The Government of Malaysia in general strongly encourages foreign direct investment FDIalthough it maintains restrictions or limits on investment in some sectors. It actively reaches out to targeted industries and negotiates incentive packages to attract FDI. Malaysia provides a number of incentives, particularly in export-oriented high-tech industries and "back office" service operations. A wide range of U. Prime Minister Najib Razak Najib has made generating new domestic and foreign investment a centerpiece of his economic reform program introduced in March as the New Economic Model NEM. According to a recent Organization for Economic Cooperation and Development OECD Investment Policy Review of Malaysia, FDI to Malaysia began to decline inand private investment overall started to slide in following the Asian financial crises. Today, FDI levels are at record high levels in absolute terms, but at an all-time low as a percentage of GDP. Since then, the Najib administration has progressively introduced a series of initiatives to implement the NEM. One initiative, the Economic Transformation Program ETPis focused on investment in 12 key economic areas to accelerate economic growth; and a set of policy measures to improve competitiveness. Another initiative, the Government Transformation Program GTP addresses governance and quality of life issues, and aims to reduce corruption and crime, to improve education, urban public transport and rural basic infrastructure, and to reduce the number of low-income households. The Tenth Malaysia Plan 10MP underpins these programs and guides public sector capital expenditures. The manufacturing FDI approvals were Approval statistics are not directly comparable to actual FDI statistics and can be found at www. Also, manufacturing investment statistics do not capture investments in non-manufacturing-related services or upstream oil and gas production. FDI in Malaysia is led by the manufacturing, oil and gas, financial services, and consumer products sectors. The total stock of U. Including FDI in the financial and oil and gas sectors, would make total U. From tothe electronics sector received the largest share of overall FDI. The oil and gas sector became the largest source of new U. FDI in and is expected to remain a focus. For the past three years, manufacturing FDI commitments have centered on projects in the Malaysian states of Sarawak, Selangor, Johor, and Penang — with manufacturing investment in Johor increasing the fastest due to the Iskandar Development Region near Singapore. The ETP identified 12 specific sectors in which the Malaysian government is encouraging foreign and domestic investment, including: Also targeted for growth are a number of resource-based industries and some services sub-sectors including logistics, although the sectors are subject to foreign investment conditions or restrictions. These investments spanned all 12 ETP target sectors. This slow pace is expected to continue inand in part reflects the fact that much of the investments in were projects that had been pending government fiscal or policy changes for some time. The Malaysian government values foreign investment as a powerful force for the continued economic development of the country, but is hampered by restrictions in some sectors and an at times burdensome regulatory regime. However, the government continues to liberalize and in some cases remove investment restrictions. InMalaysia removed its consultant Foreign Investment Committee FIC investment guidelines, enabling transactions for acquisitions of interests, mergers, and takeovers of local companies by domestic or foreign parties without FIC approval. The Ministerial Functions Act grants relevant ministries broad discretionary powers over the approval of specific investment projects. Investors forex industries targeted by the Malaysian government often can negotiate favorable terms with ministries regulating the specific industry or other regulatory bodies. This can include assistance in navigating a complex web of regulations and policies, some of which can be waived on a case-by-case basis. Foreign investors in non-targeted industries tend to receive less government assistance in obtaining the necessary approvals from the various regulatory bodies and therefore can face greater bureaucratic obstacles. In the government announced a limited set of liberalization measures covering 27 service subsectors. Int he government announced plans to liberalize an additional 17 services subsectors during The Malaysian government added an 18 th sub-sector of quantity surveyors services. Of the remaining subsectors, liberalizing architectural services, quantity surveying services and engineering services requires new legislation. Legislation that permits the opening of legal services was passed inbut awaits the completion of implementing regulations. Malaysia made tax compliance easier by improving electronic systems and the availability of software, although it also reintroduced a capital gains tax on real estate. Starting a business was made easier by merging company, tax and social security and employment fund registration at the investment shop and providing same-day registration. To improve the business climate in Malaysia, the Malaysian government established the PEMUDAH task force, consisting of 23 top-level government officials and private sector representatives with a mandate to identify and evaluate bureaucratic impediments to conducting business in Malaysia and to make recommendations to the Prime Minister on how forex address them. More information about the task force is available at www. Many of the preference policies are opaque, with details of implementation largely left to the various ministries and civil servants within those ministries. Policies malaysia practices vary greatly. Some practices are explicit and contained in law or regulation while others are