Laws of Malaysia Act Reprinting Development Corporation Act 539 small and medium industries 1995 Containing all amendments to 1 January 2009 is published by the Commissioner of law revision, under the authority of Law Revision Act 1968 2009 2 laws of Malaysia Act 539 Development Corporation Act small and medium industries, 1995 date of Assent............... 19 October 1995 date of publication in the Gazette......... 2 november 1995 the Corporation development of small and medium enterprises 3 laws of Malaysia Act 539 Corporation Act small and medium industries Development 1995 arrangement of sections part i preliminary section 1. short title 2. interpretation part ii the Corporation 3. Establishment of the Corporation 4. membership of the Corporation 5. the term of Office 6. Revocation of appointment and resignation by members of 7. Temporary exercise of functions of the Chairman 8. alternate member 9. Revocation of appointment 10. The filling of casual vacancies 11. allowance part iii functions and powers of the Corporation 12. The functions of the Corporation 13. powers of the Corporation 4 laws of Malaysia Act 539 section 14. power to borrow 15. authority to use the services of 16. power to delegate 17. the power to appoint committees part iV financial provisions 18. Fund the development of the small and medium industry 19. Expenses shall be charged on the Fund 20. Rebalancing revenue account 21. Deposit and investment fund 22. Expenses and the preparation of the estimate of 23. Act statutory bodies (accounts and annual reports) 1980 24. Surcharges part V Administration 25. Appointment of Chief Executive Officer 26. The remuneration of the Chief Executive Officer 27. the duties of the Chief Executive Officer of 28. Appointment of officers and servants of the Corporation 29. disciplinary officer and 30 servants. public authorities Protection Act 1948 31. Public servants part Vi General 32. Rule 33. Statements, reports, accounts and information 34. power of Minister to give directions Schedule Development Corporation small and medium 5 laws of Malaysia Act 539 Corporation Act small and medium industries Development 1995 an act to establish and form a Development Corporation small and medium industry and matters connected therewith.
[May 1, 1996, P.U. (B) 152/1996]
Be it enacted by the Seri Paduka baginda yang di-Pertuan agong with the advice and consent of the Dewan negara and Dewan rakyat in Parliament assembled, and by the authority of the same, as follows: part i preliminary short title 1. This Act may be cited as the Development Corporation Act small and medium industries, 1995.
interpretation 2. In this Act, unless the context otherwise requires — "manufacturing" shall have the meaning assigned to it under the industrial coordination Act 1975 [Act 156];
6 laws of Malaysia Act 539 "small and medium" means a company involved in manufacturing activities and related activities declared, from time to time, by the Minister of the statutory order published in the Gazette;
"Fund" means the Fund for small and medium industries development established under section 19;
"Minister" means the Minister in charge of international trade and industry;
"Corporation" means a Corporation the development of small and medium enterprises established under section 3;
"company" means a company incorporated under the companies Act 1965 [Act 125] and includes a business registered under the registration of businesses Act 1956 [Act 197].
part ii the Corporation establishment of Corporation 3. There is hereby established a body known as "Corporation development of small and medium enterprises" which have perpetual succession and a common seal, which may sue and be sued on behalf of him and, subject to and for the purposes of this Act, may enter into contracts and can acquire, purchase, take, hold and enjoy any kind of movable and immovable property and may transfer , assign, surrender, return, mortgage, charge, pledge, assign the mendemis, transferred or in any other manner dispose of, or make any arrangements regarding, any movable or immovable property or any interest therein vested in the Corporation, in accordance with such terms and conditions as it thinks fit.
Industrial Development Corporation of small and medium 7 membership of the Corporation 4. (1) the Corporation shall consist of the following members: (a) a Chairman;
(b) a Deputy Chairman who shall be a representative of the Ministry of international trade and industry;
(c) a representative of the Ministry of finance;
(d) a representative of the economic planning unit, Prime Minister's Department;
(e) the Chief Executive Officer of the Corporation; and (f) such other members, not exceeding six persons, as determined by the Minister.
(2) member of the Corporation shall be appointed by the Minister and subject to section 5 and 6, shall, unless they resign in advance or their appointment cancelled in advance, hold office subject to such terms and conditions as the Minister may determine.
