Can Foreigners Buy Land in Malaysia? Full Guide for 2025
Malaysia offers exciting opportunities for foreign investors in the land sector — but it comes with regulations. While foreign buyers can legally acquire certain types of land, state policies, minimum thresholds, and land usage categories must be understood. In this guide, we’ll break down the legal framework and investor requirements for land ownership in Malaysia in 2025.
Can Foreigners Legally Own Land in Malaysia?
Yes, foreigners can buy land in Malaysia, but it is subject to specific conditions set by the federal and state governments. Generally, foreign buyers are allowed to purchase:
- Commercial land
- Industrial land
- Residential land (in some states, with limitations)
However, agricultural land is typically restricted unless special exemptions are granted by the state authority.
Minimum Purchase Thresholds by State (2025)
The required minimum purchase price for land depends on the property type and its location. Here's a snapshot:
- Selangor: RM5 million (industrial/commercial land), RM2 million (strata)
- Kuala Lumpur: RM1 million minimum for any land type
- Johor: RM2 million+ for land; stricter controls for residential/agriculture
- Penang: RM3 million on the island, RM1 million on the mainland
Note: These thresholds are subject to change and vary by zoning, title, and land use.
Types of Land Foreigners Can Invest In
- Freehold or Leasehold Industrial Land – Factories, logistics, or warehousing development
- Commercial Land – Retail, office tower, or mixed-use development potential
- Approved Residential Land – For foreigner-eligible projects with price thresholds
How to Buy Land as a Foreigner in Malaysia
- Identify a land parcel with correct zoning and land use
- Make an offer and sign an SPA (Sale & Purchase Agreement)
- Apply for Foreign Investment Committee (FIC) or state approval
- Pay stamp duties and legal fees
- Obtain title transfer registration
Can Land Be Purchased Under a Company?
Yes. Many foreign investors set up a local or foreign-owned Sdn Bhd company in Malaysia to purchase and hold land. This can simplify regulatory approvals and offer tax advantages if structured correctly.
Important Restrictions
- Land in Malay Reserved Areas is strictly prohibited
- Low-cost or affordable housing zones are off-limits
- Agricultural land is heavily restricted without state exemption
Conclusion
Malaysia remains one of Southeast Asia’s most welcoming countries for foreign investors in land and property — provided you comply with local laws. With strong infrastructure growth and clear ownership structures, land investment here can offer high capital appreciation and future development potential.
