Investment framework and opportunities in Malaysia
Procedures Relative to Foreign Investment
- Freedom of Establishment
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Foreign and domestic private entities can establish and own business enterprises and engage in all forms of remunerative activity, although exceptions may apply to specific sectors.
- Acquisition of Holdings
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Restrictions still apply in various sectors: logistics, industrial training, wholesale and distributive trade (in relation to hypermarkets and food and restaurant businesses), which are required to limit foreign equity participation when applying for operating licenses, permits and approvals (max 70% for foreigners); insurance companies (max 70%, with exceptions); the national telecommunications firm Telekom Malaysia (aggregate foreign share cap set at 30%, or 5% for individual investors); oil & gas; financial services; capital markets activities carried out by investment banks; insurance and Islamic insurance (takaful); communications and multimedia; education; transportation services, freight forwarding and shipping; water; energy supply; professional services; and security and employment agencies.
- Obligation to Declare
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Under the Industrial Coordination Act of 1975, investors seeking to engage in manufacturing activities need a license if the business claims capital of MYR 2.5 million or employs at least 75 full-time staff.
- Competent Organisation For the Declaration
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National Committee on Investment
- Requests For Specific Authorisations
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Foreign holdings are limited in radio/television broadcasting, distribution of water and electricity, logistics, industrial training, and distributive trade, insurance sector, oil & gas, telecommunications, etc.
Foreign investment in services, whether in sectors with no foreign equity caps or controlled sub-sectors, remain subject to review and approval by ministries and agencies with jurisdiction over the relevant sectors.
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Latest Update: March 2024
Malaysia: Investing in Malaysia