(3) the provisions of the Schedule shall apply to the Corporation.
the term of Office of 5. subject to section 6, Member of the Corporation other than the Chief Executive Officer shall hold office for a term not exceeding three years as determined by the Minister at the time of their appointment and shall be eligible for re-election.
Revocation of appointment and resignation by members of 6. (1) the Minister may at any time revoke the appointment of any member of the Corporation without giving any reason.
(2) a member of the Corporation may at any time resign his Office by giving notice in writing to the Minister.
8 laws of Malaysia Act 539 temporary exercise of functions of the Chairman 7. (1) the Minister may appoint any member of the Corporation to carry out the functions of the Chairman during any period as Chairman due to any reason whatsoever unable to exercise his functions or during any period of vacancy in the position of Chairman; and members of such shall, during the period that he carries out the functions of Chairman under this subsection, be deemed to be the Chairman.
(2) until an appointment is made under subsection (1) or, if no such appointment is made, the Member appointed under paragraph 4 (1) (b) shall carry out the functions of Chairman and be deemed to be the Chairman of the Corporation.
alternate member 8. (1) the Minister may, in respect of each Member of the Corporation appointed under paragraph 4 (1) (b), (c) and (d), appoint a became an alternate member to attend meetings of the Corporation in lieu of the Member, if the Member is unable to attend for any reason whatsoever.
(2) when attending the meeting of the Corporation, an alternate member shall for all purposes be deemed to be a member of the Corporation.
(3) an alternate member shall, unless he resigns beforehand or his appointment is cancelled in advance, cease to be an alternate member if the members for which he became alternate member cease to be members of the Corporation.
Revocation of appointment 9. (1) a member of the Corporation is disqualified and his appointment as a member of such shall be void if — (a) has been proved against him, or he has been convicted of, a charge in respect of — (i) an offence involving fraud, dishonesty or moral turpitude; or Industrial Development Corporation small and medium 9 (ii) any other offence punishable with imprisonment (whether imprisonment only, or in addition to or in lieu of a fine) for more than two years;
(b) he becomes bankrupt or had made an arrangement with his creditors;
(c) he has been found or declared as not of unsound mind or otherwise unable to perform or manage its affairs; or (d) in three consecutive meetings of the Corporation, without the prior written permission of the Minister, he was not present nor represented by alternate member, if any, appointed therefor.
(2) the provisions of subsection (1), other than paragraph (d), shall apply mutatis mutandis to the alternate member.
The filling of casual vacancies 10. When any person cease from being a member of the Corporation by reason of the provisions of this Act, the Minister may appoint another person to fill the vacancy for the remaining period of the appointed members.
Allowance 11. There shall be paid to the Member and alternate member of the Corporation such allowances as determined by the Minister.
Part iii functions and powers of the Corporation Corporation 12. The Corporation shall have the following functions: (a) to promote and coordinate the development of small and medium industries in malaysia;
10 laws of Malaysia Act 539 (b) to carry out research related to the development of small and medium industrial sector;
(c) to carry out promotional activities in the State to encourage the growth of small and medium enterprises in the country;
(d) to establish a comprehensive database and information system for the development of small and medium enterprises;
(e) to be a centre of collection, reference and dissemination in relation to small and medium enterprises;
(f) to provide technical support and management advisory services in cooperation with other agencies involved in the development of small and medium enterprises;
(g) to promote cooperation among small and medium enterprises through business consolidation, technical cooperation, the establishment of a joint fund or enterprise cooperation and the purchase of equipment use the same;
(h) to promote the IR with large industry;
(i) to promote the development of human resources in the small and medium industries; and (j) to do anything other matters incidental to or arising from the performance of its functions from time to time.
powers of the Corporation 13. The Corporation shall have power to execute all matters reasonably necessary or expedient for, or incidental to the carrying out of its functions under this Act, and in particular, but without prejudice to the generality of the following: (a) to provide and maintain a branch office with the approval of the Minister;
(b) to appoint an agent or calling out to carry out the functions of the Corporation under this Act;
Corporation, the small and medium industries Development 11 (c) to create a database and comprehensive information system in relation to the development programmes for small and medium enterprises;
(d) to take and hold capital in any company with the approval of the Minister;
(e) to organize promotional activities small and medium industries such as participation in trade fairs, seminars and conferences within and outside the State;
(f) to publish or sponsor periodic publications, brochures and production information in any media; and (g) for charging for the use of any facilities or services provided by the Corporation.
