Country Investment Questionnaire: Malaysia



2.What was the bilateral trade volume between China and your country in each of the past 5 years? Amount of foreign direct investment (FDI)?

Foreign Direct Investment (FDI) in Malaysia rose to USD 141.3 billion in 2013 from USD 128.8 billion in 2012, an increase of USD 12.5 billion or 9.7 per cent.

3.What are the top 5 industries receiving FDI?

The Top 5 industries are electrical and electronics industry, basic metal industry, transport equipment, chemical and chemical products and petroleum products industry.

4.Are there any government programs to support foreign investors? Are there any industries in which the government encourages foreign investment with policies such as subsidies or preferred registration status?

Pioneer Status (PS)

Income tax exemption, ranging from 70% to 100% of statutory income for a period of 5 to 10 years.

Investment Tax Allowance (ITA)

ITA of 60% to 100% on qualifying capital expenditure incurred for a period of 5 to 10 years.

Reinvestment Allowance (RA)

RA of 60% on qualifying capital expenditure

Granted for 15 consecutive years commencing from the 1st year the investment is made.

Import Duty and Sales Tax Exemptions

Exemption from Import Duty on Raw Materials/Components

Exemption from Import Duty and Sales Tax on Machinery and Equipment

5.Are there any industries in which foreign investment is restricted or prohibited?

In the manufacturing sector most products are open to foreign investments. There are restrictions to investments (local and foreign) in the manufacture of alcohols, tobacco products/cigarettes, any product that affects national and social safety and security.

In some services sector, there are joint venture requirements with locals for some services sub sectors.

6.What are your country’s advantages over comparable regions for foreign investors, such as tax breaks?

  • Political & Economic Stability
  • Pro-business Government
  • Liberal Investment Policies
  • Transparent Policies
  • Policy of Welcome
  • Well Developed Infrastructure
  • Harmonious Industrial Relations
  • Trainable & Educated Labour Force
  • Quality of Life
  • Good Track Record

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