ANNOUNCEMENT 06 Jan 2010In January 2010, the government of Malaysia announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
European Commission, DG TRADE, Market Access Database: http://madb.europa.eu/madb/barriers_details.htm?barrier_id=105342&version=6
MDTCC, Guidelines on Foreign Participation in the Distributive Trade Services Malaysia: http://www.kpdnkk.gov.my/kpdnkk-theme/images/pdf/WRT_Guideline.pdf
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.