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Malaysian Industrial Development Authority (Incorporation) Act 1965 (Revised 1989)

LAWS OF MALAYSIA

REPRINT

Act 397

MALAYSIAN INDUSTRIAL

DEVELOPMENT AUTHORITY

(INCORPORATION)

ACT 1965

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 397

MALAYSIAN INDUSTRIAL DEVELOPMENT

AUTHORITY (INCORPORATION) ACT 1965

First enacted ... ... ... ... ... ... 1965 (Act No. 13 of 1965

Revised ... ... ... ... ... ... 1989 (Act 397 w.e.f. 16 November 1989)

Malaysian Industrial Development Authority

(Incorporation)

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LAWS OF MALAYSIA

Act 397

MALAYSIAN INDUSTRIAL DEVELOPMENT

AUTHORITY (INCORPORATION) ACT 1965

ARRANGEMENT OF SECTIONS

Section

1. Short title and application

2. Interpretation

3. Establishment of the Authority 3A. Establishment of the Board

3B. Vacation of office

3C. Filling of vacancies

3D. Appointment of Director General

3E. Appointment of officers, servants and other persons

4. (Deleted)

5. Direction on policy by the Minister

6. Functions of the Authority 6A. Powers of the Authority

6B. Board to perform functions and exercise powers of the Authority

7. (Deleted) 7A. Powers to delegate

7B. Power to appoint committees

8. (Deleted)

9. (Deleted)

10. Malaysian Industrial Development Authority Fund 10A. Expenditure to be charged on the Fund

10B. Deposit of the Fund

10C. Balancing revenue of the Fund

10D. Expenditure and preparation of estimates

4 Laws of Malaysia ACT 397

Section

11. Statutory Bodies (Accounts and Annual Reports) Act 1980

12. Annual Report

13. Application of Penal Code and obligation of secrecy 13A. Non-liability

13B. Public Authorities Protection Act 1948

14. Regulations SCHEDULE

Malaysian Industrial Development Authority

(Incorporation)

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LAWS OF MALAYSIA

Act 397

MALAYSIAN INDUSTRIAL DEVELOPMENT

AUTHORITY (INCORPORATION) ACT 1965

An Act to incorporate the Malaysian Industrial Development Authority to be charged with responsibility for the promotion and co-ordination of industrial development in Malaysia. [23 June 1966]

BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara dan Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows:

Short title and application

1. (1) This Act may be cited as the Malaysian Industrial Development Authority (Incorporation) Act 1965.

(2) This Act shall apply throughout Malaysia.

Interpretation

2. In this Act, unless the context otherwise requires-- "Authority" means the Malaysian Industrial Development Authority established under section 3(1);

"Board" means the Board established under section 3A; "Director General" means the Director General of the Authority appointed under section 3D;

"Fund" means the Malaysian Industrial Development Authority Fund under section10;

"member" means a member of the Board;

6 Laws of Malaysia ACT 397

"Minister" means the Minister charged with the responsibility for Industrial development.

Establishment of the Authority

3. There is hereby established a body corporate by the name of "The Malaysian Industrial Development Authority" (hereinafter referred to as "the Authority") with perpetual succession and a common seal and, subject to and for purpose of this Act, may enter into contracts, and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Authority upon such terms as it deems fit.

Establishment of the Board

3A. (1) There shall be established a Board of the Authority consisting of the following members;

(a) a Chairman who shall be appointed by the Minister; (b) the Secretary General of the Ministry responsible for finance or his representative;

(c) the Secretary General of the Ministry responsible for international trade and industry or his representative; (d) not more than ten other members who shall be appointed by the Minister and of whom not more than seven shall represent the commercial, manufacturing, financial, industrial and service sectors; and

(e) the Director General.

(2) The Board shall be responsible for--

(a) providing policy guidance and recommendations in relation to the performance of the Authority's functions and exercise of the Authority's powers;

(b) overseeing the implementation of the policies and recommendation; and

(c) giving such directions to the Director General as are consistent with the provisions of this Act.

