Foreigner Investment Commitee in Malaysia

2. Foreign Investment Committee
The FIC is a committee within the Economic Planning Unit of the Prime Minister’s Department, which amongst others, reviews and regulates the acquisitions by foreign interests of assets and interests in Malaysian companies and businesses.

2.1 FIC Guidelines 2.1.1 All property acquisition by foreign interest that do not requirethe approval of the Economic Planning Unit, Prime Minister’s Department but falls under the purview of the relevant Ministries and/or Government Departments as follows:
(a)	acquisition of commercial unit valued at RM500,000 and above;
(b)	acquisition of agricultural land valued at RM500,000 and above or at least five (5) acres in area for the following purposes:
	(i)	to undertake agricultural activities on a commercial scale using modern or high technology; or
	(ii)	to undertake agro-tourism projects; or
	(iii)	to undertake agricultural or agro-based industrial activities for the production of goods for export.
(c)	acquisition of industrial land valued at RM500,000 and above; and
(d)	transfer of property to a foreigner based on family ties is only allowed among immediate family members.
2.1.2 Acquisition of residential unit by foreign interest valued at RM500,000 and above. This acquisition, however, do not require the approval of the Economic Planning Unit, Prime Minister’s Department but falls under the purview of the State Authorities.
2.2 The following transactions requires FIC approval: All property acquisition, except for residential units, that requires approvalof the Economic Planning Unit, Prime Minister’s Department as follows:
(i)	direct acquisition of property valued at RM20 million and above, resulting in the dilution in the ownership of property held by Bumiputera interest and/or government agency; and
(ii)	indirect acquisition of property by other than Bumiputera interest through acquisition of shares, resulting in a change of control of the company owned by Bumiputera interest and/or government agency, having property more than 50 percent of its total assets, and the said property is valued more than RM20 million.
2.3 Restrictions Foreign interest is NOT ALLOWED to acquire:
(i)	Properties valued less than RM500,000 per unit;
(ii)	Residential units under the category of low and low-medium cost as determined by the State Authority;
(iii)	Properties built on Malay reserved land; and
(iv)	Properties allocated to Bumiputera interest in any property development project as determined by the State Authority.

One Consultancy Services
Property Consultant
Kelvin Yeo
H/P: 012 7098632 begin_of_the_skype_highlighting 012 7098632 end_of_the_skype_highlighting / 018 7090900 begin_of_the_skype_highlighting 018 7090900 end_of_the_skype_highlighting (WatsApp)
Web: www.propwall.my/kelvinyeo