ANNOUNCED AS TEMPORARYNo
FDI: Entry and ownership rule
The Malaysian ministry of Domestic Trade, Co-Operatives and Consumerism(MDTCC) has issued new guidelines, effective from January 6, 2010, that render all proposals for foreign involvement in distributive trade subject to MDTCC approval. Moreover, the guidelines contain numerous provisions that favour local shareholders, employees and competitors. For instance, distributive trade companies with foreign equity must:
In addition, hypermarkets (defined as distribution stores with a sales floor area of 5,000 square meters or more) must be held by Bumiputera for at least 30% of equity. Plans for additional branches of hypermarkets must be submitted to MDTCC two years in advance, subject to approval based on an economic need test. Foreign companies are barred altogether from operating various kinds of small stores such as small supermarkets (smaller than 3,000 square meters), convenience stores, news kiosks and medical stores.
⚑ Please report this page in case you detect an inaccuracy in its content.