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(Incorporation)

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(3) The provisions of the Schedule shall apply to the Board. (4) There shall be paid to the members of the Board, other than the Director General, such allowances as may be determined by the Minister.

(5) Subject to such terms as may be specified in the instrument of appointment, a member appointed under paragraph (1)(a),(d) or (e) shall, unless he sooner resigns or vacates his office or his appointment is sooner revoked, hold office for a term not exceeding three years and is eligible for reappointment.

(6) The Minister may at any time revoke the appointment of any member appointed under paragraph (1)(a),(d) or (e) without assigning any reason.

(7) A member appointed under paragraph (1)(a),(d) or (e) may at any time resign from his office by a written notice to the Minister.

(8) The Minister may appoint any member to exercise the functions of the Chairman during any period the Chairman is for any reason unable to perform his functions or during any period of vacancy in the office of the Chairman and such member shall, during the period in which he is performing the functions of the Chairman under this subsection, be deemed to be the Chairman. (9) Until an appointment under subsection (8) is made or in default of such appointment or in the absence of the Chairman from any meeting of the Board, the Director General shall perform the functions of and be deemed to be the Chairman of the Board. Vacation of office

3B. (1) The office of a member appointed under paragraph 3A(1)(a). (d) or (e) shall be vacated--

(a) if he dies;

(b) if there has been proved against him, or he has been convicted on, a charge in respect of--

(i) an offence involving fraud, dishonesty or moral turpitude;

8 Laws of Malaysia ACT 397

(ii) an offence under any law relating to corruption; or (iii) any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years;

(c) if he becomes a bankrupt or has made an arrangement with his creditors;

(d) if he is of unsound mind or is otherwise incapable of performing his duties or managing his affairs; or (e) if he has been absent at three consecutive meetings of the Board, without leave in writing of the Minister.

Filling of vacancies

3C. Where any person ceases to be a member by reason of section 3B Minister may appoint another person to fill the vacancy for a term exceeding three years, and that person shall be eligible for reappointment.

Appointment of Director General

3D. (1) The Minister shall appoint, upon such terms as the Minister may determine, an executive officers who shall be the Director General of the Authority.

(2) The Director General shall be responsible for the administration and management of the functions and affairs of the Authority, and in particular, but without prejudice to the generality of the foregoing-- (a) the preparation of programmes, schemes and projects, the progress of which must be reported to the Board from time to time;

(b) the execution of programmes, schemes and projects and projects of the Authority;

(c) the issue of policy guidance or elucidation or recommendations of the Board to officers and servants of the Authority;

(d) the management and administration of the financial affairs of the Authority; and

(e) the supervision and control over the implementation of the recommendation of the Board.

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(3) The Director General shall perform such further duties as the Board may from time to time direct.

Appointment of officers, servants and other persons 3E. (1) The Authority may appointed such number of officers and servants of the Authority as it thinks desirable and necessary who shall be paid such remuneration and allowances and be subject to such conditions of service as may be prescribed by regulations (2) The Authority may engage the services of and pay other persons to do any act required to be done in the performance of its functions or the exercise of its powers or for the better carrying into effect the purposes of this Act.

4. (Deleted by Act A1146). Direction on policy by the Minister

5. The Minister may give to the Board directions not inconsistent with this Act as to performance of the functions and exercise of the powers of the Authority, and the Board shall give effect to such directions.