informal, leaving much ambiguity for potential investors. The civil service itself is overwhelmingly ethnic-Malay in composition. The NEM proposes reforming ethnic preferences in business ownership and social safety net programs, moving to an income based approach rather than one that is ethnicity based. Some conservative Bumiputra groups have voiced strong opposition to any significant changes to the extensive preferences. The government states that the NEM is returning the focus of preference policies to poverty reduction goals, as originally intended when preferences were established in the early s. Inthe government eliminated Bumiputra ownership requirements for new listings of domestic or foreign corporations whose operations are mainly foreign based. However, Bumiputra equity remains a consideration when companies apply for an array of required permits and licenses, many of which must be renewed either annually or biennially. Government procurement and that by most state owned enterprises continues to be subject to Bumiputra preferences. These goals are outlined investment the Third Industrial Master Planthe various regional initiatives Iskandar Development Region and the Northern, Eastern, Sabah and Sarawak Economic Regions as well as the ETP and the Tenth Malaysia Plan. Project approval depends on many other factors as well. If both local and foreign firms propose similar projects, the local firm will be given preference. However, all requests are handled on a case-by-case basis. MIDA now has the authority to issue or renew licenses for all manufacturing companies, eliminating a second layer of approval from its parent ministry, the Ministry of International Trade and Industry MITI. MIDA established an on-site immigration unit in which has helped expedite the processing of expatriate work visas, as has TalentCorp, a separate recently established agency. Applications for investment in sectors other than manufacturing are handled by the relevant ministries and sometimes require multiple approvals. Investment regulations are specified in the Promotion of Investments Act of PIA and the Industrial Coordination Act of The PIA does not address services investment. Malaysia entities, both foreign and domestic, may acquire, merge with, and take over business enterprises. The Malaysia Competition Commission MyCC implements and enforces the provisions of the Competition Actand issues guidelines in relation to the implementation and enforcement consultant the competition laws. These guidelines are currently under review by the Malaysian government. Domestic companies that seek direct selling licenses require paid-in capital of RM1. Malaysia amended its Legal Professions Act in July The amendments in principle will allow foreign law firms to practice in Malaysia through a partnership or qualified foreign law firm license and empower local firms to employ foreign lawyers subject to certain conditions. While foreign lawyers will be allowed to structure transactions, only Malaysian lawyers will forex able to make actual filings. Until the new law is implemented, foreign lawyers may not practice Malaysian law, nor may they affiliate with local firms or use the name of an international firm. The Attorney General of Malaysia has authority to grant limited exceptions on a case-by-case basis under the law restricting the practice of Malaysian law to Malaysian citizens or permanent residents who have apprenticed with a Malaysian lawyer, are competent in Bahasa Malaysia the official languageand have a local law degree or are accredited British Barristers at Law, provided the applicant has seven years of legal experience. Malaysian law does not presently allow for foreign legal consultancy except on a limited basis in the Labuan International Business and Financial Center. Foreign lawyers can, however, appear in arbitral proceedings before the Kuala Lumpur Regional Arbitration Center. Architectural Services are among the 17 services sub-sectors the Malaysian government pledged to liberalize in At present, a foreign architectural firm may operate in Malaysia only as a joint venture participant in a specific project with the approval of the Board of Architects. Malaysian architectural firms may not have foreign architectural firms as registered partners. Foreign architects may not be licensed in Malaysia, but are allowed to be managers, shareholders, or employees of Malaysian firms. Even after the sector is opened, foreign architectural firms will have to register locally as professional architects similar to Malaysian firms. The engineering sector was scheduled to be liberalized inbut pending amendments to relevant Acts have not been completed. Until then, foreign engineers may be licensed by the Board of Engineers only for specific projects and must be sponsored malaysia the Malaysian company carrying out the project. In general, a foreign engineer must be registered as a professional engineer in his or her home country, have a minimum of 10 years experience, and have a physical presence in Malaysia of at least days in one calendar year. To obtain temporary licensing for a foreign engineer, a Malaysian company often must demonstrate to the Board that they cannot find a Malaysian engineer for the job. Foreign engineers are not allowed to operate independently of Malaysian partners or serve as directors or shareholders of an engineering consulting company. A foreign engineering firm may establish a non-temporary commercial malaysia if all directors and shareholders are Malaysian. Foreign engineering companies may collaborate with a Malaysian firm but only the Malaysian company may submit the plans for domestic approval. Beginning in Januaryforeign accountants and auditors have been allowed to wholly-own a practice in Malaysia. All accountants seeking to provide auditing and taxation services in Malaysia must register with the Malaysian Institute of Accountants