Fine-tuning policies

In June 2009, during an Invest Malaysia conference, the prime minister announced the repeal of investment guidelines administered by the Foreign Investment Committee (FIC). The move – designed to make Malaysia more attractive as an investment destination – included:

1. The immediate withdrawal of the FIC’s acquisition guidelines. As a result, the FIC no longer processes or imposes equity conditions on share transactions. However, companies in certain strategic sectors are subject to equity conditions imposed by sectoral regulators that safeguard Malaysia’s national interest in those sectors.
2. Rationalizing and liberalizing the FIC’s property guidelines. Approval is now required only for transactions that involve a dilution of Bumiputera (people of Malay origin) or government interests in properties valued at 20 million ringgit (US$6.5 million) and above.

The government allowed up to 100% foreign equity participation in 17 service sub-sectors as part of its budget for 2012. These include courier services, private hospital services, medical/dental specialist services, private higher education institutions with university status, technical and vocational secondary education services, skills training centres, accounting and taxation services, architectural services, engineering services and incineration services.

Ashok Kumar Mahadev Ranai is a partner in the dispute resolution division of the Kuala Lumpur office of Skrine, where Rachel Ng Koon Ling is an associate in the corporate division.