Wednesday, July 1, 2009

Property transactions no longer need FIC approval

ALL property transactions, including those between foreigners and non-Bumiputeras, will no longer require Foreign Investment Committee (FIC) approval, Prime Minister Datuk Seri Najib Tun Razak announced today.

The FIC approval will only be required for property transactions which involve a dilution of Bumiputera or government interest for properties valued at RM20 million and above, he said at the Invest Malaysia 2009 conference here.

For example, a dilution of Bumiputera interest refers specifically to the instance where a property currently majority held by Bumiputeras and as a result of a transaction ceases to be owned by a majority Bumiputera entity.

Transactions no longer requiring the FIC approval fall into two categories, with the first relating to any transactions involving sale by non-Bumiputera or foreign majority interest.

Secondly, any transactions involving purchase by Bumiputera-controlled entity and this will include a Bumiputera-owned company acquiring property from another Bumiputera-owned company.
This deregulation is expected to facilitate greater property transactions and investments, including acquisitions of commercial properties by foreign interest.

"The government believes that the easing of the regulation will significantly enhance Malaysia's value proposition as a place to do business and invest," said Najib, who is also the Finance Minister.

He said with the comprehensive easing of FIC guidelines at the firm level, the Economic Planning Unit will refocus its efforts towards coordinating and monitoring distributional policies at a macro level.

In this respect, the government remained committed towards enhancing economic participation by Bumiputeras, he added. - BERNAMA

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