ASEAN - Australia - New Zealand FTA Second Protocol (2023)
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 Annex 1.
49. Sector: All sectors
Subsector: -
Obligations Concerned: National Treatment (Article 4)
Description: Trade in Services
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: -
APPENDIX . SPECIFIC COMMITMENTS FOR FINANCIAL SERVICES. MALAYSIA
1. This Appendix shall be read together with entry 43 in List B of Malaysiaâs Schedules in Annex 3 (Schedules of Reservation and Non-Conforming Measures for Services).
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 Article 1 (t) (Definitions) of Chapter 8 (Trade in Services);
(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.
Measures inconsistent with both Article 5 (Market Access) and Article 4 (National Treatment) of Chapter 8 (Trade in Services) 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 4 (National Treatment) of Chapter 8 (Trade in Services).
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 |
| 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 teferred to under market access. | |
| 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 per cent. (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 teferred to under market access. |
(9) Refers to the 13 wholly foreign-owned commercial banks specified in Malaysia's Schedule of Specific Commitments under GATS.
(10) Refers to the branches of foreign insurance companies specified in Malaysia's Schedule of Specific Commitments under GATS.
(11) Refers to the existing foreign shareholders specified in Malaysia's Schedule of Specific Commitments under GATS.
| I. 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. | |
| 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 teferred 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. |
(12) Means any non-bank for scheduled businesses as referred to in Malaysia's Schedule of Specific Commitments under GATS.
| 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 must be effected through authorised dealers and money and foreign exchange brokers incorporated 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. |
(13) Refers to the existing institutions specified in Malaysia's Schedule of Specific Commitments under GATS.
| 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the 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 4 (Schedules of Specific Commitments on the Movement of Natural Persons). For each representative office, three foreign nationals are 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 4 (Schedules of Specific Commitments on the 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. For stockbroking companies, unbound except as indicated in the Horizontal Commitments of the Schedule of Malaysia in Annex 4 (Schedules of Specific Commitments on the 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 teferred 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. | |
| 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. | |
| 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. (2) Reinsurance broking is permitted. 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. |
(14) Refers to the network of branches specified in Malaysia's Schedule of Specific Commitments under GATS.
(15) Refers to the network of branches specified in Malaysia's Schedule of Specific Commitments under GATS.
ANNEX 4. SCHEDULE OF SPECIFIC COMMITMENTS ON THE MOVEMENT OF NATURAL PERSONS
ANNEX 4. SCHEDULE OF SPECIFIC COMMITMENTS ON THE MOVEMENT OF NATURAL PERSONS. AUSTRALIA
1. This Schedule sets out Australia's commitments in accordance with Chapter 9 (Movement of Natural Persons). This Schedule and Chapter 9 (Movement of Natural Persons) comprise the entirety of Australia's commitments in respect of the temporary entry and temporary stay of natural persons.
2. The Schedules of other Parties shall not be used to interpret Australia's commitments or obligations under Chapter 9 (Movement of Natural Persons) or other Chapters of this Agreement.