power to borrow 14. The Corporation may, from time to time borrow in any form, for any rate of interest and for such period and upon such terms as to the time and manner of repayment and otherwise as may be approved by the Minister, with the agreement of the Minister of finance, any sums required by the Corporation for any of its obligations or performing any of its functions or exercise any of its powers.
authority to use the services of 15. The Corporation may use the services and pay the Advisory techniques, and agents and any other person deemed necessary to carry on any business or do any act required to be exercised or performed on its functions or exercise of its powers to carry out the purposes of this act better.
power to delegate 16. (1) the Corporation may, subject to such terms and conditions, limitations or restrictions, as may be deemed fit apply, delegate to the Chairman, or the 12 laws of Malaysia Act 539 Chief Executive Officer, or to any member of the Corporation, the power and the authority to exercise or perform on behalf of the powers or functions under this act as may be specified by him, except the power to make regulations under section 32; and any power or function so entered or executed by the Chairman or Chief Executive Officer or other Member of the Corporation, as the case may be, shall be deemed to have been carried out by and on behalf of the Corporation.
(2) without prejudice to the generality of subsection (1) and the other provisions of this Act, the Corporation may delegate either to the Chairman or to the Chief Executive Officer the authority to authorize expenditures from the Fund or any other vested in or under the control of the Corporation until the limit must be stated by the Corporation.
the power to appoint Committee 17. (1) the Corporation may appoint such committees for any purpose arising from or in connection with such functions and powers; any Committee appointed shall contain at least one member of the Corporation and may be appointed to the Committee, any other person deemed appropriate by the Corporation.
(2) a Committee appointed shall regulate its own procedure.
(3) any Committee so appointed shall comply with any direction given to him by the Corporation from time to time, the Corporation may at any time discontinue or modify the membership of any Committee appointed it.
(4) the Committee may invite any person who, in his opinion have knowledge specific to its benefits, in order to attend any meeting of the Committee and the person invited is not entitled to vote in any of the meetings.
(5) the Committee shall report syornya to the Corporation.
Industrial Development Corporation of small and medium 13 part iV financial provisions Development Fund industr i keci l and medium 18. (1) for the purposes of this Act, the Corporation shall establish, administer and control a fund known as the "development fund small and medium enterprises".
(2) there shall be paid into the Fund: (a) money launching the establishment of Government provision;
(b) such sums as may be provided from time to time by the Government;
(c) any sums borrowed by the Corporation under section 14;
(d) any sums allotted from time to time to the Corporation from the loan fund;
(e) all monies earned by the Corporation for services provided or the conduct of any project, scheme or Enterprise;
(f) all donations and contributions received from within or outside malaysia;
(g) all monies earned or arising from any property, investments, mortgages, charges or debentures acquired by or vested in the Corporation; and (h) all money that may in any way be payable to or vested in the Corporation in respect of any matter incidental to the functions and powers.
(3) in this section and section 20, the phrase "loan fund" means any sum of money that may be called from time to time for the Government as a loan.
14 laws of Malaysia Act 539 expenses shall be charged on the Fund 19. Fund shall be expended for — (a) the payment of any expenses lawfully incurred by the Corporation, remuneration of officers and servants who are appointed and used services by the Corporation, including the retirement allowance, pension or gratuity;
(b) payment of any charges for any amount allocated to the Corporation from the loan fund;
(c) to pay any costs or other expenses incurred by the Corporation in the exercise of its powers or perform its functions including the fees and the costs of professional services to the Corporation;
(d) refund any moneys borrowed under this Act and the interest payable thereon;
(e) the granting of loans to officers and servants of the Corporation for the purposes approved by the Minister; and (f) generally pay any expenses for carrying out the provisions of this Act.
Rebalancing revenue accounts 20. It shall be the duty of the Corporation to maintain the Fund by exercise of the powers and perform the functions to ensure that the total revenue of the Corporation, subject to any direction given by the Minister under section 34, is sufficient to pay all sums properly chargeable to revenue account, including depreciation and interest on capital, from year to year.
