Industry Guide on How To Set Up a Childcare Centre in Malaysia

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What is Childcare Centre?

A childcare centre is a place for parents to safely send their children (usually 8 years old & under) during their work hours. They provide all necessary care for the children in the place for the parent(s) when they are working.

Why do we send children to childcare?

In this day in age, single parent (sole income) and double income household are unable to take care of their children during working hours, therefore, it is essential for the children to be sent to the centre which provide care during this time.

With the number of childcare centres on the rise, many parents understanding the importance to send their children to a childcare centre that provides the best services.

In this article, you’ll find the tips on opening your childcare centre in Malaysia.

Guide To Setting Up a Childcare Centre

Unlike the other industry we have in Malaysia, setting up a childcare centre comes with rather strict rules and regulations. The reason being an early education for children are crucial to the upbringing of a child. Below are some of the things you need to consider:

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Understanding conditions & procedures

  1. Setting your childcare business by registering with Suruhanjaya Syarikat Malaysia (SSM)
  2. Obtain approval from local authorities , Fire Rescue Department, Health Department for your childcare centre.
  3. Registering your childcare centre with Department Social Welfare (DSW). The Kebajikan Masyarakat Malaysia (JKM) under the Ministry of Women, Family, and Community Development (MWFCD).
  4. Deciding operational hours and pricing structure of the centre
  5. Premises location and building layout and design of the centre
  6. Funds for all necessary expenses (facilities, insurances, etc)
  7. Creating fun educational activities and curriculums for children at the childcare centre.
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Determine Childcare Centre Type


  • Receive less than 10 children
  • A childcare centre carried out in your own home


  • MWFCD encourages the private sector to provide childcare facilities for their employees.
  • Incentives includes up to 10 years of 10 % tax exemption on the cost of building a childcare centre


  • 10 or more children under their care
  • Usually established by private sector and non-profit organisation (NGO)


  • 10 or more children under their care
  • Community childcare centres with quality childcare service set by the ministry to help low-income households in the urban and rural areas.
  • Subsidies provided to aid the establishment of the childcare centre.

Grasp on All Relevant Law & Regulations

  • MWFCD holds all authorities for all approval and establishment of childcare centres in Malaysia.
  • The JKM acts as the main regulator and coordinator of Early Childhood Care & Education (ECCE) programmes.
  • All childcare centre are to comply with The Childcare centre Act 1984 which it was put in place to maintain the standards of childcare in Malaysia.
  • The Act covers issues on registration; monitoring and inspection of the childcare centres; and protecting the interests and safety of the children [against any negligence and abuse].

Opening Your Childcare Centre

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