Measures: Foreign Exchange and Foreign Trade Law(Law No. 228 of 1949), Article 27 (21)
Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
Description: Investment
1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in water supply and waterworks industry in Japan.
2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.
3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.
Sector: Wholesale and Retail Trade
Sub-Sector: Livestock
Industry Classification:
Obligations Concerned: Local Presence (Article 10.6)
Level of Government: Central
Measures: Livestock Dealer Law (Law No. 208 of 1949), Article 3
Description: Cross-Border Trade in Services
A person who intends to conduct livestock trading business is required to be resident in Japan, and to obtain a licence from the prefectural governor having jurisdiction over the place of residence. For greater certainty, “livestock trading” means the trading or exchange of livestock, or the good offices for such trading or exchange.
Sector: Aerospace Industry
Sub-Sector: Aircraft manufacturing and repairing industry
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Market Access (Article 10.5) Local Presence (Article 10.6)
Level of Government: Central
Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30 (22)
Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5
Aircraft Manufacturing Industry Law (Law No.237 of 1952), Article 2, Article 3, Article 4 and Article 5
Description: Investment and Cross-Border Trade in Services
1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intended to make investments in the aircraft industry in Japan.
2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.
3. The investors may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.
4. A technology introduction contract between a resident and a non-resident related to the aircraft industry is subject to the prior notification requirement and screening procedure under the Foreign Exchange and Foreign Trade Law.
5. The screening is conducted from the viewpoint of whether the conclusion of the technology introduction contract is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.
6. The resident may be required to alter the provisions of the technology introduction contract or discontinue the conclusion of that contract, depending on the screening result.
7. The number of licences conferred to manufactures and service suppliers in those sectors may be limited.
8. An enterprise which intends to produce aircraft and supply repair services is required to establish a factory related to manufacture or repair aircraft under the laws and regulations of Japan.
SCHEDULE OF MALAYSIA
INTRODUCTORY NOTES
1. Description sets out the non-conforming measures for which the entry is made.
2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming measures identified in the Description element of that entry.
Sector: All
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Registration of Business Act 1956 [Act 197]
Limited Liability Partnership Act 2012 [Act 743]
Co-operative Societies Act 1993 [Act 502]
Description: Investment
Only Malaysian nationals or permanent residents can register a sole proprietorship or partnership in Malaysia. Foreigners can register a Limited Liability Partnership (LLP) in Malaysia, but the compliance officer shall be a citizen or permanent resident of Malaysia that resides in Malaysia.
Foreigners are not allowed to establish or join cooperative societies in Malaysia.
Sector: Manufacturing
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Industrial Co-ordination Act 1975 [Act 156]
Administrative Guidelines
Description: Investment
1. Foreign equity is limited up to 49 per cent for investment in the manufacture or assembly of motor vehicles. However, no foreign equity restrictions are imposed on the following categories:
(a) luxury passenger vehicles with engine capacity of 1,800 c.c. and above and on the road price not less than RM150,000;
(b) pick-up trucks and commercial vehicles;
(c) hybrid and electric vehicles; and
(d) motorcycles with engine capacity of 200 c.c. and above.
2. Foreign equity is limited up to 30 per cent for the manufacture of batik fabric and apparel of batik.
Sector: Manufacturing
Obligations Concerned: Performance Requirements (Article 9.10)
Level of Government: Central and Regional
Measures: Industrial Co-ordination Act 1975 [Act 156]
Customs Act 1967 [Act 235]
Free Zone Act 1990 [Act 438]
Petroleum Development Act 1974 [Act 144]
Pineapple Industry (Cannery Control) Regulations 1959
Pineapple Industrial Act 1957 (Revised 1990) [Act 427]
Administrative Guidelines
Description: Investment
1. Companies located within the Licensed Manufacturing Warehouse (LMW) and Free Industrial Zone (FIZ) are subject to export conditions.
2. Companies engaging in petroleum refining activity are required to export 100 per cent of their products.
3. Expansion of existing projects in the manufacture of optical disc is subject to export conditions of 100 per cent export.
4. Expansion projects will be considered only for existing independent palm oil refineries which source 100 per cent from their own plantation. For Sabah and Sarawak, a manufacturing licence will only be considered for new integrated projects which source 50 per cent of crude palm oil from their own plantations. Integrated projects refer to projects with own plantation.
5. For pineapple canning, approval will only be granted for projects which source 100 per cent supply from their own plantation.
Sector: Marine Capture Fisheries
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Local Presence (Article 10.6)
Level of Government: Central and Regional
Measures: Fisheries Act 1985 [Act 317]
Description: Investment and Cross-Border Trade in Services
No foreign fishing vessel shall load or unload any fish, fuel or supplies or tranship any fish, or fish or attempt to fish, or conduct any techno-economic research or waters survey of any fishery, in Malaysian fisheries waters unless authorised to do so.