Deposit and investment fund 21. The Corporation may, with the approval of the Minister puts the Fund as deposits with a bank in malaysia or invested in government securities or any securities approved by the Minister with the consent of the Minister of finance.
Industrial Development Corporation of small and medium 15 expenditure and estimates 22. (1) the expenditure of the Corporation until as much as allowed by the Minister for any one year shall be paid out of the Fund.
(2) before the beginning of the month of September each year, the Corporation shall submit to the Minister an estimate of expenses (including expenses for development projects) for the following year in such form and contain such particulars as may be directed by the Minister; and before the beginning of the following year the Minister shall notify the Corporation the amount authorised for expenditure generally or the amount that is allowed for each type of expenditure.
(3) the Corporation may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included in the supplementary estimates.
Act statutory bodies (accounts and annual reports) 1980 23. Provisions of the Act statutory bodies (accounts and annual reports) 1980 [Act 240] shall apply to the Corporation.
a surcharge of 24. (1) a person who is or has been employed by the Corporation may disurcaj if it appears to the Corporation that such person — (a) has failed to collect any money owing on Corporation pemungutannya is or has become its duties;
(b) is or has been responsible for any payment of money should not be from the Corporation or for any payment of moneys of the Corporation not approved accordingly;
16 laws of Malaysia Act 539
(c) is or has been responsible, directly or indirectly, for any deficiency in or upon destruction, any moneys, stamps, securities, storage or other property of the Corporation;
(d) as, or who was the accounting officer, failing or have failed to keep proper records or account; or (e) has failed to make any payment, or have been responsible for any late in payment, money from the Fund to any person to whom payment is to be made under any law or under any contract, agreement or arrangement made between the person with the Corporation.
(2) the Corporation shall, before the person disurcaj deliver a written notice to him, ask him to show reason why he should not be disurcaj.
(3) If a satisfactory explanation is not accepted within fourteen days from the date of delivery of the notice referred to in the past, the Corporation may — (a) in the case of paragraph (1) (a), (b) and (c), mensurcajkan a sum of money against the person which does not exceed the amount that was not collected, or payment should not be made or deficiency in, or damage to the property destroyed; and (b) in the case of paragraph (1) (d) and (e), mensurcajkan any amount of money against the person as the Corporation thinks fit.
(4) the Chief Executive Officer shall notify the person who disurcaj in respect of any surcharge made under subsection (3).
(5) Notwithstanding the provisions of subsection (3) and (4), the Corporation may at any time withdraw any surcharge if it turns out that there are surcharges should be made, and the Chief Executive Officer shall immediately notify the person who disurcaj about the withdrawal.
Corporation, the small and medium industries Development 17 (6) the amount of any surcharge made under subsection (3) and not withdrawn under subsection (5) shall be a debt due to the Corporation of a person against whom a surcharge is made and can be sued and recovered in any court upon suit by the Corporation and can also if directed by the Corporation recovered through deductions from — (a) basic salary the person disurcajkan; or (b) the pension of people who disurcajkan, with equal monthly instalments not exceeding one quarter of the total salary or monthly pension of that person, as the case may be.
Part V Administration appointment of Chief Executive Officer 25. the Minister may appoint a Chief Executive Officer of the above terms and conditions as the Minister may determine.
the remuneration of the Chief Executive Officer 26. There shall be paid to the Chief Executive Officer of remuneration as determined by the Minister.
the duties of the Chief Executive Officer of 27. the Chief Executive Officer shall be liable to the Corporation to ensure that the management and administration of the functions and Affairs of the Corporation which is organized in accordance with the policies of the Corporation.
18 laws of Malaysia Act 539 appointment of officers and servants of the Corporation 28. (1) subject to subsection (2) and any regulations made under paragraph 33 (2) (c), (d) and (e), the Corporation may from time to time, appoint the number of officers and servants as he may deem proper and necessary and upon such terms and conditions as he thinks fit, to carry out the purposes of this Act.
(2) Notwithstanding subsection (1), the Corporation cannot establish or modify any posts or scheme of service for officers and servants of the Corporation, including the terms and conditions of service and salaries, any pension scheme, and any scheme relating to allowances and other remuneration, without the approval of the Ministry of finance and the public service department in advance.
discipline of officers and servants 29. (1) the Corporation shall establish a disciplinary board of the Corporation shall consists of — (a) two members appointed by and from the members of the Corporation and one of whom shall be appointed as Chairman; and (b) the Chief Executive Officer.
