alternate member of Council

11B. (1) The Minister may in respect of each member of the

Council, other than a member appointed under paragraph 11A(2)(a)
or (j), appoint another person from the same body or representing
the same interests as that member to be that member’s alternate
and such alternate member may attend the meetings of the Council
in place of that member if that member is for any reason unable
to attend.

(2) When attending a meeting of the Council or in the absence

of the member in respect of whom he is appointed to be an alternate,
an alternate member shall for all purposes be deemed to be a
member of the Council.

(3) An alternate member shall, unless he sooner resigns his

office or his appointment is sooner revoked, cease to be an alternate
member when the member in respect of whom he is an alternate
is deemed to have vacated his office or otherwise ceases to be a
member of the Council pursuant to the provisions of this Act but
this shall be without prejudice to such alternate member being
appointed as a member or reappointed as an alternate member.

Schedule to apply to Council and members

11C. The provisions of the Schedule shall apply in respect of the

Council, its members and alternate members.
12 Laws of Malaysia ACT 156

Rules

12. The Minister may make rules generally for the better carrying
into effect of the provisions of this Act and, without prejudice to
the generality of the foregoing, such rules may—
(a) provide for the procedure for application and issue of
replacement and duplicate licences in case of loss, damage
or destruction;
(b) prescribe the procedure for appeals under this Act and
the fees payable therefor; and
(c) prescribe anything required by this Act to be prescribed.

Person aggrieved may appeal to Minister whose decision shall

be final

13. (1) Any person who—

(a) being an applicant for the issue of a licence is aggrieved
by a refusal to issue such licence;
(b) being the holder of a licence is aggrieved by—
(i) the imposition of any condition in his licence;
(ii) the variation of, or the refusal to vary, any condition
imposed in his licence; or
(iii) the revocation of his licence, or
(c) is aggrieved by a refusal to approve the transfer of a
licence,

may, within forty-five days from the date on which the decision
of the licensing officer was communicated to him, appeal to the
Minister in the prescribed manner.

(2) The Minister may after hearing the appeal make such order
as he deems fit and that order shall be final and shall not be
questioned in any court.

Continuation of licence pending appeal

14. (1) Where any person lodges an appeal under paragraph 13(1)(b)
or 13(1)(c) the licence shall continue in force as though no decision
had been made by the licensing officer until the appeal has been
disposed of.
 Industrial Co-ordination 13
(2) Notwithstanding subsection (1), the licensing officer may in
the meantime exercise any of the powers conferred upon him by
this Act in relation to the licence on any ground not covered by
the appeal.

Revocation to be published
15. (1) In the event that there is no appeal against the revocation
of a licence by the licensing officer within the prescribed period,
the Minister shall by notification in the Gazette publish such
revocation.

(2) In the event that the Minister makes an order for a revocation
of a licence the Minister shall by notification in the Gazette publish
such revocation.

Failure to comply with or give effect to order made under

section 13 to be an offence
15A. Any person who fails to comply with or give effect to an
order made under subsection 13(2) commits an offence and is
liable to a fine not exceeding two thousand ringgit or to imprisonment
for a term not exceeding six months or to both and where the
person continues to commit the offence after the first commission
thereof, he is also liable to a further fine not exceeding two hundred
ringgit for every day during which he so continues to commit the
offence.

Saving of existing licence

16. Every licence which has been issued by the Minister under
section 4 before the coming into operation of the Industrial
Coordination (Amendment) Act 1977 [Act A401] shall on the coming
into operation of that amendment be deemed to be a licence issued
by the licensing officer under this Act and subject to the terms and
conditions attached to such licence.

Power to compound certain offences

17. (1) Where any person commits an offence under subsection
10(2) or section 15A, the licensing officer may at any time before
the commencement of the hearing of the case against that person
compound the offence and order him to pay such sum of money,
not exceeding the amount of the maximum fine, as the licensing
officer thinks fit.
14 Laws of Malaysia ACT 156

(2) Where the licensing officer intends to compound an offence,

he shall give notice in writing of his intention so to do to such
person and the notice shall also specify—
(a) the date and place of the commission of the offence and
the offence committed;
(b) the sum of money to be paid to compound the offence;
and
(c) the date by which payment of the sum of money is to be
made.

