Foreign Investments in Malaysia

Updated on Thursday 13th October 2016

Rate this article
based on 2 reviews

Foreign Investments in Malaysia Image
Malaysia is one of the most attractive locations in Asia for foreign investments. The country has good governmental stability and has maintained itself well through the economic falls that have influenced investments in other countries. A number of business-friendly policies along with a business environment that supports entrepreneurs and is open to foreign individuals are two other important reasons to consider investing in Malaysia

Cultural diversity has been one of the country’s strong points and its natural geographical location and resources have helped the country develop and become one of the key locations to base a business in Asia.

Foreign investors who are just starting a company in Malaysia or are in need of information before deciding to take this step can contact our law firm in Malaysia for complete assistance during the incorporation procedures.

Foreign investment data in Malaysia

China is one of the largest foreign investors in Malaysia, the country securing this position in 2016. Other countries like Japan, Singapore, the United States or European countries like the Netherlands and Norway. In 2016 the total value of exports from Malaysia was slightly larger than the total value of imports. 

Foreign corporations that set up their regional offices in Malaysia will most often open a corporation like a limited liability company or enter into a partnership with a local Malaysian company.

The Malaysian Government encourages foreign trade through incentives in various industries (most notably in technology sectors) and several tax exemptions for pioneer companies. This program was extended and companies now benefit from a larger number of tax-exempt years. One of our lawyers in Malaysia can tell you more about the measures that are taken to encourage investments.

Top sectors receiving foreign investments in Malaysia 

Historically, Malaysia has been exploiting its abundant natural resources. The electronic and chemical sectors are also well developed and an important potential for foreign investments also exists in the biotechnology and green energy sectors, high-tech industries, transport, telecommunications and financial services. Opportunities for investments in Malaysia are slightly fewer in sectors like the automobile industry. Some services allow limited access to foreigners. 

Foreigners enjoy full foreign ownership, are allowed to rent or buy land and buildings in Malaysia but are prohibited from buying agricultural land. Foreign companies operating in sectors like radio or television, healthcare or the financial sector need to acquire special permits and licenses for functioning. One of our attorneys in Malaysia can help you apply for these specific authorizations. 

A number of bilateral conventions and double tax treaties are also useful in securing foreign investments in the country.

You can contact our law firm in Malaysia if you want to know more about the legislation for foreign investments and how you can set-up a company here.