MSIC Code in Malaysia: What is it and How to Find It

Navigating the intricacies of Malaysia's business and taxation regulations can be overwhelming, but with the right knowledge, you can streamline your operations effectively per compliance standards. A crucial aspect of this understanding is the MSIC code, i.e. the Malaysian Standard Industrial Classification.

In this comprehensive guide, we will explore the fundamental aspects and the significance of the MSIC code in Malaysia’s business sphere.

What is the Malaysia MSIC Code?

 The Malaysian Standard Industrial Classification (MSIC) code is a numerical system where each code corresponds to a specific industry, allowing for streamlined data collection and analysis. It is a standardised classification, developed by the Department of Statistics Malaysia, and aims to simplify the complex landscape of industries and businesses and classify economic activities into different sectors and sub-sectors.

Why are Malaysia MSIC Codes Important?

These MSIC codes hold significant importance in the Malaysian business landscape for several operational and legal reasons:

• Regulatory compliance
• Taxation and financial reporting
• Statistical analysis and economic planning
• Business research and analysis
• Facilitating business partnerships

At its core, MSIC codes serve as a universal language for businesses, regulators, researchers, and policymakers. The practical application of these codes in real-life scenarios underscores their crucial role in the efficient functioning of the country's economy.

How to Find Your Malaysia MSIC Code

Finding the correct code for your business is a crucial step towards complying with MSIC codes by LHDN. Follow these simple steps to identify the right MSIC code for your enterprise:

• Step 1: Determine the sector of your business activities
• Step 2: Visit the official Department of Statistics Malaysia website at www.dosm.gov.my.
• Step 3: Navigate to the MSIC code directory
• Step 4: Utilise the MSIC code search functionality
• Step 5: Review the search results, i.e. business activities displayed alongside corresponding sectors and sub-sectors
• Step 6: Verify the code details
• Step 7: Note down the correct MSIC code and include it in your business documentation

Different types of MSIC codes

MSIC codes are diverse, covering a wide array of industries - from manufacturing and agriculture to services and technology, where each sector has its unique set of codes. Here is a list of some business MISC codes, providing an overview of the diverse industries within the country: 

1. Agriculture, Forestry, and Fishing (MSIC Codes 011-099)

011: Growing of non-perennial crops

021: Growing of perennial crops

031: Plant propagation

051: Animal husbandry

071: Hunting, trapping, and related service activities

2. Mining and Quarrying (MSIC Codes 101-142)

101: Mining and agglomeration of hard coal

109: Mining and agglomeration of lignite

112: Operation of gravel and sand pits; mining of clays and kaolin 

3. Manufacturing (MSIC Codes 151-383)

151: Production, processing, and preserving of meat and meat products

210: Manufacture of paper and paper products

259: Manufacture of other fabricated metal products

303: Manufacture of air and spacecraft and related machinery

383: Recycling of metal waste and scrap 

4. Electricity, Gas, Steam, and Air Conditioning Supply (MSIC Codes 401-432)

401: Production, collection, and distribution of electricity

402: Manufacture of gas; distribution of gaseous fuels through mains

410: Steam and air conditioning supply 

5. Water Supply; Sewerage, Waste Management, and Remediation Activities (MSIC Codes 451-390)

451: Sale of motor vehicles

464: Wholesale of household goods

477: Retail sale of other goods in specialized stores 

6. Construction (MSIC Codes 421-439)

421: Construction of roads and railways

429: Construction of other civil engineering projects

431: Demolition and site preparation

439: Other specialized construction activities 

7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (MSIC Codes 451-477)

451: Sale of motor vehicles

464: Wholesale of household goods

477: Retail sale of other goods in specialized stores

8. Transportation and Storage (MSIC Codes 491-532)

491: Passenger rail transport, interurban

501: Sea and coastal passenger water transport

511: Scheduled passenger air transport 

9. Information and Communication (MSIC Codes 581-620)

581: Publishing of books, periodicals, and other publishing activities

591: Motion picture, video, and television program production, sound recording, and music publishing activities

602: Television programming and broadcasting activities 

10. Financial and Insurance Activities (MSIC Codes 641-662)

641: Monetary intermediation

649: Other financial service activities, except insurance and pension funding

661: Activities auxiliary to financial service and insurance activities

Understanding these various MSIC codes is crucial for businesses, regulators, and policymakers in Malaysia as it facilitates efficient data collection, analysis, and decision-making processes, ensuring the smooth functioning of the country's diverse economic activities.

How to Use MSIC Codes for Business in Malaysia

Once you have identified your MSIC code, it becomes a fundamental element of your business documentation and must be included in your official records, licenses, and permits. Additionally, it is important for taxation purposes, aiding the government in assessing your business activities accurately.

Conclusion

Understanding and correctly using the MSIC code system is paramount for businesses in Malaysia. Whether you are a budding entrepreneur or an established business owner, by using the correct MSIC code, you contribute to the integrity of Malaysia's economic data and adhere to the prevailing compliances set by the regulatory authorities.