How to Start a Construction Company in Malaysia in 4 Steps

The construction sector is one of the huge business industries in Malaysia. Statista recorded that in 2023, the construction work in Malaysia was valued at RM 132 billion. 

In addition, the gross domestic product from the construction industry in Malaysia reached RM 53.44 billion in 2022, increasing from RM 50.89 billion in 2021. 

There are many key sectors of the construction industry in Malaysia, such as commercial construction, industrial construction, energy and utilities construction, infrastructure construction, residential construction, and institutional construction. 

Therefore, if you plan to open a construction company in those sectors, you must know how to start a construction company in Malaysia. 

To open a top construction company in Malaysia, you must fulfil some requirements and obey the regulations in Malaysia. This guide will explain how to start a construction company in Malaysia. 

How to Start a Construction Company in Malaysia

The construction industry is one of the promising businesses in Malaysia that you can consider opening. Yet, you need to know how to start a construction company in Malaysia to run your company successfully. Below are the steps you need to follow when starting a construction company in Malaysia. 

1. Build a Business Plan

The first step of how to start a construction company in Malaysia is creating a business plan. You have to determine your goals, business structures, and consider other aspects like finance and resources. 

You can do a swot analysis for the construction company to figure out the strengths, weaknesses, threats, and opportunities of your company so that you can regulate your business properly. Equally important, you must prepare the construction company logo to gain brand recognition and to deliver your identity to your customers. 

An excellent logo for construction should be straightforward, recognisable, and easy to understand. It needs to be pertinent to the brand and operations of the business. To make a construction company stand out from the competitors, its logo needs to be distinctive as well. 

2. Register Your Company

The next step of how to start a construction company in Malaysia is registering your company. Usually, local investors prefer registering their company in the form of a limited company, while foreigners prefer a corporation. 

This is because registering a business to be a limited company requires you to submit personal documents and a copy of your passport. However, any foreigners opening a construction company in Malaysia must work with the local citizens, meaning that on the board of directors, there must be one Malaysian shareholder and director. 

Like any other business in Malaysia, you must register your company with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia). You will find what kind of documents you should prepare and submit to register your company on the website. 

3. Apply for Licenses and Permits

Applying for licenses and permits is another step of how to start a construction company in Malaysia. One of the crucial licenses you should apply for is the Construction Industry Development Board (CIDB).

CIDB is a mandatory license for construction companies in the civil engineering, building, mechanical, and electrical sectors. To gain this license, you must pay a specific tax based on the CIDB scheme grades considering the defined capacity. 

It is required of all applicants to disclose to the Malaysian CIDB the actual amount of the construction project. This is limited to RM 500,000,000 for international contractors who have established their business in Malaysia. 

If the authorities are not informed about projects valued at more than RM 500,000,000, there will be fines of around RM 5,000,000 and the license may be revoked.

Not only CIDB, but some licenses you need are the Bumiputera Status Certificate that allows you to join a government project and Sijil Peroleh Kerja Kerajaan for designated building projects. 

4. Prepare the Equipment

Last, but not least, make sure to get all the machinery and equipment ready for your company. If there is a tool needing repair, you need to fix it immediately. In addition, you must purchase the tools that are already broken immediately so that they will not hinder your work. 

Those are how to start a construction company in Malaysia you should know. Besides understanding the steps of starting this business, you should pay attention to the marketing strategy so that you can reach a wider audience.

One of the marketing strategies you can use is SEO. Not only is SEO cost-effective, but it also helps you draw in new clients with relevant keywords and boost revenue and website traffic by creating outstanding content that is optimised for search engines.

Try our SEO Services right now to find out how we can assist you in using relevant keywords to improve your website, content, and listings!