Yes, foreigners can invest in commercial property in Malaysia. This blog explains the rules, pricing thresholds, and what international investors need to know before buying.
Can Foreigners Invest in Malaysian Commercial Properties?
Malaysia has long been a favored destination for regional investors — and commercial property is one of the most accessible sectors for foreigners. From retail units to strata offices and even commercial land, foreign buyers are actively investing across key urban corridors like Kuala Lumpur, Johor Bahru, and Penang. But what are the rules? What should foreign buyers know before purchasing?
Yes, Foreigners Can Buy Commercial Property in Malaysia
Unlike residential and agricultural properties which have stricter controls, foreign buyers are legally allowed to purchase most commercial property types, provided they meet minimum investment thresholds and comply with state guidelines.
Types of Commercial Properties Foreigners Can Own
- Shop Lots & Retail Units – Especially in strata developments and mixed-use projects.
- Office Suites & Business Parks – Common in Kuala Lumpur, Bangsar South, Cyberjaya, and Iskandar Puteri.
- Commercial Land – For investment or redevelopment, subject to local approval.
- Hotel & Hospitality Assets – Available under company purchase or foreign ownership structures.
Minimum Purchase Price for Foreign Buyers
Malaysia’s foreign property ownership threshold depends on state regulations. For commercial properties:
- Kuala Lumpur: RM1 million minimum (may vary by type)
- Selangor: RM2 million for commercial strata; RM5 million for commercial land (some zones)
- Johor: RM1 million and above, with stricter zoning on residential
- Penang: RM1 million+ (island), varies for commercial vs landed
Always consult with your real estate agent or legal advisor as rules are subject to local councils and updates.
Can Foreigners Buy Under a Company Name?
Yes. Foreigners often buy commercial property via:
- A locally incorporated Sdn Bhd company
- A foreign-owned company registered in Malaysia (with the right approvals)
This approach may ease approvals and improve tax planning, especially for those planning to operate a business from the premises.
Benefits of Investing in Malaysian Commercial Properties
- No holding tax or inheritance tax
- Stable rental yields – Often 5%–8% for strategic locations
- Capital appreciation in growth corridors
- Freehold availability – Even for foreigners (in many states)
Things to Watch Out For
- Restrictions in Malay Reserved Zones or Bumiputera Quota developments
- Bank financing limitations (some banks may require higher margin)
- Legal due diligence on title, express condition, and zoning
Conclusion
Malaysia offers one of Southeast Asia’s most open commercial property markets to foreign investors — but it’s critical to work with the right professionals to navigate local requirements. With solid rental returns, long-term growth, and attractive entry points, Malaysia continues to be a high-potential destination for international commercial property buyers.
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