Acquisition of Property by Non-Citizen & Foreign Companies in Malaysia

Introduction

Generally, the acquisition of property by non-citizen and foreign companies are subject to the requirements as set out in the (i) National Land Code (revised 2020) (Act 828) (“NLC”), (ii) Economic Planning Unit (EPU) and (iii) relevant rules and regulations imposed by the State Authority.

Definition of “non-citizen” and a “foreign company” under the Malaysian Law

In summary, the definition of foreign interest as provided under Section 433A of NLC is as follows:-

a) Non-citizen – an individual who is not a citizen of Malaysia; and

b) Foreign company – a foreign company incorporated in Malaysia under Companies Act 2016, or a company incorporated in Malaysia with 50% or more of its voting shares held by a non-citizen.

Under Section 2 of the Companies Act, foreign company is defined as a company, corporation, society, association or other body incorporated outside Malaysia or an unincorporated society, association which under the law of its place of origin may sue or be sued which does not have its head office or principal place of business in Malaysia.

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