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NEW
GUIDELINES ON THE
ACQUISITION OF PROPERTIES BY MALAYSIANS AND FOREIGN INTERESTS RELEASED BY
THE ECONOMIC PLANNING UNIT ON MAY 02, 2001
The relaxation of the Foreign Investment
Committee Guidelines on the acquisition of properties is to clarify on the
acquisition of properties by Malaysians and foreign interests with the
purpose amongst others, to expedite and simplify the FIC procedures
pertaining to the acquisition of properties.
GUIDELINES
The new guideline is divided into the
following categories: -
| 1. |
The
acquisition of properties by Malaysians under RM10 million
does not require the approval of the FIC (this new acquisition
limit is to replace the current limit of RM5 million). This
measure is taken in order to simplify and expedite transactions
below the limit of RM10 million to be dealt with by the State
Authorities.
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| 2. |
Transactions for the disposal of
properties below RM20 million, involving parties as
follows: -
a. Bumiputera to Bumiputera;
b. non-Bumiputera to Bumiputera;
c. non-Bumiputera to non-Bumiputera; and
d. foreign interests to Malaysians.
With regard to the above
transactions, only transactions which have been duly executed are
to be reported to the FIC Secretariat. In such cases the State
Authorities do not need to await for the FIC's approval.
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| 3. |
Foreign interests
involved in manufacturing activities but are exempted from
obtaining manufacturing licenses from the Ministry of
International Trade and Industry (MITI) are permitted to
acquire industrial lots/ factories for manufacturing purposes only.
This is to facilitate foreign interests in acquiring industrial
properties, without equity conditions, for the purposes of
undertaking manufacturing activities but not for renting of the
said properties.
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| 4. |
Further relaxation of the
conditions in the Special Guidelines (22 April 1998):-
4.1
Foreigners are allowed to purchase all types of residential units,
shop houses, commercial and office spaces comprising of old
buildings and newly launched projects, subject to price
exceeding RM250,000 per unit, without having to incorporate a
company with local equity participation (the current relaxation is
only for newly completed projects or those that are at least 50%
in progress).
4.2 The
above acquisitions are allowed to be financed by domestic
financial sources (currently such acquisitions can only be
financed by foreign financial sources).
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| 5. |
In order to encourage
foreign companies to be incorporated in Malaysia to operate as the
Headquarters or Regional Offices, these companies are
allowed to own offices or office spaces including office branches
(the price exceeding RM250,000 per unit) without any restrictions
as to the number of units that can be owned and without imposition
of equity conditions.
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| 6. |
Foreign companies
incorporated in ASEAN countries which intend to set
up joint-venture companies or to undertake trading and business
activities in Malaysia are allowed to own offices or office spaces
(the price exceeding RM250,000 per unit) without imposition of
equity conditions.
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| 7. |
In respect of the
acquisition of residential units under the "Silver-Haired
Programme", foreigners are allowed to purchase
residential units priced at RM150,000 and above, subject to the
condition that the unit purchased are located in areas designated
for such programme. |
EFFECTIVE DATE
This Guideline is effective from 25 April
2001.
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