Functions of the Authority

6. It shall be the functions of the Authority to promote investment in the industrial sector and its related services in Malaysia and to advise the Minister on the formulation of policies in respect thereof and for that purpose, the Authority may--

(a) undertake activities relating to the promotion of industries and their related services within or outside Malaysia; (b) undertake or cause to be undertake research and planning on matters relating to industrial development and its related services and restructuring;

(c) advise the Government n the granting of manufacturing licences, incentives, expatriate posts and any other facilities relating to the promotion, development and coordination of industries;

(d) advise the Government on measures for the promotion of industries and their related services, including the imposition or alternation of, and exemption from customs, and other duties, and import and export licensing; 10 Laws of Malaysia ACT 397

(e) facilities and assist the activities of Federal and State institutions engaged in or connected with industrial development and its related services;

(f) provide consultancy services including training and technical assistance;

(g) undertake any activity that promotes cooperation with other countries in line with the objectives of the Government with respect to industries and their related services; (h) assist Malaysian companies in seeking technology and investment opportunities abroad;

(i) report annually to the minister on the progress and problems of industrialization and its related services in Malaysia and make recommendations on the manner in which such problems may be dealt with;

(j) carry out any other functions consistent with this Act as the Minister may in writing authorize; and

(k) generally do all such matters incidental to or consequential upon exercise of its powers or the performance of its functions under this Act.

Powers of the Authority

6A. (1) The Authority shall have such powers as may be reasonably necessary for, or incidental to, the performance of its functions. (2) In particular, but without prejudice to the generality of subsection (1), the Authority may--

(a) conduct surveys and investigations to ensure compliance with conditions imposed for the grant of incentives in respect of manufacturing industries including their related services or any other sectors related to manufacturing as directed by the Minister;

(b) require any person dealing with manufacturing activities or their related services or any other activity relating to the functions of the Authority to submit reports; (c) charge fees for any services or facilities provided by the Authority; and

(d) generally undertake such other powers incidental to or consequential upon the exercise of its functions under this Act.

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Board to perform functions and exercise powers of the Authority 6B. The Board shall perform the functions and exercise the powers the Authority under this Act and any function so performed or any power so exercised shall be deemed to be performed or exercised by the Authority.

7. (Deleted by Act A1146). Power to delegate

7A. (1) The Board may, subject to such terms, limitations or restrictions as it deems fit to impose, delegate to the Chairman, the Director General or to any other member the power and authority to exercise or perform on its behalf such powers or functions of the Board under this Act as it may determine, except the power to make regulations, and any power or functions so exercised or performed by the Chairman or the Director General or the members, as the case may be, shall be deemed to have been exercised by and on behalf of the Board.

(2) Without prejudice to the generality of subsection (1) and to the other provisions of this Act, the Board may delegate to either the Chairman or to the Director General authority to sanction expenditure from any moneys vested in and under the control of the Board up to such limit as the Minister shall specify. Power to appoint committees

7B. (1) The Board may appoint committees to assist it in relation to the selection and recruitment of officers, disciplinary matters, financial and audit matters and such others matters arising out of or connected with the operation of the Authority. (2) Committees appointed under subsections (1) shall regulate their own procedure.

(3) Committees appointed under subsection (1) shall conform to any instructions from time to time given to it by the Board and the Board may at any time discontinue or alter the constitution of any committee so appointed.

12 Laws of Malaysia ACT 397

(4) A committee shall report its recommendations to the Board.

8. (Deleted by Act A1146).

9. (Deleted by Act A1146). Malaysian Industrial Development Authority Fund

10. (1) For the purpose of this Act, there is established a fund to be known as the "Malaysian Industrial Development Authority Fund", to be administered and controlled by the Board. (2) The Fund shall consist of--

(a) such sums as may be provided from time to time by the Government;

(b) moneys earned by the Authority in the performance of any of its functions;

(c) donations and contributions received from within or outside Malaysia; and

(d) all other moneys belonging to or which may in any manner become payable to the Authority in respect of any matter incidental to its functions and powers.

Expenditure to be charged on the Fund

10A. The Fund shall be expended for the purposes of-- (a) paying any fees, cost or expenses lawfully incurred by the Authority, including the remuneration, superannuation and other allowances, pensions or gratuities of officers, servants or agents of the Authority;

(b) paying any other costs or expenditure properly incurred or accepted by the Authority in the exercise of its powers or in the performance of its functions;

(c) giving grants to members of the private sector for purposes approved by the Minister;

(d) granting loans for such purposes as may be prescribed by regulations to officers and staff of the Authority; and (e) generally, paying any expenses for carrying into effect the provisions of this Act.