MIA before they may apply for a license from the Ministry of Finance. Under the terms of the Petroleum Development Act ofthe upstream oil and gas industry is controlled by Petroleum Nasional Berhad PETRONASa wholly state-owned company and the sole entity with legal title to Malaysian crude oil and gas deposits. Foreign investment takes the form of production sharing contracts PSCs. Foreign operators include ExxonMobil, ConocoPhillips, Hess, Newfield, and Murphy Oil from the United States, as well as Royal Dutch Shell, and other foreign firms. PETRONAS requires that its PSC partners contract with Malaysian firms for many tenders. Terms of upstream projects with foreign participation are determined on a case-by-case basis by PETRONAS. Tenaga Nasional Berhad TNB is a state-owned electricity utility company that has a monopoly on electricity distribution in Malaysia. TNB generates its own electricity and purchases electricity from IPPs with power generation plants located in Malaysia. Peninsular Malaysia is connected to an electricity grid with Singapore and Thailand. In certain instances, Malaysia has allowed greater equity participation, but the manner in which such exceptions are administered is nontransparent. Malaysia made limited GATS commitments on most basic telecommunications services and partially adopted the WTO reference paper on regulatory commitments. The Malaysian government maintains broadcast content quotas on both radio and television programming. Advertising falls under the purview of multiple ministries and agencies, complicating the adoption of a single set of advertising regulations and enforcement procedures for all stakeholders in this process. International firms have concerns about the lack of clear and consistent advertising content guidelines, and how some advertisers misrepresent their products and services through advertising. The Malaysian government relaxed enforcement of regulations governing the appearance of foreign actors in commercials shown in Malaysia in The Malaysian Parliament passed legislation in to update the regulatory framework for the financial services industry. The legislation implements a new year Financial Sector Blueprint that envisages further opening of the financial sector to foreign banks but does not contain specific market-opening commitments or timelines. The new Blueprint, which follows the previous year Financial Services Masterplan, does not significantly break with the existing case by case approach of the central bank, Bank Negara Malaysia BNMtowards granting foreign banks access investment Malaysia. Prudential criteria include consideration of the financial strength, business record, experience, character and integrity of the foreign investor, soundness and feasibility of the business plan for the institution in Malaysia, transparency and complexity of the group structure, and the extent of supervision of the foreign investor in its home country. Inthe Malaysian government announced a liberalization package for the conventional and Islamic financial sectors, but equity limits continue to broadly apply in many areas. BNM sets controls on both foreign and local financial products. Interest rates on consumer savings accounts and fixed deposits are mandated and significantly higher than in other Asian countries. Fees on transactions are determined by the Association of Banks, but banks are not permitted to change these fees without BNM approval. BNM currently allows foreign banks to open four additional branches throughout Malaysia, subject to restrictions, which include designating where the branches can be set up i. The policies do not allow foreign banks to set up new branches within 1. BNM has considered ATMs as equivalent to separate branches. The life insurance industry remains dominated by foreign providers, including some U. Foreigners are permitted to purchase a limited number of stockbrokerage licenses and are allowed to take a majority ownership stake in unit trust management companies. Malaysia has allowed five foreign stock brokerage firms and one foreign fund management company to set up operations in Malaysia. InSecurities Commission Act and the Capital Markets and Services Act were amended to promote the development of the capital market, in line with global standards and pursuant to the strategies outlined in the Capital Market Masterplan 2. The Capital Market Master Plan 2 was released in April The Federal Territory of Labuan was declared an International Offshore Financial Center in October Businesses receive preferential tax treatment for offshore banking activities, trust and fund management, offshore insurance and offshore insurance-related businesses, and offshore investment holding businesses conducted in Labuan. Islamic banks and takaful Islamic insurance operators regulated by the Labuan Financial Services Authority are given greater flexibility to open operation offices anywhere in Malaysia and are granted a tax exemption for international currency Islamic financial businesses. This option is not available for conventional banks, which are required to maintain a physical presence in Labuan in order to retain the favorable tax treatment. The Malaysian Parliament passed legislation in late to update the regulatory framework for Islamic Financial Services. The Malaysian government provides tax incentives and other measures to encourage commercial banks operating in Malaysia to set up full-fledged Islamic banking subsidiaries. BNM uses its Malaysia International Islamic Financial Center Initiative to provide special tax and regulatory treatment, scholarships, and efforts to work toward mutual recognition of Islamic banking and takaful Islamic insurance practices. This investment a ten-year tax exemption on Islamic financial products in foreign currencies and tax relief for Islamic Finance studies. Expatriate Islamic finance experts are exempted from