Malaysia legislation
Section 63
Section 63
Prevention of anomalies
(2)
The Minister shall not exercise the powers conferred by subsection (1) after the expiration of two years from the appointed date.
(3)
In this section, “modifications” includes amendments, additions, deletions, substitutions, adaptations, variations, alterations and non-application of any provision of this Part.
Act 612
First Schedule
[Subsections 1(2) and 15(1)]
Class of Employers
Industry
A.
Manufacturing Sector
(1)
Employers with ten or more employees
Manufacturing, that is, the making or processing of an article by labour or machine or both, including the transformation of parts or components into another article of a different nature or character by way of altering, blending, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, including the building of a ship or the assembly of parts of a ship.
(2)
Change of number of employees
In the event that the number of employees of the employer under subparagraph A(1) decreases to below ten, the rate of levy imposed shall remain at one per centum of the monthly wages of each of the employees.
B.
Service Sector
(1)
Employers with ten or more employees
(i)
Hotel, that is, the provision on a fee basis, of lodging, in hotels, inns, boarding-houses, rent houses, chalets, resorts or other similar places, whether open to the general public or restricted to members of a particular organization;
(ii)
Air transport, that is, the provision of transportation by air, on a fee or contract basis, of passengers or freight whether by regular services or by private charter, including the over-haul, repair, maintenance and cleaning of aircraft;
(iii)
Tourism enterprise, that is, any activity involving the business, organization or management of inbound or outbound tours or any travel agency business within the meaning of the Tourism Industry
Act 1992 [Act 482];
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Class of Employers
Industry
(iv)
Telecommunication, that is, the provision of a system for the conveyance, through the agency of electric, magnetic, electro-magnetic, electro-chemical or electro-mechanical energy of—
(A)
speech, music and other sounds;
(B)
visual images;
(C)
signals serving for the impartation (whether as between persons and persons, things and things or persons and things) of any matter otherwise than in the form of sound or visual images; or
(D)
signals serving for the actuation or control of machinery or apparatus;
(v)
Freight forwarding, that is, any arrangement of freight by air, sea or land from the port of loading/
origin to the port of discharge/
destination, or the provision of total logistic activities, and includes the business of a forwarding agent, that is a business involving activities for the obtaining of customs clearance for freight, but does not include delivery transportation by business units for their own use;
(vi)
Shipping, that is, the operation of vessels for the transport of freight or passengers overseas or coastwise, including towing services on the high seas or within harbours, the operation of vessels for transport by rivers, canals and other inland waterways including ferries operated across rivers, domestic lakes or within harbours, water taxies, sight-seeing boats, towing or tugboats services on inland waterways, and includes the overhaul, repair, maintenance and cleaning of ships;
Act 612
Class of Employers
Industry
(vii)
Postal or courier, that is, the delivery of postal articles such as letters, postcards, newspapers, books, documents, pamphlets, patterns or sample packets, small packets, parcels, packages or other articles or things transmissible by post or courier services;
(viii)
Advertising, that is, the provision of advertising services by advertising agencies to or for clients on a fee or contract basis in various types of media or the conducting of market research work;
(ix)
Computer services, that is, software development or improvement, the maintenance of software or database, systems integration or networking, contract staffing, facilities management, computer installation or maintenance service, or the provision of advisory service or consultancy;
(x)
Energy, that is, the supply and provision of electrical energy or electricity when generated, transmitted, distributed or utilized for any purpose except the transmission of any communication or signal;
(xi)
Training, that is, the business of providing general or specialized training or skills by any body corporate or body of persons but does not include training by the
Government or the Government of any State training providers;
(xii)
Higher education, that is, the providing of instruction or training on or teaching of a course of study leading to the award of a certificate, diploma or degree upon the successful completion thereof or the providing of distance education, but does not include higher education or distance education provided by educational
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Class of Employers
Industry institutions established and managed directly by the Government or the Government of any State or provided by any University or
University College established under the Universities and
University Colleges Act 1971
[Act 30] or the Universiti Teknologi
MARA Act 1976 [Act 173] or the
Politeknik Ungku Omar established under the Politeknik Ungku Omar
Act 1974 [Act 145];
(xiia) Commercial land transport, that is, the provision of land public transport services (excluding railway transport services), terminals, facilities, networks, systems, operations and other services associated with such land public transport or land public transport services, including the provision of public service vehicles and goods vehicles for carrying passengers or goods, namely the bus, charter bus, express bus, feeder bus, mini bus, stage bus, school bus, excursion bus, airport bus, employees bus, airport taxi cab, hire car, limousine taxi cab, taxi cab, and hire drive car for tourists;
(xiib) Railway transport services, that is, the provision of any railway transportation for the public carriage of passenger or goods or both including trains, commuters, monorails, light rail transit systems links and any related railway transportation on a wage, fee or contract basis;
(xiii)
Direct selling, that is, a door-to-door sale or a mail order sale within the meaning of the *Direct Sales and
Anti-Pyramid Scheme Act 1993
[Act 500];
*NOTE—Previously known as the Direct Sales Act 1993 [Act 500]—see the Direct Sales
(Amendment) Act 2010 [Act A1379].
