Guideline On The
Acquisition Of Properties
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| Q1 : When is
the effective date of the new Guideline? |
| FIC was
deregularised on 30 June 2009 and Guideline On The
Acquisition Of Properties of EPU , JPM was effective from 30
June 2009 and it is being updated from time to time. The
latest updated Guidelines are on January 1, 2011. |
| |
| Q2 : Will the
Guideline On The Acquisition Of Properties be applicable to
only Peninsular Malaysia or including Sabah and Sarawak? |
| The guideline is applicable throughout
Malaysia. |
| |
| Q3 : Will the
30% Bumiputera equity target still exist? |
| The 30%
Bumiputera equity ownership target will remain but at macro
level. Abolishment of 30% Bumiputera equity requirement
involves equity ownership at firm level except for
transactions involving dilution of properties by Bumiputera
interests and/or Government agencies. In future, the 30%
Bumiputera equity ownership will be applied in the macro
context particularly in the strategic sectors. The more
important aspect is to ensure effective Bumiputera
participation in the economy and establish a market friendly
environment which does not impede economic growth. |
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| Q4 : What is
the name and role of the new unit replacing FIC? |
|
Distribution
Section in EPU will carry out the following functions:
- To
formulate policies, strategies and new instruments to
ensure meaningful Bumiputera participation in the
economy at the macro level particularly in strategic
sectors
- To
coordinate and monitor the implementation of programs
and guidelines and sectoral level with the collaboration
of sector regulators/relevant agencies to enhance
Bumiputera participation.
- To ensure
sector regulators and relevant agencies to formulate
policies on Bumiputera participation and to set target
as KPIs.
- To
coordinate and monitor the implementation of human
capital development programme to create Bumiputera
professionals and entrepreneurs who are competitive and
sustainable in global market.
- To
process acquisition of property which involves dilution
of property by Bumiputera and / or Government agencies;
and
- To
develop a data base on Bumiputera participation through
entrepreneurship profiles and their activities.
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| Q5 : What are
the types of property acquisition that requires approval of
the Economic Planning Unit, Prime Minister's Department? |
|
Property
acquisition that requires approval of the Economic Planning
Unit, Prime Minister's Department are as follows:
-
direct acquisition of
property valued at RM20 million and above, resulting in
the dilution in the ownership of property held by
Bumiputera interest and/or government agency; and
-
indirect acquisition of
property by other than Bumiputera interest through
acquisition of shares, resulting in a change of control
of the company owned by Bumiputera interest and/or
government agency, having property more than 50 percent
of its total assets, and the said property is valued
more than RM20 million.
|
| |
| Q6 : What are
the conditions imposed on the acquisition? |
|
Conditions imposed on acquisition
are:
a) Equity
Condition
- Companies to have at least 30 percent
Bumiputera interest shareholding;
b) Paid-Up Capital Conditions
- Local company owned by local interest
to have at least RM100,000 paid-up capital; and
- Local company owned by foreign
interest to a have at least RM250,000 paid-up capital
|
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| Q7 : What type
of property acquisitions that do not require the approval of
the Economic Planning Unit, Prime Minister's Department? |
|
Property
acquisition by foreign interest that
do not require
the approval of the Economic Planning Unit, Prime Minister's
Department but falls under the purview of the relevant
Ministries and/or Government Departments as follows:
a) acquisition of commercial unit
valued at RM500,000 and above;
b) acquisition of
agricultural land valued at RM500,000 and above or at least
five (5) acres in area for the following purposes:
- to undertake agricultural activities
on a commercial scale using modern or high technology;
or
- to undertake agro-tourism projects;
or
- to undertake agricultural or
agro-based industrial activities for the production of
goods for export.
c) acquisition of industrial land
valued at RM500,000 and above;
- Acquisition of property provided for
in paragraphs (a), (b) and (c) are also subject to the
condition that the said property must be registered
under a locally incorporated company; and
d) transfer of property to a foreigner
based on family ties is only allowed among immediate family
members. |
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| Q8 : What are
the condition for acquisition of residential unit by foreign
interests? |
|
Acquisition of residential unit by
foreign interest must be valued at RM500,000 and above.
This acquisition do not require
the approval of the Economic Planning Unit, Prime Minister's
Department but falls under the purview of the State
Authorities. |
NOTE :
Economic Planning
Unit,
Prime Minister's Department,
Block B5 & Block B6,
Federal Government Administrative Centre,
62502 Putrajaya
Tel :
03-8872 3333
Fax : 03-8888 3755
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SUMMARY
New FIC Guidelines
FIC (Foreiger-Residential)
Foreigner: >RM500,000
(no need FIC consent)
Subject to
State Auth's consent
EPU approval required for:
- direct acqn > RM20m resulting in dilution in Bumi interest or govt
agency
- indirect acqn resulting in change of control of Bumi interest / govt
agency, having property > 50% of total assets and property valued >
RM20m
State
Authority (Foreigner)
Foreigner:
Consent required under S. 433B of NLC
FIC
(Foreigner-Others)
Commercial
Property - only allowed where value > RM500,000
Agri Land -
only allowed where value > RM500,000 / 5 acres (limited purposes)
Industrial
Property - only allowed where value > RM500,000, and must be locally incorporated company.
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