Malaysian Industrial Development Authority

(Incorporation)

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Deposit of the Fund

10B. The Authority may, with the approval of the Minister and the concurrence of the Minister of Finance, place the moneys of the Fund on deposit with such financial institution as may be approved by the Minister.

Balancing revenue of the Fund

10C. It shall be the duty of the Board to perform its functions and exercise its powers under this Act so as to secure that the total revenues of the Authority are, subject to any directions given by the Minister under section 5, sufficient to meet all sums properly chargeable to its revenue account including depreciation and interest on capital taking one year with another.

Expenditure and preparation of estimates

10D. (1) Before the beginning of September of each year the Board shall submit to the Minister an estimate of the expenditure (including expenditure for development projects) for the following year in such form and containing such particulars as the Minister may direct; and the Minister shall, before the beginning of the following year, notify the Authority of the amount authorized for expenditure generally or of the amount authorized for each description of expenditure.

(2) The Board may at any time submit to the Minister a supplement estimate for any one year and the Minister may allow the whole or any part of the additional expenditure.

Statutory Bodies (Accounts and Annual Reports) Act 1980

11. The Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240] shall apply to the Authority.

Annual Report

12. (1) The Authority shall not later than 31st day of March of each year, cause to be made and transmitted to the Minister a report dealing with the activities of the Authority during the preceding year and containing such information relating to the proceedings and policy of the Authority as the Minister may from time to time require.

14 Laws of Malaysia ACT 397

(2) The Minister shall cause a copy of every such report to be laid on the table of each House of Parliament.

Application of Penal Code and obligation of secrecy

13. (1) Every member, officer, servant and agent of the Authority and every member of a committee appointed under section 7B, while discharging his duties as such member, officer, servant or agent, shall be deemed to be a public servant within the meaning of the Penal Code.

(2) Except for the purposes of this Act or of any criminal proceedings under this Act, no member, officer or servant or agent of the Authority shall disclose any information with respect to any individual business, which has been obtained by him in the course of his duties and which is not published in pursuance of this Act; and a person contravening this subsection shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding six months or to a fine not exceeding one thousand ringgit or to both.

(3) (Deleted by Act A1146).

Non-Liability

13A. No member or member of the Authority's committees or officers, servant or agent of the Authority shall incur personal liability for any loss or damage caused by any act in administration the affairs of the Authority, unless the loss or damage is occasioned by an intentionally wrongful act or omission on his part. Public Authorities Protection Act 1948

13B. The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit prosecution or proceeding against the Authority or against any member, officer, servant or agent of the Authority in respect of any act, neglect or default done or committed by him in such capacity.

Regulations

14. (1) The Minister, on the recommendation of the Board, may make such regulations as may be necessary or expedient for the better carrying into effect of the purpose and provision of this Act. Malaysian Industrial Development Authority

(Incorporation)

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(2) In particular and without prejudice to the generality of subsection (1), such regulations may provide for-- (a) the fees to be imposed by the Authority under this Act; (b) the remuneration, allowances and condition of services of officers and servants of the Authority;

(c) the payment of pensions, allowances or gratuities to officers and servants of the Authority;

(d) the manner, term and purposes of loans granted to officers and servants of the Authority; and

(e) such other matters which may be prescribed by the Authorrity under this Act.

16 Laws of Malaysia ACT 397

SCHEDULE

[Section 3A(3)]

Meeting

1. (1) The quorum of the Authority shall be seven. (2) If on any question to be determined by the Authority there is an equality of votes, the Chairman or other member acting as chairman shall have a casting vote.

(3) Subject to subparagraphs (1) and (2) the Authority shall determine its own procedure.

