(c) Article 8.6 (Most-Favoured-Nation Treatment) or Article 10.4 (Most-Favoured-Nation Treatment);
(d) Article 8.11 (Local Presence);
(e) Article 10.6 (Prohibition of Performance Requirements); or
(f) Article 10.7 (Senior Management and Board of Directors).
2. Each entry in this List sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Subsector, where referenced, refers to the specific subsector for which the entry is made;
(c) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 8.8 (Schedules of Non-Conforming Measures) and Article 10.8 (Reservations and Non-Conforming Measures), do not apply to the sectors, subsectors, or activities, listed in the entry;
(d) Description sets out the scope of the sectors, subsectors, or activities, covered by the entry; and
(e) Existing Measures where specified, identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors, or activities covered by the entry.
3. In accordance with Article 8.8 (Schedules of Non-Conforming Measures) and Article 10.8 (Reservations and Non-Conforming Measures), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors, and activities, identified in the Description element of that entry.
4. With respect to the entries in this List on Most-Favoured-Nation Treatment relating to bilateral or multilateral international agreements, the absence of language regarding the scope of the reservation for differential treatment resulting from an amendment of those bilateral or multilateral international agreements in force or signed prior to the date of entry into force of this Agreement is without prejudice to Malaysia’s interpretation of the scope of that reservation.
5. For the purposes of this List, “CPC”, where referenced, refers to the activity covered by the non-conforming measure, according to the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991). The use of “**” against individual CPC codes indicates that the specific commitment for that code does not extend to the total range of services covered under that code.
6. The Schedules of other Parties shall not be used to interpret Malaysia’s commitments or obligations under Chapter 8 (Trade in Services), Chapter 10 (Investment), or other Chapters of this Agreement.
1.
Sector : Land and real estate Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Acquisitions or dealings of land or activities on land by non-citizens and juridical persons owned by foreign nationals must be approved by the relevant state authority, subject to such conditions and restrictions as may be imposed by that authority. Existing Measures : Federal Constitution Land Acquisition Act 1960 [Act 486] Land Conservation Act 1960 [Act 385] National Land Code [Act 56 of 1965] Federal Lands Commissioner Act 1957 (Revised 1988) [Act 349] National Land Code (Penang and Malacca Titles) Act 1963 [Act 518] Strata Titles Act 1985 [Act 318] Strata Management Act 2013 [Act 757] Federal Lands Commissioner Act 1957 (Revised 1988) [Act 349] Land (Group Settlement Areas) Act 1960 [Act 530] Malay Reservations Enactment 1933 [F.M.S. Cap 142] Malay Reservations Enactment 1930 [Enactment 29] Kelantan Malay Reservations Enactment 1930 [No.18 of 1930] Kelantan Land Settlement Act 1955 (Revised 1991) [Act 460] The Reservations Enactment 1353 [No. 7 of 1353] Perlis Land Settlement Enactment 1966 [No. 16 of 1966] Johore Malay Reservation Enactment 1936 [No. 1 of 1936] Terengganu Malay Reservation Enactment 1360 [No. 17 of 1360] Terengganu Settlement Enactment 1356 [No. 65 of 1356] Malay Reservations (Selangor) (Amendment) Enactment No.15/1961 Malay Reservations (Selangor) (Amendment) Enactment No.7/1985 Customary Land Enactment 1926 [Cap 215] Customary Tenure (Lengkongan Land) Enactment 1960 [No. 4 of 1960] Undang of Rembau (Lands) Enactment 1949 [No. 2 of 1949] Land Ordinance [Sabah Cap 68] Sabah Land Acquisition Ordinance [Sabah Cap 69] Sarawak Land Code 1958 [Chapter 81] Local Government Act 1976 [Act 171] Town and Country Planning Act 1976 [Act 172] Federal Territory (Planning) Act 1982 [Act 267] Federal Capital Act 1960 [Act 190] Street, Drainage and Building Act 1974 [Act 133]
2.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure affecting the: (a) full or partial devolvement to the private sector of services provided in the exercise of governmental authority; (b) divestment of its equity interests in, or the assets of, a juridical person that is wholly or partially owned by the Government of Malaysia; and (c) privatisation of government-owned entities or assets. Existing Measures : Minister of Finance (Incorporation) Act 1957 [Act 375] Privatisation Master Plan Guidelines on Privatisation Companies Act 2016 [Act 777] Bursa Listing Requirements
3.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to Bumiputera, Bumiputera status companies, trust companies, and institutions, to meet development and social economic policy objectives. Existing Measures : Federal Constitution Policies and Ministerial Statements Treasury Instructions Treasury Circulars New Economic Policy (NEP) National Development Policy (NDP)
4.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Description : Trade in Services and Investment 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 relating to Bumiputera or affirmative action for the socially disadvantaged. Existing Measures : -
5.
Sector : Mining and quarrying Subsector : Oil and Gas Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Petroliam Nasional Berhad (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. PETRONAS and its successor reserve the right to adopt or maintain any measure relating to the oil and gas upstream industry including related activities. Existing Measures : Petroleum Development Act 1974 [Act 144] Other Implementing Measures
6.
Sector : All sectors Subsector : - Obligations Concerned : Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier or investor under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement. (2) Malaysia reserves the right to adopt or maintain any measure that accords differential treatment to Member States of ASEAN under any ASEAN agreement open to participation by any Member State of ASEAN, in force or signed after the date of entry into force of this Agreement. With regard to the sectors listed below, Malaysia reserves the right to adopt or maintain any measure that accords rights, preferences, and differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement: (a) Aviation matters; (b) Maritime and Port; (c) Broadcasting; (d) Space Transportation; and (e) Fisheries. Existing Measures : -
7.
Sector : All sectors Subsector : - Obligations Concerned : Most-Favoured-Nation Treatment (Article 8.6) Description : Trade in Services Liberalisation of measures in existing or future policies limiting foreign equity or interests in companies and businesses in Malaysia shall be carried out in a preferential and differentiated manner to those investments that match Malaysia’s specific development requirements with the abilities and facilities provided by foreign juridical persons and their home countries. The objective is to maximise economic benefits of foreign participation in the Malaysian economy. This non-conforming measure applies to all countries for an indefinite duration. Existing Measures : -
8.
Sector : Manufacturing Subsector : Manufacture, assembly, marketing and distribution of explosives, weapons, ammunitions, as well as military-related equipment or devices, and similar products Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure affecting the arms and explosives sector. Existing Measures : Industrial Co-ordination Act 1975 [Act 156] Explosives Act 1957 [Act 207] Arms Act 1960 [Act 206]
9.
Sector : Gaming, betting and gambling services including manufacturing, supply and suppliers of equipment, wholesale and retail of gambling services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to the provision of gaming, betting and gambling services including manufacturing, supply and suppliers of equipment, wholesale and retail of gambling services. Existing Measures : Lotteries Act 1952 [Act 288] Common Gaming Houses Act 1953 [Act 289] Pool Betting Act 1967 (Revised 2018) [Act 809] Betting Act 1953 [Act 495] Racing (Totalisator Board) Act 1961 [Act 494] Racing Club (Public Sweepstakes) Act 1965 [Act 404] Customs (Prohibition of Imports) Order 2017 [P.U. (A) 103/2017]
10.
Sector : Application of atomic energy for nuclear power generation including nuclear fuel cycle and electric power generation and fuel cycle; and electric power plants based on fossil fuel or materials Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to application of atomic energy for nuclear power generation including nuclear fuel cycle and electric power generation and fuel cycle; and electric power plants based on fossil fuel or materials. Existing Measures : Atomic Energy Licensing Act 1984 [Act 304] Electricity Supply Act 1990 [Act 447]
11.