| Description of Category | Conditions and Limitations (including length of stay) |
| A. Business Visitors | |
| Business visitors being natural persons seeking to travel to Australia for business purposes, whose remuneration and financial support for the duration of the visit must be derived from sources outside Australia and who must not engage in making direct sales to the general public or in supplying the services themselves. Business visitors comprise: | |
| (i) Service sellers, as business visitors being natural persons not based in Australia who are sales representatives of a service supplier and are seeking temporary entry for the purpose of negotiating for the sale of services or entering into agreements to sell services for that service supplier. | Temporary entry is for an initial stay of six months up to a maximum of 12 months. |
| (ii) Business visitors, being natural persons seeking to travel to Australia for the purpose of participating in business negotiations or meetings. | Temporary entry is for periods of stay up to a maximum of three months. |
| (iii) Business visitors, being natural persons who are seeking to travel to Australia for business purposes, including investment purposes. | Temporary entry is for periods of stay up to a maximum of three months. |
| (iv) Business visitors, being natural persons who are seeking entry for the purposes of negotiating the sale of goods where such negotiations do not involve direct sale to the general public. | Temporary entry is for periods of stay up to a maximum of three months. |
| B. Intra-Corporate Transferees | |
| (i) Executives and Senior Managers being natural persons who are employees of an enterprise of another Party operating lawfully and actively in Australia, and who will be responsible for the entire or a substantial part of the enterprise's operations in Australia, receiving general supervision or direction principally from higher level executives, the board of directors or stockholders of the enterprise, including directing the enterprise or a department or subdivision of it; supervising and controlling the work of other supervisory, professional or managerial employees; and having the authority to establish goals and policies of the department or subdivision of the enterprise. | Temporary entry and temporary stay of such natural persons is subject to employer sponsorship. Employer sponsorship requirements, including eligible occupations, may change from time to time. Full details of employer sponsorship requirements, including eligible occupations, are available on the website of the Australian govemment department responsible for immigration matters: http://www. homeaffairs.gov.au/ Temporary entry is for an initial period of stay of up to four years, with the possibility of further stay up to a maximum stay of 14 years. |
| (ii) Specialists being natural persons with advanced trade, technical or professional skills and experience who are employees of an enterprise of another Party operating lawfully and actively in Australia, who are assessed as having the necessary qualifications, skills and work experience accepted as meeting the domestic standard in Australia for their nominated occupation, and who have been employed by that employer for not less than two years immediately preceding the date of the application for temporary entry. A specialist may include members of a licensed profession. | Temporary entry and temporary stay of such natural persons is subject to employer sponsorship. Employer sponsorship requirements, including eligible occupations, may change from time to time. Full details of employer sponsorship requirements, including eligible occupations, are available on the website of the Australian govemment department responsible for immigration matters: http://www. homeaffairs.gov.au/ Temporary entry is for periods of stay up to two years, with the possibility of further stay. |
| c. Independent Executives | |
| Independent executives being natural persons whose work responsibilities match the descriptionset out below and who intend, or are responsible for, the establishment in Australia, of a new branch or representative office of an enterprise which has its head of operations in the territory of another Party and which has no other branch or representative office in Australia. Independent executives will be responsible for the entire or a substantial part of the enterpriseâs operations in Australia, receiving general supervision or direction principally from higher level executives, the board of directors or stockholders of the enterprise, including directing the enterprise or a department or subdivision of it; supervising and controlling the work of other supervisory, professional or managerial employees; and having the authority to establish goals and policies of the department or subdivision of the enterprise. | Temporary entry and temporary stay of such natural persons is subject to employer sponsorship. Employer sponsorship requirements, including eligible occupations, may change from time to time. Full details of employer sponsorship requirements, including eligible occupations, are available on the website of the Australian govemment department responsible for immigration matters: http://www. homeaffairs.gov.au/ Temporary entry is for periods of stay up to a maximum of two years. |
| D. Contractual Service Suppliers | |
| Contractual service suppliers (including Independent Professionals or Specialists) Contractual service suppliers being natural persons with trade, technical or professional skills and experience who are assessed as having the necessary qualifications, skills and work experience accepted as meeting the domestic standard in Australia for their nominated occupation, and who are: (i) employees of an enterprise of another Party that has concluded a contract for the supply of a service within Australia and that does not have a commercial presence within Australia; or (ii) engaged by an enterprise lawfully and actively operating in Australia in order to supply a service under a contract within Australia. | Temporary entry and temporary stay of such natural persons is subject to employer sponsorship. Employer sponsorship requirements, including eligible occupations, may change from time to time. Full details of employer sponsorship requirements, including eligible occupations, are available on the website of the Australian govemment department responsible for immigration matters: http://www. homeaffairs.gov.au/ Labour market testing may be required for some occupations, to the extent that this is not inconsistent with Australia's commitments under the WTO. Temporary entry is for periods of stay up to 12 months, with the possibility of further stay. |
| E. Spouses | |
| Spouses of temporary entrants covered by (B), (C) and (D) are accorded full working rights where the stay of those temporary entrants is 12 months or more | For such spouses, temporary entry and temporary stay is for the same period as for the temporary entrant. |
ANNEX 4. SCHEDULE OF SPECIFIC COMMITMENTS ON THE MOVEMENT OF NATURAL PERSONS. BRUNEI DARUSSALAM.