Common seal

2. (1) The Authority shall have a common seal which shall bear such devices as the Board shall approve and such seal may be broken, changed, altered or made anew as the Board may think fit.

(2) The seal of the Authority shall be authenticated by the Chairman, or other member acting as chairman, and one other member of the Authority, and any document purporting to be sealed with the said seal, authenticated as aforesaid, shall until the contrary is shown be deemed to have been validly executed.

(3) Notwithstanding subparagraph (2), any document or instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the Board; and such document or instrument may be executed on behalf of the Authority by any officer or servant of the Authority generally or specially authorized by the Board in that behalf.

(4) Until a seal provided by the Board, a stamp bearing the words "Malaysian Industrial Development Authority" may be used and shall be deemed to be the common seal.

(5) The common seal shall be kept in the custody of the Chairman or such other person as may be authorized by the Board.

(6) The seal of the Authority shall be officially and judicially noticed. Minutes

3. (1) The Board shall cause minutes of all its meetings to be maintained and kept in a proper form.

(2) Minutes made of meetings of the Board shall, if duly signed, be admissible in evidence in all legal proceedings without further proof and every meeting of the Board in respect of the proceeding of which minutes have been so made shall be deemed to have been duly convened and held and all members shall be deemed to have been duly qualified to act.

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Validity of acts and proceeding

4. No act done or proceedings taken under this Act shall be questioned on the ground of--

(a) any vacancy in the membership, or any defect in the constitution, of the Board; or

(b) any omission, defect or irregularity not affecting the merit of the case

Disclosure of interest

5. A member having whether directly or indirectly any interest in any company or undertaking with which the Authority propose to make any contract or whether directly or indirectly having any interest in any such contract or in any matter under discussion by the Board shall disclose to the Board the fact of his interest and the nature of the interest, and such disclosure shall be recorded in the minutes of the meetings of the Board and, unless specially authorized by the Chairman, the member shall take no part in any deliberation or decision of the Board relating to the contract or matter.

18 Laws of Malaysia ACT 397

LAWS OF MALAYSIA

Act 397

MALAYSIAN INDUSTRIAL DEVELOPMENT

AUTHORITY (INCORPORATION) ACT 1965

LIST OF AMENDMENTS

Amending law Short title In force from

Act A123 Federal Industrial Development 04-04-1972 Authority (Incorporation)

(Amendment) Act 1972

Act 160 Malaysian Currency (Ringgit) 29-08-1975

Act 1975

Act A455 Federal Industrial Development 02-03-1979 Authority (Change of Name and

Amendment) Act 1979

Act A1146 Malaysian Industrial Development 15-04-2002 Authority (Incorporation)

(Amendment) Act 2002

Malaysian Industrial Development Authority

(Incorporation)

19

LAWS OF MALAYSIA

Act 397

MALAYSIAN INDUSTRIAL DEVELOPMENT

AUTHORITY (INCORPORATION) ACT 1965

LIST OF SECTIONS AMENDED

Section Amending authority In force from

2 Act A1146 15-04-2002

3 Act A1146 15-04-2002

3A-3E Act A1146 15-04-2002

4 Act A1146 15-04-2002

5 Act A1146 15-04-2002

6 Act A1146 15-04-2002

6A-6B Act A1146 15-04-2002

7 Act A1146 15-04-2002

7A-7B Act A1146 15-04-2002

8 Act A1146 15-04-2002

9 Act A1146 15-04-2002

10 Act A1146 15-04-2002

10A-10D Act A1146 15-04-2002

11 Act A1146 15-04-2002

13 Act 160 29-08-1975

Act A1146 15-04-2002

13A-13B Act A1146 15-04-2002

14 Act A1146 15-04-2002

Schedule Act A1146 15-04-2002

DICETAK OLEH

PERCETAKAN NASIONAL MALAYSIA BERHAD,

KUALA LUMPUR

BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA

20 Laws of Malaysia ACT 397


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