CIDB License Application

CIDB License Malaysia – Application Process (Updated 2025)

One must apply for a CIDB license in Malaysia to launch a construction-related business.

With the tax it imposes on all big construction projects and the required courses it offers, the Construction Industry Development Board is an unavoidable presence for those working in the sector in Malaysia.

The construction industry’s dedication to quality and productivity is ensured by a CIDB license through professionalism, ongoing innovation, and in-depth expertise.

 

WHO NEEDS A CIDB GREEN CARD?

Employees in Malaysia’s construction sector are required to possess a current CIDB Green Card. This covers both domestic and foreign workers engaged in construction-related activities, including laborers, skilled laborers, and supervisors of construction sites.

Before allowing an employee to work on a construction site, employers are legally obligated to make sure that the worker has a valid CIDB Green Card.

The CIDB Green Card is evidence of the worker’s appropriate training and knowledge of the basics of safety and health laws in the construction sector. Ensuring a safe and healthy work environment is an essential requirement in the construction industry.

The following attachment lists the categories for which a CIDB Green Card is required:

• Construction Workers
• Crane Driver
• Lorry driver
• Doctor
• Students

 

WHAT ARE THE CATEGORIES OF CIDB LICENSES?

There are various grades of CIDB licenses, ranging from 1 to 7. You are allowed to do more work the higher your grade. The majority of contractors in Malaysia are listed as Grade 4 or 5.

The lowest CIDB registration level, Grade 1, permits contractors to perform extremely small-scale tasks like renovations and repairs. Buildings with a little bit more complexity, like homes and small offices, are allowed under grade 2. Even more projects, like the construction of high-rise buildings and highways, are possible with Grade 3. In Malaysia, the most common grades are 4 and 5, which let contractors work on different kinds of construction projects.

 

BENEFITS OF CIDB GREEN CARD

Having a Green Card CIDB in Malaysia has various advantages, such as:

• Legal compliance: Having a valid CIDB Card guarantees compliance with requirements as workers in the construction industry are required to have one.
• Improved health and safety: Possession of a CIDB Card certifies that its holder has a basic awareness of the important topics of health and safety in the construction industry, as covered in the training course and exam.
• Enhanced employability: Having a valid CIDB Card can improve employability and make it easier to find work, as many employers in the construction industry require it.
• Professional development: Completing the CIDB Card training course and passing the exam can help workers in the construction industry advance their careers.
• Renewal opportunities: The CIDB Card has a five-year validity period. Thus, renewal opportunities give employees the chance to stay up to date on safety and health regulations in the construction industry and to update their knowledge.

 

REGISTRATION OF CONTRACTORS

According to the act, no one is permitted to perform any construction activity unless they have registered and are in possession of a current certificate of registration granted by CIDB.

• Non-registration is a crime that can result in a maximum RM 5,000 fine.
• Local contractor registration is time-based. For a maximum of three years and a minimum of one year.
• Local contractors are eligible to be registered in certain categories, such as civil engineering construction, building construction, and mechanical and electrical.
• Construction work outside of a registered category cannot be executed by a contractor.

 

CIDB GREEN CARD IN MALAYSIA

The CIDB Green Card, formally known as the CIDB Construction Personnel Registration Card, is a credential issued by CIDB Malaysia. Its purpose is to certify that the holder is registered with CIDB Malaysia and qualified to undertake construction work on any construction site.

To increase safety at building sites, the Construction Industry Development Board of Malaysia (CIDB) green card program integrates registration and accreditation of construction workers. Without a Green Card, workers cannot enter a building site.

 

Categories or Grades

A contractor is not permitted to make an Invoice that is greater than the value of the construction works stated in the registration grade.

There are seven stipulated registration grades for each category, as shown below.

Depending on the registration grades, a different registration fee is due to CIDB.

