Level of Government : Central
Type of Obligation : National Treatment Senior Management and Board of Directors
Description of Measure : Malaysia reserves the right to adopt or maintain any measure relating to employment of expatriates. Restrictions may be imposed on the number, duration and type of expatriates employed.
Source of Measure : - Immigration Act 1959/63 [Act 155] - Employment (Restriction) 1968 (Revised1988) - Expatriate Services Division (ESD) Online Guidebook - Government Policies
9.
Sector : All Sectors
Sub-Sector : -
Industry Classification : -
Level of Government : Central and Regional
Type of Obligation : National Treatment
Description of Measure : Malaysia reserves the right to adopt or maintain any measure relating to National and State unit trusts. This includes unit trust schemes that are created or operated to pursue public policy objectives related to Bumiputera or affirmative action for the socially disadvantaged.
Source of measures : - Federal Constitution New Economic Policy National Development Policy National Vision Policy
10.
Sector : All Sectors
Sub-Sector : -
Industry Classification : -
Level of Government : Central and Regional
Type of Obligation : National Treatment
Description of Measure : Malaysia reserves the right to adopt or maintain any measure relating to the issuance of licence/permit including numerical limitations and non-issuance of licences. Malaysia reserves the right to adopt or maintain any measure relating to the conditions (4) imposed in the issuance of licence/permit.
Source of Measure : - Government Policy - Industrial Co-Ordination Act 1975 [Act 156] - Administrative guidelines
11.
Sector : All Sectors
Sub-Sector : -
Industry Classification : -
Level of Government : Central and Regional
Type of Obligation : National Treatment
Description of Measure : Malaysia reserves the right to adopt or maintain any measure relating to the rights of statutory bodies.(5)
Source of Measure : - Article 92 of Federal Constitution - Employees Provident Fund Act 1991 [Act 452] - Tabung Haji Act 1995 [Act 535] - Tabung Angkatan Tentera Act 1973 [Act 101] - Kumpulan Wang Amanah Persaraan (Diperbadankan) - State Economic Development Corporation Enactments - State Agriculture Development Corporation Enactments - Iskandar Regional Development Authority Act 2007 [Act 664] - Northern Corridor Implementation Authority Act 2008 [Act 687] - East Coast Economic Region Development Council Act 2008 [Act 688] - Regional Corridors Development Authorities Ordinance 2006 - Sabah Economic Development and Investment Authority (SEDIA) Enactment 2009 - Administrative Guidelines
12.
Sector: Manufacturing
Sub-Sector: Services Incidental to Manufacturing
Industry Classification: ISIC Divisions 15 to 36
Level of Government: Central and Regional
Type of Obligation: National Treatment Senior Management and Board of Directors
Description of Measure: For companies/projects that are in existence before the entry into force of this Agreement, conditions imposed in their approvals for licence/permits shall continue to apply. Notwithstanding the liberalisation of similar licence conditions for new companies/ projects, or expansion and/or diversification projects, any liberalisation for existing companies/projects shall be considered on a case by case basis.
Source of Measure:
- Industrial Co-ordination Act 1975.
- Government Policy.
- Administrative Guidelines.
13.
Sector : Manufacturing
Sub-Sector: Services Incidental to Manufacturing
Industry Classification : ISIC (see below) CPC 884-885
Level of Government : Central and Regional
Type of Obligation : National Treatment
Description of Measure : Foreign equity is limited up to 30% in the following activities/products:
- fabrics and apparels of Batik (ISIC 1711, ISIC 1712, ISIC 1810)
- integrated portland cement (ISIC 2694)
Malaysia reserves the right to adopt or maintain any measures relating to the conditions imposed on the following activities/products which may be inconsistent with National Treatment:
Sectors with specific conditions - Pineapple canning (ISIC 1513) - Palm oil milling and refining (ISIC 1514) - Wood-based products utilizing local logs (ISIC 2010, ISIC 2021, ISIC 2022) - Arms, weapons, ammunitions, explosive, pyrotechnic products, propellant powders, detonating or safety fuses, and the like (ISIC 2429, ISIC 2927) - Petroleum refining (ISIC 2320) - Manufacture/Assembly of motor vehicles, passenger cars and commercial vehicles (ISIC 3410) - Sugar refining (ISIC 1542)
Sectors which are currently closed - Liquors and alcoholic beverages (ISIC 15513) - Tobacco processing and cigarettes (ISIC 1600) - Optical discs, including CD, CD-ROM, VCD, DVD (ISIC 2230) - Biodiesel (ISIC 2411) - Collection, storage, treatment and disposal of hazardous and toxic wastes - Ordinary Portland Cement (non-integrated) (ISIC 2694)
Source of Measure : - Industrial Co-Ordination Act 1975 [Act 156] - Customs Act 1967 [Act 235]
14.