(2) the Board of discipline Corporation established under subsection (1) shall be the disciplinary authority in respect of every such officers and servants of the Corporation other than the Chief Executive Officer.
(3) the Chief Executive Officer shall not be a member of the Disciplinary Committee in any proceedings in which he is a complainant; him shall be taken by members who shall be appointed from among the members of the Corporation.
(4) in discharging its functions and powers of the disciplinary board, has the authority to impose disciplinary penalties provided for under any regulations that may be made under section 32.
Industrial Development Corporation of small and medium 19 (5) procedure for disciplinary proceedings shall be in accordance with regulations made under section 32.
(6) the disciplinary board may, subject to subsection (7), delegate any disciplinary functions and powers to any Committee or officer of the Corporation, known as servants Disciplinary Committee, in relation to any officers or servants of the Corporation may be, or in respect of any class or category of officers or servants of the Corporation, and Committee diperwakilkan with functions and powers shall exercise, perform or made under the direction and control of the disciplinary board shall have the power to review , cancel or vary any decision or a summary of the Committee.
(7) the decline in power cannot be made under subsection (6) to allow an officer or servants of the Corporation to be a member of any of the Disciplinary Committee can exercise any disciplinary action over an officer or a senior servants more in terms of his position.
(8) any officers or servants of the Corporation who is not satisfied with the decision of the disciplinary board or any disciplinary committee delegated with functions and powers under subsection (6) may, within fourteen (14) days appeal in writing against such decision to the Corporation where the Corporation will further confirm, reverse or give any appropriate instructions on the matter as he thinks fit and affordable.
(9) when the Corporation considering any appeal under subsection (8), shall be no disciplinary board or the Disciplinary Committee, as the case may be, to appear in proceedings relating to appeal against whom the appeal is made.
(10) the results of the appeal are Corporations on final and conclusive.
20 laws of Malaysia Act 539 public authorities Protection Act 1948 30. public authorities Protection Act 1948 [Act 198] shall apply to any legal action, prosecution or proceeding against the Corporation or against any Member, officer, servants or agent of the Corporation in respect of any act, neglect or default made or done by him upon such property.
Public servants 31. All members, officers and servants of the Corporation, while performing their functions as members, officers and servants of the Corporation, shall be deemed to be public servants within the meaning of the Penal Code [Act 574].
part Vi General Regulations 32. (1) the Minister may, after consultation with the Corporation, make such regulations as expedient or necessary to carry out the purposes and provisions of this Act in a systematic manner and effectively.
(2) without prejudice to the generality of the following, such regulations can be made to — (a) impose fees in certain cases specified by the Corporation; (b) the purpose of the allowance payable to any member and alternate member of the Corporation; (c) prescribing the responsibilities, conduct and control of officers and servants of the Corporation; (d) or in respect of remuneration, allowances and conditions of service of officers and servants of the Corporation; (e) the payment of pensions, allowances or gratuities to officers and servants of the Corporation because their movement or otherwise their separation from holding positions as officers or such servants;
Industrial Development Corporation of small and medium 21 (f) the manner in which the terms and conditions of the loan can be given to officers and servants of the Corporation under paragraph 19 (f) and its meaning;
(g) discipline of officers and servants of the Corporation can cover — (i) the provisions for detention work with reduction of salary or other remuneration for work, or suspension without pay or other remuneration of an officer or servants of the Corporation while waiting for disciplinary proceeding completed;
(ii) the creation of any disciplinary offence and provide for any disciplinary punishment as the Corporation considers appropriate, and the punishment provided may include dismissal or demotion; and (iii) the procedure for disciplinary proceedings which shall provide that officers or servants of the Corporation against whom disciplinary proceedings are taken, a chance to defend themselves against the allegations made against him before a disciplinary decisions made by the disciplinary authority, except in the following cases if: (aa) an officer or servants of the Corporation dismissed or lowered rank because the conduct in respect of which a criminal charge has been proved against him;
(bb) The Corporation is satisfied that because a reason shall be recorded in writing, it is not reasonably practicable to implement the requirements of this subparagraph;
(cc) the Minister is satisfied that the interest of the security of the Federation or any part thereof is not expedient to implement the requirements of this subparagraph; or 22 laws of Malaysia Act 539 (dd) any detention order, supervision, residential limited, banishment or deportasi was made to an officer or servants of the Corporation or if any form of restriction or supervision by bond or otherwise imposed on an officer or Corporation's servants, under any law relating to the security of the Federation or any part thereof, crime prevention, preventive detention , residential limited, banishment, immigration, or protection for women and girls; and (h) prescribing any matter under this Act shall be prescribed by the Corporation.
Statements, reports, accounts and information 33. (1) the Corporation shall give to the Minister, any statements, reports, accounts and information concerning the property and activities of the Corporation as required or directed by the Minister from time to time.
(2) without prejudice to the generality of subsection (1), the Corporation shall, as soon as practicable after the end of each financial year, cause to be made and sent to the Minister a report which deals with the activities of the Corporation during the previous financial year and the report shall be in such form and shall contain any information relating to the proceedings and policy of the Corporation as may be specified from time to time by the Minister.
power of Minister to give directions 34. the Minister may give to the Corporation any direction of a general, in accordance with the provisions of this Act on the implementation of its functions and the exercise of the powers of the Corporation and the Corporation shall give effect to such directions.
Corporation development of small and medium enterprises 23 Table [Subsection 4(3)] meetings 1. (1) a quorum for a meeting of the Corporation was four people.
(2) where on any question to be determined by the Corporation, there is a number of votes equal the Chairman shall have a casting vote in addition to the votes normally.
(3) subject to subparagraph (1) and (2) the Corporation shall regulate its own procedure.
Seal 2. (1) the Corporation shall have a common seal which shall bear such a sign approved by the Corporation and such seal may from time to time be broken, changed, altered or made anew as the Corporation thinks fit.
(2) the seal shall be authenticated by the Chairman or a member of the Corporation and all deeds, documents and other instruments purporting to be sealed with the seal, authenticated as aforesaid, shall until the contrary is proved, be deemed to have been validly executed: provided that any document or instrument which if executed by a person not being a body corporate shall not be required to be sealed may be executed by the Corporation similar manner; and any other document or instrument may be executed on behalf of the Corporation by any officer or authorised servants of the Corporation generally or specially by the Corporation for that purpose.
(3) until a seal is provided by the Corporation, a stamp bearing the words "Corporation development of small and medium enterprises" may be used and shall be deemed to be the seal of the Corporation.
(4) the common seal shall be kept in the custody of the Chairman or any person authorized by the Corporation.
(5) the common seal of the Corporation shall be officially and judicially noticed.
Minute 3. (1) the Corporation shall cause minutes of all its meetings to be maintained and stored in a proper form.
24 laws of Malaysia Act 539 (2) any minutes made of meetings of the Corporation, if duly signed, shall be received in evidence in all legal proceedings without further proof and every meeting of the Corporation the minutes of the proceedings has been made with respect to such shall be deemed to have been duly convened and held and all members of the meeting have been duly qualified to act.
validity of acts and proceedings 4. There are no any act done or proceeding taken under this Act may be questioned on the ground that any — (a) vacancy in the membership of, or any defect in the formation of the Corporation; or (b) omission, defect or ketidakteraturan that notwithstanding the merits of the case.
Disclosure of interest 5. A member of the Corporation, either directly or indirectly, have any interest in any company or undertaking, which the Corporation proposes to make any contract or that have either directly or indirectly any interest in any such contract or in any matter under discussion by the Corporation shall disclose the fact and the nature of the interest to the Corporation and the disclosure shall be recorded in the minutes of meetings of the Corporation and the Member shall be out of any discussion or decision of the Corporation relating to the contract or that matter.
Industrial Development Corporation of small and medium 25 laws of Malaysia Act 539 Corporation Act small and medium industries Development 1995 List Amendment law short title force amend from – No – 26 laws of Malaysia Act 539 laws of Malaysia Act 539 Corporation Act small and medium industries Development 1995 List Section amended Section power amend with effect from – no – PRINTED by PERCETAKAN NASIONAL MALAYSIA BERHAD , KUALA LUMPUR on BEHALF and by ORDER of the GOVERNMENT of MALAYSIA jw513694