Only entities that are registered and established in Malaysia are allowed to provide freight road transportation services in Malaysia.
Foreigners are not allowed to own more than 49 per cent of equity shareholding in any entity providing and supplying freight transportation services covering transportation of containerised freight based on a fee or contractual basis.
Measures:
Land Public Transport Act 2010 [Act 715]
Land Public Transport Agency (APAD) Licensing Policy Guidelines
14. Sector: Legal services (other than arbitration)
Subsector:-
Level of Government: Central and Regional
Obligations Concerned: National Treatment (Article 4) Market Access (Article 5) Most-Favoured-Nation Treatment (Article 9) Local Presence (Article 10)
Description: Trade in Services
Peninsular Malaysia and the Federal Territory of Labuan
Foreign law firms and foreign lawyers are not permitted to practice save as provided under 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 [P.U. (A) 148/2014].
Foreign law firms from recognised jurisdictions must apply to the 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 initially 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 foreign lawyers 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.
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 [P.U. (A) 148/2014]
Labuan Companies Act 1990 [Act 441]
Labuan Financial Services and Securities Act 2010 [Act 704]
Advocates Ordinance of Sabah 1953 [Sabah Ordinance Cap. 2]
Advocates Ordinance of Sarawak 1953 [Sarawak Ordinance Cap. 110]
15. Sector: Wholesale and retail trade services
Subsector: -
Level of Government: Central and Regional
Obligations Concerned: National Treatment (Article 4) Market Access (Article 5) Most-Favoured-Nation Treatment (Article 9) Local Presence (Article 10)
Description: Trade in Services
Foreigners are not allowed to operate supermarkets, mini markets, provision shop or general vendor, permanent wet markets, permanent pavement markets, fuel stations with or without kiosks, news agents, medical halls, Malaysian cuisine restaurants, bistros and textile stores.
Measures:
Guidelines on Foreign Participation in the Distribution Trade Services in Malaysia 2020
Franchise Act 1998 [Act 590] Companies Act 2016 [Act 777]
16. Sector: Veterinary services covering only equine animals in equestrians or turf clubs
Subsector:-
Level of Government: Central and Regional
Obligations Concerned: National Treatment (Article 4) Market Access (Article 5) Local Presence (Article 10)
Description: Trade in Services
Veterinary services related to equine animals in equestrians or turf clubs shall be registered and established subject to authorisation by the Malaysian Veterinary Council.
Measures: Veterinary Surgeons Act 1974 [Act 147] Administrative Guidelines
LIST B . EXPLANATORY NOTES
1. This List B sets out, pursuant to Article 12 (Schedules of Non-Conforming Measures) of Chapter 8 (Trade in Services), the specific sectors, subsectors or activities, for which Malaysia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 4 (National Treatment) of Chapter 8 (Trade in Services); (b) Article 5 (Market Access) of Chapter 8 (Trade in Services);
(c) Article 9 (Most-Favoured-Nation Treatment) of Chapter 8 (Trade in Services); or
(d) Article 10 (Local Presence) of Chapter 8 (Trade in Services).
2. Each eniry 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 Concemed specifies the obligations referred to in paragraph 1 that, pursuant to Article 12 (Schedules of Non-Conforming Measures) of Chapter 8 (Trade in Services), 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 12 (Schedules of Non-Conforming Measures) of Chapter 8 (Trade in Services), 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 Malaysiaâs 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 Malaysiaâs commitments or obligations under Chapter 8 (Trade in Services) or other Chapters of this Agreement.
1. Sector: Land and real estate
Subsector:-
Obligations Concerned: National Treatment (Article 4) Market Access (Article 5) Most-Favoured-Nation Treatment (Article 9)
Description: Trade in Services
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 4) Market Access (Article 5) Most-Favoured-Nation Treatment (Article 9) Local Presence (Article 10)
Description: Trade in Services
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]
Companies Act 2016 [Act 777] Privatisation Master Plan Guidelines on Privatisation Bursa Listing Requirements
3. Sector: All sectors
Subsector:-
Obligations Concerned: National Treatment (Article 4) Market Access (Article 5) Most-Favoured-Nation Treatment (Article 9)
Description: Trade in Services
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: Mining and quarrying
Subsector: Oil and Gas
Obligations Concerned: National Treatment (Article 4) Market Access (Article 5) Most-Favoured-Nation Treatment (Article 9) Local Presence (Article 10)
Description: Trade in Services
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
5. Sector : All sectors
Subsector: -
Obligations Concerned : Most-Favoured-Nation Treatment (Article 9)
Description : Trade in Services
Malaysia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier or financial service supplier under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of the Second Protocol. (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 the Second Protocol.
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 the Second Protocol:
(a) Aviation matters;
(b) Maritime and Port;
(c) Broadcasting;
(d) Space Transportation;
(e) Fisheries; and
(f) Financial Services.
Existing Measures: -
6. Sector: All sectors
Subsector: -
Obligations Concerned: Most-Favoured-Nation Treatment (Article 9)
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 Malaysiaâs 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: -
7. Sector: Manufacturing Related Services
Subsector: Marketing and distribution of explosives, weapons, ammunitions, as well as_ military- related equipment or devices, and similar products