Sector : Fishery
Sub-Sector: - Services Incidental to Fishery - Capture fisheries
Industry Classification : ISIC Division 05 CPC 882
Level of Government : Central and Regional
Type of Obligation : National Treatment
Description of Measure : No foreign fishing vessel (6) shall load or unload any fish, fuel or supplies or transship any fish or fish or attempt to fish or conduct any technoeconomic research or waters survey of any fishery, in Malaysian fisheries waters (7) unless authorised to do so. Fishing vessel means any boat, craft, ship or other vessel which is used for equipped to be used for, or of a type used for - fishing; or - aiding or assisting other boat, craft, ship or other vessel in the performance of any activity related to fishing, including any of the activities of preparation, processing, refrigeration, storage, supply or transportation of fish.
Source of Measure : - Fisheries Act 1985 [Act 317] - Lembaga Kemajuan Ikan Malaysia Act 1971 [Act 49] - Exclusive Economic Zone Act 1984 [Act 311] - Continental Shelf Act 1966 [Act 83] - National Land Code [Act 56]
15.
Sector: Agriculture
Sub-Sector: Services Incidental to Agriculture
Industry Classification: ISIC Division 01 CPC 8811 – 8813
Level of Government; Central and Regional
Type of Obligation: National Treatment
Description of Measure: Equity ownership must be in line with the national development objectives of growth with equity in order to meet distributional goals.
Source of Measure: - National Agricultural Policy. - Administrative guidelines.
16.
Sector : Forestry
Sub-Sector: - Services Incidental to Forestry - Extraction and Harvesting of Timber - Forest Plantation
Industry Classification : ISIC Division 02 CPC 8814
Level of Government : Central and Regional
Type of Obligation : National Treatment
Description of Measure : Malaysia reserves the right to adopt or maintain any measure relating to forest plantation. Extraction and harvesting of timber is closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, local involvement and majority local control is required. Forest areas to be opened for such activities shall be gradually reduced in the future to enable the resources to be managed sustainably. Services incidental to extraction and harvesting of timber is closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, maximum foreign equity ownership allowed is 30%; flexibility could be considered.
Source of Measure : - National Forestry Act 1984 [Act 313] F.M.S Forest Enactment 1934 Johor Forest Enactment Kedah Forest Enactment Kelantan Forest Enactment Perlis Forest Enactment S.S Forest Ordinance Sabah Forest Enactment Sarawak Forest Ordinance Terengganu Forest Enactment Administrative guidelines
17.
Sector : Mining and Quarrying
Sub-Sector: - Services Incidental Quarrying to Mining and Oil and Gas Upstream Industries
Industry Classification : ISIC Divisions 10 to 14 CPC 883
Level of Government : Central and Regional
Type of Obligation : National Treatment Senior Management and Board of Directors
Description of Measure : PETRONAS and its successor are vested with the entire ownership in, and the exclusive rights, powers, liberties and privileges, which shall be irrevocable, in exploring, exploiting, winning and obtaining petroleum whether onshore or offshore of Malaysia. Malaysia reserves the right to adopt or maintain any measures relating to the oil and gas upstream industry including related activities.
Source of Measure : - Petroleum Development Act 1974 [Act 144] - Petroleum Mining Act 1966 [Act 95]
18.
Sector : Mining and Quarrying
Sub-Sector : - Services Incidental Quarrying to Mining and Other mining and quarrying activities
Industry Classification : ISIC Divisions 10 to 14 CPC 883
Level of Government : Central and Regional
Type of Obligation : National Treatment Senior Management and Board of Directors
Description of Measure : Malaysia reserves the right to adopt or maintain any measures relating to mining and quarrying activities. Joint ventures with state or statelinked enterprises may be required.
Source of Measure : - Minerals Development Act 1994 [Act 525] - State Mineral Enactments
Myanmar
1.
Sector: Manufacturing Sector
Sub-Sector: - Distilling, blending, rectifying, bottling and marketing of all kinds of sprits, beverages and non-beverages (ISIC 1551) - Manufacture of malt and malt liquors, beer and other brewery products (ISIC 1553) - Manufacture of soft beverages, aerated and non-aerated products (ISIC 1554) - Manufacture of cigarettes (ISIC 1600) - Manufacture of pulp, paper and paper board (ISIC 2101)
Industry Classification: ISIC 1551, 1553, 1554, 1600, 2101
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure:
(1) A foreign investor is not allowed to establish an enterprise in (a) distilling, blending, rectifying, bottling and marketing of all kinds of spirits, beverages and non-beverages; and (b) manufacture of malt and malt liquors, beer and other brewery products, except through joint-venture with local citizen.
