I. INTRODUCTION
1. The purpose of this Guideline is to clarify the procedure on the acquisition of
properties.
II. APPLICATIONS
2. This Guideline shall apply to the following transactions:
2.1 All property acquisition, except for residential units, that requires approval of the Economic Planning Unit, Prime Minister’s Department as follows:
(a) direct acquisition of property valued at RM20 million and above, resulting in the dilution in the ownership of property held by Bumiputera interest and/or government agency; and
(b) indirect acquisition of property by other than Bumiputera interest through acquisition of shares, resulting in a change of control of the company owned by Bumiputera interest and/or government agency, having property more than 50 percent of its total assets, and the said property is valued more than RM20 million.
2.2 All property acquisition by foreign interest that do not require the approval of the Economic Planning Unit, Prime Minister’s Department but falls under the purview of the relevant Ministries and/or Government Departments as follows:
(a) acquisition of commercial unit valued at RM500,000 and above;
(b) acquisition of agricultural land valued at RM500,000 and above or at least five acres in area for the following purposes:
(i) to undertake agricultural activities on a commercial scale using modern or high technology; or
(ii) to undertake agro-tourism projects; or
(iii) to undertake agricultural or agro-based industrial activities for the production of goods for export.
(c) acquisition of industrial land valued at RM500,000 and above;
(d) acquisition of residential units valued at RM250,000 and above. The said minimum threshold will be increased to RM500,000 beginning 1 January 2010; and
(e) transfer of property to a foreigner based on family ties is only allowed among immediate family members.
III. CONDITIONS FOR ACQUISITION
3. Conditions for the acquisition of property as described in paragraphs 2.1 (a) and (b) are subject to equity and paid-up capital conditions as follows:
Equity Condition
3.1 Companies to have at least 30 percent Bumiputera interest shareholding;
Paid-Up Capital Conditions
3.2 Local company owned by local interest to have at least RM100,000 paidup capital; and
3.3 Local company owned by foreign interest to a have at least RM250,000 paid-up capital.
4. Acquisition of property provided for in paragraphs 2.2 (a), (b) and (c) are also subject to the condition that the said property must be registered under a locally
incorporated company.
IV. COMPLIANCE PERIOD OF THE CONDITIONS
5. For direct acquisition of property, the equity and paid-up capital conditions
imposed by the Economic Planning Unit, Prime Minister’s Department must be
complied with before the transfer of the property’s ownership.
6. For indirect acquisition of property, the equity and paid-up capital conditions
imposed by the Economic Planning Unit, Prime Minister’s Department must be
complied with within one (1) year after the issuance of written approval.
7. The conditions imposed on the acquisition of property in paragraph 2.2 must be
complied with and notified to the Economic Planning Unit, Prime Minister’s Department before the property is transferred.
8. Compliance of the equity and paid-up capital conditions must be notified to the
Economic Planning Unit, Prime Minister’s Department.
V. EXEMPTIONS
9. This Guideline SHALL NOT APPLY to transactions listed in Appendix I.
VI. RESTRICTIONS
10. Foreign interest is NOT ALLOWED to acquire:
10.1 Residential units valued less than RM250,000 per unit;
10.2 Properties other than residential units valued less than RM500,000 per unit;
10.3 Residential units under the category of low and low-medium cost as determined by the State Authority;
10.4 Properties built on Malay reserved land; and
10.5 Properties allocated to Bumiputera interest in any property development project as determined by the State Authority.
VII. PROCEDURES ON SUBMISSION OF APPLICATION
11. All applications must be submitted in accordance with the procedures described
in Appendix II.
12. Applicants are responsible for the accuracy of the information submitted.
VIII. DECISION ON APPLICATION
13. Decisions on all complete applications will be given within ten (10) working days.
IX. APPEAL
14. Applicants must submit a completed UPE R/2009 form.
15. All appeals pertaining to the decision of the Economic Planning Unit, Prime
Minister’s Department will be considered based on the merit of each case.
X. CORRESPONDENCE ADDRESS AND ENQUIRIES
16. All applications that require the approval of the Economic Planning Unit, Prime
Minister’s Department must be submitted to:
Economic Planning Unit,
Prime Minister’s Department,
Level –1, Block B5,
Federal Government Administrative Centre,
62502 Putrajaya, Malaysia.
17. Enquiries can be forwarded to the Economic Planning Unit, Prime Minister’s
Department at:
Tel. No. : 603-8872 3302, 8872 3294, 8872 3290
Fax No. : 603-8888 3917
18. This Guideline and the application forms are also available on the Economic
Planning Unit, Prime Minister’s Department’s website:
Website : http://www.epu.gov.my
XI. EFFECTIVE DATE
19. This Guideline is effective from 30 June 2009.
XII. REPEAL
20. With the issuance of this Guideline, the Guideline on the Acquisition of Properties by Local and Foreign Interests and Guideline on the Acquisition of Interests, Mergers and Take-Overs by Local and Foreign Interests dated 1 January 2008, is repealed.
by Economic Planning Unit, Prime Minister’s Department