paying Malaysian income tax in an effort to better enable Malaysia to attract foreign talent. The Government continues to promote takaful as part of its strategy to make Malaysia a global hub for Islamic financial services, including through tax breaks and incentives. Companies wishing to offer takaful need a separate license. International takaful operators, both domestic and foreign, may apply for licenses to conduct business in international currencies, either as incorporated entities or as branches. Currently, AIA Takaful International Berhad is the sole foreign-owned international takaful operator in Malaysia. Bank Negara is working with qualified local and foreign insurers to provide "re-takaful" reinsurance under Islamic principles services in Malaysia and to make Malaysia their center for re-takaful activities. New re-takaful operators will be given flexibility to conduct business in the country as a subsidiary or branch. Malaysia has 10 international Islamic fund management firms. The government provides tax incentives for existing stock brokerage firms to set up Islamic brokerage subsidiaries and recently issued three new licenses to high profile brokerage firms, including U. There are no restrictions on the ability of wholly foreign-owned Islamic fund management companies to invest assets abroad. Fees received from the management of Malaysia funds are tax-exempt for ten years. According to Malaysian officials, requirements would vary for single purpose and multipurpose port facilities. Only Malaysian citizens may own agricultural land. Malaysia also restricts foreign participation in agriculture unless it is an agro-tourism linked projectand construction. For an aquaculture project, the size of the pond must be at least two hectares in area. For tax purposes, local and foreign enterprises are treated essentially the same. Dividends are taxed at the corporate rate. The government has postponed since a plan to implement a Goods and Services Tax GST, similar to a value-added tax. See sections on labor and performance requirements. The Malaysian central bank states that Malaysia maintains liberal foreign exchange administration policies. Selective capital controls imposed in during the Asian Financial Crisis to insulate the Malaysian economy from risks posed by volatile short-term capital flows and to eliminate offshore trading of the Malaysian Ringgit have been largely removed. A series of sequenced and progressive liberalization initiatives gradually relaxed controls on foreign direct investment flows, wages, dividends, interest, and rental income earned in Malaysia, to the point that capital now moves freely in and out of Malaysia. The government continues to control the use of Malaysian Ringgit outside of Malaysia for settlement. However, there are no longer restrictions on resident companies with export earnings from paying in forex currencies to another resident company for the purchase of goods and services. Foreign investors are allowed to buy or sell Malaysian Ringgit on a forward or spot basis with licensed onshore banks to facilitate the settlement of investments in Ringgit. In JuneBank Negara removed limits on outbound investment, non-bank inter-company loans, and trade financing. BNM manages a floating exchange rate against a trade-weighted basket of currencies. The exchange rate against the USD stood at 3. All payments to other countries must be made through authorized foreign exchange dealers. The Embassy is not aware of any cases of uncompensated expropriation of U. The government's stated policy is that all investors, both foreign forex domestic, are entitled to fair compensation in the event that their private property is required for public purposes. Should the investor and the government disagree on the amount of compensation, the issue is then referred to the Malaysian judicial system. Malaysia has signed and ratified the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. Malaysia became a Contracting State on October 14, when the Convention entered into force, granting jurisdiction over investment disputes between the Government of Malaysia and non-Malaysian citizens to the International Center for Settlement of Investment Disputes ICSID. The domestic legal system is accessible but generally requires any non-Malaysian citizen to make a large deposit before pursuing a case in the Malaysian courts i. Many firms choose to include mandatory arbitration clauses in their contracts. The government actively promotes use of the Kuala Lumpur Regional Center for Arbitration http: The KLRCA is forex only recognized center for arbitration in Malaysia. Arbitration held in a foreign jurisdiction under the rules of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States or under the United Nations Commission on International trade Law Arbitration Rules and the Rules of the Regional Centre for Arbitration at Kuala Lumpur can be enforceable in Malaysia. Fiscal incentives granted to both foreign and domestic investors historically have been subject to performance requirements, usually in the form of export targets, local content requirements and technology transfer requirements. Performance requirements are usually written into the individual manufacturing licenses of local and foreign investors. The Malaysian government extends a full tax exemption incentive of fifteen years for firms with "Pioneer Status" companies promoting products or activities in industries or parts of Malaysia to which the government places a high priorityand ten years for companies with "Investment Tax Allowance" status those on which the government places a priority, but not as high investment Pioneer Status. However, the government appears to have some flexibility with respect to the expiry of these periods, and some firms reportedly have had their pioneer status renewed. Government priorities generally include the levels of value-added, technology