(2) In the manufacture of soft beverages, aerated and non- aerated products a foreign investor must use at least 20% local raw materials. Local cropping raw materials must be used at least 60% after 3 years of factory completion.
(3) A foreign investor is allowed in the manufacture of cigarettes, provided it exports 90% of its produce and (a) it shall use minimum 50% domestically produced tobacco leaves within the first (3) years of operation; or (b) It shall be allowed to use imported tobacco leaves which are bought with at least 50% of the income obtained by exporting domestically tobacco leaves.
(4) For Manufacture of pulp, paper and paper board (ISIC 2101), no new permits are issued to foreign investors (1). Integrated project is compulsory. Integrated project means combining of all plants into a whole Mill which compose Pulp Plant, Paper Plant, Chemical Plant, Recovery Plant, Power Plant and Waste Water Treatment Plant etc.
Source of Measure : - The Foreign Investment Law (2012). - The Foreign Investment Rules(2013) - Myanmar Investment Commission Notification No.(1/2013) - Control of Smoking and Consumption of Tobacco Product Law (2006) - National Food Law(1997) - The Private Industrial Enterprise Law(1990) - Administrative Guideline.
2.
Sector: Manufacturing and Services incidental to Manufacturing
Sub-Sector: - Manufacture of pharmaceutical drugs (ISIC 2423) - Services incidental to manufacture of pharmaceuticals (CPC 88570)
Industry Classification: ISIC 2423, CPC 88570
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure:
For Manufacture of pharmaceutical drugs: Foreign investors are not allowed to manufacture traditional medicines (2). However, they can be allowed if they follow the terms and conditions prescribed by the Ministry of Health.
For Services incidental to manufacture of Pharmaceuticals: Only allowed to State-owned Enterprises under the Ministry. (3) Require permission from Food and Drug Administration (FDA) under the Ministry of Health.
Source of Measure: - The Foreign Investment Law (2012). - The Foreign Investment Rules(2013) - Myanmar Investment Commission Notification No (1/2013) - National Drug Law (1992). The Private Industrial Enterprise Law(1990)
3.
Sector: Manufacturing Sector
Sub-Sector: - Manufacture of Refined Petroleum Products ( ISIC 2320) - Services incidental to manufacture of refined petroleum products (CPC 88450)
Industry Classification: ISIC 2320, CPC 88450
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: State-owned Economic Enterprises are allowed to operate oil refining and undertake refining activities. Myanmar Nationals/ Myanmar Companies (4) , Foreigners/Foreign Companies established under the existing Laws of Myanmar can be allowed to operate oil refining and refining activities on Joint Venture or 100% investment subject to the rules and regulations of the Ministry of Energy.
Source of Measure: - State-owned Economic Enterprises Law (1989). - The Foreign Investment Law (2012). - The Foreign Investment Rules(2013) - Myanmar Investment Commission Notification No (1/2013) - Directives. - Myanmar Citizens Investment Law (1994.)
Justification: For national interest. According to the section 4 of the State-owned Economic Enterprises Law (SEEs), the Government may, by notification, permit in the interest of the Union of Myanmar any economic enterprise which is prescribed under the Section 3, to be operated solely by the Government to be carried out by joint-venture between the Government and any other person or any other organization or under conditions by any person or any economic organization subject to conditions.
5.
Sector: Forestry and Services Incidental to Forestry
Sub-Sector: - Production and extraction of hard-wood (4) from the natural forest (5) (ISIC 0200) - Services incidental to Forestry (CPC 8814) • Extraction of logs from the natural forests • Protected areas system (6)
Industry Classification: ISIC 0200 CPC 8814
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: Only allowed to State-owned Enterprise under the Ministry
Source of Measure: - Forest Policy (1995). - State-owned Economic Enterprises Law (1989) - Forest Law (1992) - Protection of Wildlife and Wild Plants and Conservation of Natural Areas Law (1994)
Justification : Conservation of forest resources and the environment. Biodiversity conservation
6.
Sector: Fishery
Sub-Sector: Fishing of marine fish, prawns and other aquatic organisms
Industry Classification: ISIC 0500
Level of Government: Central
Type of Obligation: National Treatment