1. This Schedule sets out Brunei Darussalam's commitments under Chapter 9 (Movement of Natural Persons) in relation to the temporary entry and temporary stay of natural persons of another Party which apply only in relation to the categories of natural persons set out in the table of commitments below.
2. For the categories of natural persons set out in this Schedule, Brunei Darussalam specifies below terms, conditions, limitations and qualifications in relation to the temporary entry and temporary stay of natural persons of a Party in the territory of Brunei Darussalam.
3. Brunei Darussalam reserves the right to adopt or maintain any measure, condition or commitment in respect of requirements of requisite visa for temporary entry and temporary stay as provided under Article 5 (Schedules of Specific Commitments on the Movement of Natural Persons) of Chapter 9 (Movement of Natural Persons) for the categories of intra-corporate transferees as specified in the table of commitments below.
| Conditions and Limitations | Description of Category (including length of stay) |
| A. Intra-Corporate Transferees | |
| Definition: Executives, managers or specialists: (i) who are employees of a firm that provides services within Brunei Darussalam through a branch, subsidiary or affiliate established in Brunei Darussalam; and (ii) who have been in the prior employment of their firms outside Brunei Darussalam for a period of not less than one year immediately preceding the date of their application for admission and who are one of the following: Executives: Definition: Natural persons within an organisation who primarily direct the management of the organisation, exercise wide latitude in decision- making and receive only general supervision or direction from higher- level executives, the board of directors or stockholders of the business. Executives would not directly perform tasks related to the actual provision of the service or services of the organisation. Managers: Definition: Natural persons within an organisation who primarily direct the organisation, or a department of sub- division of the organisation, supervising and controlling the work of other supervisory, professional or managerial employees, who have the authority to hire and fire or commend hiring, firing or other personnel actions (such as promotion or leave authorisation), and exercise discretionary authority over day-to-day operations. This does not include first-line supervisors, unless the employees supervised are professionals, nor does it include employees who primarily perform tasks necessary for the provision of these services. Specialists: Definition: Naturals persons within an organisation who possess knowledge at an advance level of expertise and who possess priority knowledge of the organisationâs service, research equipment, techniques or management skills (Specialists may include members of licensed professions). | Entry for these intra-corporate transferees is limited to a three-year period that may be extended for up to two additional years for a total period not exceeding five years. Entry shall be granted subject to terms, conditions or limitations as prescribed under Brunei Darussalam's immigration laws and regulations. Entry shall only be granted for intra- corporate transferees supplying a service listed in Appendix A. |
APPENDIX A. SECTORAL SPECIFIC COMMITMENTS FOR INTRA-CORPORATE TRANSFEREES
| Sector or Subsector | Conditions and Limitations |
| Auditing Services; Architectural Services; Engineering Services; Integrated Engineering Services, which is only applicable to the following sectors: - for Transportation Infrastructure Tumkey Projects; - for Water Supply and Sanitation Works - Tumkey Projects; - for the Construction of Manufacturing - Tumkey Projects; and - for Other Tumkey Projects; Urban Planning and Landscape architectural services; Medical and Dental Services; Veterinary Services; Computer and Related Services; Research and Development Services; Rental or Leasing Services Relating to Aircraft without operators; Other Business Services; Courier Services; Telecommunication Services; Construction Work for Buildings; Construction Work for Civil Engineering; Assembly and Erection of Prefabricated Constructions; Installation Work; Building Completion and Finishing Work; Pre-erection work at Construction Site; Special Trade Construction; Renting Services related to Equipment for Construction or Demolition of Building or Civil Engineering Works with Operator; Educational Services; Environmental Services; Financial Services; Health Related and Social Services, except for Social Services; and Transportation Services. | In the case of architects: The licensed practicing architects should have recognised academic and professional qualifications and be registered as a "qualified person" with the Ministry of Development in Brunei Darussalam. For greater certainty, qualified persons or licensed architects are required to register if they have resided in Brunei Darussalam and practicing with a local licensed architect for a period of one year. |
ANNEX 4. SCHEDULE OF SPECIFIC COMMITMENTS ON THE MOVEMENT OF NATURAL PERSONS. CAMBODIA.
