According to Section 25 of Act 520, all contractors, whether domestic or international, must register with the Malaysian Construction Industry Development Board (LPIPM) or CIDB as of 20 July 1995. (Amendment 2011). 

Without being registered as a contractor registered with LPIPM, a person who undertakes to carry out or carries out and completes any construction work is in violation of this Act and subject to a fine of up to 50,000 ringgit upon conviction. 

With reference to Malaysian Construction Industry Development Board (CIDB) Act 520, Section 25 (1):

“No person shall carry out work or complete, undertake to carry out or complete any construction work or declare himself as a contractor, unless he is registered with the Board and holds a valid certificate of registration issued by the Board under this Act”.

Before submitting an application for registration, contractors must read the Contractor Registration Standards and Processes and meet all applicable requirements.

A CIDB license will attest to the company's legitimacy as a contractor for activities involving construction. Before beginning any work covered by CIDB Act 520, all contractors—local or foreign—must apply and register with CIDB.