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Equity Policy in the Manufacturing Industry
Malaysia welcomes investment in the country's manufacturing industry. In order to allow more locals to participate in the industry, the government encourages Malaysian investors to open joint ventures with foreign investors.
Equity Policy for New, Expansion or Diversification Projects
From June 2003, foreign investors may hold 100% of all investments in new projects and expansion/diversification projects of existing companies, with no restrictions on export levels, products or activities.
The Equity Policy also applies to:
Companies that were previously exempted from applying for a manufacturing production licence but now have to apply for a licence as they have shareholders’ funds of RM2.5 million or have employed 75 or more full-time employees.
Existing licensed companies which were previously exempted from the shareholding condition but now have to comply with the condition as shareholders’ funds have reached RM2.5 million.
Equity Policy for Existing Companies
The shareholding and exit conditions imposed on companies before June 17, 2003 will remain unchanged, but companies can request the removal of these conditions, which will be approved on a case-by-case basis.
(Source: Malaysian Investment Development Authority )