1. This Schedule sets out the commitments of Cambodia and the general conditions and limitations goveming those commitments in accordance with Article 5 (Schedules of Specific Commitments on the Movement of Natural Persons) of Chapter 9 (Movement of Natural Persons) in relation to the temporary entry and temporary stay of a natural person of another Party, which apply only in relation to the categories of natural persons set out in this Schedule.
2. Cambodia remains unbound in respect of the entry of natural persons of a Party into, or their temporary stay in, the territory of Cambodia in accordance with Chapter 9 (Movement of Natural Persons), except as set out in the following commitments.
3. For greater certainty, Cambodia reserves the right to adopt or maintain any measure in respect of requirement of requisite visa and the conditions attached to temporary entry and temporary stay under such a visa for each of the categories specified below.
4. In accordance with Article 5 (Schedules of Specific Commitments on the Movement of Natural Persons) of Chapter 9 (Movement of Natural Persons), for the categories of persons set out in this Schedule, Cambodia specifies below any terms, conditions, limitations or qualifications in relation to the supply of a service by a service supplier of another Party through the presence of natural persons of that other Party in the territory of Cambodia.
5. The commitments set out below shall apply to services sectors or subsectors specified in Cambodiaâs Schedule in Annex 2 (Schedules of Specific Commitments for Services), except Restaurants (CPC 642, 643) and International Transport under Maritime Services (Freight and Passengers).
6. With respect to Tourist Guides Services (CPC 7472), notwithstanding the commitments set out below, Cambodian nationality is required for Tourist Guides.
7. For greater certainty, in accordance with Article 9.6 (Most-Favoured-Nation Treatment) and Article 11.5 (Schedules of Specific Commitments) of Chapter 8 (Trade in Services), Cambodia shall not be obliged to make commitments under Article 9.1 (Most-Favoured-Nation Treatment) and Article 11.3 and 11.4 (Schedules of Specific Commitments) of Chapter 8 (Trade in Services).
| Categories of Natural Persons | General Conditions and Limitations, including the length of stay |
| A. Business Visitors | |
| Definition: Natural persons who: - enter Cambodia for the purposes of participating in business meetings, establishing business contacts including negotiations for the sale of services and/or other similar activities; - stay in Cambodia without receiving income from sources within Cambodia; and - do not engage in making direct sales to the general public or supplying services. | Entry visa for business visitors shall be valid for a period of 90 days for an initial stay of 30 days, which may be extended. |
| B. Persons Responsible for Setting up of a Commercial Establishment | |
| Definition: Natural Persons working in an executive or managerial position, receiving remuneration from a juridical person, as defined below, who are responsible for the setting up, in Cambodia, of a commercial presence of a_ service provider of a Member State, that will support employment of persons described in categories (i), (ii), and (iii) of the Intra-Corporate Transferees definitions. | The natural persons responsible for setting up of a commercial establishment are not subject to a maximum duration of stay. |
| C. Intra-Corporate Transferees (ICT) | |
| Definition: Natural persons who have been employed by a juridical person of another Member State for a period of not less than one year and who seek temporary entry to provide services through a branch, subsidiary or affiliate in Cambodia and who are: (i) Executives: without requiring compliance with labour market tests, natural persons within an organisation who primarily direct the management of the organisation, exercise wide latitude in decision- making, and receive only general supervision or direction from higher- level executives, the board of directors, or shareholders of the business. Executives would not directly perform tasks related to the actual supply of a service or services of the organisation; (ii) Managers: without requiring compliance with labour market tests, natural persons employed by a juridical person and who possess knowledge at an advanced level of expertise or proprietary knowledge of a juridical person product, service, research, equipment, techniques or management, and who primarily direct the organisation or a department of the organisation; supervise and control the work of other supervisory, professional or managerial employees; have the authority to hire and fire or recommend hiring, firing or other personnel actions; and exercise discretionary authority over day-to- day operations. They do not include first-line supervisors, unless the employees supervised are professionals, nor do they include employees who primarily perform tasks necessary for the supply of the service; or (iii) Specialists: Natural persons, within an organisation who possess knowledge at an advanced level of continued expertise and who possess proprietary knowledge of the organisation's services, research equipment, techniques or management. | Temporary residency and work permit are required for the natural persons in the categories defined under the Intra- Corporate Transferees. Such pennits are issued for two years and may be renewed annually up to maximum of five years in total. |
ANNEX 4. SCHEDULE OF SPECIFIC COMMITMENTS ON THE MOVEMENT OF NATURAL PERSONS. INDONESIA
1. Indonesia's commitments on categories of natural persons and its respective conditions and limitations for the temporary entry and temporary stay, including length of stay, are made in accordance with Article 5 (Schedules of Specific Commitments on the Movement of Natural Persons) of Chapter 9 (Movement of Natural Persons).