(3) If such person agrees to have the offence compounded, he

shall admit the commission of the offence and shall pay the specified
sum of money by the specified date whereupon the licensing officer
shall make an order that the offence is compounded and the order
shall, mutatis mutandis, also contain the particulars specified in
paragraphs (2)(a), (b) and (c).

(4) An order made under this section compounding an offence

shall be final and shall not be subject to any appeal.

Person in respect of whom offence compounded not to be liable

to prosecution in respect of that offence

18. (1) Any person in respect of whom an offence is compounded

under section 17 shall not be liable to prosecution in respect of
that offence and if any prosecution is brought, it shall be a good
defence for him to prove that the offence was compounded under
that section.

(2) An order made under subsection 17(3) shall, on its production

before any court, be treated as proof of the commission of the
offence that is compounded and of the other matters set out therein.

Liability of certain persons for offences committed by company,

partnership or body of persons

19. (1) Where an offence under this Act or any rule made thereunder
has been committed by a person or a manufacturer being a company,
partnership or body of persons, any person who at the time of the
commission of the offence was a director, manager or other officer
serving in a managerial capacity or was a partner of the company,
partnership or body of persons or purported to act in any such
 Industrial Co-ordination 15
capacity shall be deemed to be guilty of that offence unless he
proves that the offence was committed without his knowledge,
consent and connivance and that he had exercised all necessary
diligence to prevent the commission of the offence as he ought to
have exercised having regard to the nature of his functions in that
capacity and all the prevailing circumstances.

(2) Nothing in this section shall be construed as exempting a

company, partnership or body of persons from any liability for an
offence under this Act or any rule made thereunder or under any
other written law.

(3) For the purposes of this section the expressions “company”

and “partnership” shall respectively have the meanings assigned
to those expressions in the written laws relating to companies and
to partnerships.

Service of returns or other information, notice, certificate,

decision and order

20. (1) Returns or other information pertaining to the manufacturing

activity of a manufacturer required to be furnished or a notice
given, a certificate issued, a decision or an order made under this
Act or any rule made thereunder may be served personally or be
sent by registered post.

(2) Such returns or other information or notice, certificate, decision

or order which is sent by registered post shall be deemed to have
been served on the person (including a partnership) to whom it is
addressed on the day succeeding the day on which the returns or
other information or notice, certificate, decision or order would
have been received in the ordinary course of post if it is addressed—
(a) in the case of the Minister or the licensing officer, to
either of them, as the case may require, at the Ministry;
(b) in the case of a company, a partnership or body of persons
having a registered office in Malaysia, to that registered
office or, where there is no such registered office to the
company’s, partnership’s or body’s principal place of
business in Malaysia or, where there is no such principal
place of business, to the place where any other activity
of the company, partnership or body is carried on; and
(c) in the case of an individual, to his last-known address.
16 Laws of Malaysia ACT 156

Certificate of licensing officer to be prima facie evidence of

certain matters stated therein

21. Where in proceedings for an offence under this Act or any

rule made thereunder, it is necessary to prove that—
(a) any person was or was not licensed on a certain date;
(b) a licence was subject to any particular condition;
(c) a licence was revoked,

a certificate in writing purporting to be signed by the licensing

officer stating that—
(i) such person was or was not licensed on that date;
(ii) the licence was issued subject to a particular condition;
(iii) that the licence was revoked,

shall be prima facie evidence of the matters stated therein and the
licensing officer shall not be examined on the contents of such
certificate unless he has been served with three clear days’ notice
before the commencement of the hearing of the case of the intention
so to do and further stating the particulars which are intended to
be challenged:

Provided that the certificate shall have been served on the defence
at least ten clear days before such commencement.

Sessions Court to have full jurisdiction

22. Notwithstanding the provisions of any written law to the

contrary, a Sessions Court shall have jurisdiction to try any offence
under this Act or any rule made thereunder and to award the full
punishment for such offence.
 Industrial Co-ordination 17
SCHEDULE

[Section 11C]

Disqualification for being appointed as or from being members of Council;

vacating of office; term of office

1. (1) Any of the following persons shall be disqualified for being appointed
as or from being members of the Council:
(a) a person who is of unsound mind or is otherwise incapable of
performing his duties as a member;
(b) a person who is guilty of an offence involving fraud, dishonesty or
moral turpitude; and
(c) a person who is bankrupt or applies to take the benefit of any law
for the relief of bankrupt or insolvent debtors or enters into any
arrangement or composition with his creditors.

