Malaysia FDI control

Copyright © 2025 LexisNexis
Produced in partnership with Zaid Ibrahim & Co.
Practice notes

Malaysia FDI control

Copyright © 2025 LexisNexis

Produced in partnership with Zaid Ibrahim & Co.

Practice notes
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A conversation with Nurul Syahirah Azman, senior associate at Zaid Ibrahim & Co (in association with KPMG Law), on key issues on foreign direct investment (FDI) control in Malaysia.

1. What is the applicable legislation?

There is no omnibus legislation in Malaysia which governs foreign direct investment (‘FDI’).

FDI requirements are sector-specific. Certain sectors may have restrictions on FDIs and some may not have any. To explain, sector regulators (eg, Malaysian Communications and Multimedia Commission) may impose foreign equity restrictions by way of licence conditions issued for regulated services.

These FDI requirements are usually imposed as policies, and not hardcoded in legislation.

2. Which government or other body (or bodies) reviews foreign investments?

While there is no central authority designated to govern FDI into Malaysia, the Malaysian Investment Development Authority (MIDA) is a statutory body that is empowered to promote, attract and coordinate FDI into Malaysia and encourages growth and development in the manufacturing and services industry.

Foreign participation in an industry/sector is under the purview of the relevant regulatory authority or ministry that

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