2. The Schedule below shall be interpreted in the light of Chapter 9 (Movement of Natural Persons). Natural persons of another Party that fall under the categories specified in the Horizontal Schedule are permitted to enter and stay in Indonesia subject to its applicable conditions and limitations.
3. Where natural persons of another Party in categories permitted to enter and stay with respect to sectors listed in Appendix B (Specific Commitments for The Presence of Natural Persons) of the Annex 3 (Schedule of Reservations and Non-Conforming Measures for Services of Indonesia), all conditions and limitations specified in each category of the Horizontal Schedule shall also apply, unless otherwise specified.
4. For greater certainty, Indonesia reserves the right to adopt or maintain any measures with respectto categories of natural persons other than those categories listed in this Schedule.
| Description of Category | Conditions and Limitations (including length of stay) |
| A. Business Visitor. | |
| Definition: A natural person staying in Indonesia for the purpose of participating in business meetings, business contacts including negotiations for the sales of services, or other similar activities including those who prepare for the establishment of a commercial presence in Indonesia, attend conferences or give lectures. Such persons must not acquire remuneration from within Indonesia, and must not engage in making direct sales or supplying services to the general public. | Entry and temporary stay are permitted for a period of 60 days, extendable to a maximum of 120 days. |
| B. Intra-Corporate Transferees | |
| Director. Definition: A natural person or a group of natural persons entrusted by the shareholders of aservices providing entity with the final overall control and direction of the organisation, and legally responsible to act on behalf of the organisation inside or outside of the court. Manager. Definition: A natural person within the organisation who primarily directs the organisation, department, or subdivision, and exercises supervisory and control functions over other supervisory, managerial, or professional staff; does not include first line supervisors unless employees supervised are professionals; does not include employees who primarily perform tasks necessary for the provision of the service. Technical Expert or Advisor. Definition: A natural person employed by a service supplier who possesses a standard of high or common (i) qualifications referring to a type of work or trade requiring specific technical knowledge or (ii) knowledge essential or propriety to the service, research equipment, techniques, or management. | Entry and temporary stay are permitted for up to two years and could be extended for a maximum two times subject to two years extension each time. Must be working in a sector listed in Appendix B (Specific Commitments for The Presence of Natural Persons) of the Annex 3 (Schedule of Reservations and Non-Conforming Measures for Services of Indonesia) that is not scheduled as "unbound", and must comply with the additional conditions and limitations set out therein. Any foreign natural persons supplying services are subject to charges levied by the Government. Any foreign natural persons employed in the territory of Indonesia must hold a valid working permit issued by the Ministry of Manpower. Economic needs test applies to managers and technical experts for all sectors unless specified otherwise. Human resources or personnel function must be performed by Indonesian nationals. |
ANNEX 4. SCHEDULE OF SPECIFIC COMMITMENTS ON THE MOVEMENT OF NATURAL PERSONS. LAO PDR
1. Lao PDR's commitments under Chapter 9 (Movement of Natural Persons), in relation to the temporary entry and temporary stay of natural persons of a Party into the territory of another Party, apply only in relation to the categories set out below.
2. In accordance with Article 5 (Schedules of Specific Commitments on the Movement of Natural Persons) of Chapter 9 (Movement of Natural Persons), for the categories of persons set out in this Schedule, Lao PDR specifies below any terms, conditions, limitations or qualifications in relation to the temporary entry and temporary stay of those natural persons into the territory of Lao PDR.
