Minimum Property Purchase Price For Foreign Interests Acquisition in KL, Penang and Johor
Companies with foreign capital and foreign interests (“ foreign interests ”) may purchase immovable property in Malaysia. Foreign interests are referring to people who are non-citizens and foreign companies as defined under Section 433A of the National Land Code 1965 [1] and Section 4 of the Companies Act 1965 [2] . Under the National Land Code 1965 (“ Code ”), a person may sell or dispose of his property to a foreign national but only after the State Consent has been obtained. [3] If a foreign national wishes to purchase a residential property in Malaysia, he must therefore make an application to the State Authority to obtain the State Consent before he completes the transaction. If this is not complied with, the sale or disposal can be rendered null and void. Based on Budget 2014, announced by Prime Minister Datuk Seri Najib Tun Razak on 25 October 2013, the government will be imposing stricter governmental restrictions to curb speculations by local and foreign inves...