Act 612
Class of Employers
Industry
(xiv)
Port services, that is, the undertaking of all or any work of every description in connection with the management or operation of a port by any private port, inland port or, any company, firm or person authorised by way of licence to undertake such work;
(xv)
Engineering support and maintenance services, that is, the operation, testing or maintenance of electrical, electronic or software engineering or mechanical systems and equipment, including but not limited to the testing and the commissioning of any new equipment which services are provided to any companies, businesses, factories or public authority;
(xvi)
Research and development, that is, the conducting of research and development activities that includes—
(A)
pure research such as experimental or theoretical work undertaken primarily to acquire new scientific or technical knowledge;
(B)
applied research such as original or critical research undertaken in order to acquire a new scientific or technical knowledge, or directed towards a specific practical objective; and
(C)
the use of scientific or technical knowledge in order to produce new or substantially improved materials, devices, products or services to install new processes or systems prior to the commencement of commercial production or applications, or improving substantially those already produced or installed;
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Class of Employers
Industry
(xvii)
Warehousing services, that is, the provision of a bonded warehouse or any other place licensed for the warehousing of dutiable goods which includes all goods subject to the payment of customs duty and on which duty has not yet been paid;
(xviii)
(Deleted by P.U. (A) 452/2005);
(xix)
(Deleted by P.U. (A) 452/2005);
(xx)
Security services, that is, the provision of private security services that includes providing guard and patrol, security consultancy, armoured car or providing advice relating to the security of property, premises, personnel, plant and equipment;
(xxi)
Private hospital services, that is, the provision of treatment or wards to a patient in any premises other than a Government hospital or institution and includes any private maternity home but does not include private nursing home within the meaning of the Private
Healthcare Facilities and Services
Act 1998 [Act 586];
(xxii)
Gas, steam and air-conditioning supply, that is, the collection, supply, distribution or provision of gas, steam and air-conditioning including the distribution of gaseous fuels through a main, the collection and distribution of steam and hot water for heating, energy or other purposes, the distribution of cooled air or chilled water for cooling purposes, and the supply of ice for food and non-food or cooling purposes;
(xxiii)
Water treatment and supply, that is, the process of treatment of water from various sources and the supply or distribution of water by various means for domestic and industrial needs;
Act 612
Class of Employers
Industry
(xxiv)
Sewerage, that is, any activity i n v o l v i n g t h e p r o v i s i o n , maintencance or operation of sewerage systems or sewage treatment facilities including the collection and treatment of waste water from residential or industrial area that is carried away by any means whatsoever for dumping, disposal or conversion into a non-toxic form purposes;
(xxv)
Waste management and material recovery services, that is, any activity involving the collection, treatment or disposal of solid, liquid or gaseous waste materials which are discarded, rejected, unwanted or abandoned to be reused, recycled, reprocessed, recovered or purified by a separate process including remediation activities and other waste management services;
(xxvi)
Production of motion picture, video and television programme, sound recording and music publishing, that is, any business or activity of any description involving—
(A)
the making or production of motion pictures, films, videos and television programmes or commercial messages;
(B)
film, video and television programme, or commercial message post-production activities for radio, television or film;
(C)
distribution activities of acquiring distribution rights for films, video tapes, DVDs or similar productions for commercial purposes;
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Class of Employers
Industry
(D)
motion pictures or video tapes projection activities;
(E)
production of original
(sound) master recordings, sound recording services and related services; or music publishing activities and related services;
(xxvii)
Information service, that is, the provision and supply of data, knowledge or information to customers for commercial purposes including the provision of data processing and hosting services, web portals services, news agencies and news syndicate services, and related services;
(xxviii)
Building and landscape services, that is, any business or activity involving the management, maintenance, upkeeping or cleaning of buildings, landscapes, engine equipment, machinery or other industrial cleanings;
(xxix)
Event management services, that is, any business or activity of any description involving the management, promotion or organization of conventions, business or trade shows, or public or private events;
(xxx)
Early childhood education, that is, the provision of care or early education to the children below six years old by nurseries and kindergartens including the provision of special education for handicapped children at this level but excluding the child care or early education provided by nurseries or kindergardens owned or run by any Federal Government or State Government department or agency, or by any statutory body;