used, and industrial linkages. If a firm foreign or domestic fails to meet the terms of its license, it risks losing any tax benefits it may have been awarded. Potentially, a firm could lose its manufacturing license. The New Economic Model stated that in the long term, the government intends gradually to eliminate most of the fiscal incentives now offered to foreign and domestic manufacturing investors. More information on specific incentives for various sectors can be found at investment. Malaysia also seeks to attract foreign investment in the information technology industry, particularly in the Multimedia Super Corridor MSCa government scheme to foster the growth of research, development, and other high technology activities in Malaysia. Foreign investors who obtain MSC status receive tax and regulatory exemptions as well as public service commitments in exchange for a commitment of substantial technology transfer. For further details on incentives, see www. The Multimedia Development Corporation MDeC approves all applications for MSC status. To date, Malaysia has had some success in attracting regional distribution centers and local campuses of foreign universities. For example, during the government facilitated partnerships between local partners and MIT to develop a graduate program in logistics management and with Johns Hopkins University to develop its first graduate medical school located outside the United States. Malaysia seeks to investment foreign investment in biotechnology, but sends a mixed message on agricultural and food biotechnology. On July 8,the Malaysian Ministry of Health posted amendments to the Food Regulations [P. The amendments also included a requirement that no person shall import, prepare or advertise for sale, or sell any food or food ingredients obtained through modern biotechnology without the prior written approval of the Director. The labeling malaysia only apply to foods and food ingredients obtained through modern biotechnology but not to food produced with GMO feed. The labeling regulation was originally scheduled to be enforced beginning in July However, a Ministry of Health circular published on August 27, announced that enforcement would be deferred until July 8, A copy of the law and regulations respectively can be found at: Although the Federal government no longer requires foreigners to get approval from the FICs Foreign Investment Committee for the purchase of residential property, the State governments at times can be more restrictive than Federal regulation and can delay the purchase. Land administration is shared among federal, state, and local government. State governments have their own rules about land ownership, including foreign ownership. Malaysian law affords strong protections to real property owners. Real property titles are recorded in public records and attorneys review transfer documentation to ensure efficacy of a title transfer. There is no title insurance available in Malaysia. Malaysian courts protect property ownership rights. Foreign investors are allowed to borrow using real property as collateral. Foreign and domestic lenders are able to record mortgages with competent authorities and execute foreclosure in the event of loan default. Malaysia was removed from the U. Special Watch List in following improvements in recent years in protecting IPR. In Decemberthe Malaysian Parliament passed amendments to the copyright law designed to, inter alia, bring the country into compliance with the WIPO Copyright Treaty and the WIPO Performance and Phonogram Treaty, malaysia Internet Service Provider ISP liabilities, and prohibit unauthorized camcording of motion pictures in theaters. Malaysia subsequently acceded to the WIPO Copyright Treaty and the WIPO Performance and Phonogram Treaty in September In recent years, the MDTCC has also instructed its enforcement division to begin to take ex officio action, resulting in significant seizures of pirated products. In Junethe Malaysian government took action to block access to several international pirate sites and continues to be open to take down local sites featuring pirated content. The Ministry of Health implemented regulations in to provide a five year term for data protection of pharmaceutical products. The United States continues to encourage Malaysia to accede to the WIPO Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. In addition, the United States continues to urge Malaysia to provide effective protection against unfair commercial use, as well as unauthorized disclosure, consultant undisclosed test or other data generated to obtain forex approval for pharmaceutical products, and to provide an effective system to address patent issues expeditiously in connection with applications to market pharmaceutical products. The Copyright Act includes enforcement provisions allowing government officials to enter and search premises suspected of infringement and to seize infringing copies and reproduction equipment. The amendments to the Act passed by the Malaysian Parliament in include new authority to combat camcording activities in cinemas. Malaysia continues to face challenges in ensuring the effective protection of copyrighted materials. Pirated optical discs remain widely available, although less conspicuously than in the past. Unauthorized photocopying of textbooks remains a particular concern. On-line piracy and illegal downloading of cinematographic and musical works has grown. The Optical Disc Act of established a licensing and regulatory framework to control the manufacture of optical discs and to fight piracy. Under the Act, manufacturers are required to obtain licenses from MITI and MDTCC, to place source identification SID codes on each disc, and to allow regular inspections of their operations. The Ministry of Health in issued revised regulations to provide data exclusivity protection for pharmaceuticals for five years for new chemical entities, and three years for new indications. The time periods would be based on a drug's approval date in its country of origin. Applications for data exclusivity for new chemical entities must be made within 18 months from the date the product is first registered and granted marketing authorization and for second indications within 12 months from the date the second indication is approved. The Malaysian law allows for the regulatory approval of generic versions of pharmaceuticals that are still patented, but prohibits marketing and commercial manufacturing during the patent validity period. Sales of counterfeit pharmaceuticals remain a problem in Malaysia. Counterfeit medicines that have been identified include "drugs" with the wrong ingredients, insufficient active ingredients, and those with fake packaging. Unregistered generic copies of patented products are also available in Malaysia. The Ministry of Health and the MDTCC are improving their enforcement efforts, and share information and collaborate with industry on those efforts. The Ministry of Health in late circulated for comment draft legislation that would, if passed by Parliament, significantly increase penalties against those selling counterfeit medicines. A number of U. Counterfeiters have improved the quality of packaging and marketing so that consumers are misled into purchasing the products. Most of these counterfeit products are brought into the country from China, Thailand, and India. Patents registered in Malaysia generally have year duration from date of filing, which can be extended under certain circumstances. The length of time required for patent registration averages five years and trademark registration averages two years. The lack of transparency in government rule-making and procedures in Malaysia has impeded U. Following an announcement by Prime Minister Najib in Februarythe Chief Secretary to the Cabinet in April issued a circular instructing all Ministries to publicly post all draft laws and regulations on the internet for a 14 day public comment period. However, implementation of this new requirement appears to be uneven and many Ministries continue to consult selected stake holders in an opaque invitation-only manner. Malaysia is an observer but not a signatory of the WTO Government Procurement Agreement GPA. Traditionally, international tenders have been invited only where domestic goods and services are not available. In domestic tenders, preferences are provided for Bumiputra suppliers and other domestic suppliers. As a result, foreign companies do not have the same opportunities as local companies to compete for contracts. In most government tenders, especially for major infrastructure, foreign companies are required to take on a Bumiputra consultant before their bids will be considered. Government officials maintain that procurement reform is an important goal of the Najib administration, and that progress is being made. The Prime Minister established the Performance Management and Delivery Unit PEMANDUto address concerns about transparency and competitive bidding in government procurement. In Aprilthe government launched a website to improve transparency in consultant procurement. Known as the MyProcurement portal, which can be accessed at http: To date, more than 5, contracts are listed on the website citing information on both advertised and awarded tenders including datesvalues of the contracts, and winners of the tenders. Malaysia is also increasing use of the Swiss Challenge method and integrity pacts in its government procurement procedures. However, some of the largest infrastructure and other projects are still sole-sourced through closed negotiations, not open tenders. The Malaysian government has taken steps to address corruption, including through the establishment of the Malaysian Anti-Corruption Commission MACC inpassage of legislation to make judicial appointments more transparent the Judicial Appointments Commission Act also inpassage of a Whistleblower Protection Act inthe introduction of procurement reforms and the launch of government initiatives to target corrupt practices. The Malaysian government considers bribery a criminal act and does not permit bribes to be deducted from taxes. The MACC conducts investigations but prosecutorial discretion remains with the Attorney General. The MACC introduced a public database of those convicted of corruption offenses. There is no systematic public disclosure of assets by senior officials. Critics also note that the Whistleblower Act does not protect those who disclose allegations to the media. Government officials cite a four point approach to reducing corruption in government procurement, a key area of focus: Foreign investors and foreign companies have access to credit on the local capital market. There are no restrictions on foreign stock brokerage companies obtaining ringgit facilities to facilitate the settlement of transaction on the Malaysian stock and bond markets. There is no limit on the number of residential and commercial property loans allowed to foreigners. Inthe government liberalized the foreign exchange administration rules allowing borrowing in foreign currency by residents as well as borrowing and lending in ringgit between residents and non-residents. Foreigners may trade in securities and derivatives. Malaysia provides tax incentives for foreign companies issuing Islamic bonds and financial instruments in Malaysia. However, foreign issuers remain subject to Bumiputra ownership requirements of Listing requirements for foreign companies are similar to that of local companies. There additional criteria for foreign companies wanting to list in Malaysia including, among others: Malaysia has taken steps to promote good corporate governance by listed companies. An individual may hold up to 25 corporate directorships. All public and private company