Sector : Cultural services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to review the following products following their importation and distribution in the Malaysian market to ensure their consistency with Malaysia’s decency standards: (a) books, magazines, periodicals or newspapers, or works of art and films, imported into Malaysia; and (b) programming licensed for broadcast on television, cable, and satellite stations. In addition, prior approval is required for any arts, filming, and performances by a foreign artist, and such activities shall comply with the Central Agency for Application for Filming and Performance by Foreign Artistes (PUSPAL) Guidelines. Malaysia reserves the right to adopt or maintain any measure relating to differential treatment to countries under any existing or future bilateral or multilateral international agreement (3) with respect to cultural industries, such as audiovisual cooperation agreements. For greater certainty, government supported subsidy programmes for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement. For the purposes this entry, “cultural industries” mean persons engaged in any of the following activities: (a) publication, distribution, or sale of books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing; (b) production, distribution, sale, or display of recordings of movies or videos; (c) production, distribution, sale, or display of music recordings in audio or video format; (d) production, distribution, or sale of printed music scores or scores readable by machines; or (e) radio broadcasts aimed at the public in general, as well as all radio, television, and cable television related activities, satellite programming services, and broadcasting networks. Existing Measures : Printing Presses and Publishing Act 1984 [Act 301] Akta Perbadanan Kemajuan Filem Nasional Malaysia 1981 [Act 244] Akta Perbadanan Kemajuan Kraftangan Malaysia 1979 [Act 222] Dasar Industri Kreatif Negara (DIKN) 2010 Central Agency Committee for Application for Filming and Performance by Foreign Artistes (PUSPAL) Guidelines
12.
Sector : Manufacturing, wholesale, and distribution services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to the manufacture of, and the wholesale and distribution services for: (a) rice; (b) sugar; (c) flour; (d) liquor and alcoholic beverages; (e) tobacco, manufactured tobacco substitutes, and cigarettes products; (f) fabrics and apparels of batik; (g) glass and glassware products; (h) biodiesel; (i) machinery and mechanical appliances or part thereof, including power generating machinery and machinery for a specific industry; (j) motor vehicles including motorcycles and scooters, passenger cars, and commercial vehicles; (k) base metals and articles of base metal industry or products; (l) cement and cement products; and (m) electrical machines and apparatus having individual functions (HS 8543). Existing Measures : Excise Act 1976 [Act 176] Free Zones Act 1990 [Act 438]
13.
Sector : Sewage and refuse disposal, sanitation, and other environmental protection services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to the collection, treatment, and disposal of hazardous waste and other environmental protection services including production, marketing, supplying, and distribution of any products derived from by-products of sewage and sludge treatment, holistic wastewater management (including sullage, water run-off), trade effluent or industrial waste (organic and non-organic), water recycling, and resource recovery. Existing Measures : Environmental Quality Act 1974 [Act 127] Water Services Industry Act 2006 [Act 655] Green Technology Master Plan Malaysia 2017-2030
14.
Sector : Air transport services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt and maintain any measure affecting: (a) aircraft repair and maintenance services; (b) selling and marketing of air transport services; (c) computer reservation system (CRS) services; (d) aircraft leasing without crew; (e) aircraft leasing with crew; (f) airfreight forwarding services; (g) cargo handling; (h) aircraft catering services; (i) refuelling services; (j) aircraft line maintenance; (k) ramp handling; (l) baggage handling; (m) passenger handling; and (n) air transport services covering passenger and freight transportation frequencies and routing by air. Existing Measures : Administrative Guidelines
15.
Sector : Passenger road transportation services covering taxi services and scheduled passenger road transportation Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to passenger and scheduled passenger road transportation services covering urban and suburban regular transportation, railway, taxi services; and bus, taxi, and rail station services, and any electronic application related transportation services. Existing Measures : -
16.
Sector : Legal services covering mediation and Shari’a law Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to mediation and Shari’a law. Existing Measures : -
17.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure related to the non-internationalisation of the Ringgit which includes: (a) the requirement for international settlement to be made in foreign currency; (b) limitation on the access to Ringgit financing by non-residents for use outside Malaysia; and (c) limitation on the use of the Ringgit in Malaysia by non-residents. Existing Measures : Central Bank of Malaysia Act 2009 [Act 701] Financial Services Act 2013 [Act 758] Islamic Financial Services Act 2013 [Act 759] Foreign Exchange Notices
18.
Sector : All sectors Subsector : - Obligations Concerned : Market Access (Article 8.5) Description : Trade in Services The purchase of a financial service by a resident from a financial service supplier abroad shall be subject to the requirements, restrictions, and conditions imposed under the Foreign Exchange Notices. Existing Measures : Central Bank of Malaysia Act 2009 [Act 701] Financial Services Act 2013 [Act 758] Islamic Financial Services Act 2013 [Act 759] Foreign Exchange Notices
19.
Sector : Social services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: (a) income security or insurance; (b) social security or insurance; (c) social welfare; (d) public education; (e) public training; (f) health; and (g) child care. Existing Measures : -
20.
Sector : Veterinary services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure with respect to veterinary services excluding services delivered to equine animals in equestrians or turf clubs. Existing Measures : Veterinary Surgeons Act 1974 [Act 147] Administrative Guidelines
21.
Sector : Private healthcare services (4) Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure with respect to: (a) allied health services; (b) pathology laboratories; (c) dental clinics; (d) general dental practitioners; (e) general medical practitioners; (f) general nurses including midwifery; (g) medical clinics; (h) private hospitals; (i) private psychiatric hospitals; (j) private ambulatory care centres; (k) private nursing homes; (l) private psychiatric nursing homes; (m) private maternity homes; (n) private blood banks; (o) private haemodialysis centres; (p) private hospices; (q) private community mental health centres; and (r) any other private healthcare facilities, services, or health related services as the Minister of Health may specify. Existing Measures : Medical Act 1971 [Act 50] Medical Regulations 2017 [P.U. (A) 188/2017] Dental Act 2018 [Act 804] Private Healthcare Facilities and Services Act 1998 [Act 586] Private Healthcare Facilities and Services (Private Hospitals and Other Private Healthcare Facilities) Regulations 2006 [P.U.(A) 138/2006] Private Healthcare Facilities and Services (Private Medical Clinics or Private Dental Clinics) Regulations 2006 [P.U. (A) 137/2006] Allied Health Professions Act 2016 [Act 774] Nurses Act 1950 [Act 14] Nurses Registration Regulations 1985 [P.U. (A) 494/85] Midwives Act 1966 [Act 436] Midwives Regulations 1990 [P.U. (A) 181/90]
22.
Sector : Traditional and complementary medicine services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure with respect to traditional and complementary medicine services. Existing Measures : Traditional and Complementary Medicine Act 2016 [Act 775] Administrative Guidelines
23.
Sector : Distribution services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to distribution services covering hypermarkets, superstores, departmental stores, specialty stores, franchise businesses, and convenience stores. Existing Measures : Franchise Act 1998 [Act 590] Guidelines on Foreign Participation in the Distribution Trade Services in Malaysia 2020 Guidelines on Convenience Stores with Foreign Interest
24.
Sector : Utilities in relation to gas supply, power generation, power distribution, power transmission, renewable energy, energy services, energy efficiency services, water services, and sewerage services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to utilities in relation to gas supply, power generation, power distribution, power transmission, renewable energy, energy services, energy efficiency services, solar panels, water services, and sewerage services. Existing Measures : Water Services Industry Act 2006 [Act 655] Waters Act 1920 [Act 418] State Waters Laws Electricity Supply Act 1990 [Act 447] Gas Supply Act 1993 [Act 501] Renewable Energy Act 2011 [Act 725] Electricity Ordinance Sarawak [Cap. 50] Environmental Quality Act 1974 [Act 127] Green Technology Master Plan Malaysia 2017-2030
25.
Sector : Armed escort services and armed guard services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to armed escort services and armed guard services. Existing Measures : -
26.
Sector : Building surveying services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to building surveying services. Existing Measures : -
27.
Sector : Education services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to: (a) preschools; (b) primary and secondary school education services covering the Malaysian National Curriculums; (c) religious schools; (d) distance learning; (e) tuition centres; (f) military training education; and (g) higher education services covering public higher education institutions, nursing education, polytechnics, community colleges, military studies, and religious studies. Existing Measures : -
28.
Sector : Research services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to research services. Any such measure shall not decrease the level of foreign ownership permitted in the research industry related to research and experimental services in agricultural science covering agriculture, biodiversity, food, agro-based industries, fisheries, social science, and humanities, excluding research and experimental services in law, linguistics, and languages. Existing Measures : -
29.
