Definition

1. 'International Procurement Centre' (IPC) refers to a locally incorporated company, whether local or foreign owned, which carries on a business in Malaysia to undertake procurement and sales of raw materials, components and finished product s to its group of related companies, and unrelated companies, in Malaysia and abroad.
   
   
2. These activities include procurement from sale and to any source.

Incentives For IPC

1. Each application will be considered on its own merit.
   
   
2. A company granted IPC status will enjoy the following incentives:
   
   
   1. expatriate posts will be approved based on requirement of IPC;
      
      
   2. an IPC can open one or more foreign currency accounts with any licensed commercial bank to retain their export proceeds, without any limit imposed;
      
      
   3. The company can enter into foreign exchange forward contracts with any licensed commercial bank to sell forward export proceeds, based on projected sales;
      
      
   4. an IPC is allowed 100% equity holding by the promoter;
      
      
   5. the company can bring in raw materials, components or finished products with customs duty exemption into Free Industrial Zones, Licensed Manufacturing Warehouses,Free Commercial Zones, and Bonded Warehouses for repackaging, cargo consolidation and integration before distribution to the final consumers.

Eligibility Criteria for IPC Status

1. To qualify for the incentives an IPC must satisfy the following criteria:
   
   
   1. local incorporation under the Companies Act 1965;
      
      
   2. a minimum paid-up capital of RM0.5 million;
      
      
   3. a minimum total business spending (operating expenditure) of RM1.5 million per year;
      
      
   4. incremental usage of Malaysian ports and airports.
      
      
   5. a minimum turnover of RM50 million by the third year of operation.