(2) A member of the Council shall be deemed to have vacated his office—
(a) upon his death;
(b) upon his resignation or the revocation of his appointment;
(c) upon his failure to attend three consecutive meetings of the Council
without permission from the Minister; or
(d) if he becomes disqualified under any of the provisions of subparagraph
(1);

and in any such instance, a new member shall be appointed in his place in
accordance with the provisions of this Act.

(3) Every member of the Council shall, unless he sooner resigns his office
or his appointment is sooner revoked, hold office for a term not exceeding two
years and shall be eligible for reappointment:

Provided that a new member who is appointed pursuant to subparagraph (2)

shall hold office for the remainder of the term of the member he replaces but
he shall be eligible for reappointment.

(4) The provisions of this paragraph shall be without prejudice to the powers
of the Minister exercisable under subsection 11A (3).

Dispute as to whether member of Council is to be deemed to have vacated

office to be referred to Minister whose decision shall be final

2. (1) Any dispute as to whether a member of the Council is to be deemed to

have vacated his office shall be referred to the Minister whose decision thereon
shall be final and shall not be questioned in any court.

(2) For the purposes of paragraph 1 and this paragraph, the expression
“member of the Council” includes an alternate member thereof.
18 Laws of Malaysia ACT 156
Calling of, quorum at, voting procedure to be followed at, and the keeping
of minutes of, meetings of the Council

3. (1) The Council shall meet twice annually and shall in addition meet
whenever five members or more make a request in writing addressed to the
chairman that the Council do meet.

(2) Nine members shall form a quorum at a meeting of the Council.

(3) If on any matter to be determined by the Council there is an equality

of votes, the chairman or, in his absence, the member presiding shall have a
casting vote in addition to his deliberative vote.

(4) Subject to this Act, the Council shall determine its own procedure.

(5) Minutes shall be kept of all proceedings of the Council and copies
thereof shall be submitted to the Minister.

Chairman, or in his absence member to be elected, to preside at meetings

of the Council

4. (1) The chairman of the Council shall preside at all its meetings.

(2) If, owing to absence or inability to act due to illness or any other cause,
the chairman is unable to preside at any meeting of the Council, the members
present shall elect one of their number to preside at that meeting and the person
so elected may exercise all the powers of the chairman during that meeting.

(3) No business shall be transacted at a meeting of the Council in the

absence of the chairman until a member has been elected to preside over that
meeting.

Payment of allowance to member and alternate member of Council

5. Every member and alternate member of the Council may be paid such
allowance as may be determined by the Minister.
 Industrial Co-ordination 19
LAWS OF MALAYSIA

Act 156

INDUSTRIAL CO-ORDINATION ACT 1975

LIST OF AMENDMENTS

Amending law Short title In force from

Act A401 Industrial Co-ordination 01-02-1978

(Amendment) Act 1977

Act A462 Industrial Co-ordination 15-01-1980

(Amendment) Act 1979

P.U. (A) 357/1980 Subordinate Courts Act 01-06-1981

(Extension) Order 1980
20 Laws of Malaysia ACT 156
LAWS OF MALAYSIA

Act 156

INDUSTRIAL CO-ORDINATION ACT 1979

LIST OF SECTIONS AMENDED

Section Amending Authority In force from

Long Title Act A462 15-01-1980

2 Act A401 01-02-1978

Act A462 15-01-1980

3A Act A462 15-01-1980

4-6 Act A401 01-02-1978

7 Act A401 01-02-1978

Act A462 15-01-1980

7A Act A401 01-02-1978

9 Act A401 01-02-1978

10 Act A401 01-02-1978

Act A462 15-01-1980

11A-11C Act A462 15-01-1980

12 Act A401 01-02-1978

13 Act A401 01-02-1978

Act A462 15-01-1980

14 Act A401 01-02-1978

Act A462 15-01-1980

15 Act A401 01-02-1978

15A Act A462 15-01-1980

16 Act A401 01-02-1978

17-22 Act A462 15-01-1980

Schedule Act A462 15-01-1980

DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA