FIC Guidelines

The procedure on the acquisition of properties under the FIC Guidelines are as follow:-

  1. All property acquisition except for residential units, that requires approval of the Economic Planning Unit, Prime Minister's Department as follows:
    1. 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
    2. 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.
  2. All 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:
    1. acquisition of commercial unit valued at RM500,000 and above;
    2. acquisition of agricultural land valued at RM500,000 and above or at least five (5) acres in area for the following purposes:
      1. to undertake agricultural activities on a commercial scale using modern or high technology; or
      2. to undertake agro-tourism projects; or
      3. to undertake agricultural or agro-based industrial activities for the production of goods for export.
    3. acquisition of industrial land valued at RM500,000 and above; and
    4. transfer of property to a foreigner based on family ties is only allowed among immediate family members.
  3. Acquisition of residential unit by foreign interest valued at RM500,000.00 and above. This acquisition does not require the approval of the Economic Planning Unit, Prime Minister's Department but falls under the purview of the State Authorities.

Conditions for Acquisition

Conditions for the acquisition of property as described above 1 (a) and (b) that requires approval of the Economic Planning Unit, Prime Minister's Department are subject to equity and paid-up capital conditions as follows:

  1. Equity Condition
    1. Companies to have at least 30 percent Bumiputera interest shareholding;
    2. Paid-Up Capital Conditions
      1. Local company owned by local interest to have at least RM100,000 paid-up capital; and
      2. Local company owned by foreign interest to a have at least RM250,000 paid-up capital.
  2. Acquisition of property provided for in paragraphs 5 (b) (i), (ii) and (iii) are also subject to the condition that the said property must be registered under a locally incorporated company.

Compliance Period of the Conditions for Acquisition

  • For direct acquisition of property, the equity and paid-up capital conditions imposed by the Economic Planning Unit, Prime Minister's Department must be complied with before the transfer of the property's ownership.
  • For indirect acquisition of property, the equity and paid-up capital conditions imposed by the Economic Planning Unit, Prime Minister's Department must be complied with within one (1) year after the issuance of written approval.
  • The conditions imposed on the acquisition of property in paragraph 5 (b) must be complied with and notified to the Economic Planning Unit, Prime Minister's Department before the property is transferred.
  • Compliance of the equity and paid-up capital conditions must be notified to the Economic Planning Unit, Prime Minister's Department.

Exemptions

The above guidelines shall not apply to the following transactions:

  • Any acquisition of residential unit under the "Malaysia My Second Home" Programme;
  • Multimedia Super Corridor (MSC) status companies are allowed to acquire any property in the MSC area provided that the property is only used for their operational activities including as residence for their employees;
  • Acquisition of properties in the approved area in any regional development corridor by companies that have been granted the status by the local authority as determined by Government;
  • Acquisition of properties by a company that has obtained the endorsement from the Secretariat of the Malaysian International Islamic Financial Centre (MIFC);
  • Acquisition of residential units to be occupied as a hostel for company's employees. However, local companies owned by foreign interest are only allowed to acquire residential units valued at RM100,000 and above and this matter is under the jurisdiction of the relevant state authorities;
  • Transfer of property to a foreign interest pursuant to a will and court order;
  • Acquisition of industrial land by manufacturing company;
  • Acquisition of properties by Ministries and Government Departments (Federal and State), Ministry of Finance Incorporated, Menteri Besar Incorporated or Chief Minister Incorporated, State Secretary Incorporated and listed Government Linked Companies;
  • Acquisition of properties under the privatization projects, whether at the Federal or State level, provided that it involves the companies that are the original signatories in the contracts for the privatized projects; and
  • Acquisition of properties by companies that have been granted the status of International Procurement Centres, Operational Headquarters, Representative Offices, Regional Offices, Labuan offshore companies and Bio-Nexus or other special status by the Ministry of Finance, Ministry of International Trade and Industry and other ministries

Restrictions

Foreign interest is not allowed to acquire:

  • Properties valued less than RM500,000 per unit;
  • Residential units under the category of low and low-medium cost as determined by the State Authority;
  • Properties built on Malay reserved land; and
  • Properties allocated to Bumiputera interest in any property development project as determined by the State Authority.

Procedures On Submission Of Application

All applications must be submitted together with the following documents:

  1. Form UPE H/2009;
  2. Forms Proforma I/2009 and/or Proforma II/2009;
  3. One (1) copy of the relevant agreement;
  4. One (1) copy of the Board of Directors resolution;
  5. One (1) copy of the letter/license from the ministries or Government agencies (if applicable);
  6. One (1) copy of the approval letter on the same proposal from other ministries or Government agencies (if applicable);
  7. One (1) copy of the confirmation letter from the Company Secretary on the company's current equity structure;
  8. One (1) copy of the latest valuation report (transaction that involves Government agencies must be accompanied with a valuation report from Jabatan Penilaian dan Perkhidmatan Harta);
  9. One (1) copy of the company's current audited financial report;
  10. Declaration Letter UPE SA/2009 to be signed by the Chairman/Managing Director/ Chief Executive Officer of the company or any member of the company's Board of Directors or any authorized personnel/individual; and
  11. Any other document considered necessary by the Economic Planning Unit, Prime Minister's Department.

All applicants are responsible for the accuracy of the information submitted.

Decision On Application

Decisions on all complete applications will be given within ten (10) working days.

Appeal

Applicants must submit a completed UPE R/2009 form.

All appeals pertaining to the decision of the Economic Planning Unit, Prime Minister's Department will be considered based on the merit of each case.

Correspondence Address And Enquiries

All applications that require the approval of the Economic Planning Unit, Prime Minister's Department must be submitted to:

Economic Planning Unit,
Prime Minister's Department,
Level –1, Block B5,
Federal Government Administrative Centre,
62502 Putrajaya, Malaysia.
Tel. No. : 603-8872 3290/3311
Fax No. : 603-8888 3917
Website : http://www.epu.gov.my

Effective Date

The FIC Guidelines is effective from 1 January 2010.

Repeal

The Guidelines on the Acquisition of Properties dated 30 June 2009, is repealed.