3. For all categories of natural persons listed in this Schedule, unless otherwise specified in the Sectoral Section, these horizontal commitments apply to all sectors/subsectors listed in this Schedule, in all cases:
(i) application for labour quota is required in accordance with Article 68 of Labour Law No.43/NA, Date 24 Dec 2013;
(ii) total number of skilled foreign natural persons (using physical labour) of any establishment shall not exceed 15 per cent of the total staff;
(iii) total number of skilled foreign natural persons (using intellectual labour) of any establishment shall not exceed 25 per cent of the total staff;
(iv) if there is a need to hire the number of skilled labour more than the regulation allows, as mentioned above, one should seek for specific consideration or approval from the government.
4. In accordance with applicable domestic laws and regulations and bilateral and multilateral agreements which Lao PDR is a signatory of, foreign skilled workers:
(i) shall obtain working permit from the Government of Lao PDR;
(ii) shall comply with Labour Law and Law on Immigration and Foreigner Management of the Lao PDR; and
(iii) shall comply with Law on Taxation, in terms of taxes and other financial obligations and other relevant regulations on other non-financial requirement.
| Description of Category | Conditions and Limitations (Including length of stay) |
| A. Business Visitors | |
| A natural person seeking to enter or stay in the territory of Lao PDR temporarily, whose remuneration and financial support for the duration of the visit is derived from outside of Lao PDR, (i) as a representative of a goods seller or service supplier, for the purpose of negotiating the sale of goods or supply of services or entering into agreements to sell goods or supply services for that goods seller or service supplier, where such negotiations do not involve direct sale of goods or supply of services to the general public; (ii) as an employee of a juridical person as defined in Category B below only, for the purpose of establishing an investment or setting up a commercial presence, for the juridical person in the territory of another Party; (iii) for the purpose of participating in business negotiations or meetings. | The temporary stay of business visitors is subject to a maximum duration of stay of 90 days. |
| B. Intra-Corporate Transferees | |
| Natural persons who have been employed by a juridical person of another Party outside the Lao PDR for a period of not less than one year immediately preceding the request for transfer to the Lao PDR, who seek temporary entry to provide services through commercial establishment of that juridical person in the Lao PDR, who cannot be substituted by Lao PDR nationals, and who fall within one of the following categories: (i) Executive: natural persons within an organisation who primarily direct the management of the organisation, exercise wide latitude in decision-making, and receive only general supervision or direction from higher-level executives, the board of directors, or shareholders of the business. Executives would not directly perform tasks related to the actual supply of a service or services of the organisation; and (ii) Manager: natural persons who possess knowledge at an advanced level of expertise or proprietary knowledge of a juridical entity product, service, research, equipment, techniques, or management, and who primarily direct the organisation or a department of the organisation; supervise and control the work of other supervisory, professional or managerial employees; have the authority to hire and fire or recommend hiring, firming or other personnel actions; and exercise discretionary authority over day-to- day operations. They do not include first-line supervisors, unless the employees supervised are professionals, nor do they include employees who primarily perform tasks necessary for the supply of the service; or (iii) Specialist: natural persons within an organisation who possess knowledge at an advanced level of continued expertise and who possess proprietary knowledge of the organisation's services, research equipment, techniques, or management and where there are shortages of Lao PDR nationals with requisite skills. | For the natural persons in the categories defined under intra-corporate transferees, temporary residency and work permit will be issued for one year which may be renewed every six months for up to three years as long as conditions indicated for each category are satisfied. |
APPENDIX A. SECTORAL SPECIFIC COMMITMENTS
1. For the purposes of this Appendix, the term âCPCâ means 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). Letters indicated against individual sectors or subsectors and numbers in brackets are references to the Services Sectoral Classification list (MTN.GNS/W/120 dated 10 July 1991).
2. Hotel and other lodging services (CPC 64110) and beverage serving services without entertainment (CPC 64310): No commitment, except that the following persons are permitted to enter and stay in Lao PDR for a period of up to six months, with provision for extension, subject to approval of the competent authority of the Government of Lao PDR: general manager, sales and marketing manager, operation manager, congress manager and tourism consultant.
