Foreign Investment Committee

FIC RELAXES RULES ON PROPERTY PURCHASES

The Foreign Investment Committee (FIC) has relaxed its rules to allow foreign citizens to buy all types of local property costing above RM250,000 without having to form a company with Malaysian equity participation.

They will now also be allowed to source for funds to make such property purchases from domestic banks.

Previously, foreign citizens were only allowed to buy projects that were fully completed or properties that were at least 50% finished, and financing had to be sourced externally.

The changes in the FIC guidelines have been made to encourage private investment and improve the investment climate in Malaysia.

Under the revised rules, which are effective retrospective to April 25, Malaysian citizens and companies also no longer require approval from the FIC to make property transactions costing below RM20 million. They now only have to report such transactions.

Malaysians also no longer need FIC approval for property acquisition below RM10 million.

Also, companies engaged in manufacturing activities that are exempted from licensing by the Ministry of International Trade and Industry are now allowed to buy industrial or factory lots for manufacturing purposes.

To encourage foreign companies to set up their headquarters or regional offices in Malaysia, such companies will be allowed to establish headquarters and branches costing above RM250,000 in Malaysia without domestic equity conditions.

Companies in other Asian, countries wishing to establish joint ventures or conduct business in Malaysia will also be allowed to own offices or office space costing above RM250,000 without domestic equity conditions.

Foreigners will also be allowed to buy properties priced above RM150,000 in designated areas under the Silver-Haired Programme.