EPU

Economic Planning Unit (EPU) of Prime Minister Department (2010) provides guideline on the acquisition of property in Malaysia by foreign investors. The current guideline take effect from 1 January 2010.

A) Purchase of residents property

• Foreign investor can only purchase resident property value above RM500,000 (EPU 10.1)
• The above acquisition does not required the approval of EPU ( EPU 2.3)
• A state consent may be required (eg. Jadual 18) subject to the conditions of individual land title (EPU 2.3). Generally, a freehold property resident property does not require a state consent.

B) Purchase of Commercial Land and Industrial Land

• The purchase of commercial land value above RM 500,000 (eg. shop lot, office lot and retail lot) and the purchase of industrial land value above RM 500,000 (e.g. factory or factory lot).
• The above properties acquisitions do not require the approval of EPU
• However, the approval of the respective government ministry and/or agency may be required.
• A state consent may be required (eg.Jarual 18) subject to the condition of individual land title (EPU 2.2 (a) and (b))
• The above property transaction need to be registered in the name of a company incorporated (eg. Sdn Bhd or Bhd) in Malaysia (EPU 4).

C) Purchase of Agriculture Land

• The purchase of agriculture land value above RM 500,000 or with a minimum land area of 5 acre and above for the following purposes (i) for commercial agriculture activity using high and modern technology; (ii) for agro tourism activity; or (iii) for agriculture activity with export products.
• The above properties acquisitions do not require the approval of EPU
• However, the approval of the respective government ministry and/or agency may be required.
• A state consent may be required (eg.Jarual 18) subject to the condition of individual land title (EPU 2.2 (c))
• The above property transaction need to be registered in the name of a company incorporated (eg. Sdn Bhd or Bhd) in Malaysia (EPU 4).

D)Transferring of Property to close relative who are foreigners

• The close relative includes, husband & wife, grand parents, parents, brother & sister, and adopted children registered with the national registration office. Generally, a proof of birth certificate or other relevant documents may be sufficient.
• There is no restriction in respect of value of property to be transferred (eg. the property transfer may be valued below RM 500,000)
• The properties transfer includes all categories of properties
• The above transferring of property does not require the approval of EPU
• However, approval of the respective government ministry and/or agency may be required
• A state consent may be required (eg. Jarual 18) subject to the condition of individual land title
• The above transferring of property can be registered in an individual name who are foregners

E)Transaction Involving dilution of Bumiputra interests and Government interest in property above RM20 million

• The EPU approval is required for direct purchase of property above RM20 million
• The EPU approval is required for purchase indirectly through shares in a company where the property value consists of more than 50% of the total value of company assets which value (property) more than RM 20 million.