An application for a licence or a permit to be issued in respect of a foreign fishing vessel to fish in Malaysian fisheries waters shall be made through a Malaysian agent who shall undertake legal and financial responsibility for the activities to be carried out by such vessel.
Fishing vessel means any boat, craft, ship or other vessel which is used for, equipped to be used for, or of a type used for:
(a) fishing; or
(b) aiding or assisting another boat, craft, ship or other vessel in the performance of any activity related to fishing, including any of the activities of preparation, processing, refrigeration, storage, supply or transportation of fish.
Sector: Patent Agent Services
Trademark Agent Services
Obligations Concerned: Local Presence (Article 10.6)
Level of Government: Central
Measures: Patent Act 1983 [Act 291]
Description: Cross-Border Trade in Services
Only natural persons registered with the Intellectual Property Corporation of Malaysia (MyIPO) and residing in Malaysia are allowed to carry out a business, practice or act as a patent and trademark agent in Malaysia.
Sector: Professional Services
Sub-Sector: Engineering services
Quantity surveying services
Land surveying services
Architectural services
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Local Presence (Article 10.6)
Level of Government: Central and Regional
Measures: Registration of Engineers Act 1967 (amended 2007) [Act 138]
Registration of Engineers Regulations 1990 (amended 2003)
Architect Act 1967 [Act 117]
Architect Rules 1996 (Amendment 2011)
Quantity Surveyors Act 1967 [Act 487]
Quantity Surveyors (Amendment) Rules 2004
Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 [Act 520]
Administrative Guidelines
Description: Investment and Cross-Border Trade in Services
Any qualified natural persons, who are resident in Malaysia and registered with the relevant professional boards are allowed to supply engineering, quantity surveying, land surveying and architectural services.
Foreigners will be subject to temporary registration.
Engineering services and architectural services must be authenticated by a registered professional in Malaysia.
The shareholding of an engineering, architectural and quantity surveying services establishment shall be no less than 70 per cent held by any one of the registered professionals. For each of these establishments, the majority of directors shall be registered professionals. This shall also apply to multi-disciplinary practices (MDP) comprising of professional architects, professional engineers with a practicing certificate, and registered land or quantity surveyors with a practicing certificate.
Sector: Legal Services (other than arbitration)
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Market Access (Article 10.5)
Local Presence (Article 10.6)
Level of Government: Central and Regional
Measures: Legal Profession Act 1976 [Act 166]
Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules 2014
Offshore Companies Act 1990 [Act 441]
Labuan Trust Companies Act 1990 [Act 442] Advocates Ordinance of Sabah 1953 [Sabah Cap. 2]
Advocates Ordinance of Sarawak 1953 [Sarawak Cap. 110]
Description: Investment and Cross-Border Trade in Services
Peninsular Malaysia and the Federal Territory of Labuan
Foreign law firms and foreign lawyers are not permitted to practice Malaysian law save as provided for under section 40(O) of the Legal Profession Act 1976 [Act 166] and the Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules 2014.
Foreign law firms from recognised jurisdictions must apply to a Selection Committee to be established as a Qualified Foreign Law Firm (QFLF) or an International Partnership (IP) with a Malaysian law firm. A maximum of five QFLF licences may be issued in the initial period and only to foreign law firms with proven expertise in International Islamic Finance.
Only foreign lawyers from recognised jurisdictions can apply to work in a QFLF, an IP or a Malaysian law firm. Such a foreign lawyer must be resident in Malaysia for not less than 182 days in any calendar year.
A QFLF and an IP, and a registered foreign lawyer working in a Malaysian law firm are subject to the provisions of the Legal Profession Act 1976 [Act 166].
Foreign lawyers providing legal services in Malaysia on a “fly-in and fly-out” basis shall be subject to the provisions under section 37(2B)(b) of the Legal Profession Act 1976 [Act 166].
Sabah and Sarawak
Foreign law firms and foreign lawyers are not permitted to practice in Sabah or Sarawak.
Sector: Real Estate Services on a fee or contract basis
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Level of Government: Central and Regional
Measures: Section 18 of Valuers, Appraisers & Estate Agents Act 1981 [Act 242]
Valuers, Appraisers & Estate Agents Rules 1986
Description: Investment and Cross-Border Trade in Services
A natural person who is not a citizen or permanent resident of Malaysia shall not qualify for registration as a valuer.
Sector: Communications Services
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Local Presence (Article 10.6)
Level of Government: Central
Measures: Communications and Multimedia Act of 1998 [Act 588]
Communications and Multimedia (Licensing) Regulations 2000
Description: Investment and Cross-Border Trade in Services
Licences for the supply of telecommunications services in Malaysia are divided into individual licences and class licences, depending on the character of the service.
The following persons or classes of persons shall be ineligible to apply for an individual licence:
(a) a foreign company defined under the Companies Act 1965 [Act 125];
(b) an individual or a sole proprietorship; and