directors are required to attend classes on corporate rules and regulations. Legislation also regulates equity buybacks, mandates book entry of all securities transfers, and requires that all owners of securities accounts be identified. A Central Depository System CDS for stocks and bonds established in makes physical possession of certificates unnecessary. All shares traded on the Bursa Malaysia must be deposited in the CDS. Short selling of stocks is prohibited. On April 21,the Parliament of Malaysia approved two bills, the Competition Commission Act and the Competition Act The Acts took effect January 1, The Competition Act prohibits cartels and abuses of a dominant market position, but does not create any pre-transaction review of mergers or acquisitions. Violations are punishable by fines, as well as imprisonment for individual violations. The Acts established a Competition Commission with broad investigative and enforcement powers, as well as a Competition Appeals Tribunal CAT to hear all appeals of Commission decisions. State-owned enterprises play a very significant role in the Malaysian economy. Such enterprises have been used to spearhead infrastructure and industrial projects. Only a minority portion of stock is available for trading for some of the largest publicly listed local companies. The government has indicated increasing interest in restarting its privatization efforts through the New Economic Model reforms. In Julythe Government identified 33 government-linked companies as ready for divestment, but did not identify them by name. Under the plan to rationalize the portfolio of government-linked companies GLCs in Malaysia, the Government will reduce its stakes in some of these companies, list a few others and sell the rest. In first quarter of Khazanah offloaded its stake in the national car company Proton to DRB-Hicom Bhd. In December Khazanah announced its intention to divest its IT company Time Engineering Bhd to a Bumiputra-owned company. The development of corporate social responsibility in Malaysia is moving to higher levels and many larger companies have CSR programs and activities. InMalaysian stock market regulator, the Securities Commission, published a CSR Framework for all publicly listed companies, which are required to disclose their CSR programs in their annual forex reports. Malaysia has experienced political stability since its independence inwith the consultant of ethnic riots that followed the national elections. The government historically denied assembly permits for anti-government street demonstrations. In Aprilthe Peaceful Assembly Act took effect, which eliminates the need for permits for public assemblies but outlaws street protests and places other significant restrictions on public assemblies. On April 28the police disrupted a large protest march that took place despite restrictions the government attempted to impose. Subsequent demonstrations and protest marches took place in without disruption. Malaysia has bilateral investment guarantee agreements with over 70 economies, including the United States, has bilateral investment treaties with 36 countries, and malaysia double taxation treaties with over 70 countries. There is currently no bilateral investment treaty between the US and Malaysia. Malaysia has a limited investment guarantee agreement with the U. Overseas Private Investment Corporation OPIC program, for which it has qualified since However, few investors have sought OPIC insurance in Malaysia. Malaysia has an acute shortage of highly qualified professionals, scientists, and academics. The Malaysian labor market operates at essentially full employment, with unemployment for Malaysians averaging 3. The number of unemployed university graduates remains high, however, at about 40, in In an effort to improve the employability of local graduates, the Investment offers additional training modules at public universities in English language skills, presentation techniques, and entrepreneurship. Malaysia is a member of the International Labor Organization ILO. Labor relations in Malaysia are generally non-confrontational. A system of government controls strongly discourages strikes. Some labor disputes are settled through negotiation or arbitration by an industrial court, though cases can be backlogged for years. Once a case is referred to the industrial court, the union and management are barred from further industrial action. While national unions are proscribed due to sovereignty issues within Malaysia, there are a number of territorial federations of unions the three territories being Peninsular Malaysia, Sabah, and Sarawak. The government has prevented some trade unions, such as those in the electronics and textile sectors, from forming territorial federations. Instead of allowing a federation for all of Peninsular Malaysia, the electronics sector is limited to forming four regional federations of unions, while the textile sector is limited to state-based federations of unions, for those states which have a textile industry. Employers and employees share the costs of the Social Security Organization SOSCOwhich covers an malaysia No systematic welfare programs or government unemployment benefits exist; however the Employee Provident Fund EPFwhich employers and employees are required to contribute to, provides retirement benefits for workers in the private sector. Civil servants receive pensions upon retirement. The regulation of employment in Malaysia, specifically as it affects the hiring and redundancy of workers remains a notable impediment to employing workers in Malaysia. The high cost of terminating their employees, even in cases of wrongdoing, is a source of complaint for domestic and foreign employers. The World Bank estimates that the financial cost of firing an employee averages 75 weeks of salary for that worker. The Embassy hears reports from some U. Race-based preferences in hiring and promotion are widespread in government, government-owned universities, and government-linked corporations. However there have been calls for the government to defer the implementation of the new policy. Foreign workers are categorized as follows: Employing expatriates involves two phases. More details can be found at www. Companies in different sectors must apply for approval for expatriate posts through the respective government authority: Each authority has its own set of requirements and decisions are made on a case-by-case basis. Companies with joint foreign and Malaysian ownership must have a minimum paid-up capital of RMwhile Malaysian-owned companies must have a minimum of RMManufacturing-related companies in sub-sectors targeted by the government for development are given priority. These include regional establishments operational headquarters, international procurement centers, regional distribution centers ; support services integrated logistics services, integrated market support services, central utility facilities, cold chain facilities ; research and development; software development; hotel and tourism projects; technical and vocational training; some environment-related services; and film or video production. Except for manufacturing companies with automatic allowances, a firm wishing to employ expatriate personnel generally must demonstrate that there is a shortage of qualified Malaysian candidates and that a Malaysian citizen is being trained. In practice this is difficult for firms to document. Inthe government eliminated the six-month waiting period for determining a shortage of Malaysian candidates. Expatriate visas are issued for a period of up to ten years. Unskilled foreign workers receive a three-year work permit, renewable annually up to five years, and foreign skilled workers can qualify for up to 12 months. Foreign domestic helpers are permitted to remain in Malaysia on a work permit beyond ten years. The ten-year Pass accords eligible holders many benefits, including the ability to change employers without having to renew the pass. Details are at http: Consultant officials say they have taken steps to simplify and expedite permit approvals for some categories of foreign personnel. The PEMUDAH task force developed a guidebook clarifying the various procedures and requirements. In Novemberthe government announced the setting up of the Expatriate Services Division to facilitate and retain foreign talents. Expected to be fully operational by Marchthis division will be an integrated service facility offering services to expatriates and their forex in matters relating to immigration process. The Free Zone Act of authorized the Minister of Finance to designate any suitable area as either a Free Industrial Zone FIZwhere manufacturing and assembly takes place, or a Free Commercial Zone FCZgenerally for warehousing commercial stock. Currently there are 13 FIZs and 12 FCZs in Malaysia. In Junethe Port Klang Free Zone opened as the nation's first fully integrated FIZ and FCZ, although the project been dogged by corruption allegations related to the land acquisition for the site. The Minister of Finance may appoint any federal, state, or local government agency or entity as an authority to administer, maintain and operate any free trade zone. Raw materials, products and equipment may be imported duty-free into these zones with minimum customs formalities. Malaysia is also a major transshipment center. Goods sold into the Malaysian economy by companies within the FZs must pay import duties. In addition to the FZs, Malaysia permits the establishment of licensed manufacturing warehouses outside of free zones, which give companies greater freedom of location while allowing them to enjoy privileges similar to firms operating in an FZ. The time needed to obtain licenses depends on the type of approval and ranges from weeks. A survey by the American Malaysian Chamber of Commerce put cumulative U. ExxonMobil, Caltex, ConocoPhillips, Murphy Oil, Hess Oil, Halliburton, Dow Chemical and Eastman Chemicals. Major semiconductor manufacturers, including Freescale, Texas Instruments, Intel, and others have substantial operations in Malaysia, as do electronics consultant Western Digital, Komag, Agilent, and Motorola. In recent years Malaysia has attracted significant investment in the production of solar panels, including from U. Virtually all major Japanese consumer electronics firms Sony, Fuji, Panasonic, Matsushita, Hitachi, etc. Tables report approved manufacturing investment in Malaysia, as opposed to actual investments, and do not include significant U. Malaysian Investment Development Authority. Approved manufacturing investment only, does not include the upstream oil and gas industry or services. Leading Approved Foreign Investment Sources in the Manufacturing Sector. Credit refers to inflow of funds or amounts received by direct investment enterprise in Malaysia from foreign direct investor and affiliate in the form of equity capital, reinvested earnings, loan transactions, and trade credits as well as other capital receipts. To the best of our knowledge, the information contained in this report is accurate as of the date published. However, The Department of State does not take responsibility for actions readers may take based on the information contained herein. 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Forex Trading Course Malaysia - Live Forex Analysis
Forex Trading Course Malaysia - Live Forex Analysis
2 thoughts on “Forex investment consultant malaysia”
IIM-A,B, C all cost in the range of Rs 20L and leaving job at this juncture will hardly make sense for me since I am the lone bread earner in the family.
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IIM-A,B, C all cost in the range of Rs 20L and leaving job at this juncture will hardly make sense for me since I am the lone bread earner in the family.