3 – FOREIGN INVESTMENT
Multinational corporations from more than 40 countries have invested in more than 5000 companies in Malaysia’s manufacturing sector.
Companies are attracted by the conducive business environment which has made Malaysia one of the world’s top locations for offshore manufacturing operations and many have invested in multiple projects.
Foreign investors must comply with government guidelines and policies, and obtain a licence from the government for investment in the following sectors:
High-technology manufacturing
Energy
Information technology
Telecommunications
Other sectors of strategic importance to Malaysia.
Foreign investment in any activities, other than those in manufacturing, multimedia and petroleum industries, may require the approval of the Foreign Investment Committee (FIC). With regards to exchange control or currency, transactions are regulated by the Central Bank of Malaysia (Bank Negara Malaysia).
Some of the related rulings pertaining to foreign investment allow for:
The extension of a domestic credit facility by resident-controlled to non-resident-controlled companies, provided that it does not exceed MYR 50 million
Payment to non‐residents for the import of goods and services
Repatriation of a foreign direct investor’s investments, including capital, profits, dividends and interest.
Tax incentives are offered for foreign investments in the following industries:
Manufacturing
Tourism
Agriculture
Environmental protection
Training
Research and development
Transport and communication.
3 – FOREIGN INVESTMENTMultinational corporations from more than 40 countries have invested in more than 5000 companies in Malaysia’s manufacturing sector.Companies are attracted by the conducive business environment which has made Malaysia one of the world’s top locations for offshore manufacturing operations and many have invested in multiple projects.Foreign investors must comply with government guidelines and policies, and obtain a licence from the government for investment in the following sectors: High-technology manufacturing Energy Information technology Telecommunications Other sectors of strategic importance to Malaysia.Foreign investment in any activities, other than those in manufacturing, multimedia and petroleum industries, may require the approval of the Foreign Investment Committee (FIC). With regards to exchange control or currency, transactions are regulated by the Central Bank of Malaysia (Bank Negara Malaysia).Some of the related rulings pertaining to foreign investment allow for: The extension of a domestic credit facility by resident-controlled to non-resident-controlled companies, provided that it does not exceed MYR 50 million Payment to non‐residents for the import of goods and services Repatriation of a foreign direct investor’s investments, including capital, profits, dividends and interest.Tax incentives are offered for foreign investments in the following industries: Manufacturing Tourism Agriculture Environmental protection Training Research and development Transport and communication.
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