Sector : Postal services including courier and express delivery services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to postal services, including courier and express delivery services. Existing Measures : Postal Services Act 2012 [Act 741] Customs Act 1967 [Act 235]
30.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Description : Trade in Services and Investment Where the constitution of a company imposes a prescribed foreign shareholding limit, the company may restrict certain entitlements with respect to shares that have exceeded the prescribed limit (5) (excess shares). Existing Measures : Companies Act 2016 [Act 777] Securities Industry (Central Depositories) Act 1991 [Act 453] Securities Industry (Central Depositories) (Foreign Ownership) Regulations 1996 [P.U.(A) 513/96]
31.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure with respect to securities to be listed or listed on a stock exchange, and any matter relating to the acquisition of interests or take-overs and mergers. Existing Measures : Capital Market and Services Act 2007 [Act 671] Companies Act 2016 [Act 777] The Malaysian Code on Take-overs and Mergers 2016 Financial Services Act 2013 [Act 758] Islamic Financial Services Act 2013 [Act 759]
32.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to employment of expatriates. Existing Measures : Immigration Act 1959/63 [Act 155] Employment (Restriction) Act 1968 (Revised 2017) [Act 796] Expatriate Services Division (ESD) Online Guidebook Policies and Ministerial Statements
33.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to activities restricted to designated juridical persons (6) where such activities are liberalised to those other than the designated juridical persons, or in the event where such designated juridical persons no longer operate on a non-commercial basis. Corporations in which the government has an interest shall, in acquiring services, give first consideration to services suppliers in which the government has an interest. This requirement does not prevent the acquisition of services from other services suppliers where their services are competitive in terms of price, quality, and delivery. Existing Measures : Industrial Co-ordination Act 1975 [Act 156] Policies and Ministerial Statements Administrative Guidelines
34.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Investment Malaysia reserves the right to adopt or maintain any measure affecting the issuance of a licence or permit. This may include conditions imposed, numerical limitations, and non-issuance of licences. Existing Measures : Policies and Ministerial Statements Industrial Co-ordination Act 1975 [Act 156] Petroleum Development Act 1974 [Act 144] Administrative Guidelines
35.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to the rights of statutory bodies (7). Existing Measures : Policies and Ministerial Statements Administrative Guidelines
36.
Sector : Mining and quarrying Subsector : - Obligations Concerned : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Investment Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and subject to such conditions and restrictions as may be imposed by the relevant state authority. Joint ventures with state or state-linked juridical persons may be required. Existing Measures : Mineral Development Act 1994 [Act 525] State Mineral Laws National Mineral Policy 2
37.
Sector : Agriculture Subsector : - Obligations Concerned : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Investment Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and are subject to such conditions and restrictions as may be imposed by the relevant state authority. Existing Measures : National Land Code [Act 56 of 1965] Sarawak Land Code 1958 [Cap 81] Sabah Land Ordinance 1950 [Cap 68] Town and Country Planning Act 1976 [Act 172] Plant Quarantine Act 1976 [Act 167] National Agricultural Policy Administrative Guidelines Customs Prohibition of Imports and Exports Orders
38.
Sector : Forestry Obligations Concerned : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Investment Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and are subject to such conditions and restrictions as may be imposed by the relevant state authority. Extraction and harvesting of timber are closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, local involvement and majority local control are required. Forest areas opened for such activities are subject to an Annual Allowable Cut to enable the resources to be managed sustainably. Services incidental to extraction and harvesting of timber are closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, the maximum foreign equity ownership allowed is 30 per cent. Existing Measures : National Forestry Act 1984 [Act 313] Sabah Forest Enactment 1968 [No. 2 of 1968] Sarawak Forest Ordinance 2015 [Cap. 71] State Forestry Laws Administrative Guidelines International Trade in Endangered Species Act 2008 [Act 686] Wildlife Conservation Act 2010 [Act 716]
39.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure that it considers necessary for the protection of its essential security interests. Existing Measures : Strategic Trade Act 2010 [Act 708]
40.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4) Market Access (Article 8.5) Description : Trade in Services Malaysia reserves the right to adopt or maintain any measure with respect to the supply of a service by the presence of natural persons, subject to Chapter 9 (Temporary Movement of Natural Persons). Existing Measures : -
41.
Sector : All sectors Subsector : - Obligations Concerned : Market Access (Article 8.5) Description : Trade in Services Malaysia reserves the right to adopt or maintain any measure relating to Article 8.5 (Market Access) in the following sectors, subsectors, or activities, subject to the limitations and conditions listed in the table below. Malaysia remains unbound in respect of the supply of a service by a service supplier of a Party through the presence of natural persons of a Party in the territory of Malaysia, except as indicated in Malaysia’s Schedule in Annex IV (Schedules of Specific Commitments on Temporary Movement of Natural Persons). Existing Measures : - For the purposes of the table below: (a) “(1)”, “(2)”, and “(3)” in the “Limitations on Market Access” column refer to the modes for the supply of a service as defined in subparagraphs (r)(i) through (iii) of Article 8.1 (Definitions); (b) “Unbound” means no market access commitment in the specified sector, subsector, or activity for the given mode of supply; and (c) “None” means no limitations on market access in the specified sector, subsector, or activity for the given mode of supply. Sector or Subsector Limitations on Market Access BUSINESS SERVICES Professional Services Accounting and auditing services (CPC 8621) (1) None (2) None (3) Only through a locally registered partnership with Malaysian accountants or Malaysian accounting firms and the aggregate foreign interests shall not exceed 51 per cent. Bookkeeping services, except tax returns (CPC 8622) (1) None (2) None (3) Only through a locally registered partnership with Malaysian accountants or Malaysian accounting firms and the aggregate foreign interests shall not exceed 51 per cent. Taxation services (CPC 8630) (1) None (2) None (3) Only through a locally registered partnership or private limited company with Malaysian authorised tax agents or firms and the aggregate foreign interests shall not exceed 51 per cent. Architectural services (CPC 8671) (1) None (2) None (3) (a) Architectural services may be supplied only by natural persons. (b) For multi-disciplinary practices (Architecture, Engineering, or Quantity Surveying), foreign equity up to a maximum of 30 per cent for joint ventures by professionals who are registered in the country of origin. Foreign directorship is not allowed. Engineering services (CPC 8672) (1) None (2) None (3) (a) Engineering services may be supplied only by natural persons. (b) For multi-disciplinary practices (Architecture, Engineering, or Quantity Surveying), foreign equity up to a maximum of 30 per cent for joint ventures by professionals who are registered in the country of origin. Foreign directorship is not allowed. Integrated engineering services (CPC 8673) (1) None (2) None (3) Only through a representative office, regional office, or locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both for the purposes of services contracts awarded in Malaysia. The aggregate foreign shareholding in the joint venture corporation shall not exceed 30 per cent. Establishment of such joint venture corporation is only for a duration necessary to complete the services contract. Urban planning services (CPC 86741) Covering development services programmes regarding land use, site selection, control and utilisation, road systems and servicing of land with view to creating and maintaining systematic, coordinated urban planning (1) None (2) None (3) Unbound Landscaping services Covering the provision of advisory, planning and designing services for the aesthetic landscaping of golf courses and theme parks (CPC 86742**) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian registered landscape architects or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 30 per cent. Veterinary services (CPC 932) Services delivered to equine animals in equestrians or turf clubs (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate share of foreign interest shall not exceed 51 per cent. Research and development services Research and experimental development services on cultural sciences, sociology and psychology (CPC 85201) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Research and experimental development services on economics (CPC 85202) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Research and experimental development services on other social sciences and humanities (CPC 85209) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Interdisciplinary research and development services (CPC 8530**) Covering industrial activities covering all science and engineering disciplines, including biotechnology and information communication technology; and defined as any systematic or intensive study carried out in the field of science or technology with the object of using the results of the study for the production or improvement of materials, devices, products, produce or processes but does not include: (a) quality control of products or routine testing of materials, devices, products or produce; (b) research in the social sciences or humanities; (c) routine data collection; (d) efficiency surveys or management studies; and (e) market research or sales promotion. (1) None (2) None (3) Only for contract research and development company and research and development company locally incorporated as a joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign equity shall not exceed 51 per cent. Leasing or rental services without operator Leasing or rental services concerning goods transport without operator (CPC 83102) (1) None (2) None (3) Only through a representative office, regional office, or Malaysian-controlled corporation acting as an agent. Leasing or rental relating to ships, excluding cabotage and offshore trades (CPC 83103) (1) None (2) None (3) Only through a representative office, regional office, or Malaysian-controlled corporation acting as an agent. Leasing or rental services concerning aircraft without operators (CPC 83104) (1) None (2) None (3) Only through a representative office, regional office, or Malaysian-controlled corporation acting as an agent. Leasing or rental services, without operator relating to construction and mining equipment and industrial plant and equipment (CPC 83107**) (1) None (2) None (3) Only through a representative office, regional office, or Malaysian-controlled corporation acting as an agent. Leasing or rental services concerning furniture and other household appliances (CPC 83203) (1) None (2) None (3) Only through a representative office, regional office, or Malaysian-controlled corporation acting as an agent. Other business services Advertising services (a) Sale or leasing services of advertising space or time (CPC 8711) (1) Commercial presence is required. (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 49 per cent. Advertisement through electronic media An advertisement must have at least 80 per cent local content and be made in Malaysia. (b) Planning, creating, and placement services of advertising (CPC 8712) (1) Commercial presence is required. (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 49 per cent. Advertisement through electronic media An advertisement must have at least 80 per cent local content and be made in Malaysia. (c) Other advertising services (CPC 8719) (1) Commercial presence is required. (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 49 per cent. Advertisement through electronic media An advertisement must have at least 80 per cent local content and be made in Malaysia. Market research services (CPC 86401) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture is at least 51 per cent. Public opinion polling services (CPC 86402) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Management consulting services (a) Covering advisory, guidance and operational assistance services concerning management of the trans-mission of non-conventional energy (CPC 8650**) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. (b) Covering advisory, guidance and operational assistance on environmental management services including risk assessment services (CPC 8650**) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. (c) Covering advisory and guidance in the field of pharmacy as follows: (i) basic material manufacturing consultancy in the manufacture of drugs in raw material form; (ii) new systems of drug delivery; (iii) biotechnology – new techniques for influencing the process and products of living cells; (iv) new techniques in drug development and methods of producing drugs and vaccine; and (v) vaccine production. (CPC 8650**) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. (d) Covering advisory and guidance on International Value-Added Network Services, rural telecom development, and human resource development, in telecommunications (CPC 8650**) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Project management services other than for construction (CPC 86601) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Technical testing and analysis services (a) Composition and purity testing and analysis services (CPC 86761) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. (b) Testing and analysis services of physical properties (CPC 86762) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. (c) Testing and analysis services of integrated mechanical and electrical systems (CPC 86763) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. (d) Other technical testing and analysis services (CPC 86769) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Services incidental to agriculture covering only specialised consultancy, advisory and operational assistance on crop management, including value added services such as preservation techniques, etc. (CPC 881**) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 30 per cent. Services incidental to fishing covering only specialised consultancy, advisory and operational assistance on fisheries management, (1) None (2) None including value added services such as preservation techniques, etc. (CPC 882**) (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 30 per cent. Services incidental to manufacturing (CPC 884** and CPC 885** except 88442) (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Executive search services (CPC 87201) Services consisting of the search for, selection and referral of executive personnel (senior administrators and managers) for employment by others. The services may be procured by the potential employer or by the prospective employee. (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Subsurface surveying services Covering offshore 3-D seismic site surveys – 3-D seismic site surveys offshore in support of resource exploration and development (CPC 86752) (1) Unbound (2) None (3) Unbound Surface surveying services Covering building surveying services only in the provision of the survey of buildings in the investigation and assessment of the construction, condition and dilapidation of buildings, including diagnosis of building defects, costs of repair and guidance on remedial works for the commercial and industrial subsector of the property (real estate) sector (CPC 86753) (1) Unbound (2) None (3) Unbound Surface surveying services Covering quantity surveying (cost engineering) specialist services in the provision of arbitration or litigation, tax depreciation, pre and post contract audits, technical due diligence, resource analysis, and construct ability analysis (CPC 86753) (1) Unbound (2) None (3) Unbound. Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) (CPC 8866) Covering medical, precision and optical instruments, watches, and clocks (1) None (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Packaging Services (CPC 8760) Excludes services that consist solely of printing information on packaging materials (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Translation and interpretation services (CPC 87905) (1) None (2) None (3) Translation and interpretation services may be supplied only by a natural person. COMMUNICATIONS SERVICES Courier services Courier services (CPC 7512) Courier services in respect of documents and parcels, excluding letters and postcards (1) None (2) None (3) Only through joint venture with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Audiovisual services Motion picture, video tape, and audio recording distribution services (CPC 96113) (1) Commercial presence is required. (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 30 per cent. DISTRIBUTION SERVICES Wholesale and retail trade businesses Commission agents’ services (CPC 621**) Only for textiles, clothing, and footwear (1) Unbound except for commission agents that must be established and registered in Malaysia. (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation is at least 51 per cent. Sales of motor vehicles (CPC 6111) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 30 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Sales of parts and accessories of motor vehicles (CPC 6113) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 30 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Sales of motorcycles and snowmobiles and related parts and accessories (CPC 6121) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 30 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Retail sales of motor fuel (CPC 6130) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 30 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Wholesale trade services of agricultural raw materials and live animals (CPC 6221) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 51 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Wholesale trade services of household appliances, articles, and equipment (CPC 6224) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 51 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Wholesale trade services of pharmaceutical and medical goods and cosmetics (CPC 6225) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 30 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Wholesale trade services of intermediate products, other than agricultural; wholesale trade services of waste and scrap and materials for recycling (CPC 6227) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 30 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. Wholesale trade services of machinery, equipment, and supplies (CPC 6228) (1) None (2) None (3) Entry is limited to: (a) Equity Structure The aggregate foreign equity shall not exceed 51 per cent, while local shareholding in the joint venture corporation must comprise 30 per cent Bumiputera equity. (b) Minimum Capital Requirement Minimum foreign capital investment requirement in respective business type of formats are as per Guidelines. ENVIRONMENTAL SERVICES Wastewater management Covering only removal, treatment, and disposal of industrial effluents Only for services contracted by the private sector. Does not include public works functions owned and operated by federal, provincial, district, or municipalities, or contracted out by them. (CPC 9401) (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Refuse disposal services Covering private industrial waste management services covering treatment and disposal services (CPC 9402**) (1) Unbound (2) None (3) Only through approval of the National Solid Waste Management Technical Evaluation Committee and approved license from the National Solid Waste Management Department. The aggregate foreign equity shall not exceed 51 per cent. Refuse disposal services Covering solid waste disposal services, only for: (a) integrated biomass treatment facility services; and (b) the services provider must be equipped with high technology specifically built for biomass solid waste disposal services and fulfil all environmental safety requirements. The product will be used as a new material for energy purposes. (CPC 9402**) (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Protection of ambient air climate Covering only services provided at industrial premises to remove air pollutants including monitoring of mobile emissions and implementation of control systems or reduction programmes Only for services contracted by the private sector. Does not include public works functions owned and operated by federal, state, district, or municipalities, or contracted out by them. (CPC 9404 – corresponds to cleaning services of exhaust gases) (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Noise abatement services Covering only monitoring programmes, and installation of noise reduction and screen in residential, commercial, and industrial premises Only for services contracted by the private sector. Does not include public works functions owned and operated by federal, state, district, or municipalities, or contracted out by them. (CPC 9405) (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. Nature and landscape protection services covering only contaminated soil clean-up and remediation Only for services contracted by the private sector. Does not include public works functions owned and operated by federal, state, district, or municipalities, or contracted out by them. (CPC 94060**) (1) Unbound (2) None (3) Only through a locally incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. HEALTH RELATED AND SOCIAL SERVICES Ambulance services (CPC 93192**) Covering only services provided through a vehicle equipped for transporting patients to the hospital (1) Unbound (2) None (3) Unbound. TOURISM AND TRAVEL RELATED SERVICES Travel agencies and tour operators services for inbound travel only (CPC 7471) (1) None (2) None (3) Joint venture with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent. RECREATIONAL, CULTURAL, AND SPORTING SERVICES Other sports and recreational sports services (CPC 96590) Covering only internet and mobile gaming services For greater certainty, gaming services do not include gambling and betting. (1) None (2) None (3) Unbound TRANSPORT SERVICES Maritime transport services Supporting services for maritime transport Vessel salvage and refloating services except on inland waters (CPC 74540) (1) None (2) None (3) Only through a representative office, regional office, or locally-incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and Bumiputera shareholding in the joint venture corporation of at least 51 per cent. Maintenance and repair vessels (CPC 8868**) This is limited to businesses related to maintenance and repair of ocean-going vessels at anchor or alongside and maintenance and repair of local vessels. (1) Unbound (2) None (3) Only through a representative office, regional office, or locally-incorporated joint venture corporation with Malaysian individuals or Malaysian-controlled corporations or both and the aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent.
42.
