Government policies that maintain a business environment with opportunities for growth and profits have made Malaysia an attractive manufacturing and export base in the region. The private sector in Malaysia has become partners with the public sector in achieving the nation’s development objectives.

A major factor that has attracted investors to Malaysia is the government’s commitment to maintain a business environment that provides companies with the opportunities for growth and profits. This commitment is seen in the government’s constant efforts to obtain feedback from the business community through channels of consultation such as regular government-private sector dialogues. These allow the various business communities to air their views and to contribute towards the formulation of government policies which concern them.

Liberal Equity Policy

Since June 2003, foreign investors could hold 100% of the equity in all investments in new projects, as well as investments in expansion/diversification projects by existing companies irrespective of the level of exports and without excluding any product or activity.

Malaysian Bill of Guarantee (BoG)

The grant of MSC Malaysia Status entitles qualified entities to a set of incentives, rights and privileges from the Government of Malaysia (Government), namely the MSC Malaysia Bill of Guarantees (BoGs). The BoGs reflects the Government’s intention to provide an environment in MSC Malaysia that is conducive to the development of MSC Malaysia Status entities. The Incentives, rights and privileges granted pursuant to the BoGs are subject to requirements under relevant laws and regulations.

In addition, entitlement to the BoGs are conditional upon compliance of MSC Malaysia Status entities, with such terms and conditions as may be imposed by the Government and/or the Multimedia Development Corporation (MDeC), as the organisation mandated by the Government to coordinate, promote and develop the Information and Communications Technology (ICT) industry and selected services in MSC Malaysia and Malaysia.

While the Government will reasonably exercise all authority and power towards providing the relevant incentives, rights and privileges under the BoGs, the actual provision will be dependent upon a range of factors and parties (both public and private), and can be affected by circumstances that are not within the control of the Government.

The BoGs are as follows:

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