Foreign Invest

Foreign Investment Guide

All Types of Properties
Residential Properties
Commercial Properties
Agricultural Properties
Industrial Properties
Development Land

Read the latest temporary relaxation of these guidelines

GENERAL GUIDELINES FOR ALL TYPES OF PROPERTIES

ALLOWED

DISALLOWED

Property acquisition with FIC approval regardless of value

Foreign concern's acquisition of properties less than RM250,000 in value except industrial land.

Beginning 22 April, 1998, developers are allowed to sell all types of residential units, shop-house, shop-office and office space to foreign interest, disregarding the existing quota for foreign interest. The conditions are that the properties:-

1	must be above RM250,000 each
2	financing must be obtained from out of Malaysia
3	the projects must be newly completed or at least 50% constructed.
4	All such acquisitions must still obtain the FIC's approval, which will be granted automatically if the above conditions are met.

Reselling of properties by foreign interests within 3 years from the date of the FIC approval.

Foreign concerns are defined as follows:

Foreign citizens

Companies incorporated overseas

Companies incorporated in Malaysia but more than 50% owned by the above two definitions.

GENERAL GUIDELINES FOR RESIDENTIAL PROPERTIES

Allowed		Disallowed
1	Terrace houses of more than 2 stories provided that:- The total units sold to foreign interest are not more than 10% of the total number of units for a particular type in a residential project. The unit price is more than RM250,000 or as stipulated by the local State Authorities.	1	Single-storey and double-storey terraced houses.
		2	Low and medium-cost residential houses and flats
		3	Residential houses built on Malay Reserve land
		4	Residential houses reserved for the Bumiputera (indigenous malays)
2	Land for bungalow and semi-detached houses provided that: The total units sold to foreign interest are not more than 10% of the total number of units for a particular type in a residential project. The unit price is more than RM250,000 or as stipulated by the local State Authorities. If the land is redeveloped for investment purposes, the purchaser is required to form a Malaysian incorporated company with at least 49% Malaysian equity including 30% Bumiputera (indigenous malays) interest.	5	Acquisition of three or more units ( for individuals including spouses). Such acquisitions are considered as investment purchase which must be made through a Malaysian incorporated company which is at least 49% owned by Malaysian citizen including 30% Bumiputera (indigenous malays) interest.
3	Condominiums/apartments with value exceeding RM250,000 provided that not more than 50% from the total number of units in each block is acquired by foreign interest.
4	Acquisition of more than one residential unit to be used as company resort homes.

LATEST:
For projects which had commenced construction before October 17, 1997, permanent residents are allowed to acquire residential property priced below RM250,000 but more than RM60,000 provided that the spouse is a Malaysian citizen or has applied for Malaysian citizenship.

GENERAL GUIDELINES FOR COMMERCIAL PROPERTIES

Allowed		Disallowed
1	Shop-house of three or more storeys priced at more than RM250,000 or as stipulated by the local State Authorities.	1	Shop-houses less than 3 storeys high
2	Commercial complex or office space*	2	Low cost shops
		3	Stalls
		4	Service workshops
		5	Commercial buildings built on Malay Reserve land.

* provided that:-

Not more than 20% of the particular type of property in each project is sold to foreign interest..

The acquisition is made through a Malaysian incorporated company with at least 49% equity participation by Malaysian citizen including 30% Bumiputera (indigenous malays) interest.

GENERAL GUIDELINES FOR AGRICULTURAL PROPERTIES

Allowed		Disallowed
1	Acquisition for undertaking a commercial agricultural activity using high technology.		Acquisition for the purpose of pursuing traditional agricultural activity such as rubber or oil palm plantation.
2	Acquisition for undertaking an agricultural-based industry
3	Acquisition for undertaking a tourism project

All agricultural properties acquisition must comply with the following:-

It is made through a Malaysian-incorporated company which, is at least 49% owned by Malaysian citizen including 30% Bumiputera (indigenous malays) interest.
For the purpose of producing output or products for export, foreign concern equity in the respective company will be according to the guidelines as set out by the Ministry of Trade and Industry.

GENERAL GUIDELINES FOR INDUSTRIAL PROPERTIES

Foreign concern can acquire industrial properties for company's operational purposes provided that the following regulations are adhered to:-

possess Manufacturer's License from Ministry of Trade and Industry
for those without the license, the foreign concern equity must obtain prior FIC approval.

GENERAL GUIDELINES FOR DEVELOPMENT LAND

Foreign concerns are allowed to acquire development land for residential projects, commercial buildings or industrial estate by using a Malaysian-incorporated company of which is 70% equity is held by Malaysian including at least 30% Bumiputera (indigenous malays) interest.