Sector : Communication services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to spectrum allocations, universal service and numbering, and electronic addressing. Existing Measures : Communications and Multimedia Act 1998 [Act 588] Communications and Multimedia (Licensing) Regulations 2000 [P.U. (A) 129/2000] Communications and Multimedia (Spectrum) Regulations 2000 [P.U. (A) 128/2000] Spectrum Plan Numbering and Electronic Addressing Plan (NEAP)
43.
Sector : Financial services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to financial services that are not stipulated in the Appendix to this List (Specific Commitments for Financial Services – Malaysia). In relation to the financial services in the Appendix to this List (Specific Commitments for Financial Services – Malaysia), Malaysia reserves the right to adopt or maintain any measure subject to the terms, conditions, limitations, or qualifications specified therein. In respect of offshore banks, offshore investment banks, commercial banks, investment banks, offshore direct insurance companies, offshore reinsurance companies, offshore insurance brokers, offshore insurance underwriting managers, offshore insurance managers, direct insurance companies, reinsurance companies, and representative offices of commercial banks and investment banks, the limitations on market access and national treatment in the Financial Services Horizontal Commitments as specified in the Appendix to this List (Specific Commitments for Financial Services – Malaysia) shall apply in addition to specific limitations to the Financial Services Activities as specified in the Appendix to this List (Specific Commitments for Financial Services – Malaysia). For greater certainty, Malaysia’s commitments as specified in the Appendix to this List (Specific Commitments for Financial Services – Malaysia) cannot be interpreted as applying to the supply of Shariah-compliant financial services, unless specific entries are made in the banking, insurance, or capital markets subsectors accordingly. This approach is consistent with Malaysia’s commitments under the WTO and other existing free trade agreements. For greater certainty, Malaysia reserves the right to adopt or maintain any measure relating to financial services other than those recognised or should have been recognised by the Government of Malaysia owing to the circumstances existing at the date of ANNEX III – MALAYSIA – 89 entry into force of this Agreement for Malaysia. Malaysia also reserves the right to adopt or maintain any measure relating to the supply of financial services in any mode of supply in which those services were not technically feasible at the date of entry into force of this Agreement for Malaysia. For greater certainty, Malaysia reserves the right to impose measures relating to financial services involving Prohibition of Performance Requirements and Senior Management and Board of Directors. Existing Measures : -
44.
Sector : Financial services Subsector : - Obligations Concerned : Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure that accords rights, preferences, and differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement. Existing Measures : -
45.
Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to investments and services other than those recognised or should have been recognised by the Government of Malaysia owing to the circumstances existing at the date of entry into force of this Agreement for Malaysia. Malaysia reserves the right to adopt or maintain any measure relating to investments and services which was not technically feasible at the date of entry into force of this Agreement for Malaysia. Existing Measures : -
46.
Sector : All sectors Subsector : - Obligations Concerned : Prohibition of Performance Requirements (Article 10.6) Description : Investment Malaysia reserves the right to adopt, maintain, impose requirements, or enforce a commitment or undertaking, in connection with transfer of technology, production process, or other proprietary knowledge. Existing Measures : -
47.
Sector : Credit Reporting Services Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to credit reporting services. Existing Measures : Central Bank of Malaysia Act 2009 [Act 701] Credit Reporting Agencies Act 2010 [Act 710] Credit Reporting Agencies (Registration) Regulation 2014 [P.U. (A) 142/2014] Credit Reporting Agencies (Compounding of Offences) Regulations 2014 [P.U. (A) 275/2014] Administrative Guidelines
48.
Sector : Maritime cabotage and government cargo Subsector : - Obligations Concerned : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Investment Malaysia reserves the right to adopt or maintain any measure relating to maritime cabotage and government cargo. Existing Measures : Administrative Guidelines
49.
Sector : Advertising for liquor and alcoholic beverages, tobacco, tobacco manufactured substitutes, and cigarettes products and electrical machines and apparatus having individual functions (HS 8543) Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to advertising of liquor and alcoholic beverages, tobacco, tobacco manufactured substitutes, and cigarettes products and electrical machines and apparatus having individual functions (HS 8543). Existing Measures : - ANNEX III – MALAYSIA – 96 50. Sector : All sectors Subsector : - Obligations Concerned : National Treatment (Article 8.4 and Article 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Malaysia reserves the right to adopt or maintain any measure relating to the Shared Prosperity Vision 2030 and the New Industrial Masterplan.8 Existing Measures : Shared Prosperity Vision 2030 New Industrial Masterplan Policies and Ministerial Statements 8 Any such measure shall be implemented in a manner consistent with Malaysia’s commitments under List A of this Schedule.
Appendix. Specific Commitments for Financial Services - Malaysia
1. This Appendix shall be read together with entry 43 in List B of Malaysia’s Schedule in Annex III (Schedules of Reservations and Non-Conforming Measures for Services and Investment).
2. For the purposes of this Appendix: (a) “(1)”, “(2)”, “(3)”, and “(4)” in the “Limitations on Market Access” and “Limitations on National Treatment” columns respectively refer to the modes for the supply of a service as defined in subparagraphs (r)(i) through (iv) of Article 8.1 (Definitions); (b) “Unbound” means no market access or national treatment commitment in the specified sector, subsector, or activity for the given mode of supply; (c) “Unbound*” means Unbound due to lack of technical feasibility; and (d) “None” means no limitations on market access or national treatment in the specified sector, subsector, or activity for the given mode of supply.
3. Measures inconsistent with both Article 8.5 (Market Access) and Article 8.4 (National Treatment) or Article 10.3 (National Treatment) shall be inscribed in the “Limitations on Market Access” column in the table below. In this case, the inscription will be considered to provide a condition or qualification to Article 8.4 (National Treatment) or Article 10.3 (National Treatment).
Modes of Supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of Natural Persons
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| I. FINANCIAL SERVICES HORIZONTAL COMMITMENTS | |||
| A. Offshore banks, offshore investment banks, offshore direct insurance companies, offshore reinsurance companies, offshore insurance brokers, offshore insurance underwriting managers, and offshore insurance managers | (1) Unbound* except as otherwise specified in this Appendix. (2) Unbound* except as otherwise specified in this Appendix. (3) Entry is confined to Labuan. Entry is limited to establishment of a branch registered or a subsidiary incorporated in Malaysia. (4) Unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. | (1) Unbound* except as otherwise specified in this Appendix. (2) Unbound* except as otherwise specified in this Appendix. (3) None (4) Unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. | |
| B. Commercial banks and investment banks | (1) Unbound* except as otherwise specified in this Appendix. (2) Unbound* except as otherwise specified in this Appendix. (3) The 13 wholly foreign-owned commercial banks are permitted to remain wholly owned by their existing shareholders. (9) Unbound for new licences. Entry is limited to equity participation by foreign banks in Malaysian-owned or controlled commercial banks and investment banks and aggregate foreign shareholding in a commercial bank or an investment bank shall not exceed 30 per cent. Foreign commercial banks and investment banks are required to be locally incorporated in accordance with the Financial Services Act 2013 [Act 758]. A commercial bank is not allowed to acquire any share in another commercial bank but may acquire shares in one investment bank. An investment bank is not allowed to acquire any share in a commercial bank or another investment bank. Other persons are not permitted to acquire five per cent or more of shareholding in a commercial bank or investment bank if the person already holds five per cent or more of shareholding in another licensed financial institution. Entry is also permitted through the setting up of representative offices. Representative offices can only undertake research, exchange of information, and liaison services. (4) Unbound except the following: (a) Unless otherwise specified, presence of natural persons is offered only in respect of supply of a service through the mode of commercial presence; (b) Five senior managers and 10 specialists or experts for each commercial bank or investment bank. A senior manager is an individual possessing proprietary knowledge and authority essential to the establishment, control, and operation of the services of the financial service supplier. Specialists or experts for each commercial bank or investment bank for areas relating to: (i) trade financing; (ii) corporate finance; (iii) treasury management; (iv) information technology; (v) risk management; (vi) capital market products; (vii) derivatives instruments; (viii) credit risk management; and (ix) internal control; (c) For each representative office of a commercial bank or investment bank, two foreign nationals. Only one foreign national for the two top posts; and (d) Entry shall be limited to a maximum period of five years. | (1) Unbound* except as otherwise specified in this Appendix. (2) Unbound* except as otherwise specified in this Appendix. (3) None except as indicated in the respective activities listed below. Acquisition by a foreign bank of an aggregate of five per cent or more of shareholding in a Malaysian-owned or controlled commercial bank or investment bank must meet the following criteria: (a) The foreign bank has the ability to facilitate trade and contribute to financial and economic development of Malaysia; (b) The country of the foreign bank has significant trade and investment interests in Malaysia; and (c) The country of the foreign bank does not have significant representation in the Malaysian banking industry. (4) Unbound except for the categories of natural persons referred to under market access. |
