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Setting up your agriculture business??


Terrence Yooi

Embarking on an Agricultural Venture in Malaysia: A Lucrative Opportunity

Embarking on an Agricultural Venture in Malaysia: A Lucrative Opportunity

Are you ready to sow the seeds of a prosperous agricultural business? Maxi Agrotech is here to guide you on how to successfully establish your enterprise in Malaysia's thriving agricultural industry.

The agricultural sector in Malaysia is primed for exponential growth, driven by the government's efforts to reduce the country's hefty food import bill of fifty billion Ringgit Malaysia. To encourage young entrepreneurs and tech-savvy individuals known as 'agropreneurs' who integrate technology into farming, the government offers attractive incentives, including loans and grants. There couldn't be a better time to seize the opportunity and establish an agricultural business in Malaysia.

The Right Path to Cultivation

The Ministry of Agriculture and Agro-Based Industry (MOA) oversees the agricultural landscape in Malaysia, encompassing a wide range of commodities such as rice, vegetables, fruits, livestock, and fisheries.

Entrepreneurs interested in setting up an agricultural business in Malaysia must register a company. This can be easily accomplished by visiting the Company Commission of Malaysia (CCM) or Suruhanjaya Syarikat Malaysia (SSM) website. The legal structure of your business can take various forms, including:

1. Sole Proprietorship or Cooperative

2. Partnership or Limited Liability Partnership (LLP)

3. Private or Public Limited Company (Sdn. Bhd. or Berhad)

For an agricultural business, the most suitable legal structure is Sdn. Bhd., which grants the company a separate legal entity status, limiting liability. While foreign capital investment of up to 100% is allowed, all companies must have at least one Malaysian resident director.

Additionally, the company's registered address and corporate bank account should be in Malaysia. Registration is also required with the Malaysian International Chamber of Commerce and Industry (MICCI) and the Inland Revenue Board of Malaysia (LHDN).

Land acquisition jurisdiction in Malaysia is governed by the respective state governments under the Federal Constitution. The Economic Planning Unit (EPU) of the Prime Minister's Department provides guidelines in this regard.

The trading of agricultural products in Malaysia is regulated by specific industries and boards. The required licenses and governing authorities depend on the nature of the business activity. For example:

- Pineapple: License from the Malaysian Pineapple Industry Board (MPIB)

- Papaya & Star Fruit: License from the Federal Agricultural Marketing Authority (FAMA)

- Cocoa: License from the Malaysian Cocoa Board (KOKO)

- Palm Oil: License from the Malaysian Palm Oil Board (MPOB)

- Export certificates, permits, and approvals from the Department of Agriculture, the Malaysian Quarantines and Inspection Service, etc.

To navigate the complexities of obtaining the necessary authorizations, it is advisable to seek assistance from experts like Maxi Agrotech. Their expertise will minimize errors and delays, allowing you to focus on your core business operations.

The agricultural sector in Malaysia permits the employment of foreign workers, and the Ministry of Home Affairs website (MOHA) provides detailed information on this matter. All farmers are encouraged to join the Farmers' Organization Authority, a statutory body supervised by the Department of Agriculture (DOA). The government also offers fiscal and non-fiscal incentives for the agriculture sector, including:

- Income and sales tax exemptions

- Farming allowances

- Training programs

- Reinvestment allowance

A Flourishing Future in Farming

Malaysia's agricultural industry has experienced a significant transformation, evolving from small-scale family farms to global enterprises with a formidable international presence. At Maxi Agrotech, we can assist you in embarking on your agricultural journey by taking care of all essential business requirements. From company incorporation to licensing, you can trust Maxi Agrotech's professional expertise. Prepare to sow the seeds of success.

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