Required certification · Malaysia
CIDB Malaysia
Mandatory contractor registration and Green Card for construction personnel under Act 520
Market position
The Construction Industry Development Board (CIDB, or LPIPM) registers contractors under the Construction Industry Development Board Act 1994 (Act 520). Contractors apply through the CIMS portal and receive a PPK registration certificate by grade (G1 to G7) and category, plus an SPKK certificate for government works. CIDB also registers construction personnel, who receive the Green Card.
Malaysia-specific note
Section 25 of Act 520 requires every local and foreign contractor to register with CIDB, and Section 29 sets a fine of RM10,000 to RM100,000 for breaches. Under Section 33(1) construction workers, site supervisors and project managers must also be registered (Green Card), which needs a safety induction course (SICW or eSICW). The registration number must be shown on the signboard at each site.
Pros
- + Registration lets a contractor tender for and carry out construction work legally
- + Grade sets the works limit, from RM200,000 (G1) to no limit (G7)
- + SPKK certificate opens government works, with no extra registration fee
- + Green Card holders get takaful benefits, CIDB says
Cons
- − Working unregistered risks a fine of RM10,000 to RM100,000
- − Registration must be renewed (1-3 years depending on CCD points)
- − Every site worker, supervisor and project manager needs a Green Card
- − Unpaid registration fees void an approval after 14 days
Typical Malaysia pricing
PPK registration fee per year: G1 RM20, G2 RM80, G3 RM150, G4 RM350, G5 RM700, G6 RM1,000, G7 RM1,400, plus a RM50 processing fee per new application (RM30 for renewals); renewal at the same grade costs 50% of the registration fee; SPKK has no registration fee. Green Card: RM35 for 1 year up to RM135 for 5 years.
Why this matters for Malaysia trades
Under Act 520, every local and foreign contractor must register with CIDB (the Construction Industry Development Board), which grades contractors G1 to G7 with works limits from RM200,000 (G1) to no limit (G7), issues the SPKK certificate for government works and registers construction workers, site supervisors and project managers through the Green Card; working unregistered risks a fine of RM10,000 to RM100,000. LHDN/IRBM runs income tax, employers’ monthly PCB/MTD deductions and the MyInvois e-invoicing system. SSM (the Companies Commission of Malaysia) registers businesses, companies and LLPs; under Act 138 only a Professional Engineer or engineering consultancy practice registered with the Board of Engineers Malaysia (BEM) may submit engineering plans to an authority; and employers must register with and pay monthly contributions to EPF/KWSP and to SOCSO/PERKESO (including EIS), with HRD Corp registration and levy required at 10 or more employees in covered industries.
Malaysian construction and trades software selection is shaped by MyInvois, the national e-invoicing system run by LHDN/IRBM (the Inland Revenue Board), rolled out in phases by turnover from August 2024. Businesses with turnover up to RM5 million entered on 1 January 2026, but under LHDN’s e-Invoice Guideline of 30 August 2026 those below RM3 million are exempt unless a shareholder company, holding company, related company or joint venture has turnover of RM3 million or more, and an interim relaxation for the up-to-RM5 million phase runs to 31 December 2027, allowing consolidated e-invoices for taxpayers who meet its conditions. AutoCount, SQL Account, Bukku and other local accounting and ERP vendors listed here say they submit e-invoices to MyInvois. Add the Ringgit (MYR), SST, CIDB contractor grading from G1 to G7, and monthly EPF, SOCSO, EIS and PCB payroll deductions, with LHDN publishing a list of payroll software whose PCB calculation meets its specification.
Frequently asked
Is CIDB Malaysia a good fit for Malaysia trades?
The Construction Industry Development Board (CIDB, or LPIPM) registers contractors under the Construction Industry Development Board Act 1994 (Act 520). Contractors apply through the CIMS portal and receive a PPK registration certificate by grade (G1 to G7) and category, plus an SPKK certificate for government works. CIDB also registers construction personnel, who receive the Green Card. Section 25 of Act 520 requires every local and foreign contractor to register with CIDB, and Section 29 sets a fine of RM10,000 to RM100,000 for breaches. Under Section 33(1) construction workers, site supervisors and project managers must also be registered (Green Card), which needs a safety induction course (SICW or eSICW). The registration number must be shown on the signboard at each site.
What does CIDB Malaysia cost in Malaysia?
PPK registration fee per year: G1 RM20, G2 RM80, G3 RM150, G4 RM350, G5 RM700, G6 RM1,000, G7 RM1,400, plus a RM50 processing fee per new application (RM30 for renewals); renewal at the same grade costs 50% of the registration fee; SPKK has no registration fee. Green Card: RM35 for 1 year up to RM135 for 5 years. Pricing and availability can change by region; confirm current Malaysia pricing on the vendor's site before committing.