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| C. Direct insurance and reinsurance companies | (1) Unbound* except as otherwise specified in this Appendix. (2) Unbound* except as otherwise specified in this Appendix.(3) Foreign insurance companies are required to be locally incorporated in accordance with the Financial Services Act 2013 [Act 758]. Branches of foreign insurance companies that were required to be locally incorporated in accordance with the Insurance Act 1996 (Repealed by the Financial Services Act 2013 [Act 758]) are permitted to hold foreign shareholding not exceeding 51 percent. (10) Foreign shareholding not exceeding 51 per cent is also permitted for the existing foreign shareholders (11) of locally incorporated insurance companies which were the original owners of these companies. Provided aggregate foreign shareholding in such companies does not exceed 51 per cent. New entry by foreign insurance companies is limited to equity participation in locally incorporated insurance companies and aggregate foreign shareholding in such company shall not exceed 30 per cent. Unbound for new licenses. An insurance company is not allowed to acquire more than five per cent share: (a) in another insurance company in Malaysia that carries on the same class of insurance business as that carried on by it; or (b) in an insurance broking company. Other persons holding more than five per cent shareholding in an insurance company are not permitted to acquire more than five per cent shareholding in: (a) another insurance company carrying on the same class of insurance business as that carried on by the insurance company in which the persons a shareholder; or (b) an insurance broking company. Unbound for reinsurance companies. (4) Unbound except the following: (a) Unless otherwise specified, presence of natural persons is offered only in respect of supply of a service through the mode of commercial presence; (b) Five senior managers and 10 specialists or experts for each locally incorporated insurance company. A senior manager is an individual possessing proprietary knowledge and authority essential to the establishment, control, and operation of the services of the financial service supplier. Specialists or experts for each insurance institution for areas relating to: (i) underwriting of specialised classes of general business; (ii) information technology; (iii) actuarial functions; (iv) risk management; (v) investment management; (vi) product development; (vii) customer service; and (viii) servicing of foreign and regional business; and (c) Entry shall be limited to a maximum period of five years. | (1) Unbound* except as otherwise specified in this Appendix. (2) Unbound* except as otherwise specified in this Appendix.(3) None except as indicated in the respective activities listed below. Acquisition by a foreign insurance company of an aggregate of more than five per cent shareholding in a locally incorporated insurance company must meet at least one of the following criteria: (a) The foreign insurance company has the ability to facilitate trade and contribute to the financial and economic development of Malaysia; (b) The country of the foreign insurance company has significant trade and investment interests in Malaysia; (c) The country of the foreign insurance company does not have a significant representation in the Malaysian insurance industry; or (d) The foreign insurance company has the ability to provide technical expertise and know-how to contribute to the financial and economic development of Malaysia. Unbound for reinsurance companies. (4) Unbound except for the categories of natural persons referred to under market access. |
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| II. FINANCIAL SERVICES ACTIVITIES | |||
| A. BANKING AND OTHER FINANCIAL SERVICES, EXCLUDING INSURANCE | |||
| Acceptance of deposits, and other repayable funds from the public, wholesale and retail | (1) Soliciting, advertising, and acceptance of deposits in Malaysia are not allowed. (2) None (3) Only permitted through a commercial bank, an investment bank, or an offshore bank. Offshore banks in Labuan are permitted to accept foreign currency deposits only. Offshore investment banks in Labuan are not permitted to accept deposits. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) None (2) None (3) For commercial banks, unbound for branching (including off-premises Automated Teller Machines) and networking with Automated Teller Machines in Malaysia. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | |
| Lending of all types, including consumer credit, mortgage credit, factoring, and financing of commercial transactions | (1) Financial services associated with lending to residents in any currency in excess of an equivalent of RM25 million must be undertaken jointly with commercial banks or investment banks in Malaysia. (2) Financial services associated with lending to residents in any currency in excess of an equivalent of RM25 million must be undertaken jointly with commercial banks or investment banks in Malaysia. (3) Entry as a non-bank (12) is limited to: (a) foreign financial institutions through the establishment of a locally incorporated joint venture company and aggregate foreign shareholding in such company shall not exceed 30 per cent; or (b) a representative office. Representative offices can only undertake research and liaison services. Provision of factoring services by a commercial bank requires the setting up of a separate entity and shareholding by a foreign-controlled commercial bank shall not exceed 30 per cent. Investment banks are not permitted to provide consumer credit and home mortgages. Only commercial banks are permitted to provide overdraft facilities. Offshore banks and offshore investment banks are permitted to lend in foreign currencies only. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except one foreign national for a management post which is not the Chief Executive Officer post, for each establishment. For each representative office of a non-bank, two foreign nationals subject to only one foreign national for the two top posts. Entry shall be limited to a maximum period of five years. | (1) None (2) None (3) Foreign-controlled banking institutions in Malaysia are allowed to extend credit facilities (including factoring and leasing) up to a maximum of 50 per cent of the total credit facilities obtained by non-resident controlled companies from banking institutions. For commercial banks, unbound for branching (including off-premises Automated Teller Machines) and networking with Automated Teller Machines in Malaysia. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except for the categories of natural persons referred to under market access. |
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| Financial leasing | (1) Leasing services to residents in any currency must be undertaken jointly with leasing companies or investment banks in Malaysia. (2) Leasing services to residents in any currency must be undertaken jointly with leasing companies or investment banks in Malaysia. (3) Provision of leasing services by a commercial bank requires the setting up of a separate entity and shareholding by a foreign-controlled commercial bank shall not exceed 49 per cent. Entry as a non-bank is limited to: (a) foreign financial institutions through the establishment of a locally incorporated joint venture company and aggregate foreign shareholding in such company shall not exceed 49 per cent; or (b) a representative office. Representative offices can only undertake research and liaison services. Entry is permitted through the establishment of a branch or subsidiary in Labuan by reputable foreign leasing companies. Such offshore entity can only transact in foreign currencies. Offshore banks and offshore investment banks are permitted to carry on financial leasing business in foreign currencies only. (4) Unbound except two foreign nationals, one for a management post which is not the Chief Executive Officer post and one technical post, for each establishment. For each representative office, two foreign nationals subject to one foreign national for the two top posts. Entry shall be limited to a maximum period of five years. For offshore leasing companies, unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. | (1) None (2) None (3) None (4) Unbound except for the categories of natural persons referred to under market access. For offshore leasing companies, unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. | |
| All payment and money transmission services, namely credit and debit cards, travellers cheques, and bankers drafts | (1) Electronic fund transfer system requires approval. (2) None (3) Offshore banks are permitted to extend payment and money transmission services to non-residents only. Only commercial banks are permitted to issue credit cards or debit cards, or to provide checking account services. Sale or purchase of foreign currency and purchase of travellers cheques other than by commercial banks require money changer's licence. Entry is limited to establishment of a locally incorporated joint venture company and aggregate foreign shareholding in such company shall not exceed 30 per cent. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except one foreign national for a management post which is not the Chief Executive Officer post for each establishment. Entry shall be limited to a maximum period of five years. | (1) None (2) None (3) For commercial banks, unbound for branching (including off-premises Automated Teller Machines) and networking with Automated Teller Machines in Malaysia. Branching (including dispensers) is permitted for travellers cheques companies with foreign shareholding not exceeding 30 per cent. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except for the category of natural persons referred to under market access. | |
| Charge cards | (1) None (2) None (3) Entry is limited to establishment of a company incorporated in Malaysia. Approval of the Central Bank is required. (4) Unbound except two senior managers for each establishment. Entry shall be limited to a maximum period of five years. | (1) None (2) None (3) None (4) Unbound except for the category of natural persons referred to under market access. | |
| Guarantees and commitments | (1) None except banks established in Malaysia may be given the right of first refusal. (2) None except banks established in Malaysia may be given the right of first refusal. (3) None (4) Unbound except as indicated in the Financial Services Horizontal Commitments herein, and in the Horizontal Commitments in the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on Temporary Movement of Natural Persons). | (1) None (2) None (3) None (4) Unbound except as indicated in the Financial Services Horizontal Commitments herein, and in the Horizontal Commitments in the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on Temporary Movement of Natural Persons). | |