The following classifications or grades are based on tendering capabilities:

• G1 not exceeding 200,000
• G2 not exceeding 500,000
• G3 not exceeding 1 million
• G4 not exceeding 3 million
• G5 not exceeding 5 million
• G6 not exceeding 10 million
• G7 no limit

 

QUALIFYING CRITERIA TO REGISTER FOR A CIDB BUSINESS LICENSE IN MALAYSIA

Construction companies must fulfill the following criteria to register with the CIDB for a business license:

 

REGISTRATION WITH THE MALAYSIAN COMPANIES COMMISSION (SSM)

You can refer to Malaysia company incorporation for more information on company registration.

THE BUSINESS AND/OR ITS TECHNICAL STAFF MUST HAVE YEARS OF RELEVANT EXPERIENCE IN THE INDUSTRY

• Execution of all primary contracts and/or designated subcontracts
• The applicants’ execution of subcontracts must be backed up by proof.
• Financial capability will be assessed based on the paid-up capital of applicants whose companies are registered with the Registrar of Companies (ROC).
• Financial capability will be assessed in terms of net capital value for applicants (sole proprietorship or partnerships) registered with the Registrar of
• Businesses (ROB), which can be obtained from any or all of the following:
  • copies of the current account’s last three months’ bank statements
  • Copy of current balance from savings accounts
  • A copy of your current, uncharged fixed deposit statements,
  • Bank certification regarding your overdraft capabilities
  • ASB Shares
• The job that full-time employees perform must be in accordance with their registration grade and category, be compliant with applicable EPF contribution statements, and have recognized qualifications.

 

GOVERNMENT EMPLOYMENT CERTIFICATE (SPKK)

According to the requirements outlined in the Treasury Circular No. 6 of 2012 and the modified Treasury Instruction No. 3 years 2012 by the Malaysian Ministry of Finance, SPKK holders may engage in any government contracting in the construction sector.

To qualify the company to apply for SPKK, applicants must ensure they have a Local Contractor Registration Certificate (PPK)

Application clearance is subject to SPKK registration requirements.
 

REGISTRATION OF CONTRACTOR CONSORTIUM OR JOINT VENTURE

A group of two or more businesses hired to carry out a construction project is known as a registration of consortium or joint venture contractors. The combined firm is not incorporated or registered as a business with Malaysia’s Companies Commission (SSM).

Depending on the awarded project, the company must be registered with CIDB. The project, as specified in the certificate of registration, is the only project for which the granted Certificate of Registration is valid. The two (2) categories of consortium or joint venture contractor registration with CIDB are generally as follows:

1. i) Local Consortium/ Joint Venture Contractors Registration Certificate.
2. ii) Foreign Consortium/ Joint Venture Contractors Certificate of Registration.

 

FOREIGN CONTRACTOR REGISTRATION

The registration of foreign contractors is project-based. The bearer of a foreign contractor’s registration certificate can only carry out the one project listed on the certificate. Within 14 days of the certificate’s expiration, the foreign contractor must apply to CIDB for an extension of the certificate’s validity.

HOW TO APPLY FOR A CIDB LICENSE IN MALAYSIA

Step 1:

Go to the iBINA website and select “Mohon Sekarang” and “Pendaftaran Lesen Kontraktor CIDB.”

Step 2:

Next, the applicant must enter all the required information, including the company name, applicant’s name, phone number, email, application type, GRED, and registration term. Make sure that all of the information is correct.

Step 3:

Before moving on to “Hantar Pemohonan,” click “I agree with the terms & conditions” after completing all the fields. The applicant will hear from the iBINA team within 24 hours. Prepare the paperwork and submit the documents, and the application will be processed.

Depending on CIDB, the applicant will receive the CIDB license through the registered email in 5-7 working days.
 

RESPONSIBILITIES OF REGISTERED CONTRACTORS

Local Contractors – General Conditions

• The issued Registration Certificate cannot be transferred.
• The Board is permitted to regularly review the contractor’s registration grade.

