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Corporate Service - Malaysia

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Q&A on Equity Policy for Malaysia Companies

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Q: Are there any restrictions imposed on the foreign ownership of Malaysia companies?
A: No. However, in cases where specific licenses are necessary for operations, equity conditions or mandates for hiring a minimum number of local employees might be enforced.
Likewise, there is no single comprehensive law that governs foreign investment. Malaysia manages foreign investment through a sector-specific approach, overseen by the relevant regularity bodies in accordance with applicable laws and regulations.

Q: Who are considered Bumiputera under the equity policy?
A: Bumiputera refers to Malays and indigenous peoples of Malaysia, including various ethnic groups such as the Ibans, Kadazans, and others. They are prioritised in the equity policy to promote their participation in the economy and business ownership.

Q: What are some examples of sectors with equity condition imposed?  
A:
  1. Banking and finance
  2. Telecommunications
  3. Energy and Utilities
  4. Transportation
  5. Tourism
  6. Agriculture
  7. Legal Services

Q: What are some examples of sectors without equity condition imposed?  
A:
  1. Manufacturing
  2. Information and Communications Technology
  3. Sporting and other Recreational Services
  4. Business Services
  5. Research and Development Services

Q: What sectors prohibit foreign investment in Malaysia?
A:
  1. Supermarket/ mini market;
  2. Newsstands and miscellaneous goods store;
  3. Medical hall (focusing on traditional alternative medicines and general dry food items);
  4. Fuel station;
  5. Permanent wet market store; and
  6. Non-exclusive shops for  textile, food and beverage, and jewellery.

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