Malaysian Legislation Related to Foreign Investments

Updated on Wednesday 15th November 2017

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Malaysian legislation applicable to foreign investments in this country welcomes foreign investors who want to open a company in Malaysia, but there are also some restrictions in this sense. Since 2010, the Malaysian authorities have created a better legal environment applicable to foreign investments. At the same time, it provided better initiatives through the Economic Transformation Program (ETP). Our team of company incorporation representatives in Malaysia can offer an in-depth presentation on the main governmental policies referring to the improvement of the competitiveness in this field. 

The Malaysian initiatives for foreign investments 

The Malaysian institutions are interested in promoting investments in manufacturing and service sector. The ETP is addressing to 12 economic areas, such as:

•    electronics industry;
•    medical devices;
•    green energy projects;
•    machinery and equipment;
•    oil and gas industry;
•    transportation. 

Another program carried out by the Malaysian authorities is the Government Transformation Program (GTP), which tackles issues such as governance and the quality of life. Some of the GTP’s objectives refer to the following improvements of: 

•     the education system;
•     urban transport system;
•     the basic infrastructure in the rural areas. 

The following video offers a short presentation on the Malaysian legislation available for foreign investments:

Foreign investors should know that in 2009, the Malaysian government changed its investment legislation, allowing transactions for mergers and acquisitions. At the same time, the legislation permits the takeover of Malaysian companies by foreign investors without the approval of the Foreign Investment Committee, which customarily had to provide its input for such actions. 

Our team of company formation agents in Malaysia can offer assistance on the effects experienced on the local market after the enactment of these programs. 

Incentives for foreign investments in Malaysia 

Foreign businessmen can access a set of incentives when opening a company in Malaysia. For example, companies can be exempt of taxation for a 15 years period if they invest in regions which are considered main priorities by the local government. It is important to know that the period can be extended in some cases. 

Information technology industry is also sustained by many incentives through the Multimedia Super Corridor, a program set out to develop technological businesses. 

Investors interested to receive further information on the foreign investments framework can address to our team of company incorporation consultants in Malaysia