 

RESPONSIBILITIES AND OBLIGATIONS OF THE CONTRACTOR

• The contractor is required to comply with the conditions of the Akta Lembaga Pembangunan Industri Pembinaan Malaysia 1994 (Act 520) (PINDAAN 2011), the rules adopted under it, and any terms, limitations or restrictions that are often enforced by the Board.
• The contractor needs to renew the CIDB License. After this Certificate expires and until it is renewed, the contractor is not permitted to take part in any tenders or perform any construction work.
• The contractor is prohibited from taking on any construction projects that are more expensive than those that are allowed for his registration grade, and he is also prohibited from working on projects that fall outside of his registration category.
• Within fourteen (14) days of being granted the contract, the contractor must submit information regarding any construction work or project.
• The contractor is required to provide any information that the Board may occasionally request.
• In the contractor’s place of business, a copy of the Certificate of Registration certified by the Board or the Certificate of Registration issued by the Board shall be on display.
• At each construction site, the contractor is required to post the registration number on the signboard.
• The rules outlined in the CIDB Contractor Code of Ethics Book must be followed by contractors.
• The Board-accredited and certified construction workers and site supervisors must be chosen by the contractor.
• A valid Construction Personnel Card is a requirement for all workers on construction sites.
• The contractor is responsible for making sure that any items or building materials used adhere to the MS (Malaysian Standard) or other standards that have been approved by Malaysian authorities and are recognized by the Board.

 

Disciplinary Action

Regulation 15 of the Contractor Registration (Construction Industry) Regulations of 1995 states that the Board may revoke or suspend the registration of any contractor registered under these Regulations in the following circumstances:

• The certificate holder has been declared bankrupt;
• The contractor has been the subject of a winding-up petition;
• Certificate holders have violated any of the Act’s or registration regulations;
• The certificate holder has obtained the certificate by providing a false certificate or statement, whether in writing or otherwise;
• The certificate holder has abandoned the ongoing construction project; or
• The certificate holder has violated any other provision of the Act or registration regulations.
• The Certificate Holder has violated or failed to comply with; or has helped in the breach of any terms, conditions, or limitations imposed by CIDB.
• The Certificate Holder is found guilty by the court or any investigative body established under any written law for being irresponsible in the implementation of the construction works carried out.

 

CIDB GREEN CARD VALIDITY

After the date of issuance, the CIDB Green Card is valid for three years. The cardholder must take a refresher course and retake the Green Card CIDB exam to renew their card after it expires. It is important to keep in mind that the Green Card CIDB can only be used by the cardholder whose name is on the card and is not transferable.

Employers and contractors must make sure that employees have a current Green Card CIDB before letting them work on construction sites. Penalties or legal action may be taken if this requirement is not met.

Therefore, to prevent job disruptions in the construction industry, cardholders must monitor the expiration date of their Green Card CIDB and renew it before its expiration.
 

HOW TO RENEW YOUR ONLINE CIDB GREEN CARD

Step 1: Complete the information on the form for renewal.

Step 2: Pay online

Step 3: Processing will begin for the card renewal process.

Step 4: Obtain a temporary CIDB pass

Step 5: The completed Green Card will be mailed.

Step 6: Obtain a construction personnel card from CIDB.

 

CIDB Green Card renewal fee

The CIDB card renewal fees, broken down by one to five years, are as follows:

• 1 Year   = RM 85.00
• 2 Years = RM 135.00
• 3 Years = RM 185.00
• 4 Years = RM 225.00
• 5 Years = RM 250.00

 

FOREIGN CONTRACTOR REGISTRATION WILL BE CANCELED, AND SUSPENDED FOR THE FOLLOWING REASONS –

• The foreign contractor has violated or disobeyed any provision of the Act;
• The foreign contractor violates any other written law;
• The foreign contractor has been declared bankrupt;
• The winding up petition relating to the foreign contractor has been filed; and
• The foreign contractor has violated or disobeyed any bankruptcy sentence.