Free Industrial Zones (FIZs) are areas specifically established for manufacturing companies that produce or assemble products mainly for export.

FIZs enable these export-oriented companies to enjoy minimal customs formalities and duty free import of raw materials, component parts, machinery and equipment required directly in the manufacturing process as well as minimal formalities in exporting their finished products.

Todate there are 14 FIZs located at Bayan Lepas, Prai, Prai Wharf, Batu Berendam, Tanjung Kling, Sungai Way, Ampang Hulu Klang, Telok Panglima Garang, Johor Port, Jelapang, Kinta Phases 1 & 11, Tanjung Gelang and Sama Jaya.

Eligibility
Companies can be located within FIZs when :

• their entire production or not less than 80% of their products are meant for export
  
• they mainly import their raw materials/components. Nevertheless, the government encourages FIZ companies to use local raw materials/components
  

Licensed Manufacturing Warehouses
To enable companies to enjoy FIZ facilities, in areas where it is neither practical nor desirable to establish FIZs, companies can set up Licensed Manufacturing Warehouses (LMWs). LMWs are accorded facilities similar to factories operating in the FIZs.

Eligibility
Companies normally approved for LMWs are those :

• whose entire production or not less than 80% are meant for export
• whose raw materials/components are mainly imported