| Money and foreign exchange broking services | (1) Broking services, involving the Ringgit and financial instruments issued in Malaysia must be effected through authorised dealers and money and foreign exchange brokers incorporated in Malaysia. (2) Broking services, involving the Ringgit and financial instruments issued in Malaysia (3) Entry is limited to: (a) equity participation in existing institutions (13) and aggregate foreign shareholding in such institutions shall not exceed 30 per cent; or (b) the establishment of a branch or subsidiary, by a money and foreign exchange broker, registered or incorporated in Labuan. Money and foreign exchange broking services by offshore entities are confined to foreign currencies only. (4) Unbound except for offshore money and foreign exchange brokers. For offshore money and foreign exchange brokers, unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. | (1) None (2) None (3) None (4) Unbound except for offshore money and foreign exchange brokers. For offshore money and foreign exchange brokers, unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. |
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| Trading for own account or account of customers in the following: (a) money market instruments; (b) foreign exchange; (c) transferable securities; (d) exchange rate and interest rate instruments; (e) derivative products, including futures and options; and (f) other negotiable instruments, including bullion. | (1) Dealing in securities for account of customers is limited to securities traded on recognised stock exchanges. Dealing in derivatives for account of customers is limited to derivatives contracts traded on the derivatives market of a Specified Exchange and are not contracts prohibited by the Malaysian regulatory authorities. (2) None (3) Transactions by offshore banks and offshore investment banks in Labuan must be conducted in foreign currencies, except for the sale or purchase of currencies with authorised banks in Malaysia. Transactions by offshore banks and offshore investment banks in Labuan for own account are limited to instruments created and issued by offshore companies in Labuan and foreign companies abroad. Trading for accounts of customers by offshore banks, offshore investment banks, and offshore companies in Labuan is confined to non-resident customers and in instruments created and issued by offshore companies in Labuan and foreign companies abroad. Trading in shares of Malaysian companies by offshore banks, offshore investment banks, and offshore companies in Labuan is confined to non-resident customers who are not offshore companies registered or incorporated in Labuan. Only commercial banks, offshore banks, and offshore investment banks are permitted to trade in foreign currency. None for trading for own account in: (a) securities that are listed on the Malaysian stock exchange; and (b) standardised derivatives listed on the Malaysian derivatives exchange. Trading for accounts of customers by a non-bank in securities that are listed on the Malaysian stock exchange is only permitted through equity participation in an existing locally incorporated company licensed by the Securities Commission Malaysia to deal in securities. Aggregate foreign shareholding in such a company is limited to 49 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of license, registration, or approval, as the case may be. Trading for accounts of customers by a non-bank in standardised derivatives that are listed on the Malaysian derivatives exchange is only permitted through equity participation in an existing locally incorporated company or establishment of a locally incorporated company licensed by the Securities Commission Malaysia to deal in derivatives. Aggregate foreign shareholding in such a company is limited to 30 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of license, registration, or approval, as the case may be. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | (1) None (2) None (3) None (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | |
| Services related to the issues of all kinds of securities and placement as agents (whether publicly or privately) (excluding issuing and rating houses) | (1) Participation in issues and services related to such issues requires authorisation. (2) Participation in issues and services related to such issues requires authorisation. (3) Participation by offshore banks and offshore investment banks in Labuan is limited to non-resident customers and for issues of securities outside Malaysia. Only persons who are authorised by the Securities Commission Malaysia and/or the Malaysian stock exchange are permitted to make submissions related to the issues of securities and offer services related to the issues of securities and placement as agents. Participation by a non-bank is permitted only through equity participation in an existing locally incorporated company licensed by the Securities Commission Malaysia to deal in securities. Aggregate foreign shareholding in such a company is limited to 49 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of licence, registration, or approval, as the case may be. Unbound for appointment as principal dealers. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | (1) None (2) None (3) None (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | |
| Underwriting | (1) Commercial presence is required. (2) Authorisation is required. (3) Participation as a non-bank is only permitted through equity participation in an existing locally incorporated company licensed by the Securities Commission Malaysia to deal in securities. Aggregate foreign shareholding in such a company is limited to 49 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of licence, registration, or approval, as the case may be. Commercial banks are permitted to underwrite corporate bonds only. Offshore banks and offshore investment banks are permitted to underwrite foreign currency denominated securities created and issued by offshore companies in Labuan and foreign companies abroad. (4) For commercial banks, investment banks, offshore banks, and offshore investment banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | (1) Unbound (2) None (3) None (4) For commercial banks, investment banks, offshore banks, and offshore investment banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | |
| Asset management as follows: (a) cash or portfolio management; (b) all forms of collective investment management; and (c) custodial and depository services. | (1) Commercial presence is required. (2) None (3) Asset management by offshore banks, offshore investment banks, and offshore companies is confined to non-resident customers and foreign currency assets. Asset management by offshore banks, offshore investment banks, and offshore companies in Malaysian equities or equity linked investments is confined to non-residents which are not offshore companies registered in Labuan. Asset management by a commercial bank requires establishment as a separate entity. Shareholding by a foreign-controlled commercial bank shall not exceed 30 per cent. Entry as a non-bank to undertake fund management activities is only permitted through equity participation in an existing locally incorporated company or establishment of a locally incorporated company licensed by the Securities Commission Malaysia to carry on fund management activities. Aggregate foreign shareholding in such a company is limited to 30 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of licence, registration or approval, as the case may be. (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | (1) None (2) None (3) None (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | |
| Advisory, intermediation, and other auxiliary financial services, including credit reference and analysis, investment advice on acquisitions, and corporate restructuring and strategy | (1) Commercial presence is required. (2) Services other than investment and portfolio advice to residents must be undertaken jointly with commercial banks in Malaysia. (3) Entry as a non-bank is only permitted through: (a) equity participation in an existing locally incorporated company or establishment of a locally incorporated company licensed by the Securities Commission Malaysia to carry on corporate finance advisory activities. Aggregate foreign shareholding in such a company is limited to 30 per cent; (b) equity participation in an existing locally incorporated company or establishment of a locally incorporated company licensed by the Securities Commission Malaysia to carry on financial planning activities. Aggregate foreign shareholding in such a company is limited to 49 per cent; (c) equity participation in an existing locally incorporated company or establishment of a locally incorporated company licensed by the Securities Commission Malaysia to carry on investment advisory activities. Aggregate foreign shareholding in such a company is limited to 30 per cent; or (d) a representative office. Representative offices (including those of commercial banks, investment banks, and securities companies) are permitted to undertake information research and liaison services only. Representative offices are not permitted to publish and circulate research work in Malaysia. Authorisation to carry on the activities as mentioned in (a), (b), and (c) above will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of licence, registration, or approval, as the case may be. Offshore banks, offshore investment banks, and offshore companies in Labuan can only provide services to non-resident customers. (4) For banks, one specialist or expert per organisation. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). For each representative office, three foreign nationals subject to only one foreign national for the two top posts and the other two for managerial level posts. Entry shall be limited to a maximum period of five years. | (1) None (2) None (3) None (4) For banks, unbound except as indicated in the Financial Services Horizontal Commitments. For non-banks, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). | |
| Operational headquarters (OHQ) for financial sector (provides services to commercial and investment banking institutions in activities relating to work carried out in Malaysia for its offices and related companies outside Malaysia, pertaining to general management and administration, business planning, technical support, marketing control and sales promotion planning, training and personnel management, provision of treasury and fund management services, and research and development) | (1) Unbound* (2) Unbound* (3) Only through a locally incorporated wholly foreign-owned company. A foreign-owned company, a regional office of a foreign-owned company which transfers its OHQ services to Malaysia, a regional office of a foreign-owned company established in Malaysia, and a foreign-owned company which is already incorporated in Malaysia, may seek to qualify as an OHQ. An OHQ must operate in Malaysia and fulfil the following criteria: (a) carry out at least three of the OHQ service activities; (b) have a sizable network of companies outside Malaysia which includes the parent company or its head office and related companies; (c) have a well-established foreign-owned company which is sizeable in terms of assets and employees; (d) have a network of companies with a substantial number of qualified executives, professionals, technical, and other supporting personnel; (e) be able to make decisions independently without consultation with its head office or parent company located outside Malaysia; and (f) be able to contribute to the Malaysian economy by: (i) using services such as legal, accounting etc. provided by Malaysians; (ii) creating job opportunities for Malaysians; and (iii) enabling greater inflow of foreign funds. (4) Unbound except one specialist or expert per organisation subject to the following conditions: (a) such persons must possess knowledge at an advanced level of continued expertise and must possess proprietary knowledge of the establishment’s new service products and technology, research equipment and techniques, or management; and (b) entry shall be limited to a period of five years which may be renewed. | (1) Unbound* (2) None (3) None (4) None | |
