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FIC Approval No Longer Needed For Property
Transactions
30/06/09 Bernama
KUALA LUMPUR, June 30 (Bernama) -- 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 Tuesday.
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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