3. Meal serving services with full restaurant services (CPC 64210) and travel agencies and tour operators services (part of CPC 7471): No commitment, except that the following persons are permitted to enter and stay in Lao PDR for a period of up to six months, with provision for extension, subject to approval of the competent authority of the Government of Lao PDR: general manager, sales and marketing manager, operation manager, congress manager and tourism consultant.
4. Lao PDR extends its commitments under Article 5 (Schedules of Specific Commitments on the Movement of Natural Persons) of Chapter 9 (Movement of Natural Persons) for the temporary entry and temporary stay of natural persons only for business visitors and intra-corporate transferees engaging in the following subsectors:
1. BUSINESS SERVICES
A. Professional Services
(a) Legal services, excluding:
- Participation in legal proceedings in the capacity of defenders or representatives of their clients before the courts of Lao PDR;
- Legal documentation and certification services of the laws of Lao PDR (part of CPC 861)
(b) Accounting, auditing and bookkeeping services (CPC 862)
(c) Taxation consulting services (part of CPC 863)
(d) Architectural services (CPC 8671)
(e) Engineering services (CPC 8672)
(f) Integrated engineering services (CPC 8673)
(g) Urban planning and landscape architectural services (CPC 8674)
B. Computer and Related Services
Computer and related services (CPC 84)
C. Research and Development Services
(a) R&D services on natural sciences and engineering (CPC 851)
(b) Research and experimental development services (CPC 852)
(c) Interdisciplinary R&D services (CPC 853)
E. Rental or Leasing Services without Operators
(d) Leasing or rental services concerning construction machinery and equipment without operator (CPC 83107)
F. Other Business Services
(a) Advertising services:
- Planning, creating and placement services of advertising (CPC 87120)
(b) Market research and public opinion polling services (CPC 864):
- Market research services (CPC 86401)
(c) Management consulting services (CPC 865)
(d) Services related to management consulting (CPC 866)
(e) Technical testing and analysis services (CPC 8676)
(h) Services incidental to mining (CPC 883+ 5115):
- Services incidental to mining (CPC 5115)
(m) Related scientific and technical consulting services (CPC 86751 and 86752 only)
(n) Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) (CPC 633+8861 -8866):
- Repair of energy equipment (part of CPC 88620)
(q) Packaging services (CPC 876)
(t) Other (CPC 8790): - Specialty design services (CPC 87907)
2. COMMUNICATION SERVICES
B. Courier services
Courier services (CPC 7512) consisting of express delivery services, except for the following services:
(a) The collection, transport, and delivery of domestic and cross-border addressed mail to Post Office (PO) boxes in the following categories:
(i) addressed letters weighing not more than 200 grams;
(ii) small items or packages weighing up to two kilograms;
(b) The collection, transport, and delivery to PO boxes of domestic and international postal parcels weighing up to 20 kilograms;
(c) The provision of PO boxes; and
(d) Issuing of postage stamps.
C. Telecommunication services
The following services (a-o) can be supplied only on a facilities basis, and for public use services:
Basic telecommunication services
(a) Voice telephone services (CPC 7521)
(b) Packet-switched data transmission services (CPC 7523**)
(c) Circuit-switched data transmission services (CPC 7523**)
(d) Telex services (CPC 7523**)
(e) Telegraph services (CPC 7522)
(f) Facsimile services (CPC 7521**+ 7529**)
(g) Private leased circuit services (CPC 7522**+7523**)
(o) Other:
- Terrestrial-based mobile phone services
Value-added telecommunication services
(h) Electronic-mail (CPC 7523**)
(i) Voice mail (CPC 7523**)
(j) Online information and data base retrieval (CPC 7523**)
(k) Electronic data interchange (EDI) (CPC 7523**)
(l) Enhanced or value-added facsimile services, including store and forward, store, and retrieve (CPC 7523**)
(m) Code and protocol conversion
(n) On-line information or data processing (including transaction processing) (CPC 843**)
(o) Other: - Public pay phone services (CPC 75211)
- Electronic message and information services (CPC 75232)
- Paging services (CPC 75291)
- Data and message transmission services (CPC 7523)
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES