Understanding the CIDB Levy in Malaysia

Written By Ammar Baderisham

At Arah Maju Bina, we believe that building responsibly means more than just completing projects. It means following the right processes and upholding industry standards. One of the most important compliance steps for contractors in Malaysia is the CIDB levy.

What is the CIDB Levy?

The Construction Industry Development Board (CIDB) levy is a mandatory contribution for contractors in Malaysia.

  • Levy Rate: 0.125% of the total contract value

  • Threshold: Applies to all projects worth RM500,000 and above

  • Timing: The levy must be paid before construction work begins

📌 For example: A project valued at RM1,000,000 will require a CIDB levy payment of RM1,250.

Why is the Levy Important?

The levy isn’t just another cost, it directly supports the growth of Malaysia’s construction sector. Contributions collected by CIDB are used for:

  • Training & skills certification for workers

  • Research & industry innovation to improve quality and safety

  • Regulatory enforcement to ensure fair, professional practices

Every levy payment helps raise the standards of the entire industry.

What Happens if Contractors Don’t Declare or Pay?

Not declaring a project or under-reporting its value can lead to serious consequences, such as:

  • Heavy fines

  • Blacklisting from future tenders

  • Loss of credibility with clients and regulators

At Arah Maju Bina, we declare every project with CIDB at its full value. For us, transparency is not just compliance it is integrity.

Why Does This Matter to Clients?

When clients work with a contractor who follows CIDB regulations, they gain peace of mind knowing that:

✅ The project is legal and compliant
✅ Workers are certified and insured
✅ The contractor is credible and trustworthy

In other words, compliance isn’t just about rules it’s about protecting your investment and ensuring your project is delivered to national standards.

Our Commitment

“At Arah Maju Bina, we prioritise high standards, professionalism and ethical practices. That is why we strictly adhere to CIDB regulations ensuring every project we undertake is declared, compliant and aligned with industry best practices.”

Ammar Baderisham