Foreign Purchase

Previously, acquisitions by Malaysians and foreign interests of 15% or more of the voting power in a Malaysian company are permitted subject to the equity condition that 70% should be held by Malaysians with at least 30% by Bumiputra. Foreign interests are restricted to 30%. Now the only equity condition imposed will be Bumiputra equity of at least 30%. Foreign interests will therefore be entitled to hold 70% equity in Malaysian companies either on their own or jointly with Malaysian interests. The requirement of at least 30% Bumiputra equity participation will be applied by all Ministries except where exemptions have been granted by the Government.

FIC approval is required where there is a proposed acquisition of assets or interests by Malaysian and foreign interests exceeding RM5 million. The threshold level is now raised to RM10 million instead of 5 million. For acquisitions exceeding RM100 million, companies can apply for exemption from FIC Guidelines, subject to the approval of the Minister of Finance and on a case-to-case basis. This exemption is given for applications received before 31 May 2004.
But now FIC approval is required where there is an acquisition by foreign and Malaysian interests of 15% or more of the voting power in a Malaysian company.
Foreign interests are permitted to acquire residential and commercial properties where the cost exceeds RM150,000 per unit instead of RM250,000.
Direct investment by foreign interests into Malaysian real property is permitted where the property is acquired from developers, either ready-built existing buildings or newly launched projects which are valued above RM250,000 per unit. The property covers all types of
residential property, shop houses, office space and business space. These acquisitions may be locally funded.

Foreign interests are now allowed to acquire properties exceeding RM150,000 per unit (except Penang & Sarawak). The permitted foreign equity in the local company is now 70%.
Acquisition of a Hotel Property must be made through a local company where a 100% foreign equity is permitted for the first 5 years; thereafter the foreign equity must be brought down to 51%. The permitted foreign equity in the local company is now 70% in the sixth year.
Acquisitions of land for the purpose of development into a housing project, business property or industrial area must be made through a local company in which the permitted foreign equity now is 70%.

Compliance period for equity condition is now extended from one to two years and subsequently can be extended on a yearly basis.
For companies with substantial and high- risk investments, the compliance period to comply will now based on cash flow for these company.

About Us

CAREY REAL ESTATE, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia, was established in 1983, and is based in the Malaysian capital of Kuala Lumpur. Further to this, we also have branch offices in Ampang-Selangor, Kota Kinabalu-Sabah, and Georgetown-Penang.

  • Renting & Selling Properties
  • Projects Sales on Behalf of Developers
  • Property Consultations
  • Property Legal Consultations

Contact Us

CAREY REAL ESTATE (PG) SDN BHD

29, Lebuh Melaka,
10400 Georgetown
Penang
Malaysia


(604) 210 6366
(604) 210 6363
CAUTION

You are advised to check with the Registrar of the Board of Valuers, Appraisers and Estate Agents Malaysia, on the credentials of person(s) / company(s) / websites, who solicit fees for the introduction, rent and/or sale of properties, prior to proceeding with any property transactions. Contact Registrar Board of Valuers, Appraisers and Estate Agents Malaysia Tel : +603 - 2288 8815 / E-mail : lppeh@po.jaring.my

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