| Securities broking services | (1) Trades on Malaysian stock exchanges must be transacted through locally incorporated companies in Malaysia which are participating organisations of the stock exchange. (2) Trades on Malaysian stock exchanges must be transacted through locally incorporated companies in Malaysia which are participating organisations of the stock exchange. (3) Entry as a non-bank is only permitted through equity participation in an existing locally incorporated company licensed by the Securities Commission Malaysia to deal in securities. Aggregate foreign shareholding in such a company is limited to 49 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of license, registration, or approval, as the case may be. Representative offices (including those of commercial banks, investment banks, and securities companies) are permitted to undertake information research and liaison services only. Representative offices are not permitted to publish and circulate research work in Malaysia. (4) For stockbroking companies, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex IV (Schedules of Specific Commitments on the Temporary Movement of Natural Persons). For each representative office, two foreign nationals subject to only one foreign national for the two top posts. Entry shall be limited to a maximum period of five years. | (1) None (2) None (3) None (4) Unbound except for the categories of natural persons referred to under market access. | |
| Commodity futures broking services | (1) Trades on any Malaysian derivatives exchange must be conducted through locally incorporated companies which are trading participants of the derivatives exchange. (2) Trades on any Malaysian derivatives exchange must be conducted through locally incorporated companies which are trading participants of the derivatives exchange. (3) Entry as a non-bank is only permitted through: (a) equity participation in an existing locally incorporated company or establishment of a locally incorporated company licensed by the Securities Commission Malaysia to deal in derivatives. Aggregate foreign shareholding in such a company is limited to 30 per cent. Authorisation will not be granted unless the application is determined, by the Securities Commission Malaysia, to be in the best interest of Malaysia. Authorisation includes grant of licence, registration, or approval, as the case may be; or (b) a representative office. Representative offices (including those of commercial banks, investment banks, and securities companies) are permitted to undertake information research and liaison services only. Representative offices are not permitted to publish and circulate research work in Malaysia. (4) Unbound except one foreign national for a management post per establishment, subject to market test. | (1) None (2) None (3) None (4) Unbound except for the category of natural persons referred to under market access. | |
| B. INSURANCE SERVICES | |||
| Direct insurance (non-life) | (1) Soliciting and advertising in Malaysia are not allowed. Approval of the Central Bank is required for direct placement abroad of insurance of: (a) movable or immovable property located in Malaysia, including any ship or aircraft registered in Malaysia; and (b) liability of residents to third party. Approval will be granted if such insurance is not available from direct insurance companies in Malaysia. (2) Approval of the Central Bank is required for direct placement abroad of insurance of: (a) movable or immovable property located in Malaysia, including any ship or aircraft registered in Malaysia; and (b) liability of residents to third party. Approval will be granted if such insurance is not available from direct insurance companies in Malaysia. (3) Only permitted through direct insurance companies. Offshore direct insurance companies in Labuan are not permitted to accept direct insurance of Malaysian risks. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) None (2) None (3) Branching is permitted for direct insurance companies with aggregate foreign shareholding of less than 50 per cent. Direct insurance companies are permitted to maintain their existing network of branches (14). Unbound for special assistance to Malaysian-owned direct insurance companies to promote their development. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. |
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| Direct insurance (life) | (1) Unbound (2) Unbound (3) Only permitted through direct insurance companies. Investment-linked insurance business and new life insurance products provided by direct insurance companies require approval. Offshore direct insurance companies in Labuan are not permitted to underwrite life insurance of residents. This limitation does not apply to ordinary life insurance of high net worth residents by offshore direct insurance companies in Labuan. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) Unbound (2) Unbound (3) Branching is only permitted for direct insurance companies with aggregate foreign shareholding of less than 50 per cent. Direct insurance companies are permitted to maintain their existing network of branches (15). Unbound for special assistance to Malaysian-owned direct insurance companies to promote their development. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. |
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| Reinsurance and retrocession (non-life) | (1) Outward reinsurance is permitted only if local capacity is not available. (2) Outward reinsurance is permitted only if local capacity is not available. (3) Obligation on all insurers other than offshore direct insurance and offshore reinsurance companies to optimise national retention capacity before any outward reinsurance. Unbound for new licences. Aggregate foreign shareholding in the Malaysian Reinsurance Berhad shall not exceed 30 per cent. Entry as an offshore reinsurance company is confined to Labuan. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) Voluntary cession up to 30 per cent of each class of non-life reinsurance business to the Malaysian Reinsurance Berhad. Unbound for fiscal incentives to promote reinsurance in Malaysia. (2) Voluntary cession up to 30 per cent of each class of non-life reinsurance business to the Malaysian Reinsurance Berhad. Unbound for fiscal incentives to promote reinsurance in Malaysia. (3) Unbound for measures granting special position to the Malaysian Reinsurance Berhad. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. For offshore reinsurance companies, unbound except as indicated in the Financial Services Horizontal Commitments. | |
| Reinsurance and retrocession (life) | (1) Outward reinsurance is permitted only if local capacity is not available. (2) Outward reinsurance is permitted only if local capacity is not available. (3) National retention capacity is required to be optimised before any outward reinsurance by: (a) direct life insurance and life reinsurance companies in Malaysia; and (b) offshore direct life insurance and offshore life reinsurance companies which are permitted to insure or reinsure life insurance of high net worth residents. Unbound for new licences. Aggregate foreign shareholding in the Malaysian Life Reinsurance Group Berhad shall not exceed 30 per cent. Entry as an offshore reinsurance company is confined to Labuan. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) Unbound for fiscal incentives to promote reinsurance in Malaysia. (2) Unbound for fiscal incentives to promote reinsurance in Malaysia. (3) None (4) Unbound except as indicated in the Financial Services Horizontal Commitments. For offshore reinsurance companies, unbound except as indicated in the Financial Services Horizontal Commitments. | |
| Insurance intermediation – insurance broking (excluding agency) | (1) Direct insurance broking services can only be provided to offshore companies in Labuan. Reinsurance broking is permitted. (3) Unbound for onshore insurance broking. Broking of direct insurance of Malaysian risks by offshore insurance brokers is not permitted. This limitation does not apply to broking of reinsurance of Malaysian risks. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) None (2) None (3) None (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | |
| Insurance intermediation – insurance underwriting and insurance management | (1) Insurance underwriting and insurance management are not permitted. (2) Insurance underwriting and insurance management are not permitted. (3) Unbound for onshore insurance underwriting and insurance management. An offshore insurance underwriting manager is not permitted to provide services to any person other than offshore insurance companies in Labuan. An offshore insurance manager is permitted to provide insurance management services to persons other than residents. (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | (1) None (2) None (3) None (4) Unbound except as indicated in the Financial Services Horizontal Commitments. | |
| Services auxiliary to insurance as follows: (a) consultancy (excludes insurance agency services to insurance industry); (b) actuarial risk assessment; (c) risk management; and (d) maritime loss adjusting. | (1) Actuarial services can only be provided to offshore insurance companies and offshore reinsurance companies in Labuan. (2) None (3) Limited to the establishment of: (a) locally incorporated companies; (b) branches; or (c) partnerships. Offshore companies are not permitted to provide services to Malaysian residents. (4) Unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. | (1) None (2) None (3) None (4) Unbound except for presence of natural persons in respect of supply of a service through the mode of commercial presence. |
Myanmar
List A. Explanatory Notes
1. This List sets out pursuant to Article 10.8 (Reservations and Non-Conforming Measures), Myanmar’s existing measures that do not conform to the obligation under:
(a) Article 10.3 (National Treatment);
(b) Article 10.4 (Most-Favoured-Nation Treatment);
(c) Article 10.6 (Prohibition of Performance Requirements); and
(d) Article 10.7 (Senior Management and Board of Directors).
2. This List sets out the following elements:
(a) Sector refers to the sectors for which the non-conforming measure is taken;
(b) Subsector refers to specific sectors for which the entry is made;
(c) Industry Classification refers to the activities covered by the entry according to:
(i) the Central Product Classification (CPC) of the United Nations Statistics Division Version 2.1; or
(ii) International Standard Industrial Classification (ISIC) Revision 3 for manufacturing, agriculture, fishery, forestry, mining and quarrying;