Sarawak R&D Facility Setup Guide
- Roger Pay
- Apr 18
- 5 min read
Sarawak R&D Facility Setup Guide
Setting up a Research and Development (R&D) facility in Sarawak involves several key steps. Here's a breakdown of the essential aspects:
1. Understanding Sarawak's R&D Priorities and Regulations:
Sarawak R&D Council (Sarawak RDC): Familiarize yourself with the Sarawak RDC and its research priority areas. These currently include:
Biomedical Health Sciences
Biodiversity and Environment
Food and Agriculture
Engineering Science and Technology
Grant Application Guidelines: If you plan to seek funding from the Sarawak RDC, review their grant application guidelines carefully. Note that their funds generally do not cover capital expenditures like purchasing equipment or constructing buildings. Proposals with a clear path to commercialization are often favored.
Sarawak Biodiversity Centre (SBC): If your R&D involves biological resources or traditional knowledge, be aware of the Sarawak Biodiversity Centre Ordinance 1997 and the Sarawak Biodiversity Regulations 2016. You may need permits for R&D on biological resources and potentially an export permit if research needs to be conducted outside Sarawak. The Sarawak Online Research Application System (SORAS) is the platform for these applications. Prior informed consent from indigenous communities and benefit-sharing agreements might be necessary if your research involves their traditional knowledge.
Environmental Regulations: Understand that environmental regulations in Sarawak are primarily under state jurisdiction. The Natural Resources and Environment Ordinance 1993 and the Natural Resources and Environment Board (NREB) are key entities. Depending on the nature of your R&D activities, you might need approvals to ensure you don't negatively impact the environment. While a specific list for R&D facilities isn't immediately available, it's crucial to consider potential impacts related to waste disposal, emissions, and resource use.
2. Business Registration in Sarawak:
Distinct Process: Note that business registration in Sarawak differs from Peninsular Malaysia. It's handled by the Inland Revenue Board (LHDN), not the Companies Commission of Malaysia (SSM). Currently, there is no online registration process through LHDN.
Business Name Search: Conduct a business name search at the LHDN office in Kuching. Prepare at least three potential names.
Registered Office: You'll need a registered office within Sarawak. Proof of address (stamped Tenancy Agreement, Sales and Purchase Agreement, or Land Title) is required.
Essential Documents: Prepare documents such as the Trade License Application Form (Borang IRD No. 8), Business Names Ordinance Form (Borang R20), and Borang TL (if required by the Department of Statistics based on your business nature).
Business Stamp: Create a business stamp with your complete commercial address.
Submission: Submit all forms and necessary documents at the PNP counter of the LHDN office. Obtain a receipt.
Trade License: The trade license processing takes approximately two weeks. You'll need to present your payment receipt to collect it.
Company Incorporation (if applicable): If you are incorporating a company (Sdn Bhd), the process involves name search with LHDN and then submitting forms (Form 9, 24, 49) and paying fees to SSM (either online or offline at the SSM Kuching office). However, for general business operations in Sarawak, the LHDN registration is primary.
Minimum Paid-Up Capital: For companies, there are minimum paid-up capital requirements depending on the ownership structure (100% Malaysian-owned, joint venture, or 100% foreign-owned). Joint venture and wholly foreign-owned companies need to provide proof of paid-up capital expenditures within Sarawak.
Tax Identification Number (TIN): After registration, you'll need to register for taxes through the MyTax portal to obtain your TIN.
3. Securing Land and Utilities:
Industrial Zones and Estates: Sarawak has several agencies that develop industrial zones, including the Ministry of Industrial Development (MID), Sarawak Economic Development Corporation (SEDC), Sarawak Timber Industry Development Corporation (STIDC), and 1 Bintulu Development Authority (BDA). These zones may offer suitable land for R&D facilities.
Applying for Industrial Land: You can apply for a manufacturing permit and an industrial lot through Service Sarawak, an online platform. Minimum paid-up capital requirements apply.
Land Premium: The land premium for industrial land can vary depending on the location.