Act 612
Class of Employers
Industry
(xxxi)
Health support services, that is, any business or activity involving medical or health laboratory, dialysis centre, physiotherapy or occupational therapy centre, acupuncture, or herbalist and homeopathy services, but excluding—
(A)
hospital and maternity home activities;
(B)
general medical or dental practice activities;
(C)
residential care activities;
(D)
h e a l t h c a r e s e r v i c e s provided by nurses, midwives, crytherapists, traditional masseurs,
Ayurveda practitioners or other alternative medicine practitioners or paramedical practitioners;
(E)
ambulance services; and other private healthcare services within the meaning of the Private
Healthcare Facilities and Services Act 1998
[Act 586];
(xxxii)
Franchise, that is, in relation to a franchise business, any kind of business or activity involving a franchise agreement or involving the purchase of the right to sell or distribute specific products, services, information, techniques or intellectual property by a franchisee from a franchisor. The word “franchise” has the meaning assigned to it in the Franchise
Act 1998 [Act 590];
(xxxiii)
Sale and repair of motor vehicles, that is, the trade or sale, either by wholesale or retail, of any type of motor vehicle or motor vehicle
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Class of Employers
Industry component by a manufacturer, supplier, wholesaler, retailer or an agent and the rendering of services incidental to the sale of the motor vehicle or motor vehicle component or the provision of periodic after sales services, including the maintenance or repair, during or after a motor vehicle or motor vehicle component is sold;
(xxxiv)
Private broadcasting services, that is, any activity of creating content or acquiring the right to distribute content for radio, television or cable programmes and the broadcasting of the said content to the public;
(xxxv)
Driving school, that is, any activity involving the provision of services by a driving school or driving institute;
(xxxvi)
Veterinary services, that is, the provision of control and healthcare services for farm or pet animals by veterinarians or veterinary personnel which includes—
(A)
c l i n i c - p a t h o l o g i c a l e x a m i n a t i o n a n d diagnosis;
(B)
a diagnosis, cure, mitigation, treatment or prevention of any animal disease, deformity, wound or injury;
(C)
a n i m a l a m b u l a n c e services; and
(D)
testing of animal specimen services.
The words “veterinary services”
shall include all the activities or services provided by animal clinics, veterinary centres or veterinary hospitals;
Act 612
Class of Employers
Industry
(xxxvii)
Hypermarket, supermarket and departmental store services, that is, the sale of items such as groceries, daily necessities, garden produce, meat, confectionery, beverages, d o m e s t i c h a r d w a r e a n d toilet requisites, menswear, womenswear, children’s wear and any other types of apparels, electrical goods, furniture or any other goods for sale;
(xxxviii)
xxxviii
Food and beverage services, that is, any business or activity of any description involving food or drink provision services for customers or for an event (but excluding food and beverages manufacturing activities).
(2)
Change of number of employees
In the event that the number of employees of the employer under subparagraph B(1) decreases to below ten, the rate of levy imposed shall remain at one per centum of the monthly wages of each of the employees.
C.
Mining and Quarrying Sector
(1)
Employers with ten or more employees
Mining and quarrying, that is, any business or activity involving the process of extracting minerals occurring naturally as solid, liquid or gas which includes—
(A)
mining of hard coal and lignite
(brown coal), iron ores, non-ferrous metal ores, or chemical and fertilizer minerals;
(B)
mining or quarrying of abrasive materials, asbestos, siliceous fossil meals, natural graphite, steatite
(talc), gemstones, natural asphalt, asphaltites and asphaltic rock, natural solid bitumen, quarts and mica;
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Class of Employers
Industry
(C)
extraction of crude petroleum oils, bituminous or oil shale and tar sand, natural gas, condensates, liquid hydrocarbon, methane, ethane, butane or propane;
(D)
extraction and agglomeration of peat soil and salt, including extraction of salt by evaporation of sea water of other saline water;
(E)
quarrying of stone, sand and clay; or mining or quarrying specialized support services provided on fee or contract basis.
(2)
Change of number of employees
In the event that the number of employees of the employer under subparagraph C(1) decreases to below ten, the rate of levy imposed shall remain at one per centum of the monthly wages of each of the employees.
Class of Employers
Industry
A. Manufacturing Sector
Employers with five to nine employees
Manufacturing industry relating to the
Manufacturing Sector as specified in subparagraph A(1) of Part I
B. Service Sector
Employers with five to nine employees
All industries relating to the Service
Sector as specified in subparagraph
B(1) of Part I
C. Mining and Quarrying Sector
Employers with five to nine employees
Mining and Quarrying industry relating to the Mining and Quarrying Sector as specified in subparagraph C(1) of Part I.
Act 612
Second Schedule
[Subsection 7(5)]