Utilities: Sarawak Energy Berhad (SEB) is the primary power provider. Sarawak aims for a high renewable energy mix. Industrial electricity tariffs in Sarawak are generally competitive. Water supply is also managed within the state.
4. Available Incentives:
National and State Incentives: Malaysia, including Sarawak, offers various tax incentives (both direct and indirect) to encourage investment, including in R&D. These can include Pioneer Status (income tax exemption), Investment Tax Allowance (ITA), and reinvestment allowances.
R&D Specific Incentives: Companies conducting R&D, including contract R&D companies and in-house research, may be eligible for specific incentives like income tax exemptions or ITAs on qualifying capital expenditure. Certain criteria regarding local R&D expenditure and qualified personnel may apply.
Green Incentives: Sarawak is promoting green industries and offers incentives like Green Income Tax Exemption (GITE) and Green ITA (GITA) for eligible projects and services.
InvestSarawak: InvestSarawak is the key agency to consult for specific investment incentives and to understand the overall business environment for R&D activities.
5. Building Your R&D Team:
Talent Pool: Malaysia has a growing pool of graduates in STEM fields.
Partnerships: Consider collaborations with local universities and research institutions to access talent and expertise.
Expatriate Staff: Be aware of immigration requirements if you plan to hire non-Sarawakian or foreign researchers. Employment passes will be necessary.
6. Intellectual Property (IP) Protection:
Establish strategies to protect your R&D outcomes through patents, trademarks, and copyrights.
In summary, setting up an R&D facility in Sarawak requires navigating a distinct business registration process through LHDN, understanding state-specific regulations related to biodiversity and the environment, exploring potential industrial zones and utilities, and investigating available investment and R&D incentives. Engaging with agencies like InvestSarawak, Sarawak RDC, and SBC will be crucial for a smooth setup process.
How Bestar can Help
Sarawak R&D Facility Setup Guide
In the context of setting up an R&D facility in Sarawak, or really any significant endeavor, Bestar can provide invaluable assistance in numerous ways. Think of us as specialized navigators and builders who bring expertise and efficiency to the table. Here's how we can help at various stages:
1. Strategic Planning and Consultation:
Market Research Professionals: They can conduct in-depth analyses of the relevant industries in Sarawak, identify market needs, and assess the potential for your R&D outcomes. This helps in aligning your research focus with real-world demands.
Business Consultants: Bestar can provide guidance on the overall strategy, business model, and financial projections. We understand the local economic landscape and potential challenges.
R&D Strategy Consultants: Bestar can help define your R&D roadmap, identify key research areas aligned with Sarawak's priorities and your capabilities, and develop intellectual property strategies.
2. Navigating Regulatory and Legal Frameworks:
Legal: Bestar is crucial for ensuring compliance with all regulations. They can assist with business registration (LHDN and potentially SSM), land acquisition, environmental permits (NREB), and navigating the Sarawak Biodiversity Centre Ordinance if applicable. They can draft and review contracts, protecting your interests.
Environmental: Bestar can assess the potential environmental impact of your R&D facility and guide you through the process of obtaining necessary environmental approvals and ensuring sustainable practices.
Intellectual Property: We can advise on the best ways to protect your innovations through patents, trademarks, and copyrights, and help with the application processes.
3. Financial Management and Funding:
Accountants and Financial: We can help with setting up your financial systems, managing budgets, preparing financial statements, and ensuring compliance with tax regulations.
Grant Writing: If you plan to seek funding from the Sarawak RDC or other sources, Bestar can help you craft compelling proposals that meet the funding criteria.
Investment: We can advise on potential funding sources, including venture capital or angel investors, and help you prepare investor presentations.
In essence, Bestar brings specialized knowledge, experience, and efficiency to the complex process of setting up an R&D facility. We can help you avoid costly mistakes, navigate regulatory hurdles, build a strong foundation, and ultimately increase your chances of success. By leveraging our expertise, you can focus on your core research activities with greater confidence.
Comments